Is Rwanda faking economic data?

This is from ROAPE:

This blogpost aims to explore the question of inflation in Rwanda, which has emerged as the last remaining issue required to resolve the disagreement about Rwanda’s poverty statistics. Using Consumer Price Index (CPI) price data, the National Institute of Statistics of Rwanda (NISR) (2016) and the World Bank (2018) claim that poverty decreased by 6 percentage points from 45% between 2010/11 and 2013/14, and then by a further 1 percentage point between 2013/14 and 2017/18 (NISR 2018).

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Fig: extreme poverty rates accounting for inflation

However, blogs posted on roape.net (see the series, Poverty and Development in Rwanda on the website) have shown that the price data contained in the Integrated Household Living Conditions Survey or Enquête Intégrale sur les Conditions de Vie des ménages (EICV) survey itself, as well as in the separate ESOKO dataset, indicate a much higher inflation rate over this period, resulting in a sharp increase in poverty over the same period.

… This finding provides the first direct evidence of statistical manipulation as it means that NISR reported results that corresponded to a 4.2-4.7% inflation rate between 2011 and 2014, instead of the 13.8% inflation that it claims to have used.

You can read the whole post here.

The World Bank, which has repeatedly endorsed the figures coming out of Kigali, responded with this:

The key issue of Rwanda poverty measurement between 2010/11 and 2013/14 is that the consumer price index (CPI) and the NISR price index, called the Cost of Living Indicator (COLI), do not seem to be consistent. The national CPI shows that the inflation rate between 2010/11 and 2013/14 is 23%. NISR’s COLI uses the same CPI data, and the results show Kigali’s inflation rate is very similar to the national CPI trend, but other regions show very different trends. Further, the national average of COLIs show only around 5 percent for the same period, although there is no clear theory to guarantee that the national average of COLIs and the national CPI need to be consistent.

 Is NISR’s approach flawed?

A working paper by Fatima and Yoshida (2018) found NISR’s 2016 approach – the latest official methodology – to be technically sound, but the inconsistency between CPI and COLI needs further research. The working paper, “Revisiting the Poverty Trend in Rwanda: 2010/11 to 2013/14,” is publicly available. NISR and World Bank teams are initiating a new joint research program, which will start in May 2019.

Is there any evidence that NISR manipulated poverty estimates?

No. NISR made all survey data and questionnaire as well as full documentation of their poverty measurement methodology freely available to anyone on their website. NISR has been fully open to any questions and requests from the World Bank team. Indeed, NISR welcomed technical views on their methodology and expressed strong interest in benefiting from global best practices. We have not found any clear sign of errors or manipulations.

The dispute appears to be over price indices. While I would not put it past an autocratic regime like Kagame’s to fake data, I also think that the Bank is taking on a lot of reputation risk for standing with NISR. I look forward to the outcome of the Bank’s joint research program with NISR.

A potential silver lining in all of this is that NISR will emerge as a more independent outfit (relative to politicians) that is guided by methodologically-sound approaches to making the country legible to its citizens and rulers.

 

Is Kagame succeeding at nation-building?

This is from a paper that is forthcoming in the Journal of Political Economy:

Can a government in an ethnically divided, conflict-ridden society help bridge the ethnic divide?

…. This paper examines the role of propaganda as a tool of nation-building in Rwanda – a country in which Hutu extremists massacred more than 70% of the minority Tutsi population in 1994 in one of the worst genocides in recorded history. Critics of the government’s program of post-genocide nation-building (e.g. Thomson (2011a)), have noted how difficult it is to assess whether progress in ethnic reconciliation is cosmetic or real. In large part, this is because, under President Kagame, Rwanda is a quasi-autocracy that controls the media and tries to manage the narrative on reconciliation. In fact, according to a recent report on Rwanda in the New York Times: “Mr. Kagame has created a nation that is orderly but repressive…Against this backdrop, it is difficult to gauge sentiment about the effectiveness of reconciliation efforts.”

