Identifier
Created
Classification
Origin
06KIGALI1163
2006-12-03 09:59:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Kigali
Cable title:  

SUCCESSFUL DEVELOPMENT PARTNERS MEETING IN RWANDA

Tags:  PREL EAID RW 
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INFO RUEHJB/AMEMBASSY BUJUMBURA 1591
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UNCLAS SECTION 01 OF 05 KIGALI 001163 

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PREL EAID RW
SUBJECT: SUCCESSFUL DEVELOPMENT PARTNERS MEETING IN RWANDA


UNCLAS SECTION 01 OF 05 KIGALI 001163

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PREL EAID RW
SUBJECT: SUCCESSFUL DEVELOPMENT PARTNERS MEETING IN RWANDA



1. (SBU) Summary. The GOR convened its sixth annual
Development Partners Meeting in Kigali on November 22 to 24.
Sessions included presentations and discussions on such
topics as economic growth, private sector development,
agriculture, decentralization, aid policy, and governance.
Donor governments made formal statements on the GOR
presentations, the IMF offered its own critique of the state
of the economy, and a final communique (attached) summarized
the participants' conclusions. During the discussion on
governance, the government detailed its plans to further
improve the judiciary, citizen participation in decentralized
sectors and districts, and human rights. Donors pledged
additional funds for the GOR's education sector development.
President Kagame made interesting remarks on the need for the
process to be "owned" by the Rwandan people and government,
while working closely with donors. End summary.


2. (SBU) The three day event consisted of extensive
presentation by ministers and senior civil servants on the
following topics: the 2006 performance of the Rwandan
economy, planning for economic growth and poverty reduction,
private sector development and long term investments,
agriculture and economic growth, decentralization, governance
and the rule of law, and implementation of aid policy. Each
session also included open debate on the topics following the
power-point presentations. Minister of Finance James Musoni
opened the sessions, and chaired several following
discussions. On governance issues, Local Government Minister
Protais Musoni offered opening thoughts, followed by Justice
Minister Karugarama on the legal sector, Gacaca Executive
Secretary Mukantaganzwa on gacaca court proceedings, and

SIPDIS
Special Advisor Gatare on NEPAD findings in the African Peer
Review Process.


3. (SBU) The sessions opened with remarks from President
Kagame, who asked that donors place special emphasis on
"policy ownership" by the recipient country, rather than
policy prescriptions from foreign capitals. He recalled
Rwanda's history, particularly the tragic events of the
genocide, and asked donors to accept that Rwanda had made
considerable progress since 1994. Speaking tartly at times,
and noting donor worries over political space, governance,
and pluralism, he appealed for donors to give Rwanda "some

breathing space, time to build our future, to develop and
enjoy the benefits of development like our development
partners."


4. (SBU) In response, donor governments offered formal
comments, summarized in the communique. For example, donors
expressed satisfaction with Rwanda's strong growth rate, and
its successful efforts at macro-economic stability,
administrative reform, and financial management. Partners
expressed concern over the availability of sufficient energy
supplies to sustain industry and agriculture, the risk that
excessive population growth posed to future growth, and the
need to scale up development aid while maintaining absorption
capacity. Donors recommitted themselves to the Paris
Declaration, regarding alignment of donor programs with host
government priorities to promote in-country development and
ownership. Toward the end of the sessions, the UK
representative announced that donors, praising the GOR's new
education sector development plan, had pledged 27 million
dollars for the current year and 44 million for the next year
under the G-8's Fast Track Education Initiative.
.

5. (SBU) In separate statements, the UNDP and IMF Resident
Representatives called for positive enabling environments for
the private sector, careful management of debt sustainability
in financing development, and productive use of aid while
preserving macroeconomic stability. Each urged continued
progress on decentralization, education and health, and good
governance.


6. (SBU) Comment. Although somewhat overshadowed by the
Rwandan rupture of relations with France (reftel)),the
Development Partner's meeting took place in an atmosphere of
frank discussion and extensive review of Rwanda's recent
performance and its prospects for the future. Donors are
genuinely impressed with Rwanda's stewardship of development
resources, while mindful of the significant challenges Rwanda
faces in its effort to transform a poor rural society into a
nation and economy better equipped for the globalized
marketplace. End comment.


7. (U) Text of Communique:

KIGALI 00001163 002 OF 005




Sixth Annual Government of Rwanda and Development Partners
Meeting
FINAL COMMUNIQUE


1. At the invitation of the Government of the Republic of
Rwanda, the sixth Annual Meeting
of the Government and its Development Partners was held from
22nd to 23rd of
November, 2006 in Kigali. His Excellency Paul KAGAME, The
President of the Republic
of Rwanda, opened the conference. Mr James MUSONI, Minister
of Finance and
Economic Planning, presided over the proceedings, assisted by
Development Partners
as co-chairs.


