Wednesday, August 3, 2011

WHAT IS THE PROCESS RWANDA IS USING TO CREATE A MARKET ECONOMY?

           
            Rwanda is attempting to create a market economy by developing relationships with Western entrepreneurs. Rwanda is an example of how social media has changed the paradigm on which the globalized economy now operates.
            Social media operates on the basis of strong relationships. The relationship is based on something more than just knowing someone. The relationships are deep.  The relationships are the equivalent of human friendships.  People do not trust brands---but they trust their friends.  This relationship is critical to the development of Rwanda.
            If Rwanda is going to succeed as a country, it must create jobs. The nation has a huge population per square mile. It is the equivalent in size to the state of Vermont, but it has 16 times the number of people. It is a very young population. Half of the population is 16 or under. Foreign aid is a massive failure. It just subsidizes people, it doesn’t support them.  It can’t. The government can’t hire everyone.
            Rwanda has significant limitations in its infrastructure.  Nine of every 10 adults are a subsistence farmer. The present per capita income is only a dollar day. Rwanda has no oil and few mineral. The great asset that Rwanda has is a President who has great people skills and who has the ability to create relationships.
            President Robert Kagame is a benchmark for the job skills that a leader must have in our social media era. Mr. Kagame must attract entrepreneurs to Rwanda who will then encourage other brother and sister entrepreneurs to follow. Rwanda has a terrible brand. In 1994 it  was the site of one of the worst massacres in history in which 1/8 of its entire population was murdered in a month. Mr. Kagame must use other people, customers to brand his nation for him.  This is a significant fact of modern branding in a social media era. Other people must brand your product for you, for no other reason than they just plain “like” your product. This is a very crucial and interesting fact for a modern marketer to focus on.
            To create these relationships, Mr. Kagame sends fact-finding missions to Asia. He pursues Rwandan professionals in exile who left during Rwanda’s dark days. He speaks at Google and Facebook. He meets personally with American entrepreneurs. One thing that Mr. Kagame does that is interesting is that he has created a strong relationship with the American Evanglical community. He has created a strong network of people who are willing to invest in Rwanda. It is beginning to pay off.
            Rwanda has a Presidential Advisory Council has become a high-level, low-profile dispatch team and brain trust. All 16 members---10 are non-Rwandan---are stars in their sectors, from life sciences, telecom, economic development, and consulting. They meet twice a year, once in Kigali and once in New York for strategy sessions. Some of the people involved in this advisory group are Michael Porter, the Harvard Professor, Eric Schmidt of Google, Tony Blair, RealNetworks founder Rob Glaser, former Alltel CEO Scott Ford. An interesting member of President Kagame’s advisory council is Rich Warren, the Evangelical pastor who wrote the best-selling book, “The Purpose Driven Life”.
            Mr. Warren is an interesting personality to be engaged in this Rwandan endeavor. In addition to being a well-known spiritual leader, he is also rich now that his book has sold so well. The mere presence of Mr. Warren on the council creates a strong brand for Rwanda.
            Mr. Kagame’s goal is to create jobs. In doing this, he hopes to create a legitimate middle class in Rwanda. His plan is only in its early stages. He is enjoying some successes.
            In the 1980’s,  the Asian Tigers created middle class economies in Asia. Leaders such as Mr. Kagame are creating the African Gorillas. This force has the potential to be a significant factor in the global economy.

Dean Hambleton
dnhambleton@gmail.co

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