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

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par Jean Baptiste HABYARIMANA
National University of Rwanda - Bachelors degree in Applied Statistics  2010
  

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4.5.3. Environment quality and resource depletion

Another macroeconomic question concerns the impact or economic growth on environmental quality. Do high rate of growth that is, increase in GDP of Rwanda, implies greater environmental degradation or might the opposite be true? It is to note that «some pollution increases during the early stages of a country's development and then begins to diminish as country gain adequate resources to tackle pollution problems». This happen because at low incomes' people tend to value development over environmental quality, but as the country achieves greater wealth it willing to devote greater resources to environmental quality improvements. This is a matter of greater importance for Rwanda.

Rwanda however, was thought to have fewer environmental problems because their reindustrialized technology was more environmental benign, and it had no yet committed itself to a materialistic style of life. Ideas have changed, however. For one thing, it has become clear that massive environmental degradation has occurred in Rwanda; rural areas have seen large-scale soil erosion and water-quality deterioration, deforestation and declining in soil productivity. But the government of Rwanda is trying to rehabilitate all those constraints towards sustainable economic developments.

A number of efforts have been made to incorporate factors like air quality and resource depletion into a comprehensive measure of GDP. Doing so has been difficult, since it often involves placing a monetary unit value on intangibles, like having clean river as it is the policy of Rwanda by eradicating erosion, planting bamboos at least in 50 m from rives or lakes and resource conservation are hard to measure even though forests conservations are being developed by creating Nation Park to promote Tourism in Rwanda.

Table 4.3. Environmental Indicators

Environment

Threatened species

2009

53

Forested area (% of land area)

2007

21.7

CO2 emission estimates (000 metric tons and metric tons per capita)

2006

795/0.1

Energy consumption per capita (kilograms oil equivalent)

2007

19

Rainfall, total mean (millimetres)

 

1028

Source: NISR: Statistical Yearbook 2009 Edition: 64-66.

4.5.4. Tourism

The movement of population across national borders is another mark of integration and development. In Rwanda some of expenditures on tourism sector are captured by GDP through investment or gross fixed capital formation induced by private sector or government. And some others are captured in Tourism satellite accounts.

Receipts from tourisms were 6.5% of export in 20009. The receipts from tourists has increased the capacity of Rwanda's economy and improved also the Rwanda's rest of the world account. More further, due to development of tourism Rwanda's gross saving had increased from 25 billion Frw in 1999 to reach 404 billion Frw in 2009 (Republic of Rwanda, NISR: Statistical Yearbook 2009: 64-66).

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