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Econ 225 powerpoint presentation

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Econ 225 powerpoint presentation

  1. 1. POVERTY, INEQUALITYAND DEVELOPMENT IN KENYA Presented by: Moses Odhiambo Sashae Mitchell Rudi Goddard Idah Chungu
  2. 2. A study of the current state of poverty in Kenya Factors: Ethnic Divisions Political Structure
  3. 3. OBJECTIVES:• Brief introduction & facts• Key statistics• Measures: graphic and numeric• Ethnic and geographic factors• Role of politics• Policy suggestions
  4. 4. Where is Kenya?
  5. 5. 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
  6. 6. Statistics Contd• 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
  7. 7. 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
  8. 8. GNI per capita, PPP
  9. 9. Projected population growth rateIncrease in urbanization (both good and bad)—
  10. 10. Income ShareTrend: 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 First 20% Second Third Fourth Highest Highest 10% 20% 20% 20% 20% 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
  11. 11. Lorenz Curves
  12. 12. Multidimensional Poverty IndexO—PHI–reflects intensity of poverty as a result of deprivations.
  13. 13. National & Regional MPI
  14. 14. Ethnic and Geographic Factors Ranks Richest(56 % Poorest 1 56%below poverty line averag e Poorest 2
  15. 15. 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
  16. 16. Solutions• Discourage corruption• Embrace transparency• Equitable distribution of resources• Good governance
  17. 17. Political Structure & PovertyHISTORY• 1885-1963 British colony• 1963 declared independence • President Jomo Kenyatta 1963-1978 • President Daniel Arap Moi 1978-2002 • President Mwai Kibaki 2002-present
  18. 18. 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
  19. 19. Moi Presidency• KANU• Created one-party state• Corruption• Too much power concentrated in one place• Foreign aid/investment dwindles• Served 5 terms (max)
  20. 20. 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
  21. 21. 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
  22. 22. Participatory Governance―Human development broadens people’schoices, raises their standard of living andimproves their quality of life. It expands humancapabilities and access to opportunities in thesocial, economic and political arenas,especially for the poor.‖ --Third Kenya HumanDevelopment Report (2003)
  23. 23. 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
  24. 24. New Constitution--Devolution Photo: Kenya Economic Update, December 2011
  25. 25. 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….
  26. 26. 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.
  27. 27. Sources Contd• 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>.

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