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The role of supply and use/input output tables in the perspective analysis of economic development of Rwanda

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par Jean Baptiste HABYARIMANA
National University of Rwanda - Bachelor's degree 2010
  

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4.5.4. Applying The Techniques To Specific Quality Indicators

4.5.4.1. Linkage application

The application of the linkage technique to economic indicators in Rwanda would be considerably enhanced by the disaggregating of the household sector into income groups. These disaggregated data could then be used directly by linkage technique. For example, numbers of high, medium, and low income workers, average and medium income, proportion of workers above some poverty line can be obtained by using the estimates of the levels of output of the producing sectors (Agriculture, Industry, and Services) in combination with the appropriate coefficients showing the type of labours used by each sector.

Example for Rwanda:

Sectors

Agriculture

Industry

Service

Output by Sector (in Billion Frw)

1012

430

1365

Coefficient (%)

34

14

46

Source: Republic of Rwanda, NISR, GDP Annual Estimates for 2009 based on 2006 benchmark.

Applying linkage to community service indicators requires desegregation of the government sector into specific functional activities. Indicators can be linked to expenditures on these functional activities:

Examples of this type are: Pupil per teacher, Student by class room, Hospital and Clinics per unit of population. However, as public service output quality measurements are improved they can be used in place of the input quality measurements by linking them to functional expenditures.

4.5.4.2. Dummy technique application

In Rwanda dummy sector technique can be used for analyses of land pollution, land degradation, and land use. For the land pollution dummy sector combines coefficient that measure the amount of solid wastes disposed of by the using sector into landfills or dumps with coefficients measure the amount of input used in the land reclaiming or cleaning sector.

To estimate land use, policymakers in Rwanda have to create two land related sector:

· Space occupied by buildings

· Non building space

With knowledge of the space currently available, the level of conversion of raw land into sector-usable land in the aggregate and separately for each producing sector, household, and government can be estimated, given the final demand specification. Such information can be useful also in showing the relative amount of land used in the provision of housing services, recreation, commercial enterprises, and transportation facilities.

The linkage technique can allow planers in Rwanda to identify the producing sector and the kind of final demand sales that significantly influence the rate of by-product output flow. Such information is relevant particularly to taxation and regulation policies.

Planers would like to know the expenditure that various sectors make in seeking to control the by-product flow. Often these expenditures are not distinguishable from the sectors purchases required for the sectors goods and services production. The specification technique can provide some such information and permits calculation of how these expenditures would change as final demand changes.

Planers would like also to know the feasibility, in terms of expenditures and resources required, of achieving alternative rates of by-product output flow; the dummy technique can provide some such information necessary of economic development of Rwanda. For example by stipulating target levels of allowable pollution and estimated deliveries to final demand, the dummy technique allows calculation of the level of resources that must be committed to pollution suppression activities. Such information is useful particularly for situation in which the government is seeking to reduce pollution directly to rough its own programmatic expenditure (Bulmer-Thomas V., 1982, PP 256-278).

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