4.5. The role of Supply and Use tables/Input-Output Table in
economic analysis and prevision, decision taking, and policy making for a
sustained economic development
In addition to the role of Supply and use framework mentioned in
the above part, this framework serves also as a basis for various
interconnections with satellite accounts, such as Social Accounting Matrix
(SAM), Employment Statistics, Linkage with other physical flows related to
Environmental issues ( emission, waste, sewage) and other forms of Satellite
System for tourism, Transport, health and education.
Various Input-Output models as shown above can be used to
evaluate with the new dataset the economic and environmental impacts of
different policies on macroeconomic variables such as employment, GDP,
consumption, investments, competitiveness, etc. and on environmental variables,
such as CO2 emissions and resource consumption. Hence, the IO model
shall provide a powerful tool for assessing economic and environmental impacts
on the policies proposed by the Planners and/ or Policymakers in Rwanda.
The second Hypothesis «Supply and Use tables/Input-Output
Table have significant role in economic analysis and prevision, decision
taking, and policy making for a sustained economic development of Rwanda»
was also not verified because the use of SUT and IO models are not applied as
such in the economic analysis of Rwanda. But basing on the above analysis it
should be better to compile those tables in Rwanda in order to reach a
Sustained Economic Development.
Because those tables are not available in Rwanda the following
analysis was based on SUT linear model which provide a limited number of
macro-economic indicators with limited information, and the focus was made on
GDP as the main aggregate from this linear model and on HDI as rich measurement
of Economic Development derived from three component: GDP per Capital, Life
Expectance, and Literacy.
The following analysis was adopted in the way relating
production and expenditure approaches to compute GDP and other Economic
Indicators towards Economic Development.
4.5.1. Quality of life, poverty and economic inequality
Some desirable features that one may think of are reflected in
GDP: Spacious, well constructed homes, good restaurants and stores, a variety
of entertainment and high quality medical services. However other indicators of
good life are not sold in market so that they may be omitted from GDP.
In Rwanda absolute poverty has been declining. Today many
families whose income is below to days' official line is 57% and own their
health insurance (htt://www.undp.org.rw/Poverty_Reduction.html).
But, even though absolute poverty seems to decrease in Rwanda,
inequality of income has not generally well improved. In contrast, because GDP
focus on total production rather than on the distribution of input in all
sectors or production from those sectors, therefore GDP does not capture the
effects of inequality (htt://www.undp.org.rw/Poverty_Reduction.html).
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