European Parliament Library

Surging Investment and Declining Aid :, Evaluating Debt Sustainability in Rwanda, John Clark JR, Birgir Arnason

Rwanda is a unique case among its Sub-Saharan African peers in that it has already undergone a large scaling-up of public investment. The Rwandan government has made clear its desire to lower its reliance on foreign aid while still maintaining high public investment levels. We use the model of public investment, growth, and debt sustainability in Buffie et al. (2012) to evaluate the macroeconomic consequences of a possible scaling-down of investment in Rwanda. Using the model, we can gauge the consequences of different financing mechanisms and investment efficiency levels on the economy. We find that with some commercial borrowing and a modest tax adjustment, the authorities may be able to retain their high investment spending while still reducing their reliance on foreign aid
Table Of Contents
Cover; Contents; I. Introduction; II. Background on Rwanda and the Need for Public Investment; III. Features of the Model and Calibration to Rwanda; A. The Model; B. Calibration to Rwanda; Tables; Table 1: Model Calibration for Baseline Scenarios; IV. Simulations; A. Baseline Scenario: Declining Grants, Declining Investment; Figures; Figure 1: Baseline Scenario (Declining Investment, Declining Grants); Figure 2: Public Investment Buildup Financed with an Unconstrained Tax Adjustment; B. Public Investment Buildup Financed with an Unconstrained Tax Adjustment
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (24 p.)
Specific Material Designation
Form Of Item

Library Locations

  • EP Library Brussels

    60 rue Wiertz, Brussels, B-1047, BE
  • EP Library Strasbourg

    7 Place Adrien Zeller, Allée du Printemps, Strasbourg, F-67070, FR
  • EP Library Luxembourg

    Rue du Fort Thüngen, Luxembourg, L-1313, LU