COHERENCE BETWEEN KENYA S PRSP, ERS AND ACHIEVEMENT OF MDGs. Nicholas N. Waiyaki

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1 COHERENCE BETWEEN KENYA S PRSP, ERS AND ACHIEVEMENT OF MDGs Nicholas N. Waiyaki

2 Poverty Reduction Strategy Paper (PRSP) PRSP was launched by Govt in 2001 Developed as a short-term term strategy for meeting the long term vision outlined in the National Poverty Eradication Plan of proposed 15-year time horizon to fight poverty based on the first MDG of halving poverty by 2015 Initiated by donors but Govt found it useful for addressing increasing poverty levels and achieving sustained economic growth At around this time (2000), about 57 % of Kenyans were living below the poverty line. GDP growth rate had also declined to 0.2 %

3 Scope of PRSP PRSP was a product of broad-based based & in-depth consultations undertaken in 70 districts of the country Identified measures for improved economic performance & priority actions for reduction of poverty incidence Govt budget (3-year MTEF) was expected to implement priorities identified by the PRSP PRSP ranked Agri.. & rural Devt as the topmost national priority Others in terms of priority were: human resource development, physical infrastructure, trade, tourism and industry, public safety, law and order, national security and public administration

4 Key areas identified for intervention PRSP identified the following key areas for intervention under Agriculture: crop development, rural water, livestock development, food security, lands and settlement, environmental management, forestry and fisheries (Table 1)

5 Major constraints identified (Table 1) Rank Agricultural subsector Major constraints 1 Crop Development Poor extension services Inefficient rural finance & credit system Poor rural infrastructure Poor marketing & Distribution system 2 Rural water Lack of adequate water supply Poor management of water resources Destruction 3 Livestock Development Livestock diseases Poor livestock marketing Poor extension services 4 Food security Prevalence of drought and food shortages 5 Lands & Settlements Poor land policy & legal framework Negative cultural practices in relation to ownership of land by women

6 PRSP Implementation PRSP Implementation matrix identified specific strategies & target outputs for revitalization of Agri sector By 2003, there was basically nothing on the ground to show that the PRSP was being implemented The NARC govt came up with a new Strategy Economic Recovery Strategy for Wealth & Employment Creation

7 Economic Recovery Strategy (ERS) Launched by GOK in 2003 Outlines the development strategy and policies that the government plans to pursue by 2008 Aims to reduce the cost of doing business and to reduce poverty by providing people with income earning opportunities Took into account existing policy documents, particularly the Poverty Reduction Strategy Paper (PRSP), the NARC Manifesto, and the Post Election Action Plan Views were collected through a process of consultative workshops with a wide cross-section section of stakeholders.

8 ERS Cont d ERS identifies key policy actions necessary to spur the recovery of the Kenyan economy Based on four pillars: Macro-economic stability - enhancing revenue collection, expenditure restructuring, and a monetary policy (price stability) Strengthening institutions of governance - outlines various reforms in public administration, national security, and law and order rehabilitation and expansion of physical infrastructure one of the primary factors that makes production cost excessively high Investment in the human capital of the poor - Priority interventions are: universal primary education; enhancement of secondary education through expansion of bursary schemes; establishment of a comprehensive National Social Health Insurance Fund; continuing the battle against the HIV/AIDS pandemic; conversion of the NSSF into o a pension fund; and provision of low cost housing

9 ERS Contd ERS strongly recognizes that economic recovery is primarily the result of improvements in the productive sectors of the economy -agriculture, tourism, trade and industry For agriculture, interventions to focus on providing a single enabling legislation, rationalizing roles and functions of agricultural institutions to empower resource poor farmers and increase institutional efficiency, strengthening extension services, increasing smallholder access to credit, irrigation development etc

10 ERS: Identified Constraints for Agri sector Poor governance in key agri.. institutions, particularly the cooperative sector; Lack of a comprehensive legal framework to guide formulation of consistent policies Institutional failure due to lack of capacity by the private sector to take over functions previously performed by the state after liberalization; ation; and lack of markets Poor access to farm credit, high cost of farm inputs, insecurity in certain parts of the country, and taxation of farmers through local authority cess and other levies High prevalence of HIV/AIDS Low level of public funding and inefficient use of public resources resulting in inadequate and inefficient infrastructure, which has s led to high cost of production.

