Chapter V: CONCLUSION AND
RECOMMENDATIONS
5.1. Conclusion
Supply and Use Tables can play important role in the economy
of Rwanda as an integrated framework of the National Accounts. With existing
policies to improve SNA, Rwanda's System of Accounts tend to be fully
Consistent with the world-wide System of National Accounts (SNA 1993) but it
suffers from loss of information to implement SAM as stated in Chapter IV
because Income Approaches to compute to compile SUT and to compute GDP is not
applied in Rwanda. However, Rwanda's System of Accounts is focused more on the
circumstances and data needed in Rwanda and Supply and Use System remain unused
due to its complexity.
The Input-Output Framework basing on the information from
Supply and Use Framework consists of three types of tables: Supply Tables, Use
Tables, and Input-Output Tables.
In Chapter IV it was proved that in Rwanda rather than using
Supply and Use Tables linear model was adopted in production and consumption
models. It only reflects total Domestic Production, Import, Export, Savings,
and Consumption behaviours in Rwanda.
Supply and Use Tables serve not only Statistical but also
analytical purpose, especially when they are transformed into Symmetric
Input-Output Tables. Basing on the analysis done in Chapter IV, Input and
Output Framework is not available, and therefore IO-T can not be available, but
through the analysis of GDP the example of GFCF shows for each sector the use
of Investment which were necessary to produce the primary and secondary output,
the analysis shows also how the education system was improved in the period of
1999 to 2009 due to the investment done in this sector, and investment injected
in health system justify the reduction of morbidity and mortality in Rwanda
during this period as result there has been increase in Life Expectance.
Along this period, it was proved that the use of Linkage
Technique in Rwanda can play an important role in development. The linkage can
be applied though many policies of the Government of Rwanda through which
households can be disaggregated into income group.
Apart from Linkage technique, the importance of Dummy
technique in economic development was proved when analysis management of land,
Land productivity and land protection. In order to manage land the government
of Rwanda has implemented different policies such as Land Consolidation,
IMIDUGUDU, and other policies for managing swamps.
Also the role of activity specification technique was
emphasized when trying to analyze the socio-economic welfare during the period
of 1999 to 2009 whereby the government of Rwanda has implemented different
Program such as PRSP (Poverty Reduction Strategic Paper) in 2000 and EDPRS
(Economic Development and Poverty Reduction Strategy) in 2005 and this
Specification Technique is used to estimate Input-Output Sector expenditures
directed toward influencing the quality of Urban and Rural life in Rwanda.
This study proved how the estimation of quality of life lead
to the estimation of social welfare in Rwanda through GDP per Capita, Literacy,
and Life expectancy. This study shows how Literacy rate has improved due to the
important investment injected in education sector and the education for all
Policy, and also Life expectancy has been improved from 1999 to 2009 due to the
reinforcement of health sector and this is explained by the reduction of
Morbidity and Mortality in Rwanda during this period.
From Supply and Use Tables, Symmetric Input-Output Tables to
the Estimation of Quality of Life and Social Welfare, Economic Development can
be measured. This study proved this, and showed that the best and rich measure
of Welfare for Economic Development is the Human Development Index, and the
analysis shows how the improvement in HDI was from 1980 to 2009 (0.357 to
0.477). Even though there has been an improvement, Rwanda is still classified
into Low Developed Countries (0.50-0.00 HDI) and in Low Income Countries (500$
Per Capita Income), but the forecast states that Rwanda will reach the group of
Medium Developed Countries (0.80-0.50 HDI) in the following 30 years.
The results of this study showed that the first hypothesis was
not verified, because SUT/I-O's significant role in the perspective analysis of
economic development of Rwanda is not recognized. This means that, even though
the role of SUT and IO-T in the perspective analysis of economic development
was proved, SUT and IO-T are not available.
The second hypothesis was also not verified because as SUT and
IO-T are not available, their role in economic analysis and prevision, decision
taking, and policy making for a sustained economic development of Rwanda are
not applicable.
The reason why I have combined SUT/I-O Analysis with the
Economic Development of Rwanda was to highlight the role of SUT/I-O analysis in
economic development and to show that they have a key role to play in the
perspective analysis of Economic Development of Rwanda if they are compiled.
Much analysis of economic development of Rwanda needs to be based on economy
wide basis (e.g. development planning) and this suggests the need for
macro-economic approach; most macro-models however are so highly aggregated
that they must perforce assume a degree of resource mobility which is just not
present in Rwanda. The only answer seems to be SUT/input-output analysis, which
is macro in terms of its coverage and get «micro» in terms of its
approach.
The interface of SUT and economic development is one of the
most exciting and most challenging fields of System of National Accounting. It
involves relevant aspects such as planning, budgeting, auditing, taxation,
finance, programming, capital formation, project appraisal, and yet others
which pertain the overall aim of economic development at both micro and macro
levels.
This study was designed to highlight the role of SUT and its
wider range of responsibilities imposed on accountant in developing countries
like Rwanda, and how it demands a high level of intellectual calibre, knowledge
and capacity, and determination so that the accountant responds to the needs of
economic development process of Rwanda.
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