As regards the economic situation in the region, we need to point out that for a long period of time Rwanda has been one of the German colonies, and almost every postcolonial county has to pass through the stages of political, economic and cultural evolution (Briggs, p ). Judging from certain financial parameters, we can argue that Rwanda is heavily dependent on agriculture. Furthermore, we can say that it has rather scarce natural resources. Being landlocked, it has no access to sea. In part, this is the reason why so many international investors believe that is rather unproductive and imprudent to invest capital in the finance system of this state. Given the fact that infrastructure of the region is very far from being advanced, foreign companies tend to avoid any relations with the Rwandan government (ICG, 2002). Nonetheless, it seems that these are just the consequences or aftermaths of some policies.
While conducting growth diagnostics Richard Hausmann and Lant Pritchett attach primary importance to such parameters as total productivity, the cost of financing, availability of production factors, specifically, they speak about infrastructure and human capital (Hausmann et al, 2005, p 8), As far as major bottlenecks are concerned, the authors focus on high cost and low return of domestic investment. Co
nsequently, the country is not attractive to both outside and internal investors. The only possible outcome is constant stagnation that aggravates with time passing.
In order to gain a more compressive understanding of Rwandan problems, it is vital to pay attention to issues such as low productivity of labor force. This can be explained by several reasons: first: lack of qualification. It is no secret that in the vast majority of cases, Rwandans do not possess sufficient skills. Apart from that, it can be ascribed to poor living conditions that often lead to counterproductive work. Strong dependence is not only due to geographical position of the country and absence of natural resources. The country reached this deadlock because many people are not competent enough in order to work in industry. At first glance, this statement may seem rather rude, but it can be substantiated by statistical data, which indicates that more than nine percent of Rwandans are involved in agricultural works (ICG, 2002). There is another facet of this issue; we should not forget the infrastructure (communication, transport, medical institutions) and it is in a very poor condition. Thus, we may argue that economic growth can be achieved only by resolving these problems. At this stage, we should analyze possible means of doing it.