Select Committee on International Development Written Evidence


Memorandum submitted by Development Through Media

  As Kenya steps into the year 2004, the new government's commitment to the fight against corruption, the introduction of free primary education among other measures of reform, continue to fuel optimism about improvements in the well being of the citizenry.

  Development through Media (DTM) concurs with both the Government of Kenya (GoK) and the DfID that indeed the key challenges facing the country are economic recovery, the eradication of poverty and inequity, the involvement of the citizenry in decision-making, and the HIV/AIDS pandemic.

  The DfID-Kenya Country Assistance Plan 2004-07 is commendable, first, on its commitment to working with the GoK through supporting the Economic Recovery Strategy (ERS) for employment and wealth creation; and second, in its commitment to supporting the efforts of the civil society in strengthening the citizen's ability to call the GoK to account for its actions.

  DTM would like to make several comments on several issues in the Country Plan in the areas of:

    (i)  empowerment;

    (ii)  equitable redistribution of the benefits of development; and

    (iii)  the international context of the GoK Economic Recovery Strategy.

EMPOWERMENT

  That the country has come up with a sound ERS is without question. The ERS, coming in the context of promises made to the citizenry by the NARC government, holds promise for the improvement in the welfare of the common person.

  Promised reforms such as that made by the government to fight graft, may be sustained through trusting in the goodwill of the governing elite. Yet examples from countries that went through the same experience as Kenya show that this approach rarely works. The reform process by its very nature threatens the vested interests of the elite and as such they are bound to pay only lip service to the promises they make.

  The way around the problem therefore remains to empower the citizenry to hold the governing elite to task over the promises made. It is only when the common person is aware of their right to exercise life's opportunities that they can demand that the government deliver on its promises.

  In the context of the DfID-Kenya Country Plan, the relevance of sustained empowerment efforts targeting to enable the poor and disadvantaged groups to demand an equitable distribution of the benefits of economic growth cannot be gainsaid.

EQUITABLE REDISTRIBUTION OF THE BENEFITS OF DEVELOPMENT

  It is indeed true that Kenya suffers a regional disparity in terms of poverty and gender inequalities. This situation seems to have arisen, as the DfID-Country Plan so rightly analyses it, as a result of Kenya's deep-rooted culture of political and economic patronage. Socio-economic development in Kenya was previously determined by the carrot and stick principle whereby a region that was seen as pro-establishment was rewarded generously, whereas those regions seen to be anti-establishment were punished by being denied a share in the national cake.

  The NARC government is currently implementing reforms that will hopefully lead to an equitable redistribution of the society's resources towards the poor and disadvantaged. These will include employment creation, land reform, construction of affordable housing units in the urban centres, free education and provision of affordable health services.

  Yet despite these positive indications, the challenge remains to put in place measures that will ensure that when economic recovery is attained, that accruing benefits will be shared out equally between all the groups in Kenya.

THE INTERNATIONAL CONTEXT OF THE GOK ECONOMIC RECOVERY STRATEGY

  The challenge of economic recovery facing Kenya must be addressed in relation to factors pertaining to the international operating environment. It is a fact that for Kenya to lift herself out of its socio-economic decline, it must either cut down on government expenditure or increase its foreign exchange reserves. The government is currently bracing itself to rationalising the public service, through sacking approximately 23,000 civil servants. The challenge of increasing the country's foreign exchange reserves is however a little tricky as shown in the subsequent paragraphs.

  Agriculture, the country's major foreign exchange earner, is besieged by a highly competitive and unpredictable world market. First, the prices of coffee and tea are dictated by the whims of players in the international market, often to the detriment of the local farmers.

  Second, the farmers have to contend with unfair practices from international trade partners, such as dumping, use of subsidies by competitors, tariff barriers and World Trade Organisation (WTO) rules.

  Third, despite such an unfair trade environment, the country is arm twisted by the IMF and the World Bank to comply with these rules as conditionalities to receiving aid. In late 2003, one of the conditions put up by the lending institutions was that the government had to open up the country for maize and sugar imports, before resumption of lending.

  Tourism, Kenya's other foreign exchange earner, has been equally embattled by factors in the global operating environment. The threat of terrorism and the travel bans slapped on Kenya by the USA and the UK have further crippled tourism and related industries such as the audio-visual media sector. Further the audio-visual media industry, an important vehicle for information and cultural exchange, continues to get little or no support from both the government and development partners. Despite the fact that the sector has been appreciated as a key facet of development, development partners are yet to include the sector in their priority funding areas.

  It is a fact that Kenya spends more than half of its GDP on repaying foreign and domestic debt. The burden of foreign debt therefore continues to put hurdles on efforts targeted at lifting the country out of poverty.

  The price the country pays for these international forces is predictably borne by the poor and disadvantaged. The DfID, through the Kenya Country Assistance Plan is well positioned to facilitate the readdressing of these issues through convening a forum to discuss the way around these issues.

February 2004





 
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