A.

Factor conditions :
+ Rwanda had a pleasant climate with an average daily temperature of 70 degrees Fahrenheit
with two rainy seasons and two dry seasons.
-Rwanda's population was 10.0 million in 2009. With 420 people per square kilometer, it
was the second most densely populated country in Africa, The capital and largest city,
+ Rwanda's civil war devastated the country's society and its economy. In 1994, the
economy shrunk by 50%, inflation was 64%, and per capita income fell to $143
-Rwanda had a gross domestic product (GDP) of roughly $5.1 billion in 2009. With an
estimated GDP per capita of $1, 069.7 adjusted for purchasing power parity (PPP),
Rwanda remained a poor country

B. Demand conditions :
+ Rwanda quickly became a single-party state with a highly centralized and
authoritarian administration under the control of Hutu elite from south-central
Rwanda. France became Rwanda's most important foreign partner and its largest
creditor and arms supplier
- In 1985, there was a collapse in the tin market, Rwanda's second-largest foreign-
exchange earner.
+ Churches came to be responsible for providing all education in Rwanda, with
financing provided by the govemment

C. Related and supporting industries

+ Commercial agricultural production had been dominated by coffee, tea, pyrethrum, and
bananas. The coun try's mineral resources were modest, including small amounts of tin,
tungsten, columbo-tantalite (coltan), gold, and sapphires. Large natural-gas reserves were
present underneath Lake Kivu near the DRC border.
+ Aid also financed reforestation and land reclamation, and agricultural productivity
increased. High world prices for coffee, tea, and tin, the three core Rwandan export
products, created rising wealth

D. Related and supporting industries

+ The Forum of Political Organizations was established as a forum to discuss policy and resolve conflict
within and between parties. Rwanda's president was elected directly.
+ the government undertook a structural- adjustment program with the assistance of
the International Monetary Fund (IMF) and the World Bank that brought $216
million in pledges of new aid. Despite strong domestic opposition, the currency was
devalued, leading to sharp price increases.
+ Habyarimana's economic strategy was based on import substitution and industrialization to
self· manufactured goods to neighboring countries. Heavy export taxes were set on coffee
to raise. revenue. Rigid price and foreign-exchange controls were instituted
+ Reforms were implemented to improve public administration, budgeting and
financial management
+ Efforts were made to stimulate private- sector development through a privatization
program and the establishment of the Private Sector Federation to provide support
and advocacy for the business community. Wage and price controls were largely
dismantled.
-In 1997, several steps were taken to give the central bank greater independence , and a
cap of 11 % was imposed on government borrowing from the central bank