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Impact of foreign aid on rwanda's socio-economic development as guided by Millennium Development Goal (MDG) 1 “Eradication of extreme poverty and hunger”:case of Gasabo District

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par Claire Marie Michele MUKARUTESI
Women's university in Africa - Master of science in development studies degree (MDS) 2011
  

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1.2 Statement of the Problem

Poverty has been regarded as a social problem that has significantly affected a magnitude of people across cultures. To this end, heated debates have been generated with regards the possible and viable ways of eradicating the problem. However, foreign aid has been proposed as an ultimate solution that can in turn propel the developmental proper shaft in the socio-economic horizons. The problem has thus arisen in the legitimacy aspects with regards the efficacy of foreign aid in enhancing, facilitating or propelling as well as promoting socio-economic development particularly through the eradication of extreme poverty and hunger to zero levels.

Rwanda has an increase in the depth of poverty in its several areas and a deterioration of living conditions at the bottom of the income distribution. As a consequence of rising inequality, Rwanda could have exhausted its ability to reduce poverty rates through economic growth alone. Growing inequality is not only an obstacle to poverty reduction and sustainable economic growth; it could also undermine social peace. The problem would thus be stated: Does foreign

aid have an impact in fighting SRY7TVIQ5EKuCI7TIEC5 FRCs7117CtlyESTRPRt7ISZEC5aVIRFIR-

economic development?

1.3 Research Questions

This study seeks to answer or address the following key research questions:

1.3.1 What is the effect of poverty and hunger on Rwanda?s socio-economic development?

1.3.2 Does foreign aid enhance Rwanda?s socio-economic development?

1.3.3 Do citizens of Rwanda appreciate the introduction of MDGs as guiding principles for poverty alleviation?

1.3.4 How effective are Rwanda?s strategic policies on poverty reduction?

1.3.5 How sustainable is foreign-donor assistance towards the reduction of

poverty and hunger; and how do the beneficiaries evaluate the impact of such foreign aid on the local and national socio-economic development?

1.4 Objectives of the Study

The study seeks to:

1.4.1 Assess the extent of poverty in Rwanda in general and in Gasabo District in particular following the adoption of MDGs.

1.4.2 Examine the causal relationship between foreign aid and Rwanda?s socioeconomic development.

1.4.3 Evaluate the effectiveness of Rwanda?s poverty reduction policies and

strategies against its adoption of MDGs framework through foreign aid. 1.4.4 Establish strategies for both donor community and Rwanda for sustainable

development through poverty reduction.

1.5 Assumptions of the Study

The study is guided by the following assumptions:

1.5.1 Poverty and hunger has a number of effects on Rwanda? socio economic development

1.5.2 Citizen of Rwanda appreciate MDGs at different levels

1.5.3 Foreign aid might enhance Rwanda socio-economic development

1.5.4 If effective policies and legislatives are introduced to combat poverty,
Rwanda?s socio-economic development will be attained

1.5.5 If foreign aid assists Rwanda in its poverty program alleviation, there will be sustainable development.

1.5.6 The overall assumption is therefore that: The Superpowers (US and its allies) and financial institutions give aid with inhibiting conditional ties that still determine the nature of development in LDCs such as Rwanda.

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