We exploit variation in exposure to the government’s radio propaganda due to the mountainous topography of Rwanda. Results of lab-in-the-field experiments show that individuals exposed to government propaganda have lower salience of ethnicity, increased inter-ethnic trust and show more willingness to interact face-to-face with members of another ethnic group. Our results suggest that the observed improvement in inter-ethnic behavior is not cosmetic, and reflects a deeper change in inter- ethnic attitudes. The findings provide some of the first quantitative evidence that the salience of ethnic identity can be manipulated by governments.

Taken together the evidence suggests that exposure to government radio leads to higher inter-ethnic trust and cooperation as well as lower ethnic salience.

Recall that the use of broadcast media — especially by Radio Television Libre des Mille Collineswas critical for mobilization that resulted in the Rwandan genocide.

The questions raised by the paper are a reminder that is in the long run, ethnic heterogeneity is endogenous to stateness and state capacity.

See, for example, the famous case of France.

Finally, Rwanda is still a personalist autocracy that is allergic to political freedoms and is a serial abuser of human rights. Whatever economic or socio-political developments Paul Kagame achieves while in office are at risk of unraveling as long as the entire political system remains organized around one mortal man.

 

Kenya trade fact of the day

This is from the prospectus issued by the Kenyan Treasury ahead of its $2b eurobond issue in late February.

Africa is the largest market for Kenya’s exports, accounting for 40.7 per cent. of total exports in 2016, and 37.7 per cent. in the nine months ended 30 September 2017. The Common Market for Eastern and Southern Africa (“COMESA”) remained the dominant destination of exports, accounting for approximately 72.5 per cent. of the total exports to Africa and 30 per cent. of total exports in 2016.

The European Union continues to be Kenya’s second largest export market, accounting for 21.0 per cent. of total exports in 2016 and 21.6 per cent. in the nine months ended 30 September 2017. Exports to the European Union declined by 3.7 per cent. in 2016, with exports from the United Kingdom and Germany, two of the top three destinations of Kenya’s exports within the European Union, declining by 7.6 per cent. and 5.2 per cent., respectively, in the same period. In addition, a large portion of foreign tourists visiting Kenya are from Italy, Germany, the United States and the United Kingdom, which accounted for a combined 38.2 per cent. of departing tourists in 2016.

A decline in demand for exports to Kenya’s major trading partners, such as the European Union or COMESA countries, or a decline in tourism receipts, could have a material adverse impact on Kenya’s balance of payments and economy.

Over the last five years intra-Africa trade as a share of total trade in the region has risen from less than 12% to about 18%. With the implementation of the African Continental Free Trade Area this figure will jump to over 25%, and will likely grow faster over the next four decades as the African population explodes to over 2 billion people.

Read the while thing here.

Rwanda’s Kagame on the Social Construction of Ethnicity

This is from an interesting interview with the FT:

During the interview, Mr Kagame says it matters little whether there are real physical differences between Hutus and Tutsis or whether these were arbitrary distinctions codified by race-obsessed imperialists. “We are trying to reconcile our society and talk people out of this nonsense of division,” he says. “Some are short, others are tall, others are thin, others are stocky. But we are all human beings. Can we not live together and happily within one border?” Mr Kagame has taken a DNA test that, he says, reveals him to be of particularly complex genetic mix. The implication, he says, is that he, the ultimate symbol of Tutsi authority, has some Hutu in his genetic make-up.

The transcript is available here. Read the whole thing.

Also, the average Rwandese lives a full six years longer than the average African.

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Ultimately, the sustainability of Kagame’s achievements will depend on his ability to solve an important optimal stopping problem:

The problem, he says of who might succeed him, is preventing someone from “bringing down what we have built”. Above all, he says, he wants to “avoid leaving behind a mess”.

The president insists it was never his intention to stay on, but the party and population insisted. “We are not saying, ‘We want you forever until you drop dead,’” he says, imitating the voice of the people. “We’re only saying, ‘Give us more time.’”

Is the government of Rwanda massaging statistics on growth and poverty reduction?

This is from the latest installment in the debate over whether Rwanda’s official statistics on economic growth and poverty reduction can be believed:

All poverty lines yield similar trends when used consistently over time, indicating that poverty increased between 5% and 7% points between 2010 and 2014. All changes are statistically significant at the 5% level.

