Kenya's Public policy Environment and Its External determinants

In the crafting of public policy by any government cognizance acceptance that a state and therefor its government is part of a wider international system is important. Thus at any one time governments are force to develop public policy that is congruent with the wider international system. At times governments are force to make important trade-offs as to develop public policy that maximizes benefits to its people or develop policy that does not create conflict with international institutions and therefore the international community. This is especially important for third world and especially African states because they enjoy relative low levels of economic and international policy sovereignty in the international setup.

This paper then seeks to examine the impact of international institutions on Kenya’s public policy. This paper also seeks to find out through relevant empirical examples the trade-offs the Kenyan government has been forced to make in order to accommodate the swishes of the international community.

As will be shown in this paper international institutions have ramifications on Kenya’s public policy in areas of economic, health, environment, fiscal and other policies. The continued significance of international institutions in the Kenyan public policy making mechanism is compound by the fact that Kenya is a developing economy that lacks real power or a strategic asset with which it can arm-twist the international institutions into bending over when it comes to her strategic policy objectives.

International institutions not only affect direct policy making in Africa and in Kenya in particular but affect in a fundamental way the ideologies that guide political making in Kenya. For example Kenya was forced to abandon previous state led development models to liberalized and laid back state models.

The Influence of International Institutions on Kenya’s Public Expenditure Policies

International institutions have had a profound effect on Kenya’s public spending and fiscal policies in a major way. This effect has been profound especially after the introduction of SAPs in the mid-1980^s and early 1990^s.  For example Korir and Kioko, write that  “ the overall budget constraint stemming from the policy targets of the macroeconomic framework continues to prevent the Government from being able to fill personnel shortages due to lack financial resources and the wage bill ceiling policy, which constrains wages at 6.5 percent of GDP.” This clearly provides evidence that international institutions have a direct influence in the government’s fiscal management policy. The government may for example want increase its workforce in a bid to reduce unemployment but, it is curtailed from doing this by rigid fiscal public expenditure policies placed on the IMF on third world countries.

Because African governments Kenya being included are aid dependent in most cases Kenya has to re-adapt its public policy on expenditure and economic management to appease bilateral and multilateral donors. The Economic Survey (2001) reveals that “Kenya government responds by freezing ministerial spending below the approved levels of the annual budget. A review of the supplementary estimates reveal that typically all expenditures except those for salaries and essential services by ministries are either stopped or drastically reduced during the second half of each fiscal year. The reallocations mainly affect the development votes of the budget. For example, in the 1999/00 fiscal year, the supplementary estimates reveal a downward adjustment of expenditures to offset an estimated 9.4% fall in revenue below the target.  As a result, total expenditure declined by an estimated 5.42%, out of which 0.82% was a decline in recurrent expenditure and 4.6% was decline in development expenditure. At the same time, the CFS payments increased by about 5.2% of the printed estimates.” This shows that key donor institutions withholding funds to the Kenyan government significantly alters the policies which guide how budgetary allocation is done.

Njeru, James (2003) argues that empirical results indicate that the flow of foreign aid does influence government spending patterns. On average, an increase in foreign aid stimulates development spending by a higher proportion than does an increase in domestic resources. At the aggregate level, a shilling increase of aid leads to about 88 cents in additional spending, as opposed to a shilling increase in domestic resources.

International Institutions and There Effect To Agricultural Policies in Kenya

Kenya has had to re-adapt its agricultural policy because of international institutions. IMF/World Bank policies that forced Kenya to adopt privatization in agriculture also brought in the advent of middle men in the marketing of agricultural produce. The long marketing chain meant that third world farmers suffered because the involvement of middle men meant that farmer’s profits were driven down because of the desire to make profits by middle men. The liberalization of the dairy industry and the prior privatization of Kenya Co-Operative Creameries brought about private players in the dairy sector and a proliferation of middle men in the dairy sector. Thus farmers were paid poorly for their milk which led to the reduced milk production in Kenya.

