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Presented by: Moses Odhiambo Sashae Mitchell Rudi Goddard Idah Chungu POVERTY, INEQUALITY AND DEVELOPMENT IN KENYA

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Page 1: Econ 225 powerpoint presentation

Presented by:

Moses Odhiambo

Sashae Mitchell

Rudi Goddard

Idah Chungu

POVERTY, INEQUALITY

AND DEVELOPMENT IN

KENYA

Page 2: Econ 225 powerpoint presentation

A study of the current state of

poverty in Kenya

Factors:

Ethnic Divisions

Political Structure

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OBJECTIVES:

• Brief introduction & facts

• Key statistics

• Measures: graphic and numeric

• Ethnic and geographic factors

• Role of politics

• Policy suggestions

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Where is Kenya?

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Statistics on Poverty and Inequality

in Kenya

• Among the top ten most unequal countries in the world

and fifth in Africa

• Over 93% of the richest 20% of the population have

access to clean drinking water, compared to only 28%

of the poorest 20%

• The 10% richest households in Kenya control more than

42% of incomes, while the poorest 10% control 0.76%

of the total income for the country

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Statistics Cont'd

• 46% of the total Kenyan population is absolutely poor,

i.e. below the poverty line ($1.25 per day)

• 49% of the rural population is absolutely poor

• 44% live below the poverty line in Nairobi but levels

range from 8% in Nairobi west, Kibera Division to 77%

in Makongeni, Makadara Division

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KEY NATIONAL STATISTICS

• Population: 41.61 million

• GDP: $33.62billion

GDP per capita: $1,718

• Income level: Low-income country (< $1, 025

according to Atlas method)

• 143rd on the world MPI ranking

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GNI per capita, PPP

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Projected population growth

rate

—Increase in urbanization (both good and bad)

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Income Share

Trend: 1994-1997 (decline in high, increase in low)

Comparison: Lowest 10% and highest 10% (1992 - 39x; 1994 - 15x; 1997 – 13x; 2005 – 19x)

Year

Income Share of:

Lowest

10%

First 20%

Second

20%

Third

20%

Fourth

20%

Highest

20%

Highest

10%

1992

1.24

3.39

6.72

10.73

17.32

61.84

47.87

1994

2.11

5.61

10.12

14.75

21.43

48.08

32.76

1997

2.50

5.97

9.86

14.27

20.82

49.08

33.83

2005

1.96

4.84

8.68

13.20

20.08

53.20

37.99

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Lorenz Curves

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Multidimensional Poverty Index

—OPHI–reflects intensity of poverty as a result of

deprivations.

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National & Regional MPI

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Ethnic and Geographic Factors

Ranks

Poorest

1

Poorest

2

56%below

poverty line

Richest(56

%

averag

e

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Theory

• John Burton – The Human Needs Theory

• Certain universal needs that must be satisfied if people

are to prevent or resolve destructive conflicts

• High competition for:

o rights

o jobs

o education

o language

o social amenities and good health care facilities

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Solutions

• Discourage corruption

• Embrace transparency

• Equitable distribution of resources

• Good governance

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Political Structure & Poverty

HISTORY

• 1885-1963 British colony

• 1963 declared independence

• President Jomo Kenyatta 1963-1978

• President Daniel Arap Moi 1978-2002

• President Mwai Kibaki 2002-present

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Kenyatta Presidency

• Kenyan African National Union (KANU)

• Economic growth

• Increased foreign investment

• Decreased capital outflows

• Higher standard of living

• Primary exports-based economy

• Unequal distribution of wealth

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Moi Presidency

• KANU

• Created one-party state

• Corruption

• Too much power concentrated in one place

• Foreign aid/investment dwindles

• Served 5 terms (max)

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Kibaki Presidency

• KANU

• Anti-corruption platform

• Limit ethnic discrimination

• Proposed new Constitution

• Corruption, stagnant economic growth, high levels of poverty, natural disasters, restricted foreign aid

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2007 Post-Election Crisis

• Kibaki closely defeats Raila Odinga (National Rainbow Coalition—NARC)

• Violent crisis sparked by ethnic tensions

Photo: Committee to Protect Journalists, December 2010

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Participatory Governance

―Human development broadens people’s

choices, raises their standard of living and

improves their quality of life. It expands human

capabilities and access to opportunities in the

social, economic and political arenas,

especially for the poor.‖ --Third Kenya Human

Development Report (2003)

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New Constitution

• Signed into law 2010

• Five basic principles

1. equity and inclusiveness

2. equity of opportunities

3. delinking politics and policy

4. better access to national resources

5. bringing government closer to the people

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New Constitution--Devolution

Photo: Kenya Economic Update, December 2011

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New Constitution Outcomes

• Drastically reduce corruption

• Increase participatory governance

• More equitable distribution of wealth

• Higher standard of living

• Boost economic growth

• Eliminate ethnic discrimination in governance

• Decrease poverty

and more….

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Sources • Dupas & Robinson. ―Coping with Political Instability: Micro Evidence from

Kenya’s 2007 Election Crisis.‖ American Economic Review: Papers &

Proceedings 100 (May 2010): 120–124. Web. November 2012.

• Rhodes, Tom. ―Kenyan radio station manager wanted at The Hague‖

Committee to Protect Journalists Blog. 23 December 2010. Web. November

2012.

• United States. Library of Congress—Federal Research Division. Country

Profile: Kenya. June 2007. Web. November 2012.

• United Nations Development Programme. Human Development Report

2003: Participatory Governance for Human Development. 2003. Human

Development Reports. Web. November 2012.

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Sources Cont'd

• The World Bank. Kenya Economic Update: Navigating the Storm, Delivering

the Promise with a special focus on Kenya’s momentous devolution.

December 2011. Ed. 5. Web. November 2012.

• Society of International Development, "Pulling Apart:Facts and Figures on

Inequality in Kenya." Trans. Array Rich and Poor: National Discourses on

Poverty, Inequality and Growth Project. Society of International

Development, 2004.

• Suri, Tavneet, David Tschirley, Charity Irungu, Raphael Gitau, and Daniel

Kariuki. "Egerton University." 13 Nov 2012.

<http://www.tegemeo.org/documents/work/Tegemeo-WP30-Rural-incomes-

inequality-poverty-dynamics-Kenya.pdf>.