It should be noted that our results differ from those obtained by simply updating the poverty line for inflation using CPI data, as was done by NISR in their 2016 trend report (NISR, 2016). In principle, if the data are of good quality and sufficiently disaggregated, both methods should be equivalent and should not yield significantly different results. This therefore raises questions about the quality / reliability of official CPI data, and/or the quality of price data collected by the EICV. In either case, this would undermine our ability to correctly estimate poverty levels in Rwanda. The discrepancies found here should invite us to more closely scrutinize official statistics coming out of the Rwandan statistical office. GDP growth figures appear to be incompatible with the findings of the EICV survey, given than agriculture still accounts for about one third of GDP and two thirds of the labour force.

More on this here.

The idea that Rwanda is growing without reducing poverty is concerning because it means that the implicit bargain inherent in the country’s political economy — growth in exchange for controlled political development — is not working. It is also likely that the benefits of the country’s recent impressive economic performance are accruing to only a few people, perhaps along ethnic lines. That, again, would be a source of serious concern.

If these data are to be believed, one wonders if Paul Kagame’s refusal to step down is informed by an understanding that the implicit bargain might not hold if he steps down because it was all a mirage to begin with.

More generally, what this means is that Rwanda is developing like any other poor country in which the initial beginnings of rapid growth will be accompanied by rising inequality. The singular problem for Rwanda, of course, is that its history and political economy mean that following this trajectory comes with serious risks to continued political stability.

Rwanda, 20 Years On

Caution: This is not an apology for President Kagame and his autocratic tendencies that have resulted in carnage and death in the DRC, Rwanda and elsewhere.

At a conference last year a US State Department official told a group of us that Rwanda was so polarizing that even at the Consulate in Nairobi the DRC crowd did not get along well with the Rwanda crowd.

It is not surprising why that might have been the case, or why the present analysis on the commemoration of the 20th anniversary of the 1994 genocide remains polarized.

rwandainfantmort

If one just looks at the improvements made in advancing human welfare since President Paul Kagame and the RPF took power (see graph, data from the World Bank) it is hard not to arrive at the conclusion that ordinary Rwandese are unambiguously better off. The country is the least corrupt in the region and has also been consistently ranked top in the ease of doing business. But there is also the side of the Kigali government that most reasonable people love to hate: the murderous meddling in the DRC and the oppression and occasional murder of dissidents at home and abroad. Those who admire what President Kagame has done tend to emphasize the former, while his critics tend to emphasize his autocratic tendencies which have made Rwanda the least democratic country in East Africa (see below, data from Polity). Many wonder if the post-1994 achievements are sustainable enough to outlast President Kagame’s rule.

So is Mr. Kagame a state-builder or your run of the mill autocrat whose achievements will vanish as soon as he relinquishes power?

ImageIn my view, I think that Rwanda is the best success story of state-building in Africa in the last 20 years. I also think that this (state-building) should be the paramount consideration for those who care about the Rwandese people and want to help them achieve greater freedoms. The fundamental problem in states like CAR, Sierra Leone or Liberia has never been the insufficiency of democracy. Rather, it has been the problem of statelessness. The contrast between Rwanda and Burundi is instructive (see both graphs, the two are neighbors with similar ethno-political histories. Rwanda has historically had a stronger state, though. See here and here). Despite the latter being the second most democratic state in the region, it has consistently performed the worst on nearly all human development indicators. Part of the reason for this is that Burundi remains a classic papier mache state confined to Bujumbura and its environs.

May be I am too risk averse. But I am scared stiff of anything that could lead to a recurrence of the horrors of the early 1990s stretching from the Mano River region to the Horn. As a result I am always skeptical of activism that takes state capacity (including coercive capacity) for granted.

With this in mind, the fight against autocratic rule in Rwanda should not come at the expense of the state-building achievements of the last 20 years. The international community and those who genuinely care about Rwandese people should be careful not to turn Rwanda into “democratic” Burundi in the name of democracy promotion. Interventions will have to be smart enough to push President Kagame and the ruling elite in the right direction, but without gutting the foundations of political order in Rwanda.

Absent a strong state (even after Kagame), the security dilemmas that occasioned the 1994 “problem from hell” would ineluctably resurface.

