Trade Costs, Export Development and Poverty in Rwanda

For Rwanda, one of the poorest countries in the world, trade offers the most effective route for substantial poverty reduction. But the poor in Rwanda, most of whom are subsistence farmers in rural areas, are currently disconnected from markets and commercial activities by extremely high transport costs and by severe constraints on their ability to shift out of subsistence farming. The constraints include lack of access to credit and lack of access to information on the skills and techniques required to produce commercial crops. The paper is based on information from the household survey and a recent diagnostic study of constraints to trade in Rwanda. It provides a number of indicative simulations that show the potential for substantial reductions in poverty from initiatives that reduce trade costs, enhance the quality of exportable goods, and facilitate movement out of subsistence into commercial activities.

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Bibliographic Details
Main Authors: Diop, Ndiame, Brenton, Paul, Asarkaya, Yakup
Language:English
Published: World Bank, Washington, DC 2005-12
Subjects:ACCESS TO ELECTRICITY, ACCESS TO HEALTH SERVICES, ACCESS TO INFORMATION, ACCESS TO KNOWLEDGE, ACCESS TO MARKETS, AGRICULTURAL ECONOMICS, AGRICULTURAL GROWTH, AGRICULTURAL LAND, AGRICULTURAL PRICES, AGRICULTURAL PRODUCTS, BEANS, CASH CROPS, CASSAVA, CHERRIES, COFFEE, COFFEE CROP, COFFEE FARMERS, COFFEE GROWERS, COFFEE MARKETS, COFFEE PRODUCER, COFFEE PRODUCERS, COFFEE PRODUCTION, COFFEE SECTOR, COFFEE TREES, COMMERCIAL AGRICULTURE, COMMERCIAL CROPS, COMMERCIAL FARMERS, COMMERCIALIZATION, CONSUMERS, COOPERATIVES, COTTON, COTTON PRODUCTION, COUNTERFACTUAL, CROP, DETERMINANTS OF POVERTY, DEVELOPMENT POLICY, DRY BEANS, EXPORT BARRIERS, EXPORTS, EXTENSION, EXTENSION SERVICES, EXTERNALITIES, FARM, FARM HOUSEHOLDS, FARM SECTOR, FARM-GATE, FARMER, FARMERS, FARMING, FARMS, FERTILIZER, FOOD CROPS, FOOD EXPENDITURES, FOOD PRODUCTS, FULL EMPLOYMENT, GENDER, HOUSEHOLD BUDGET, HOUSEHOLD HEADS, HOUSEHOLD INCOME, HOUSEHOLD INCOMES, HOUSEHOLD SIZE, HOUSEHOLD SURVEYS, HOUSING, HUMAN CAPITAL, IFPRI, INCIDENCE OF POVERTY, INCOME DISTRIBUTION, INCOME SHARES, INCREASING RETURNS, INDUSTRIAL CROPS, INTEGRATION, LABOR MARKET ACTIVITIES, LABOR MARKETS, LACK OF KNOWLEDGE, LAND LAW, LAND SIZE, LANDLESS PEOPLE, LEARNING, LIVESTOCK, LIVESTOCK INCOME, MARKETING, MATCHING METHODS, MICRO-CREDIT, MULTIPLIER EFFECTS, MULTIPLIERS, NATIONAL POVERTY, NATIONAL POVERTY HEADCOUNT, NEW TECHNOLOGIES, PER CAPITA INCOME, POLITICAL ECONOMY, POOR BENEFIT, POOR FARMER, POOREST HOUSEHOLDS, POVERTY GAP, POVERTY IMPACT, POVERTY IMPACTS, POVERTY INCIDENCE, POVERTY LINE, POVERTY REDUCING, POVERTY REDUCTION, POVERTY REDUCTION STRATEGY, POVERTY STATUS, PRICE PREMIUM, PRODUCE, PROGRAMS, QUALITY COFFEE, REAL INCOME, RICE, RICE PRICES, RURAL AREA, RURAL AREAS, RURAL COMMUNITIES, RURAL DEVELOPMENT, RURAL ECONOMY, RURAL FARMERS, RURAL HOUSEHOLDS, RURAL INCOMES, RURAL INFRASTRUCTURE, RURAL SECTOR, SHEEP, SMALL FARMERS, SMALL FARMS, SMALL SCALE FARMERS, SORGHUM, STRUCTURAL TRANSFORMATION, SUB-SAHARAN AFRICA, SUBSISTENCE, SUBSISTENCE AGRICULTURE, SUBSISTENCE FARMERS, SWEET POTATOES, TARGETING, TEA, TECHNICAL ASSISTANCE, TRADE LIBERALIZATION, WAGE RATES, WEALTH,
Online Access:http://documents.worldbank.org/curated/en/2005/12/6450677/trade-costs-export-development-poverty-rwanda
https://hdl.handle.net/10986/8586
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Summary:For Rwanda, one of the poorest countries in the world, trade offers the most effective route for substantial poverty reduction. But the poor in Rwanda, most of whom are subsistence farmers in rural areas, are currently disconnected from markets and commercial activities by extremely high transport costs and by severe constraints on their ability to shift out of subsistence farming. The constraints include lack of access to credit and lack of access to information on the skills and techniques required to produce commercial crops. The paper is based on information from the household survey and a recent diagnostic study of constraints to trade in Rwanda. It provides a number of indicative simulations that show the potential for substantial reductions in poverty from initiatives that reduce trade costs, enhance the quality of exportable goods, and facilitate movement out of subsistence into commercial activities.