Uvin , p. However, this argument is opposed by a report in which the World Bank , p. To assess the implications of the IMF and the World Bank in the build-up to the genocide it is essential to widen the scope of this evaluation. This is necessary in order to include the demands for democratisation and peace negotiations which were made in return for financial aid Andersen, , pp.
Andersen , p. Nonetheless, it is of significant importance to choose the right timing in order to ensure political unity during the peace process. Opposing views during a peace process may destabilise the consolidation process. Both parties played a significant role in the spread of hate speech and the preparation and implementation of the genocide Andersen, , p.
In addition, as part of the peace process the then-President of Rwanda Habyarimana agreed to a power sharing deal with the RPF.
However, to meet the demands of the Rwandan Government and the donors at the same time proved to be an obstacle Habyarimana could not overcome.
In order to establish a link between the genocide and the SAPs it is necessary to assess these in the wider context of the Rwandan labour market and the resource scarcity which occurred in Rwanda Storey, , p.
Middle and upper level positions in the public service and the military were only available to Hutus and due to government sponsored discrimination Tutsis focused mainly on the work in the private sector Storey, , p. As part of the democratisation process a new liberal party emerged and the common perception was that this party was dominated by Tutsi businessmen. Hutu extremists claimed that Tutsis attempted to set up a commercial elite in Rwanda in order to redirect funds to the RPF Storey, , p.
However, most of the businessmen in Rwanda were Hutu and the large majority of Tutsis had the same living standard as Hutus Woodward, , cited by Storey, , p.
The nexus between SAPs and the division of labour is, in the social context of pre-genocide Rwanda, to be found in hate speech which established perceptions rather than facts. As mentioned before, SAPs demanded increased support of the private sector and cuts for the public sector.
Therefore, the perception was that Tutsis were favoured by the SAPs and many Hutu elites in the public sector feared to lose their employment and subsequently influence. Ogata argued that the conflict in Rwanda was based on a severe imbalance between the size of the population and available land.
Land scarcity has to be considered in reference to the SAPs as the IMF and the World Bank demanded that the agricultural sector should focus on cash crops, e. The amount of food crops was to be reduced, but the decline in commodity prices did not create the revenues Rwanda hoped for.
Subsequently, the imbalance between the amount of food available and the population increased further Magnarella, , p. Wood , p.
Poverty, overpopulation, land scarcity, possible famine and competition for power offer fertile ground for the ideology of Lebensraum. This ideology is advanced by extremist forces in order to accumulate resources which are currently not available to their people.
This ideology was implemented in Rwanda to describe Tutsis as invaders who are responsible for the socio-economic imbalance. Prunier , p. The development policy of the industrialised states changed with the emergence of neoliberal policies.
Neoliberals argued in favour of the liberalisation of markets and decreased influence of the government. Development policies became enshrined in the Washington Consensus which argues that SAPs would lead to economic stability.
Government spending was to be reduced, privatisation of government owned enterprises was demanded and the currency was supposed to be devalued in order to increase exports.
Advocates of the dependency theory and world system theory claimed that neoliberalism is not suitable to foster development, but instead increases the dependency of the periphery states on the core states. Further, the SAPs had significant effects on the wider social and political environment. Demands for democratisation and peace negotiations led to the emergence of radical parties which took advantage of the fears of many Rwandans.
People feared poverty, job loss and a famine in addition to a civil war. The causes of the genocide are multiple and no direct link can be established between the demands made by the IMF and World Bank and the genocide. However, in hindsight it is evident that demands for SAPs accompanied by demands for democratisation and peace agreements did not consider the wider political and social context. These factors helped to create an environment in which Hutu radicals found a significant number of Rwandans who supported their ideology which subsequently led to the genocide.
Andersen, R. How multilateral development assistance triggered the conflict in Rwanda. Third World Quarterly, 21 3 , Auerbach, N. The meanings of Neoliberalism. Roy, A. Willett Eds. New York: Routledge. Babb, S. The social consequences of structural adjustment: Recent evidence and current debates.
Annual Review of Sociology, 31 , Bayliss, K; Fine, B. The Political Economy of Development. London: Pluto Press. Chossudovsky, M. London: Zed Books. Harrison, G. Neoliberal Africa: The impact of global social engineering.
New York: Palgrave McMillan. Kamola, I. Third World Quarterly, 28 3 , Kelly, R. Development in Practice, 18 3 , Magnarella, P. The Background and Causes of the Genocide in Rwanda. Critically, the domestic market began to recover after , however,.
Further, the imports had a notable impact on the consumer habits of Somalia. Specifically, imported grains, such as rice and wheat, replaced their Somali counterparts, sorphum and maize. The revenue from the food aid was returned to the Somali government, in the form of counterpart funds. In large part, the economic liberalization program helped to destabilize the domestic mechanisms of food production in Somalia.
Importantly, the SAP loans are still a barrier for the Somali government today. In the s, SAPs led to food dependency in Somalia, and currently, the loans lock Somalia out of accessing money needed to combat the famine, which is impacting over half of the population. In addition to their effects on Somalia, SAPs also indirectly set the socio-economic conditions for the Rwandan Genocide. As a result, the coffee market was extremely saturated and the price collapsed.
Instead, the devaluation created massive inflation in the Rwandan economy, increased their external debt, and increased the cost of imports. As a result of SAP conditions, thousands of Rwandan farmers lost their livelihoods. Then, the IMF proceeds to charge interest for the loans; when a state is unable to return the loan, the IMF reschedules the loan as long as the state allows the IMF to prescribe its future economic policies.
The state is still required to return the loan to the IMF, including interest charged on the delayed payment. It is, however, important to note that although Somalia and Rwanda are notable examples, they were not the only recipients of SAPs.
In the s, SAPs were implemented in countries, including Nigeria, Egypt, and Uganda, with limited success and extensive consequences. Project Classification. A 15,, Select a Year Confirm Password. I have read and agree with the Terms of Use. Funding African Development Fund. Aid Loan Excluding Debt Reorganisation. General Budget Support.
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