Lastly, I think the level of discourse in the “Rwanda Debate” could be enhanced by the extension of the privilege of nuance to the case. For example, if all we focused on were drones killing entire families at weddings in Yemen or the horror that is the South Side of Chicago we would probably get mad enough to ask for regime change in Washington. But we don’t. Because people tolerate the “complications and nuance of American politics.” The same applies to less developed countries. Politics is complicated, everywhere. And those who approach it with priors of good-or-bad dichotomies are bound to arrive at the wrong conclusions. One need not be a Kagame apologist to realize the need for a delicate balance in attempts to effect political change in Kigali.

Before you hit the comment button, notice that this is neither an apology nor an endorsement of autocracy in Rwanda. It is a word of caution regarding the choices outsiders make to accelerate political change in Rwanda.

Tyranny is not the panacea to underdevelopment. But neither is stateless democracy.

For background reading on the 1994 genocide in Rwanda see Samantha Power’s Problems From Hell; Mahmood Mamdani’s When Victims Become Killers; and Philip Gourevitch’s We Wish to Inform You That Tomorrow We Will be Killed With Our Families.

Africa’s newfound love with creditors: Bond bubble in the making?

I know it is increasingly becoming not kosher to put a damper on the Africa Rising narrative (these guys missed the memo, H/T Vanessa) but here is a much needed caution from Joe Stiglitz and Hamid Rashid, over at Project Syndicate, on SSA’s emerging appetite for private market debt (Africa needs US $90b for infrastructure; it can only raise $60 through taxes, FDI and concessional loans):

To the extent that this new lending is based on Africa’s strengthening economic fundamentals, the recent spate of sovereign-bond issues is a welcome sign. But here, as elsewhere, the record of private-sector credit assessments should leave one wary. So, are shortsighted financial markets, working with shortsighted governments, laying the groundwork for the world’s next debt crisis?

…….Evidence of either irrational exuberance or market expectations of a bailout is already mounting. How else can one explain Zambia’s ability to lock in a rate that was lower than the yield on a Spanish bond issue, even though Spain’s [which is not Uganda…] credit rating is four grades higher? Indeed, except for Namibia, all of these Sub-Saharan sovereign-bond issuers have “speculative” credit ratings, putting their issues in the “junk bond” category and signaling significant default risk.

The risks are real, especially when you consider the exposure to global commodity prices among the ten African countries that have floated bonds so far – Ghana, Gabon, the Democratic Republic of the Congo, Côte d’Ivoire, Senegal, Angola, Nigeria, Namibia, Zambia, and Tanzania.

In order to justify the exposure to the relatively higher risk and lending rates on the bond market (average debt period 11.2 years at 6.2% compared to 28.7 years at 1.6% for concessional loans) African governments must ensure prudent investment in sectors that will yield the biggest bang for the buck. And that also means having elaborate plans for specific projects with adequate consideration of the risks involved.

Here in Zambia (which is heavily dependent on Copper prices), the Finance Minister recently had to come out to defend how the country is using the $750 million it raised last year on the bond market (2013-14 budget here). Apparently there was no comprehensive plan for the cash so some of the money is still in the bank awaiting allocation to projects (It better be earning net positive real interest).

“They are fighting each other. By the time they have projects to finance, they will have earned quite a lot of interest from the Eurobond money they deposited. So, all the money is being used properly,” he [Finance Minister] said.

Following the initial success the country’s public sector plans to absorb another $4.5b in debt that will raise debt/GDP ratio from current ~25% to 30%. One hopes that there will be better (prior) planning this time round.

Indeed, last month FT had a story on growing fears over an Emerging (and Frontier) Markets bond bubble which had the following opening paragraph:

As far as financial follies go, tulip mania takes some beating. But future economic historians may look back at the time when investors financed a convention centre in Rwanda as the moment that the rush into emerging market bonds became frothy.

The piece also highlights the fact that the new rush to lend to African governments is not entirely driven by fundamentals – It is also a result of excess liquidity occasioned by ongoing quantitative easing in the wake of the Great Recession.

I remain optimistic about the incentive system that private borrowing will create for African governments (profit motive of creditors demands for sound macro management) and the potential for this to result in a nice virtuous cycle (if there is one thing I learned in Prof. Shiller’s class, it is the power of positive feedback in the markets).

