Select Committee on International Development Written Evidence


Memorandum submitted by International Institute for Environment and Development

"To what extent does DFID's Country Assistance Plan identify accurately the challenges which Kenya faces, and outline appropriate strategies to help Kenya make faster progress towards the MDGs?"

  These comments refer specifically to tourism and biodiversity.

TOURISM

  One of the key objectives of the Kenya CAP is "To promote sustainable economic growth which benefits poor people". Given this objective, it is quite surprising that DFID fails to mention tourism as a significant potential source of pro-poor growth[16]—even though this is mentioned as a key element of the Kenyan Government's Economic Recovery Strategy.

  Kenya is one of the most popular tourism destinations in Africa and tourism is a key foreign exchange earner for the country. In 1999 (latest available data) the tourism economy (the tourism industry plus linked economic activities) accounted for nearly 10% of Kenya's GDP and nearly 30% of its export earnings. However, the current national tourism policy does not recognise poverty reduction as a key objective, rather it is geared towards wildlife conservation, personnel training, marketing and promotion. The PRSP notes tourism as a promising sector for economic growth but does not pick up on its pro-poor potential that could make a huge contribution to achieving the MDGs.

  Tourism's potential contribution to pro-poor growth rests on a number of factors (see DFID-funded research at www.propoortourism.org.uk for more detail):

    —  Tourism delivers consumers to the product rather than the other way round. This opens up huge opportunities for development of SMEs, local access to international consumers, markets for other goods and services (compatible with para E8 of the CAP).

    —  Tourism has considerable potential for linkage with other economic sectors—particularly agriculture and fisheries. Realising these linkages will increase the proportion of tourism revenue retained in the host country (para B10).

    —  Tourism provides opportunities for off-farm diversification.

    —  Tourism provides relatively labour-intensive opportunities.

    —  Tourism employs a relatively high proportion of women and can contribute to gender equality (para C6).

    —  Tourism products can be built on, and help to preserve, natural resources and culture. These are assets that some of the poor have, even though they may lack financial assets, and whose protection can serve as a safety net for some of the poorest (compatible with paras C6, E9).

  The CAP notes that it will work with the government in a limited number of areas which have a high potential to impact on poverty (para E9). We suggest that tourism is one of these areas. In particular this would require efforts by DFID to support increased local participation in the industry. Although this has been a long stated goal of the government, policy on foreign investment and control has worked to the disadvantage of local entrepreneurs. Attempts to increase domestic investment have often been crippled by state interferences. Local ownership, even of low technology and low capital outlay enterprises such as curio and souvenir businesses once dominated by indigenous Kenyans, has now been overtaken by Asian entrepreneurs. Overall, a focus on pro-poor approaches to tourism development in Kenya could significantly contribute to MDGs 1, 3 and 7.

BIODIVERSITY

  The CAP also fails to highlight the importance of biodiversity—although again alluding to this rather vaguely under the umbrella of natural resources. Like much of sub-Saharan Africa, Kenya has a comparative advantage in its biodiversity resources and is also largely dependent upon them for its social and economic development. Biodiversity conservation can underpin the achievement of many of the MDGs:

    —  Income poverty (MDG 1): Wildlife can provide opportunities for jobs, small and micro enterprise, and payments for environmental services—eg through wildlife based tourism, wildlife trade, conservation services.

    —  Hunger (MDG 1): Biodiversity underpins food security, and FAO has emphasised that there are close causal linkages between reducing hunger and the sustainable management of natural resources and ecosystems. Numerous studies have noted the importance of wild food products, particularly to the poor, for whom securing access to such resources is important for sustaining their livelihoods.

    —  Health (MDGs 4, 5 and 6): Biodiversity provides the base for health care provision world wide. The majority of the world's modern drugs have their origin in natural products. Many people rely on wild resources for traditional medicines—WHO estimate that up to 80% of the world population is dependent on these medicines. This is particularly true of the poorest people who can't afford modern drugs and/or don't have access to clinics and doctors.

    —  Water supply (MDG 7): It is urban as well as rural populations that are dependent on the goods and services that biodiversity provides. In addition to the direct benefits of food and other goods, conservation of areas such as water catchment forests and floodplains is vital to sustain delivery of ecosystem services that provide urban centres with services such as water supplies and flood control.

  There are about 80 legal statutes relating to conservation and management of biodiversity resources in Kenya but most fail to reconcile and integrate conservation goals with human needs—focussing on protected areas, endangered species and other "existence value" priorities. Policies that do recognise the full value of biodiversity are often hampered by poor governance, political patronage and widespread corruption. DFID support to mechanisms that link biodiversity conservation with poverty reduction and improved livelihoods will be critical to realising the contribution of Kenya's comparative advantage in biodiversity to achieving the MDGs.

February 2004





16   Although it could be argued that this is indirectly alluded to in DFID's focus on, interalia, natural resources given that Kenya's tourism industry is based on wildlife and coastal areas. Back


 
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