Surging investment and declining aid : evaluating debt sustainability in Rwanda /

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Bibliographic Details
Author / Creator:	Clark, Will, 1989- author.
Imprint:	Washington, D. C. : International Monetary Fund, 2014.
Description:	1 online resource.
Language:	English
Series:	IMF working paper ; no. WP/14/51 IMF working paper ; no. WP/14/51.
Subject:	Investments, Foreign -- Rwanda. Economic history. Economic policy. Investments, Foreign. Rwanda -- Economic conditions. Rwanda -- Economic policy. Rwanda. Electronic books.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12503641

Hidden Bibliographic Details
Other authors / contributors:	Arnason, B. (Birgir), author.
ISBN:	1306674387 9781306674386
Notes:	Includes bibliographical references. Print version record.
Summary:	Rwanda is a unique case among its Sub-Saharan African peers in that it has already undergone a large scaling-up of public investment. The Rwandan government has made clear its desire to lower its reliance on foreign aid while still maintaining high public investment levels. We use the model of public investment, growth, and debt sustainability in Buffie et al. (2012) to evaluate the macroeconomic consequences of a possible scaling-down of investment in Rwanda. Using the model, we can gauge the consequences of different financing mechanisms and investment efficiency levels on the economy. We find that with some commercial borrowing and a modest tax adjustment, the authorities may be able to retain their high investment spending while still reducing their reliance on foreign aid.
Other form:	Print version: 9781306674386

Table of Contents:

Cover; Contents; I. Introduction; II. Background on Rwanda and the Need for Public Investment; III. Features of the Model and Calibration to Rwanda; A. The Model; B. Calibration to Rwanda; Tables; Table 1: Model Calibration for Baseline Scenarios; IV. Simulations; A. Baseline Scenario: Declining Grants, Declining Investment; Figures; Figure 1: Baseline Scenario (Declining Investment, Declining Grants); Figure 2: Public Investment Buildup Financed with an Unconstrained Tax Adjustment; B. Public Investment Buildup Financed with an Unconstrained Tax Adjustment.
C. Public Investment Buildup Financed with Commercial BorrowingD. Public Investment Buildup Financed with Commercial Borrowing, Additional Concessional Loans, and Constrained VAT Adjustment; Figure 3: Public Investment Buildup Financed with Commercial Borrowing; Figure 4: Public Investment Buildup Financed with Commercial Borrowing, Additional Concessional Loans, and Constrained VAT Adjustment (Hybrid Financing); E. Public Investment Buildup with Hybrid Financing and Reduced Grant Inflows; V. The Effect of Increased Efficiency on Debt and Growth.
Figure 5: Public Investment Buildup with Hybrid Financing and Reduced Grant InflowsFigure 6: Public Investment Buildup Financed with Commercial Borrowing and Increased Efficiency of Investment; Table 2: Growth Dividend from Different Investment and Financing Options; VI. Concluding Remarks; VII. References.

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