11 ERS Investment Programme Development of the ERS was recently concluded with the finalization of the Investment Programme (IP) - provides a framework for implementing the agenda for wealth and employment creation The programme highlights the opportunities available to private investors (in areas such as infrastructure development, agriculture, manufacturing, and trade) and identifies areas in which Kenya needs the support of development partners

12 Coherence Betw n ERS & PRSP PRSP Sub-sector rankings ERS equivalent component 1. Crop Development Research & extension services Access to credit Diversification of enterprises & crop uses Cooperative development Value addition Guaranteed minimum returns Physical infrastructure development 2. Rural water Water and sanitation development 3.Livestock Development Livestock development Chapter on arid and semi-arid lands 4. Food security Section on agric., livestock and fishing Section on food and nutrition Chapter on arid and semi-arid lands 5. Lands & Settlements Land administration and survey Land tenure in ASALs

13 Coherence Betw n ERS & PRSP Contd Generally, there is a high degree of coherence between the PRSP and the ERS ERS is relatively more specific on what is to be done by 2008 ERS Investment programme clearly indicates the govt funding that is available for various projects and the funding that may be required from donors/private sector ERS has one major weakness of failing to identify regional priorities The govt has generally been silent on PRSP and has become increasingly focused on implementation of ERS

14 Millennium Development Goals (MDGs) MDGs are ambitious world s quantified and time bound targets set for achievement by 2015 by all the 191 member states of the United Nations who adopted the Millenium Declaration (GA Resolution A/54/2000) in Sept, MDGs are essentially a collection of commitments that the country has made at the international level, the only difference being that those commitments have been expressed as concrete and time-bound goals and targets with associated indicators for measuring progress

15 The Eight MDGs (to be achieved by 2015) Halving extreme poverty and hunger; Achieving universal primary education; Promoting gender equality; Reducing under-five mortality by two-thirds; thirds; Reducing maternal mortality by three quarters; Reversing the spread of HIV/ AIDS, malaria and TB; Ensuring environmental sustainability; and Developing a global partnership for development, with targets for aid, trade and debt relief.

16 Why pursue MDG-based Development path MDGs are not any different from what Kenya has been attempting to pursue since Independence- eradicating hunger, illiteracy and disease thro policy documents such as: Sessional paper No 1 of 1965 Devt Plans PRSP ERS

17 Reasons for MDG-based Devt path The fact that the limited number of goals, eight, if achieved are fairly well representative of the human well being; The fact that the MDGs are doable, measurable and time bound and there is believe that they can be achieved; The MDGs represent the collective will of the international community and thus opportunity for new partnership between developing and developed countries; and The fact that the MDGs provide an important platform for policy dialogue and debate and opportunity for righting the wrongs of past development processes. The MDGs actually provide the country with an excellently opportunity for doing devt business differently within a new platform

18 Govt Efforts towards MDGs A fair supportive envt for achievement of: Universal primary education Promotion of gender equality & empowerment of women Reduction of child mortality by two-thirds thirds e.g immunization against measles Combating HIV/AIDS, Malaria & other diseases there are plans towards free provision of ARVs.. The budget for MOH is also being increased from 7 9 % of national budget Improvement of maternal heath likely to be addressed by the above, together with Implementation of universal health care

19 Efforts towards achivement og MDGs contd Suitable supportive envt lacking for: Eradication of extreme poverty & Hunger Implementation of SRA could aist. Govt budget is only to be increased sloightly from 9.6 b (3.5 %) to 11.8 b (4.1 % of national budget) Ensuring environmental sustainability Developing a global partnership for Devt

20 Coherence Betw n PRSP, ERS & MDGs MDG Examples of PRSP Components ERS Component Halving extreme poverty and hunger Achieving Universal primary education Enhancing food security Improving crops development Improve market development Improve livestock & fisheries development Creation of employment opportunities Promoting early childhood education Enhancing access, retention, completion rates at the primary level Expanding provision of bursaries Legal & institutional reforms in agriculture Empowering resource poor farmers Strengthened extension services Increasing smallholders access to credit Irrigation development Achieving 100 % net primary school enrollment Increase secondary enrollment

21 Coherence Betw n PRSP, ERS & MDGs MDG Examples of PRSP Components ERS Component Promoting gender equality Reducing child mortality Enhancing educational opportunities for the poor and underprivileged Provision of loans and scholarships to needy students Creating employment opportunities Gender mainstreaming Implementing activities within the essential package of health services, with emphasis on women & children under five. As in 2 above Ensuring provision of a basic health package to all Kenyans

22 Coherence Betw n PRSP, ERS & MDGs MDG Examples of PRSP Components ERS Component Reducing maternal mortality by three-quarters Reversing the spread of HIV/AIDS, malaria & Other diseases Implementing activities within the essential package of health services, with emphasis on women Comabting the HIV/AIDS scourge Increase and awareness of transmission of HIV/AIDS As in 4 above As in 4 above Reduce the prevalence of HIV/AIDS As in 4 above

23 Coherence Betw n PRSP, ERS & MDGs MDG Examples of PRSP Components ERS Component Ensuring environmental sustainability Developing a global partnership for development with targets for aid, trade and debt relief Viable land policy Sustainable management and use of forest and forest resources Promote product & market development& competitiveness Promote internal & external trade Enhance domestic, regional and international tourism Environment protection Land administration Water development and management Wildlife management Export promotion Tourism promotion Macroeconomic stability Trade policies Improved governance

24 THANK YOU

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