Rwanda is an example of a post-conflict country that was able to release this virtuous cycle. In 1994, the per capita income of Rwanda was 200 USD. By the time they had enacted reforms in 2012, it had grown to 644 USD per person. After the genocide, production was down by 40% and the country’s economic growth rate was not enough to keep up with population growth. Now growth rates exceed 8% annually and Rwanda has managed to lift more than one million people out of poverty. Additionally, maternal and child mortality has fallen and life expectancy has risen. Rwanda managed to do this by a series of different reforms it put into place between 1994 and 2000. There were three classes of policies:

  • An immediate re-establishment of security and justice: As there was a large outmigration of people across the border, reintegration after the genocide was important. Therefore Rwanda started a number of social programs to deal with orphans and widows. Additionally, they used community justice systems to deal with the criminals from during the genocide
  • Signals: There were a whole host of economic reforms to liberalize the economy which were enacted in a 2 year period. This included removal of trade barriers and privatization of enterprises amongst other reforms.
  • Transforming institutions and enforcing transparency: One major policy they had was to curb corruption, which came from the President’s Office down.