Policies that required Kenya to reduce agricultural subsidies made government funding to agriculture fall hence bringing about low agricultural production. The drop in governments funding in agriculture has also led to the disengagement of governments in irrigation projects in the third world. This has led to the dereliction of such projects leading to their under productivity. In Kenya for example most post-colonial irrigation projects have been abandoned leading to the country’s dependence on rain fed agriculture which does not reverberate well with the country’s desire to increase agriculture productivity and enhance food security. Such schemes such as Bura, Perkerra, and other irrigation schemes have thus far become malfunctional without any economic benefit to the people.

International Institutions and Their Effect to Policy Regarding Standards

International institutions influence public policy especially when standards are involved. For example international institutions like WHO may prepare standard benchmarks for all countries in the world to follow. This then follows that legislation has to be done in Kenya in order for the quality standards sought to be met. For example 

The Sanitary and Phyto Sanitary  agreement sets out the rights and obligations of members of World Trade Organization (WTO) in relation to the health of plant and plant products and animal and animal products that may restrict international trade. The basic aim of the SPS Agreement is to maintain the sovereign right of any government to provide the level of health protection it deems appropriate while ensuring at the same time that these sovereign rights are not misused for protectionist purposes and do not result in unnecessary barriers to trade. As a result Kenya has had to remove tariff and non-tariff barriers to trade and change policy in order to meet the requirements of SPS agreements. In addition Kenya has had to put policy in place that provides for efficient food product handling in-order to adopt standards set by SPS agreements.

Because Restriction of market access for products from Africa to developed countries on basis of SPS measures is a common feature. Examples include fisheries bans from East Africa countries and Mozambique in 1997 to European Union (EU) countries due to Cholera outbreaks and from East African countries between 1999 and 2000 because of the inability of the countries to enforce Hazards Analysis and Critical Controls Points (HACCP) management systems as required for the EU market, Kenya has had to adopt policy with regard to food, fish and meat handling that will avoid a ban of Kenyan products in Europe.

The United Nations Effect on Kenya’s Development Policy

Because Kenya hosts a number of United Nations’ agencies it has been used from time to time as a crucible for public policy testing by the UN. With 25 United Nations agencies and a total of 75 semi-autonomous United Nations offices working together in Kenya as a country team, responding to the development needs of the country needs to be a coordinated effort. Under a system called the United Nations Development Assistance Framework (UNDAF), heads of individual United Nations agencies meet on a monthly basis to coordinate activities throughout the system. The UNDAF articulates the United Nations vision for Kenya and assists the United Nations in working collectively to support Kenya’s development priorities in harmony with the Government’s development agenda. This synergy produces an impact greater than the sum of each agency’s individual effects and underlies the operations of all UNDAF activities.

Kenya was one of the first countries to formulate and implement the UNDAF as a new United Nations development tool, beginning in late 1997. The UNDAF, now a common United Nations approach to development assistance, was created to provide a more integrated approach to United Nations development assistance. Under UNDAF’s common approach, United Nations agencies tackle development challenges, which since September 2000 have been crystallized in the Millennium Development Goals. The goals include the eradication of extreme poverty and hunger, achievement of universal primary education, promotion of gender equality, empowerment of women, reduction of child mortality, improvement of maternal health, combating HIV/AIDS and other diseases, ensuring environmental stability, and the attainment of a global partnership for development by the year 2015. The UNDAF 2004-2008 reflects Kenya’s development priorities in four key areas of cooperation: promoting good governance and human rights; reducing the incidence and social and economic impact of HIV/AIDS, malaria and TB; strengthening national and local systems for emergency preparedness, prevention, response and mitigation; and promoting sustainable livelihoods and environmental protection. Areas of cooperation also include the cross-cutting issues of gender, population and development, research and information. (UN 2006).

Regional Organizations and Their Effect on Kenya’s Public Policy

Other bodies that have an effect on Kenya’s public policy are regional organizations. This includes bodies like EAC, COMESA, NEPAD and other bodies that Kenya has membership to or is affiliated to. For example most East African countries have had to change their immigration policies because of the East African community. Kenya thus is supposed to open its borders to allow members and goods originating from EAC. With regard to COMESA Kenya has had to remove its import quotas of sugar from COMESA, because these quotas go against COMESA agreements. This is the despite the country’s desire to protect the flailing Sugar industry. Kenya has also had to work hand in hand with other NEPAD partners to come up with a collaborative security policy for the horn of Africa especially on the movement of Small Arms and light Weapons.