But I also hope that when the big three “global” central banks start mopping up the cash they have been throwing around we won’t have a repeat of the 1980s, or worse, a cross between the 1980s (largely sovereign defaults) and the 1990s (largely private sector defaults) if the African private sector manages to get in on the action.

African governments, please proceed with caution.

Museveni: UN missions stifling state capacity development in Africa

The Daily Nation reports:

Ugandan President Yoweri Museveni has said UN peacekeeping missions [especially in the DRC] are derailing efforts by African governments to end conflicts.

He criticised the UN system of peacekeeping saying: “External support by the UN makes governments lazy and they don’ t focus on internal reconciliation.”

“The mistake is internal actors with no correct vision and the UN which does not focus on internal capacity building but instead focusing on peace keeping all the time. Without the internal solutions, you can’t have peace, ” Mr Museveni said in a statement on Thursday.

Some Congolese and experts on the DRC may disagree with Museveni’s analysis but it has some truth to it. As I pointed out in an African Arguments post several months ago, there is no short cut to fixing the Congo. State capacity development must be THE overriding concern (for more on this see here and here).

Also, The International Crisis Group has a nice piece on the recent takeover of the mining town of Lubumbashi by Mai-Mai fighters. The writer notes:

Since President Joseph Kabila’s controversial election victory in November 2011, government control over DRC territory has been in drastic decline. Beyond the fall of Goma to the M23 rebellion, Kinshasa has failed to repel the activities of various other armed groups: the Mai-Mai Morgan in Province Orientale, the Ituri Resistance Patriotic Front (FRPI) and the Mai-Mai Yakutumba in South Kivu, Rayia Mutomboki in North and South Kivu, as well as the Mai-Mai Gédéon in Katanga. (On the eastern Congo armed groups, see the October 2012 briefing Eastern Congo: Why Stabilisation Failed. On the Katanga armed groups, see the report Katanga: The Congo’s Forgotten Crisis.)

US Africa Policy, A Response

This is a guest post by friend of the blog Matthew Kustenbauder responding to a previous post.

On the question of human rights guiding America’s foreign policy in Africa, I agree with you; it shouldn’t be the first priority. The US needs a more pragmatic development diplomacy strategy, which would help African countries develop just as it would help American businesses thrive.

But I disagree with your characterization of Hillary’s position in this respect. Here’s Secretary Clinton’s own words:
“Last year I laid out America’s economic statecraft agenda in a series of speeches in Washington, Hong Kong, San Francisco, and New York. Since then, we’ve accelerated the process of updating our foreign policy priorities to take economics more into account. And that includes emphasizing the Asia Pacific region and elevating economics in relations with other regions, like in Latin America, for example, the destination for 40 percent of U.S. exports. We have ratified free trade agreements with Colombia and Panama. We are welcoming more of our neighbours, including Canada and Mexico, into the Trans-Pacific Partnership process. And we think it’s imperative that we continue to build an economic relationship that covers the entire hemisphere for the future.” 
“Africa is home to seven of the world’s ten fastest-growing economies. People are often surprised when I say that, but it’s true. And we are approaching Africa as a continent of opportunity and a place for growth, not just a site of endless conflict and crisis. All over the world, we are turning to economic solutions for strategic challenges; for example, using new financial tools to squeeze Iran’s nuclear program. And we’re stepping up commercial diplomacy, what I like to call jobs diplomacy, to boost U.S. exports, open new markets, lower the playing field – level the playing field for our businesses. And we’re building the diplomatic capacity to execute this agenda so that our diplomats are out there every single day promoting our economic agenda.” 

One of the problems, however, is that the pragmatic approach articulated by the Secretary doesn’t trickle down through the bureaucracy. This is especially true, ironically, of the State Department’s primary development diplomacy arm, USAID, which has a deeply entrenched culture of being anti-business. It’s a huge problem, and part of the reason why American foreign policy in Africa has been so slow to adjust to new economic realities.

Security drives US Africa Policy

Security drives US Africa Policy

Academics schooled in all the latest development orthodoxies but lacking the most basic understanding of economic or business history have flocked to USAID, so that the suggestion that American economic interests should guide development policy – making it a win-win for Africa and America – is anathema. It’s also why the Chinese are running all over the US in Africa.

