Doing Business 2010

Doing Business 2010 has been released today, and the oft-cited rankings are now publicly available.

The report contains several interesting findings, perhaps the most important of which is that Rwanda has been ranked as the top business reformer - a first for a sub-Saharan African economy (Mauritius retained its top ranking as the African country in which it is easiest to do business). This ranking is based on the number and impact of reforms introduced in the year - through May 2009 - a summary of which may be found here (scroll down for table). The report also finds that:

Two regions were particularly active this year: Eastern Europe and Central Asia and the Middle East and North Africa. In Eastern Europe and Central Asia, 26 of the region’s 27 economies reformed business regulation in at least one area covered by Doing Business. Governments in the Middle East and North Africa are reforming at a similar rate, with 17 of 19 reforming in 2008/09. In both cases, competition among neighbors helped inspire widespread reform.

An overview of the report may be found here; report highlights here; and the complete ranking of all 183 economies here.

Chinese agricultural techniques and African development: a hope for better things to come

China has been having a bit of a rough go here on China in Africa this week. First it's found to be de-industrializing other developing nations, then peddling fake drugs in Africa, its media outlets producing questionable maps, and today victimizing African labourers. Not at all a very rosy picture! There is good news, however: a report commissioned by the African Agricultural Technology Foundation (AATF) and prepared by my colleagues at the Centre for Chinese Studies at the University of Stellenbosch, finds that the very technologies employed in China's agricultural boom might be appropriate - and indeed highly beneficial - in the African context.

The report - "The Relevance of Chinese Agricultural Technologies for African Smallholder Farmers: Agricultural Technology Research in China" - finds that of particular benefit are water-saving technologies and soil-related techniques such as tilage and planting methods. Evidently, small-scale African farmers face similar challenges as do their Chinese counterparts, and there is much in the way of technology and knowledge exchange that might benefit the former. According to the report, Chinese experts are especially focused on seed and rice technologies, particularly in Benin, Cameroon, Congo, Ethiopia, Liberia, Mozambique, Rwanda, South Africa, Sudan, Tanzania, Togo, Uganda, Zambia and Zimbabwe. Rapid advances in seed technology and new plant varieties have been a major factor in China's crop production increases, and it is believed that similar advancements may facilitate an agricultural boom across Africa.

In Mozambique, a 52 hectare agricultural demonstration centre is planned west of Maputo, at Boane. According to the report, crops will be planted this year to test whether the Mozambican climate is suited for various varieties of seeds, including maize, rice, vegetables and fruit. In Kampala, Uganda, Chinese contractors are building an aquaculture demonstration centre. The centre is envisaged to generate knowledge for fish farmers, fishers and researchers in the country.

The agricultural sector employs approximately 65% of Africa's population, and is the largest private sector on the continent. Poor agricultural planning, weak land tenure policies, and a low capacity to adapt to changing circumstances and markets have, however, generally hindered the sector from becoming a productive, profitable business. While the Chinese are incapable of ameliorating all these troubles, they may do well to provide the relevant technologies to farmers and place Africa's agricultural sector back on track to success. Fingers crossed.

Noteworthy….

Bansky, the British street artist, has left his mark on the African continent. This Flickr page has a wonderful collection of his images which highlight Western perceptions of Africa

China is now an empire in denial, according to the FT's Gideon Rachman

Kindles, iPods and the end of cultural snobbery? Oh dear, this can't possibly be good.

Starbucks has opened an office in Kigali, Rwanda, and is set to partner with local coffee farmers. I wonder if this means that I can get my sugar-free vanilla soy latté fix next time I'm in Rwanda?

According to this projection, China will be the second most populous country in the world by 2050 (it is currently first), followed by the U.S. and Nigeria. India will be the foremost populous, while the Congo will be ninth-most.

A new take on the bottom (three) billion

Three billion individuals. That's the approximate number of people that would be scrapped if we were to eliminate the bottom 5% global GDP contributors, the vast majority of which are found in either Africa or Southeast Asia. 81 countries comprise this bottom 5%. Together they represent half of the 192 UN member states and nearly 43% of the world population.

