Chapter V: SUMMARY,
RECOMMENDATIONS, AND CONCLUSION
5.1. Summary
The purpose of this study was to analyze the role of SUT/I-O
Tables in economic development of Rwanda.
SUT/I-O Tables were understood (for the purpose of this study)
as a system information that produces and supplies adequate, reliable, and
timely information used for planning, programming, and financing economic
activities. On the other hand, economic development implies the process of
capital accumulation of funds from several sources and its use to transform the
economy from one whose growth is small to one which is a significant
self-sustained rate of increase is permanent long run feature.
The study found that SUT/I-O Tables in Rwanda as developing
country can serve the purpose of setting short-run and long-run range planning,
cost determination, taxation system, operational control, perform advanced
analyses, and provision of basic information for decision-making, accumulation
of capital formation, national planning, price control, planning and
programming economic development.
But the lack of professional accountants in national
accounting constrains Rwanda entities to introduce and use SUT/I-O information
in the process of economic development. Thus the role of SUT in the process of
economic development has not considered with attention.
The analysis shows that the economic environment of Rwanda has
been recovering since 1999 by some structural projects such as RSSP and EDPRS
in the program of Vision 2020.
However, to maintain this progress towards economic
development, the researcher proposed to promote skilled personnel including
accountants and other economic planners in order to design plans and programs
that aim at enhancing the economy. In addition to this; social, commercial and
credit conditions should be accessible for farmers. In addition Supply and use
identity serves as a basis for various interconnection with satellite accounts
such as labour statistics, linkage with physical flows (land use, energy),
linkage with other physical flows related to environmental issues (emission of
CO2, waste, sewage) and other form of satellite accounts system for tourism,
transport, health, and education.
5.2. Recommendations
Rwanda National Accountants have to make an effort and
introduce the income approach to compute GDP, because this approach could help
in Social Accounting Matrix designing.
The use of SUT and SAM should allow to evaluate the relative
burden of taxation across households types and should also allow to consider
how best to use taxation and transfers system to alleviate poverty. Through
this, the government should collect taxes and spends the funds on public
projects and on transfers to poor segments of the population.
In Rwanda the youth occupies an important portion of the total
population. Even though, policy should focus not only on youth's opportunities
but also on their capabilities and second chances. This will increase the
productivity capacity of Rwanda, transformation initiative which also will
increase value added on goods and services which are domestically produced for
final consumption or for export.
The government of Rwanda should make the services work. Making
services work requires changing the institutions relationship among key
sectors.
Rwanda's economic growth «a major determinant of human
development outcomes» would need to be substantially faster than it has
been in last 10 years to make dramatic improvements of economic development of
Rwanda.
The government of Rwanda should build blocks of economic
growth, human capital, empowerment, and social protection. The blocks are
mutually dependent. And these blocks are all captured in SUT/I-O tables through
salaries as remittances of human capital, empowerment and social protection
through investment and economic growth through GDP.
SUT/I-O Tables should be used to forecast and predict the
development of Rwanda. Basing on data in SUT/I-O tables it is possible to
visualize the behaviour of SUT/I-O Tables in previous years. SUT/I-O Tables
Should also be used to foster balance of payment by improving investment for
promoting export.
In Rwanda environmental protection activities should be
carried out by all sectors. They should be concentrated, however in three
sectors which sell protection services: a) Government, b) Trade and transport
and c) other services which provide private waste disposal services,
environmental consulting and recycling.
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