As a prominent economic historian recently remarked in the Telegraph, “While we [Western governments] indulge our Victorian urge to give alms to the Africans, Beijing is pumping black gold.” And this is just it. As long as the US approaches Africa as a beggar needing to be saved and not as a business partner worthy of attention, both sides will continue to lose out.

In this respect, what Africa does not need is another “old Africa hand” steeped in conventional development ideas and old dogmas about what’s wrong with Africa and why the US must atone for the West’s sins. For this reason alone, John Kerry – not Susan Rice – probably stands a better chance, as the next Secretary of State, at putting American foreign policy toward Africa on a more solid footing.

– Matthew Kustenbauder is a PhD candidate in history at Harvard University.

More on the DRC

CFR has a nice interview with Jason Stearns, DRC expert and author of Dancing in the Glory of Monsters. Jason in part notes that:

This crisis has brought about a shift in international donor policy for the region, in particular criticism and financial sanctions against Rwanda, which is something that’s new. However, using aid as leverage only makes sense in the context of a larger political process. Bashing Rwanda just for the sake of bashing Rwanda is not a solution. There needs to be a comprehensive political process into which that kind of pressure can be funneled and channeled. But there is no such process at the moment. What you have are talks mediated by a regional body—the International Conference for the Great Lakes Region (ICGLR)—that has the irony of being presided over by Uganda, which is itself playing a role in the conflict by supporting the M23. These talks have been largely limited to an evaluation of the March 23, 2009 peace deal, and the potential formation of a regional military force to deal with the FDLR and M23. But the causes of the crisis run much deeper and involve the failure of local governance, the weakness of the Congolese army, and the persistent meddling of neighboring countries in Congolese affairs.

This is precisely what informs my contention that there is too much focus on the international dimension of the conflict at the expense of the kinds of reforms that Congo needs in order to improve state capacity in Sub-Saharan Africa’s biggest country.

You can’t do business, implement a human rights regime, or even pretend to have democratic governance in a stateless environment (Unless, of course, you live in a state of nature in which everyone has capacity to defend themselves against aggression by others).

Some, including very serious and influential people, think that the solution to Congo’s weakness is to plea with its neighbors not to prey on it. I disagree. I believe that the best solution ought to be the strengthening of Congo so it can deter its neighbors. The international community just wasted a good opportunity to force a cornered Kabila to agree on a peace deal that is self-enforcing, i.e., that reflects the power balance in eastern Congo.

As things stand the continuation of the power vacuum in the Kivus will continue to attract rebels, foreign-sponsored or not.

More on this here.

Also here is a  glimpse of some of the actions by Kabila and his Kinshasa cabal which make it extremely unlikely that the situation in Congo will improve under his rule.

Governing on the cheap in Africa

What is striking and surprising here is just how easy it can be to take over some African states, or large parts of them.  The post-independence historical record provides numerous examples where dozens or a few hundred armed men have done it.  This is generally just assumed to be the way things are in Africa, but when you think about it it is actually really puzzling.  Being the president in African countries (and many others besides) can be an incredibly lucrative deal.  Why don’t these rulers, in their own self-interest, take some of that money and use it to build crack units, presidential guards, or strong and loyal army divisions that would protect their hold on power against two dozen putchists, or a hundred or a couple thousand rebels armed with rifles and maybe some mortars?

I don’t think we have really good explanations for this in the relevant Pol Sci literatures.  Maybe the most promising hypothesis is that African presidents are so afraid of coups and attacks from inside their regime that they don’t want to support the construction of any organization that would be competent at using force.  Keeping the military weak  may lower their coup risk somewhat, but effectively trades coup risk off against higher risks of rural rebellion, insurgency, and foreign depredations such as we are seeing in Eastern Congo.

That is Jim Fearon writing over at Monkey Cage. More on this here.

Jim’s concern extends beyond security matters. Much of Africa remains under-governed in other regards as well – tax collection, garbage collection, provision of public goods like water and sanitation, roads, etc etc.

One key driver of this phenomenon, I believe, is the manner in which sectional elites (and those that they purportedly represent) are incorporated into the national system.

