MULTIMEDIA UNIVERSITY OF KENYA

FACULTY OF MEDIA AND COMMUNICATIONS

DEPARTMENT - FAMECO

BACHELOR OF JOURNALISM AND APPLIED COMMUNICATIONS

SEMESTER: SEPTEMBER-DECEMBER 2023

COURSE CODE: UCU 2126

COURSE TITLE: DEVELOPMENT STUDIES AND ETHICS

LECTURER : Isack Abiero

CREDIT: 45 HOURS

CONTACT:0725553515

PURPOSE

The purpose of this course is to equip the learners with knowledge and skill in development issues of
a society.

Learning outcomes

By the end of the course, students should be able to;

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 1. Explain the concepts of Development and underdevelopment and their causes
2. Identify Assets of development and how they can be harnessed for development
3. Explain how various issues affect Development
4. Discuss various development strategies
5. Evaluate personal positions with regard to issues that arise in terms of individual
responsibility and social action.

Week 1 The Concept of  Definition and

Development and approaches of development
Underdevelopment  Core values/ objectives of
Development
 Underdevelopment –
definition, Characteristics of
underdevelopment, causes

Week 2 1. Models of development  Modernizationtheory,

 Dependency theory,
 World Systems theory

Week 3 and 4 2. Socio-economic  Development versus

Growth
Indicators
 Economic Indicators -
Gross National product;
Gross Domestic product,
Per Capita Income
 Composite indexes;
Human Development
Index, Human poverty
Index, Gender related
development index

Week Five CAT

Week 6 Assets of Development  Economic,
Technological, Human
resources, Natural
resources, Good
governance, Education,
Health, Peace & unity

Week 7 Poverty  Its nature and causes,

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  Characteristics of the
poor
 Strategies to combat
poverty

Week 8 & 9 Issues in development  Globalization and

development
 Urbanization and
development
 Gender and
Development;
 Technology and
development
 Donor aid and
development
 Governance
development
 HIV and AIDs &
Development
 Industrialization
strategies, Rural
Development,
Decentralization, PPPs
 Millennium Development
goals
 Kenya vision 2030
 Africa’s response to
development - Regional
Integration in Africa

Week 10 CAT TWO

Week 11 Actors of development
 Government, NGOs,
CBOs, Local Community,
International community
 The Role of professionals
in development

Week 12 Project management  Definition

 Fundamental of project
management
 Project planning

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Week 13 Revision  case studies
 past papers

REFERENCES
Course Textbooks
1. Haynes, J. (2008). Development Studies. Polity Press.
2. Vandana, D. and Robert B. (2008), The Companion to Development Studies (2nd Ed.).
Hodder Arnold. 0340889144
3. Andrew, S. and Michael A. (2008), International Development Studies. 978141299455
Course References Textbooks
1. Jeffrey, H. (2005). Advances in Development Studies, Palgrave Macmillan
2. McVinney, C. (1995). Engineering Management: People and Projects. Battelle Press.
093547019
3. Morrison, E. (1994). Leadership Skills, Da Capo Press. 0866884335.
Course Journals
1. International Journal of Business, Economics, Finance and Management Sciences 1083-
4346
2. Journal of Development Studies, Institute for Development Policy and Management
2010274287
3. A Journal of Business Development, European Perspective 2012213051

Course Reference Journals

1. The Journal of Development Studies, Taylor and Francis Journals 84930021
2. Oxford Development Studies, Routledge Publications 1360-0818
3. A journal of social economic characteristics of beneficiaries of rural credit 1592218474

Date signature stamp

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DEVELOPMENT STUDIES AND SOCIAL STUDIES
SESSION 1
 Definition and the concept of development
 Objectives of development
 Dimensions of development
 Approaches to development

Development studies as an academic discipline is a branch of social science which addresses issues of
concern to developing nation. (Poverty, Food insecurity, political instability, poor health, illiteracy,
unemployment, low GDP, poor infrastructure, poor living standards)
It is interdisciplinary because it is concerned with the economic processes, political processes, social
and cultural systems, gender studies, international relations.
Development as an inter-disciplinary subject covers both theory and practice, i.e. both ideas about
how development should or might occur and real-world efforts to put various aspects of development
into practice.

Why Learn Development Studies

Learning development studies helps us to understand better and analyze the problems of the
developing countries, their causes and possible effective solutions. This enables us to addresses these
problems as informed professionals who are stakeholders in the process of development.
There is concern of lack of development in the so called under developed world where the situation is
getting worse and the prescribed policies and strategies are not achieving much, people continue to
die of hunger, debt burden is increasing, high mortality rates, civil wars. A large proportion of people
in the world face conditions that can only be described as unacceptable. The growing and glaring
inequality between the developed and underdeveloped world is worrying
Development remains an agenda or goal for many countries especially the developing world – it
dominates policies, politics, conferences, hence the need to learn about development

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Definitions

The term development does not have a standard definition and has remained elusive as different
people and societies have different cultures, value systems, ideologies etc (eg what is middle class)

However development definitions have some commonalities;

