Analysis of the Contribution of Foreign Development Strategies on Economic Development of Rwanda

Abstract

Analysis of the contribution of FPS on ED of Rwanda is pertinent to understand how Rwanda’s diplomacy has contributed to ED of the nation. This study is important to various stakeholders in particular the Government of Rwanda, academicians, professionals and researchers. In this thesis, the researcher aimed at developing the notion conceptually, specifically, built on the work of (Pessoa, 2008) and (Ndou, 2004), whom their works were based on the contribution of technical and financial partnerships strategy to ED of developing countries. Two critical aspects formed the guiding philosophy of the entire research process and these were: (1) the Role of international community on maintaining peace & security, which is a fundamental component of ED; (2) the importance of Economic diplomacy by emphasizing on Technical & financial and administrative partnerships strategy on economic development. The study adopted the descriptive survey as a study design. The target population was 465 from 30 Rwandan Districts, Chief Executive Officers, Director Generals, Directors, Head of units, Specialists, professionals, Civil Society Actors (Private sector Managers, Experts from INGOs and Local NGOs, Multinational and Transnational Corporate (investors) and Cooperative members). The sample size was 214 individuals, which got through stratified and purposive sampling methods. The primary data was collected through structured questionnaires; whereas secondary data through reading and analysis of relevant books, report and journals. The data collected was edited, coded and fed into SPSS software v. 16 and e-views 3 for analysis, using descriptive, inferential statistics and econometrics. Regression analysis was done to investigate the relationship between hypothesized variables. The study found out that APS has a strong contribution on ED where it contributes (β=0.970) on per capita and (β=0.708) on HDI; Political Drive as a moderating variable plays a positive role on the contribution of FDS and ED of Rwanda where it contributes on (β=0.783) on per capita and (β=0.789) on HDI; TPS too has a significant contribution on ED in Rwanda where it contributes (β=0.899) on per capita and (β=0.601) on HDI; however, FPS demonstrates a weak contribution on ED where it provides (β=.542) on per capita and (β =.500) on HDI. On conclusion, the researched found out that FPS has a statistical significant contribution on the ED of Rwanda.