2. Representatives of the following governments participated
in the meeting: Austria,
Belgium, Burundi, Canada, China, Egypt, France, Germany, Holy
See, Italy, Japan,
Kenya, Kuwait (KFAED),Luxembourg, Netherlands, Norway,
Russian Federation, Saudi
Arabia, South Africa, Sweden, Switzerland, Uganda, United
Kingdom, United States.
The following organisations also participated in the Meeting:
African Capacity Building
Fund, African Development Bank, European Commission, European
Investment Bank,
FAO, Global Fund, IFAD, IMF, International Trade Centre,
OFID, UNAIDS, UNDP,
UNECA, UNFPA, UNHCR, UNICEF, UNIFEM, WFP, WHO, World Bank.
Representatives from International and Local NGOs, the
Private Sector and Civil Society
were also in attendance.


3. The theme of this year,s conference was "Long-Term
Investments for Economic Growth
and Poverty Reduction". The agenda of the Meeting covered an
assessment of
Rwanda,s economic performance in 2006; planning for economic
growth and poverty
reduction; progress in the energy sector; science, technology
and research; private
sector development; planning for financial sector
development, and agriculture; progress
in decentralisation reforms; issues of governance, rule of
law and reconciliation; and
challenges and opportunities in terms of the volume and
effectiveness of foreign aid to
Rwanda.


4. In his keynote speech, His Excellency the President of the
Republic of Rwanda drew
particular attention to the need for increased space for
policy ownership on the part of
the Rwandan people in the definition and implementation of
Rwanda,s development
vision. He spoke of an emerging global consensus on national
ownership of
development activities, challenging participants to turn this
into and achievable plan, and
calling upon development partners to further strengthen
genuine relationships based on
open and honest dialogue with the Government of Rwanda. His
Excellency the
President of the Republic expressed his appreciation for the
support provided by
Development Partners in relation to his Government,s
development programme.


5. The UN Resident Coordinator delivered a statement on
behalf of Development Partners,
which commended the progress that Rwanda has made in
delivering on its development
agenda, reaffirming Partners, continued support to Rwanda,
while recognising that many
challenges remained.



6. Over the course of the Meeting, participants noted
significant achievements since
last year in the areas of Aid Policy; reforms in Public
Financial Management;

KIGALI 00001163 003 OF 005


administrative reforms; export strategy; planning for
financial sector development; and
the maintenance of macro-economic stability. Challenges
identified included poverty
alleviation, gender, good governance and service delivery.


7. Participants noted with satisfaction the strong growth of
the Rwandan economy
since last year,s Meeting, particularly the growth in
agriculture and service sectors, and
the increase and diversification of exports. The need to make
business in Rwanda more
competitive was highlighted, with interventions here
including investments in
infrastructure and human capital, the development of an
appropriate legal framework,
and a further deepening of the financial sector.


8. Participants agreed that high rates of population growth
are compromising
economic development efforts. The need for a better
understanding of the underlying
drivers of population growth was discussed, and participants
agreed that education and
family planning would play a key role in managing future
population growth. They
recognised the need for well thought through solutions to
address the problem in the
short- to medium-term.


9. The Government presented its progress in the elaboration
of the Economic
Development and Poverty Reduction Strategy (EDPRS),and its
single planning
tool, the Long Term Investment Framework. Participants
commended the
accomplishments to date in the development of the EDPRS, and
acknowledged the high
degree of national ownership and participation throughout its
elaboration. It was agreed
that the EDPRS will guide development interventions in the
medium term. Emerging
priorities in the EDPRS were discussed, focussing on
productivity enhancing
interventions, and the need for continued progress in the
social sectors. Participants
welcomed and supported strongly the adoption of these
co-priorities as Rwanda seeks
to attain its Vision 2020 objectives. Participants also
welcomed the Government,s
reiteration of its commitment to macroeconomic stability and
fiscal discipline.


10. Whilst acknowledging the progress made over the last
year, participants noted
that the availability and affordability of energy remains a
significant barrier to the
development of industry, agricultural transformation, and the
provision of high
quality services to the Rwandan citizen. Participants noted
with satisfaction the
advances made in planning for the energy sector, which
highlighting significant resource
gaps both now and in the future. Participants highlighted the
need to develop
hydroelectric power in the national and regional context, and
to diversify energy
generation in a cost effective manner. Ongoing work on the
Kivu methane facility should
go some way to achieving this.


11. Participants recognised the strategic role being played
by the private sector in
employment creation and enhancing growth and poverty
reduction. They
recognised the need to remove barriers to doing business, to
improve the business
environment, and the need to improve Rwanda,s image abroad.
They went on to note
with satisfaction the work being undertaken in partnership by
the Government of
Rwanda and private sector organisations in creating a
favourable environment for the
development of existing and new businesses. The Government
presented its Financial

KIGALI 00001163 004 OF 005


Sector Development Plan, which envisages a diversification of
financial instruments, and
Development Partners committed to support the implementation
of this Plan.



