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This chapter provides a snapshot of Rwanda’s evolving political settlement and economic development trajectory. The chapter begins by highlighting significant structural vulnerabilities that shaped Rwanda’s domestic politics historically, including ethnicity-based inequalities and political contestation, historical divisions associated with the royal family and aristocracy, refugee issues, inadequate employment opportunities and regional inequalities. It then highlights the rapid growth that took place in Rwanda over the last three decades, which has also been accompanied by significant export diversification. It then provides a brief political settlement analysis of present-day Rwanda, highlighting how development is being contested transnationally, pointing to the key vulnerabilities characterising its hub-based strategy. In particular, it describes how increased elite vulnerability has meant that the government has been reluctant to support domestic capital. As a result, the Rwandan government has failed to develop effective state–business relations aimed at achieving structural transformation.
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