You see, many African national governments tend to have a president surrounded by a coalition of ethnic/sectional elites representing specific geographic regions or communities. This sort of incorporation of elites and the regions/social groups that they represent allows African central governments to govern on the cheap since as long as ethnic chief from region X can bring his people and sort of make them feel represented in the centre then the government has no reason to establish a strong presence in the chief’s homeland region (unless that region is economically viable).

A keen observer may ask why co-ethnics of these “ethnic chiefs” never demand for more from their supposed representatives at the centre.

The answer lies in the nature of citizenship in most of Africa. In many countries citizenship (and the associated claims on the state) tends to be mediated through one’s ethnic group. Talk of “our people” is common across much of the region. Even educated people have internalized the fact that you can only get jobs if a co-ethnic is in a high position in government. Everyone therefore invests in having a powerful ethnic representative at the centre that can effectively bargain with whoever is president (or in the core of the governing coalition) to get enough jobs for the boys and girls from back home.

But having such a person obviates the need for the central government to establish its presence at the local level since it is much cheaper to give the ethnic chief his own fiefdom in the name of a cabinet ministry. Barriers to entry allow for very long tenures for these ethnic chiefs thus breeding incompetence of the worst possible kind – like the case of Kenyan police officers accepting bribes from al-Shabab operatives to allow for passage of explosives destined for Nairobi.

From the president’s/government’s perspective, all you have to do to prevent an all out rebellion is be on good terms with enough of these ethnic chiefs or make it beneficial for them to live under your rule.

Seen this way, under-government is not just for the sake of coup-proofing but also an unintended consequence of the manner in which the masses and their representative elites are incorporated into the national government/state.

The best book out there that I have read on this subject is Catherine Boone’s Political Topographies of the African State. Boone is best read with Jeffrey Herbst’s States and Power in Africa, although Herbst’s conclusions are too deterministic for my liking.

Is this the beginning of the Third Congo War?

Yesterday Goma fell to the M23, a rebel group in eastern DRC with alleged links to both Rwanda and Uganda. The fall of Goma increases the likelihood of an all out war in eastern Congo that might quickly degenerate into a regional war – just like the Second Congo War was (for more on why peace failed see this ICG report).

I am on record as lacking any sympathies for the Kinshasa regime under Joseph Kabila (see here, here, and here). The horrendous situation in eastern DRC is as much his fault as it is of the alleged meddlers from Kampala and Kigali. The fact that the international community has taken to viewing the conflict as primarily regional is a mistake as it masks Kabila’s own failings in improving governance in the eastern DRC . It also gives him a chance to continue free riding on MONUSCO’s presence in the region.

Sadly, the international community appears set to waste this latest crisis by issuing statements and imposing sanctions which will only tackle the symptoms rather than the real problems behind the conflict. As the ICG argues:

If international donors and African mediators persist in managing the crisis rather than solving it, it will be impossible to avoid such repetitive cycles of rebellions in the Kivus and the risk of large-scale violence will remain. Instead, to finally resolve this conflict, it is essential that Rwanda ends its involvement in Congolese affairs and that the reconstruction plan and the political agreements signed in the Kivus are properly implemented.
For these things to happen Western donors should maintain aid suspension against Rwanda until the release of the next report of the UN group of experts, in addition to issuing a clear warning to the Congolese authorities that they will not provide funding for stabilisation and institutional support until the government improves political dialogue and governance in both the administration and in the army in the east, as recommended by Crisis Group on several previous occasions.
Over at Congo Siasa, the DRC expert Jason Stearns offers some preliminary thoughts on M23’s endgame:
In the past, I have speculated that it will be difficult for the M23 to conquer and hold territory, mostly due to their lack of manpower, which started off at around 400-700 and is probably around 1,500-2,500 now. They have been able to rely on Rwandan (and, to a lesser degree, Ugandan) firepower for operations close to the border (in particular Bunagana and Rutshuru, allegedly also this recent offensive), the farther into the interior they get, they harder it will be to mask outside involvement.
Alliances with other groups­­––Sheka, Raia Mutomboki, FDC, etc.––have acted as force multipliers, but have been very fickle, as the surrender of Col Albert Kahasha last week proved. From this perspective, the M23 strategy could well be more to nettle the government, underscore its ineptitude, and hope that it will collapse from within.
However, the recent offensive on Goma has made me consider another, bolder alternative. If the rebels take Goma, thereby humiliating the UN and the Congolese army, they will present the international community with a fait accompli. Yes, it will shine a sharp light on Rwandan involvement, but Kigali has been undeterred by donor pressure thus far, and has been emboldened by its seat on the Security Council. Also, as the looting by the Congolese army and their distribution of weapons to youths in Goma has shown, the battle for Goma is as much of a PR disaster for Kinshasa as for Kigali.