INFLUENCE OF INTERNATIONAL INSTITIONS ON DIFFERENT SECTORS POLICIES

ENVIRONMENT

International institutions also have an effect when it comes to environmental policy. Because Kenya for example is a signatory of the Kyoto Protocol, it has to abide by the policies set out in the Kyoto protocol. For example Kenya is supposed to adopt (CDM) Clean Development Mechanism. This means that it has to adopt clean technology inspite of the desire to economic and social development. 

HEALTH

International institutions also affect policy in the health sector. Many developing countries, including Kenya, face numerous health challenges including HIV/Aids, malaria and tuberculosis (TB). HIV/Aids, malaria and TB have significant natural, regional and international dimensions. The HIV/Aids epidemic and other health matters have elicited many initiatives internationally. There are several health and HIV/Aids agreements and initiatives by the international community. It is critical that the Government utilizes the existing policy space to secure public health in spite of IMF’s policies. Policy and legislation interventions include the United Nations Development Programme’s (UNDP’s) Millennium Development Goals (MDGs) and the World Health Organization (WHO) agreements. Other organizations that have been involved in policy intervention include the South Centre. Health Action International (HAI) and Consumer International. (Shihanya, 2008)

LABOUR AND EMPLOYMENT

International organizations and institutions have an effect on labour issues and human rights issues and policy making. While the development challenges for Kenya are many and clearly outlined in the ERS, the ILO offers a decent work approach to development built around policies aimed at stimulating remunerative and productive employment, which cuts across all the MDGs and puts decent work into the country context. All ILO assistance will be set within the DWCP. For the period 2006-2010, the ILO’s work will focus on three priority areas in its support to the national development process. All three areas have been identified as strategic for ILO interventions at the country level based on the ERS, the UNDAF, consultations with the constituents and the ILO 2006-07 strategic objectives and mainstreamed strategies. The proposed three selected priority areas are: 

• Youth empowerment, youth employment and elimination of child labour, particularly in its worst form

• Expanding & strengthening of the principle of inclusion for enhanced influence of tripartite partners in the national & international framework

• Expansion of social protection and fight against HIV/AIDS at the work place Over and above these three priority areas for the ILO in Kenya, the ILO will strengthen the capacities of the Ministry of Labour and Human Resource Development, the Congress of Trade Unions (COTU-K), the Federation of Kenya Employers (FKE) and their affiliates, in implementing activities to realize the overall development objective of Kenya’s DWCP, i.e. Poverty reduction through decent work for women and men. The ILO will continue to actively work to ensure that Decent Work is on the national development and poverty reduction agenda by promoting more active use of decent work instruments in the ongoing ERS processes.
(ILO, 2007)

REFERENCES

·         Julius K. Korir, Urbanus Kioko (2009).  Evidence Of The Impact Of IMF Fiscal And Monetary Policies On The Capacity To Address The HIV/AIDS  TB Crisis In Kenya. Centre for Economic Governance and AIDS in Africa and RESULTS Educational Fund (REF).

·         James Njeru (2003). The Impact of Foreign Aid on Public Expenditure: The Case of Kenya. AERC Research Paper 135 African Economic Research Consortium, Nairobi November 2003.

·         Hezron Nyangito (2002). Post-Doha African Challenges in the Sanitary and Phytosanitary and Trade Related Intellectual Property Rights Agreement. KIPPRA Occasional Paper No. 4 November 2002.

·         *The United Nations and Kenya Fifty Years of Partnership, (2006) Office of the United Nations Resident Coordinator in Kenya Nations Office, Nairobi.

·         Sihanya, Ben (ed) (2008) The Impact of IMF policies on Education, Health and Women’s Rights in Kenya, Action Aid Kenya, Nairobi.

·         Decent Work KENYA 2007-2011 ILO’s Country Programme for the Republic of Kenya

August 2007