The role of supply and use/input output tables in the perspective analysis of economic development of Rwanda

4.2. Availability of goods and services due to SUT improvement

Obviously, as the SUT improves and that the GDP increases, Rwandans are likely to possess more and better goods and services (after all that is the SUT model to economic development measures). On average, like the GDP of Rwanda is increasing, Rwandans tend to enjoy larger, better constructed, and more comfortable homes, higher quality food and clothing, a greater variety of entertainment and cultural opportunities, better access to transportation and travel, better communications and sanitation, and other advantages.

Through 10 years ago, Rwandans have made tremendous sacrifices and taken great risks to secure a high standard of living themselves and their families. In fact this initiative is viewed in SUT structure year by year and improvement of satellite accounts data which have ameliorated Rwanda's economic development indicators such as HDI, Life expectancy, people living in good hygienic conditions.

GROSS DOMESTIC PRODUCT BY KIND OF ACTIVITY CURRENT PRICES (in Billion Frw)
YEARS	GDP	Agriculture	Industry	Services	Adjustments
1999	607	227	88	257	34
2000	676	251	92	298	35
2001	742	277	105	317	42
2002	797	282	11	352	53
2003	993	380	127	421	65
2004	1206	465	167	497	77
2005	1440	553	202	596	89
2006	1716	660	236	720	100
2007	2046	729	285	912	119
2008	2579	834	382	1198	164
2009	2992	1012	430	1365	185

GDP trend projection in 10 years beyond the period of the study shows that GDP Current Prices will increase continually.

Beyond an abundance of consumer goods, the increase of GDP brings other basic advantages. Those advantages include some important indicators of well-being, including life expectancy, reduce in infant and child mortality rates, number of doctors, measures of nutrition and education opportunity , all those factors are captured in satellites accounts « education account, Health account, Environmental account» and compiled with GDP from SUT.

GDP of Rwanda is related to economic well-being. One may conclude from the list of important factors omitted from the official figures that GDP is useless as a measure of income welfare. But as explained above GDP has a closer relationship with Socio-Economic Well-being of Population.

GROSS DOMESTIC PRODUCT BY KIND OF ACTIVITY AT CONTANT 2006 PRICES (In Billion Frw)
YEARS	GDP	Agriculture	Industry	Services	Adjustments
1999	983	447	130	363	64
2000	1066	480	132	405	69
2001	1156	523	149	432	75
2002	1308	611	160	482	87
2003	1337	592	167	515	85
2004	1437	603	193	568	87
2005	1571	642	211	636	93
2006	1716	660	236	720	100
2007	1849	677	258	809	105
2008	2064	721	297	929	118
2009	2187	776	301	982	128

GDP trend projection in 10 years beyond the period of the study shows that GDP Constant 2006 Prices will increase continually.

Clearly, in evaluating the effects a proposed economic policy, considering only the likely effects on GDP is not sufficient. Planer must also ask whether the policy will affect aspect of economic well-being that is not captured in GDP. Environmental regulations may reduce the production of some products as wood, fish, and pottery for example, consequences decrease of GDP; but that factor is not sufficient basis on which to decide whether such regulations are good or bad. The right way to decide that question is to apply cost benefit principle.

Although looking at the effects of proposed policy on GDP is not a good enough basis on which to evaluate a policy, GDP per capita in Rwanda does not tend to be positively associated with many things people value, including a high material standard of living, better health and expectancy, and better education.

Those components show that SUT indicators are improved when they are combined with other indicators from satellite accounts and all both provide efficient indicators to measure economic development of Rwanda, by noting that SUT is the causal model.