What would the world look like without them? Via Strange Maps we are offered a glimpse:

In reverse order of magnitude the 81 countries are:

Zimbabwe, Burundi, DR Congo, Liberia, Guinea-Bissau, Eritrea, Malawi, Ethiopia, Sierra Leone, Niger, Afghanistan, Togo, Guinea, Uganda, Madagascar, the Central African Republic, Nepal, Myanmar (Burma), Rwanda, Mozambique, East Timor, the Gambia, Bangladesh, Tanzania, Burkina Faso, Mali, Lesotho, Ghana, Haiti, Tajikistan, the Comoros, Cambodia, Laos, Benin, Kenya, Chad, the Solomon Islands, Kyrgyzstan, India, Nicaragua, Uzbekistan, Vietnam, Mauritania, Pakistan, Senegal, Sao Tome and Principe, Ivory Coast, Zambia, the Yemen, Cameroon, Djibouti, Papua New Guinea, Kiribati, Nigeria, Guyana, the Sudan, Bolivia, Moldova, Honduras, the Philippines, Sri Lanka, Mongolia, Bhutan, Egypt, Vanuatu, Tonga, Paraguay, Morocco, Syria, Swaziland, Samoa, Guatemala, Georgia, the Congo, Iraq, Armenia, Jordan, Cape Verde, the Maldives, Fiji and Namibia.

It is equally curious to note which countries are not included among the bottom 5%. Any surprises?

Noteworthy….

Tsvangirai on what it's like to share power with Mugabe, from Foreign Policy

Keep your friends close and... export your enemies? Zvika Krieger on the newly appointed U.S. Ambassador to China, Jon Hunstman Jr., and the fate of the GOP, from The New Republic

Rwanda's national English paper, The New Times, slams Human Rights Watch (and Kenneth Roth specifically) for their "insensitivity" towards the people of Rwanda... and general meddling (the HRW piece in question can be found here)

A brilliant and fascinating piece in today's Guardian on the evolving nature of the Chinese Communist Party and changing face of modern-day China

Rwanda: mHealth pioneer?

Rwanda has been in the news quite a bit lately, and appears to in many ways be emerging as a model for African development (ironic, isn't it?). Indeed, Kagame's mantra of entrepreneurship over aid has seemingly lead to a significant upturn in the country's development, and Rwanda appears to be rising.

Writing in the UN-Vodafone Foundation Technology Partnership blog (the Foundation is the leader in the mHealth field), Claire Thwaites reports that Rwanda is on the leading edge of the mHealth frontier:

Supported by the Rwandan Ministry of Health, Voxiva, and the Treatment Research and AIDS Centre (TRAC), TRACnet is an electronic records system that can be uploaded to mobile phones. In Masaka it is being used to track and record the distribution of anti-retroviral medications, ensure drug adherence, electronically create and submit patient reports, and access the most up-to-date information about HIV/AIDS care and treatment.

[...] In Masaka, I was guided through the health clinic by the local program manager, Hareuhana Diaedonne. During the tour, Hareuhana spoke at length about the simple but significant benefits that have been brought about by the introduction of mobile phones to the local healthcare system. Using TRACnet, he reported, data entry that used to take months to record and aggregate now can be collected in just 5 minutes.

A booming mHealth industry may not only be the ticket for improved public healthcare in Rwanda, but may also be the perfect opportunity to attract more investments into the country, in turn continuing to fuel Rwanda's rise.

President Kagame on where foreign aid goes wrong

Paul Kagame, the President of Rwanda, has an interesting editorial on aid in today's FT. Somewhat to my surprise, certain elements of his argument seem to resonate with Bill Easterly's analysis in The White Man's Burden (which I happen to be re-reading at the moment), and Dambisa Moyo's book, Dead Aid, which he outrightly cites:

Dambisa Moyo’s controversial book, Dead Aid, has given us an accurate evaluation of the aid culture today. The cycle of aid and poverty is durable: as long as poor nations are focused on receiving aid they will not work to improve their economies. Some of Ms Moyo’s prescriptions, such as ending all aid within five years, are aggressive. But I always thought this was the discussion we should be having: when to end aid and how best to end it.

... Do not get me wrong. We appreciate support from the outside, but it should be support for what we intend to achieve ourselves. No one should pretend that they care about our nations more than we do; or assume that they know what is good for us better than we do ourselves. They should, in fact, respect us for wanting to decide our own fate. [...] Entrepreneurship is the surest way for a nation to meet these goals...

These are quite bold statements for the President to be making, no less so given that Rwanda is one of the world's most aid dependent countries, with foreign assistance averaging US$55 per capita - approximately 23% of the country's GDP. Regardless, Kagame's push for entrepreneurship over aid appears the correct one (perhaps this is why we see Rwanda rising?). While not mutually exclusive, of course, if long-term economic growth and development are the objectives, the former should indubitably trump the latter.

Noteworthy….

A new alliance between Rwanda and Congo is drawing many former Hutu guerrillas home to live at peace among their former enemies. 