12. Participants recognized the importance of capacity
building in science, technology
and research, and in all sectors of the economy, for long
term sustained economic
growth and poverty reduction.


13. Participants noted the importance of agriculture to the
Rwandan economy.
Successful transformation of the agricultural sector is
crucial to pro-poor growth in
Rwanda, to increasing households incomes, to reducing
vulnerability to climatic shocks
and changes in the global market for agricultural
commodities. Progress in planning and
delivery in the agricultural sector was noted, and the need
for further support to ensure
the successful implementation of the Strategic Plan for
Agricultural Transformation was
highlighted. However, there was consensus that continued
growth in industry and
services remains an important priority.


14. Participants commended ongoing developments in
decentralisation reforms.
Fiscal decentralisation provides for a strong framework
within which districts can deliver
high quality public services to the Rwandan citizen.
Decentralisation strengthens
accountability and transparency, and brings decision-making
and economic
empowerment closer to the Rwandan people. Development
Partners committed their
continued support to strengthening the implementation of
Rwanda,s programme for
decentralisation, in the context of Rwanda,s
Decentralisation Strategic Framework.


15. Development Partners commended the good progress made in
governance and
entrenching the rule of law, voice and accountability, and
the eradication of
corruption. Participants reaffirmed their belief that
continued progress in these areas is
a prerequisite to Rwanda,s economic development. Development
Partners recognised
the existence of clear programmes aimed at continued
improvement of this area and, as
suggested by His Excellency the President of the Republic of
Rwanda, agreed that good
governance should be discussed openly with Partners.
Participants agreed to the
development of a joint governance framework that will guide
mid-term good governance
programmes in Rwanda.


16. The Government presented the outcomes of its recent
assessment under the
NEPAD African Peer Review Mechanism (APRM). Development
Partners
commended the Government of Rwanda for being one of only
three countries to have
completed the Peer Review, and reiterated their strong
support to NEPAD, and the
APRM in particular. Participants noted that the report,s
recommendations would be
useful to Rwanda in continuing its good governance agenda.
Participants acknowledged
the Government,s decision to mainstream the APRM Plan of
Action into the forthcoming
EDPRS, noting that the two are consistent with one another.
Partners committed to
support its implementation through existing channels of
cooperation.


17. Participants noted the progress made in the sector of
rule of law and
reconciliation, and committed their continued support to
efforts in national unity
and reconciliation. Rwandan-owned initiatives in this area,

KIGALI 00001163 005 OF 005


particularly the development
of the Gacaca process as a means of accelerating the
resolution of cases that cannot be
met in the conventional justice system, were praised for
their innovative work in
responding to Rwanda,s specific needs in this area.


18. Following the endorsement of its Aid Policy by the
Cabinet this year, the
Government presented its plans for the implementation of this
Aid Policy, whilst
fulfilling the commitments it entered into with its donors
under the Paris Declaration on
Aid Effectiveness. While expressing their full support,
donors recognised that
improvements in governance, procurement, monitoring and
evaluation are essential for
scaling up and its ultimate success. Participants commended
the Government for its
strong leadership and the participatory process adopted in
the elaboration of this Policy.
Ongoing reforms in public financial management were noted
with satisfaction, and it was
agreed that further improvements were essential.


19. The donor community pledged to support the Government,s
plans for the
implementation of aid effectiveness initiatives. In a joint
statement presented by
Rwanda,s donors, praise was accorded to the participatory
process in which the Aid
Policy was elaborated, and the aims underlying it. Donors
agreed to support the
Government,s plans in this area by providing assistance in a
manner consistent with the
Government,s priorities.


20. Participants agreed that, in the medium-term, significant
scaling up in
development aid is necessary if Rwanda is to meet the targets
set by the Millennium
Declaration, and its long-term objectives set out in its
Vision 2020. Participants noted the
efforts being made to cost the forthcoming EDPRS, and it is
anticipated that this costing
exercise will provide a clearer indication of financing gaps
in the medium term.


21. Participants agreed that for most of their proposals to
be implemented effectively, the
issue of capacities needs to be attended to.


22. Participants discussed the importance of ensuring that
macroeconomic stability is
maintained in the face of future increases in aid flows. At
the same time, participants
agreed on the need to ensure that Rwanda,s increased
investments do not compromise
debt sustainability.


23. Participants concluded by acknowledging the strong
convergence of views between the
Government of Rwanda and its Development Partners during the
open and frank
discussions. The importance of continued and strengthened
partnership was highlighted,
with the Government reiterating its gratitude to its Partners
for their continued support to
the development of Rwanda. Development Partners expressed
satisfaction with the
quality of partnership that exists between them and the
Government of Rwanda. They
conveyed their gratitude to the Government for organising
this important forum for
dialogue, and for its warm hospitality.

Adopted on 23rd November 2006
InterContinental Hotel, KIGALI

End text.



ARIETTI