 Development may be conceptualized as a process which involves a series of stages with the each
new stage being more progressive or better than the proceeding stage.
 Development is a progressive process that involves improvements in standard of living and
quality of life that follow on from a country becoming richer.
Standard of living- A measure of the quality and quantity of resources available to people and
the way these resources are distributed within a population ( does Kenya has quality of life ? are
the resources equally distributed)
Quality of Life - The degree of satisfaction that an individual or a group of people have with
their living conditions and lifestyle ( are the people of turkana satisfied?)
 Development involves positive change in social, political and economic structures of societies as
well as relations
 Development is planned positive change meant to improve people’s lives by enabling them to
meet their needs and aspirations as individual groups and societies
 Development is building people’s capability; Institutional development and improvement of
institutions to cope with human challenges, resolve problems with a view to satisfy the needs of
the society
 According to Rober Chambers development is improvement, advancement or progress – in
economic measures, e.g GDP, per capita income and in social measures like education,
healthcare,
Chambers conceptualizes the concept of development at three levels;
i. A vision
This is a description or measure of the state of a desirable society and forms an aim towards
which to focus improvement e.g. vision 2030 .As a vision development may entail reduction of
poverty, promoting democracy, mitigating environmental degradation and improving health
standards of a population, increasing GNP

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ii. Process of social change
Development can also be understood as a historical process of social change in which societies
are transformed over a period of time
iii. Comprising the activities of development agencies
Development can also be viewed as consisting of activities of various development agencies
which include the government, civil societies, NGOs to reduce poverty, improve health,
education, gender equality and environmental protection etc.
Different dimensions (views) of Development
i. Economic development- Focuses on economic factors e.g growth of GDP, Commerce,
Incomes, trade etc
ii. Social development- focuses on how society is organized, is the organization relevant in
meeting the social (societal) challenges, the growth of institution and their capacity to foster
social change, Provision of institutions that will provide social amenities, basic needs
iii. Cultural development – Change in values, norms in the society (like which one……)
iv. Political development focuses on the development of political Institutions that can address
societal challenges, ability of the political system to adopt inclusionary governance, system
based on social justice, equality ( equal opportunity, fairness) for all, improving governance
v. Environmental development - focuses on the growth of a better environment
vi. Technological development- focuses on tools, technology and skills available in society to
help people cope with societal problems

In Summary
 Hence development can be perceived as a multidimensional process of change involving re-
organization and re-orientation of the entire economic, technological, political and social systems.
 Development is not just about economic growth but involves changes in institutional, social and
administrative structures of the society as well as popular attitudes, customs and beliefs
 Development encompasses the entire spectrum of changes by which a society is able to satisfy its
diverse basic needs and desires of individuals and social group in order to move from a condition
of life perceived as unsatisfactory to satisfactory

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 Core values of Development
These are the basic components of development. (Goulet, D) They serve as basis or guidelines for
understanding development. They represent common goals sought by society and nations and
include:
i. Life sustenance - this is the ability to provide basic needs which make life possible. They
include food, shelter, clothing, health, basic education and security. There absence or short supply
leads to absolute underdevelopment.
A basic function of development is to provide as many people as possible with the means of
overcoming the problems arising from lack of the basic needs
ii. Self Esteem - refers to a sense of worth and self respect ( do you respect yourself ? what is
self worth?). Worthiness in the modern world has been given to those who posses economic
wealth and technological power. Poverty and lack confers feelings of worthlessness to individuals
and nations. As a consequence, poor people and nations engage in development to gain some
respect and worthiness. It is essential that the goal of development should also be geared towards
enhancing individual and group esteems.
iii. Freedom from Servitude (slavery, bondage)- liberation from degrading material conditions of
life which create servitude to nature, social systems, other people, nations and beliefs
Freedom involves expanding the range of choices for societies and their members while at the
same time minimizing their external constraints in line with their social goals

Objectives of Development
The main objective of development is the improvement and promotion of human well-being; however
development in all societies must have at least the following three objectives;
i. To increase the availability and widen the distribution of basic life sustaining goods such as food,
shelter, health care
ii. To raise the standards of living in a society. In addition to improvements in income and output,
development must aim at providing better jobs, education and more attention to cultural and
humanistic values.

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iii. To expand the range of economic, political and social choice to individuals and nations by freeing
them from servitude and dependence on other people, nations and forces of nature and ignorance
which create human misery

Factors Affecting Development

They explain variations in development in different countries, nations and regions
They include;
1. Social:- Education, Population growth rate
2. Environmental - Natural disasters, Climate
3. Historical Reason - Colonialism
4. Economic – presence of Raw materials, Cumulative causation
5. Political Reasons - Political conflict, Leadership