Freedom is not always good and the Chinese need to be controlled, says actor Jackie Chan. Is he being racist/cynical/horrible [insert accusatory adjective here], or did he merely articulate what many (wealthy) Chinese feel?

New research released by the London Councils suggests there are not enough places in London's schools for new pupils. Third world (education) problems are evidently not confined to the third world alone.

The biggest electoral show on earth is now under way in India. Despite the country's growing role on the international stage, foreign policy appears to play only a marginal role in the decisions of nearly 714 million voters.

Rwanda rising

In January of this year, Oxford's Paul Collier and Jean-Louis Warnholz published an article in the Harvard Business Review entitled "Now's the Time to Invest in Africa." The title is quite self-explanatory: they argue that over the last several years trends have emerged throughout the continent to present a prime investment climate. This includes political stability, international and economic policies, and business profits and growth.

This is certainly true, and perhaps more surprisingly, is true especially of Rwanda - a country which commemorated 15 years since the genocide a mere week ago. In those fifteen years, however, much has changed and Rwanda is quickly moving towards establishing itself as one of Africa's most investment-friendly havens. Among those placing their faith in Rwanda are the CEOs of Starbucks and Costco, Google CEO Eric Schmidt, and former British PM Tony Blair. For them and others, Rwanda is regarded as the most undervalued 'stock' on the continent, and presents a unique opportunity to bring innovation to a nation.

Rwandan president Kagame has been credited with marshaling much of the country's turnaround. Indeed, though problems of civil liberties loom large, the economy is booming. Kagame's strategy is quite a curious one, closely mirroring Chinese strategies, rooted as they are in guanxi networks:

Kagame's strategy relies on wealthy and powerful friends to lure private investment, train a new generation of managers, build a globally competitive economy, and wean the country off foreign aid. Even as troubling questions remain about Kagame's involvement in the region's ongoing conflicts, this unpaid, business-savvy team is marketing the brand called Rwanda.

The spirit behind 'brand Rwanda' is a distinctly entrepreneurial one, and resonates across all industrial sectors. Most prominently, perhaps, is the emphasis being placed on the country's information and communications-technology sector, which is pivotal to Rwanda's ambitious development strategy and has been rocketing young entrepreneurs into the domestic and global marketplace. 

Fifteen years on, Rwanda is seemingly moving in the right direction. If the country is any example, it may be time for the West to invest in Africa after all. 

[HT: Elizabeth Palchik Allen]

Human rights through your local church

At least that's the idea in Rwanda, where President Paul Kagame is seeking to mobilize Rwandan pastors to protect human rights and pursue forgiveness. Kagame has even teamed up with Rick Warren of Saddleback Church to develop a five-to-seven year project aimed at attaining precisely these objectives. Via Opinio Juris Roger Alford writes:

I have spent the last two weeks working with a team of Saddleback lawyers who are implementing this impressive program. Having met with Supreme Court and High Court judges, Ministry of Justice officials, and over sixty of the top Rwandan pastors in the country, I am convinced that in a country where 82 percent of the population are Christians, there is no better vehicle for educating the general populace about human rights than the local church. At the invitation of President Kagame, Saddleback Church has been sending hundreds of volunteer professionals–doctors, nurses, lawyers, psychologists, etc.–to work with local churches to address Rwanda’s most pressing problems.

On the legal front, top government officials have identified three central problems: intra-family land grabbing, domestic violence, and sexual crimes. To address those problems, lawyers from Saddleback Church have drafted a human rights manual for local pastors they can use to educate their members about those issues. They have started with the issue of land grabbing, and future manuals will be developed that focus on domestic violence and sexual crimes.

[...] It is an impressive project. The result will be a manual that will be sent to thousands of Rwandan pastors with information on the rights of women and children and information on legal resources for families who struggle with land grabbing. Prevention is the principal objective, but for those who are in the midst of a land grabbing dispute, the manual encourages local pastors to work with government legal aid clinics, the National University of Rwanda, and the Christian human rights NGO International Justice Mission to intervene.

Time Magazine also ran a story on this back in 2005 which can be found here.

Governance in Rwanda

A colleague of mine forwarded to me a fascinating report which assess the quality of governance in Rwanda. Rwanda: Joint Governance Assessment Report covers three broad subject areas: (1) Ruling Justly; (2) Government Effectiveness; and (3) Corporate Governance. It considers lessons learned, including whether a joint assessment approach to governance provides a model for other developing countries, the nature of trade-offs, and the picture emerging of governance in Rwanda. It's rather lengthy, but certainly worth the read.