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Transcript of Econ 225 powerpoint presentation
Presented by:
Moses Odhiambo
Sashae Mitchell
Rudi Goddard
Idah Chungu
POVERTY, INEQUALITY
AND DEVELOPMENT IN
KENYA
A study of the current state of
poverty in Kenya
Factors:
Ethnic Divisions
Political Structure
OBJECTIVES:
• Brief introduction & facts
• Key statistics
• Measures: graphic and numeric
• Ethnic and geographic factors
• Role of politics
• Policy suggestions
Where is Kenya?
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
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
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
GNI per capita, PPP
Projected population growth
rate
—Increase in urbanization (both good and bad)
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
Lorenz Curves
Multidimensional Poverty Index
—OPHI–reflects intensity of poverty as a result of
deprivations.
National & Regional MPI
Ethnic and Geographic Factors
Ranks
Poorest
1
Poorest
2
56%below
poverty line
Richest(56
%
averag
e
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
Solutions
• Discourage corruption
• Embrace transparency
• Equitable distribution of resources
• Good governance
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
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
Moi Presidency
• KANU
• Created one-party state
• Corruption
• Too much power concentrated in one place
• Foreign aid/investment dwindles
• Served 5 terms (max)
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
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
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)
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
New Constitution--Devolution
Photo: Kenya Economic Update, December 2011
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….
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.
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>.