Six Questions You Always Wanted to Ask About Africa….

Rohac and co-authors provide answers (from Rwanda) to six questions you always wanted to ask about Africa. The questions and answers revolve around issues of rule of law, police-making, institutions, development assistance, human capital and culture.

Check out the publication here.

Give Kagame a break!

I admire Richard Dowden, Director of the Royal African Society. That said, I disagree with the concluding paragraph in his latest post on the Rwandese military’s involvement in eastern Congo over at African Arguments:

“When a similar situation occurred in Sierra Leone, the Special Court for Sierra Leone went after the main supporters and funders of the rebel movement, in particular the President of Liberia, Charles Taylor. He was recently sentenced to 50 years in jail for his part in funding the murder and destruction of Sierra Leone. Yet the evidence of Rwanda’s support for warring groups in Congo is as strong – if not stronger – than the evidence that convicted Taylor. But because of the genocide in Rwanda and because both Uganda and Rwanda have good development programmes that western donors love to fund, they will not be criticised. Eastern Congo will continue to suffer.”

Following the damning UN report on Kigali’s adventures in the Congo and concerted campaigns by human rights activists, a number of donor countries, including the US, UK, Germany and the Netherlands, have (unwisely) stopped sending aid money to Kigali.

I am inclined to believe that there is truth to the claim that Rwanda supports the M23. But that does not necessary lead me to conclude that Rwanda should therefore be ostracized by the international community, for the following reasons:

  • Rwanda faces a real security threat from rebels in eastern Congo. Kagame is a dictator, no doubt about that (He is not your average tin pot dictator, but that’s beside the point for now). But he is also a purveyor of order in this rather volatile region of central Africa. The last thing eastern and central Africa needs is a slow motion civil war as is currently underway in Burundi. As long as Kinshasa’s incompetence continues to provide a safe launching base for rebels aiming to depose Kagame, Kigali will have no option but to (rightly so) intervene in eastern Congo. Let us not pretend otherwise.
  • The insurgencies in eastern Congo are a direct result of Kinshasa’s calculated inability to project power and control. In this instance, I think the Huntongian view that degree of government matters trumps concerns over the type of government. Eastern Congo needs order, period. Attempts at political negotiations with the numerous rebel factions must also be accompanied with strong military action to defeat all the rebel movements that refuse to come to the table. Kinshasa’s continued failure at either attempt leaves Rwanda no option but to step in in light of the observation above.

In a way the campaign to have Rwanda punished for its adventures in the DRC is emblematic of the problems associated with “mono issue activism” (Remember the danger of a single story?)

This is not a defense of Kagame’s human rights record. Everyone knows it is in the toilet. It is also not a blanket endorsement of foreign interventionism. What it is is an acknowledgement of the very complex context in which Kagame acted, and a consideration of the unintended consequences of cutting aid to Rwanda.

Rwanda’s involvement is a symptom of, and not the cause of the mess that is eastern DRC.

To those that want Kigali punished, I ask: What would it mean for Rwanda’s and the wider region’s security? What would it mean for economic growth and development for the 12 million Rwandese? What would it mean for infant and maternal mortality that have been on the decline (more rapidly than in most of the developing world) over the last decade?

Punishing Kagame (and the people of Rwanda) for Kinshasa’s ineptitude will not solve the problems in eastern Congo. That is just a fact.

UPDATE:

Please check out the comments section below for some insightful discussion on this subject. Despite the combativeness of some of the comments, they all raise some important points that I could not have incorporated in a short blog post.