DIFFERENT APPROACHES TO DEVELOPMENT

A. Economic Development Approach
For many years development was seen in terms of economic growth and as a shift of the economic
structure away from production of primary goods (agriculture and raw materials) to manufacturing
and service activities.
This approach dominated development thinking in the 1950s and 1960s.
For most economists and policy analysts, development was understood as economic development
which meant rising incomes as measured by Gross National Product GNP rather than individual well
being.
Economic Development Approach used economic indicators as a measure of development which
include:
1. Income per capita – total income of a nation divide by the total population/ income per person
2. Gross National Product (GNP) - Refers to the total value of goods and services produced by the
citizens of a country in a given year. Includes contributions by citizens working and investing
outside the country
3. Gross Domestic Product (GDP)
Refers to the total value of goods and services produced by the citizens and non-citizens in a
country in a given year. Excludes contributions by citizens working and investing outside the
country

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Weaknesses of the economic development approach
This approach does not take into account non economic factors which influence development such as
social, cultural, governance and political also does not consider the resource distribution
Under this approach underdevelopment is defined in terms of lack of what the rich could have in
terms of money and material possessions.
Dissatisfaction with the economic development approach led to a new approach to development
called the “Human Development Approach”
b) Human Development Approach
The new concept of development views development as a comprehensive economic, social and
political process whose main objective is to improve the well being of the entire population. It
takes people as the main actors in the process of improving their welfare and beneficiaries of
development
Accordingly, a society’s standard of living should not be judged by the average level of income
only but by people’s capabilities to live the life they choose. Underdevelopment is therefore
viewed as lack of capabilities as opposed to lack of income per se.
Human development involves the process of expanding capabilities and access to opportunities in
the social and political arenas and therefore improvement in the overall quality of life.
 The most basic of these capabilities are: to lead healthy lives, to be knowledgeable and to have
access to resources needed for a decent standard of living (UNDP 2000).
Development may also be conceptualized in terms of improvement in human well being or living
standards.
 Living standards can be measured through: longer lives, fewer health problems, higher
educational standards, increase in income or earning capacity, political and economic stability
at the national level, greater working opportunities, greater control of one’s life and
involvement in decision making processes.

Weakness of the Human Development approach

 Despite the all encompassing nature of the human development approach, some concern has been
raised that it can also conceal other aspects of social and political inequality which are not

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 captured in the human development index. For example, racial or political discrimination or
religious marginalization

c) Development as Freedom and Capabilities

 According to Amartya Sen (1999) development is a process of expanding the real freedoms that
people enjoy.
 Sen focuses on instrumental freedoms i.e. those freedoms which allow us to live lives free from
starvation, undernourishment, unnecessary morbidity, premature mortality, illiteracy and
innumeracy. The freedoms include political freedoms (the right to vote and enjoy political
participation), existence of economic opportunities, social facilities, transparency and protective
security.
 Growth of GNP and of individual incomes are important means for expanding the real freedoms
enjoyed by members of society but freedom depends on other determinants i.e. social
arrangements (education and health facilities) as well as civil and political rights (i.e. the right to
participate in public discussion and scrutiny)
 Sen (1999) argues that development requires the removal of major sources of un-freedom that leave
people with little choice and little opportunity for exercising their rational action
"un-freedoms” are barriers that exist in economic, social or political realms of society and include;
poverty, malnutrition, poor sanitation, tyranny, poor economic opportunities, social deprivations,
poor public facilities, intolerance, ethnic centricity, repressive state apparatuses, lack of education,
absence of health care, lack of security, and corruption can all be termed un-freedoms.
 One human freedom tends to promote freedoms of other kinds e.g., social opportunities in the
fields of health care, education, which generally require public action, complement individual
opportunities for economic and political participation
 Expansion of freedom is also viewed as a primary means to development. The instrumental role of
freedom concerns the way different kinds of freedoms (rights, opportunities and entitlements)
contribute to the expansion of human freedom in general thus promoting development (Sen 1999).

Capabilities
Capabilities refer to the range of things that people can do or be in life. The most basic capabilities for
human development are to lead long and healthy lives, to be knowledgeable, to have access to the

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resources needed for a decent standard of living and to be able to participate in the life of the
community. Without these, many choices are simply not available, and many opportunities in life
remain inaccessible.

Human development concerns itself with the creation of an environment in which people can develop
their full potential, and lead productive, creative lives in accord with their needs and interests. It is
about creating an environment in which people can develop.
Human development shares a common vision with human rights the goal of human freedom. In
pursuing capabilities and realizing rights, this freedom is vital. People must be free to exercise their
choices and to participate in decision-making that affects their lives

Human development is about the realization of human potential. It is about what people can do and
become (their capabilities) and about the freedom they have to exercise real choices in their lives.
As a people-cantered approach that focuses on the expansion of people's capabilities and freedoms,
the human development paradigm does not underestimate the importance of rising incomes and
outputs.
Economic growth/Rising incomes and output are deemed only as the “means” and not the “ends” of
development. Human development concerns itself with the creation of an environment in which
people can develop their full potential, and lead productive, creative lives in accord with their needs
and interests.

The capability approach emphasizes human achievements and freedoms. It evaluates the various
“functionings” in human life (what people want to do and what they aspire to be) and their
capabilities to achieve these functionings”. These include but are not limited to the ability to be well-
nourished, escape avoidable death, be knowledgeable and be equipped to participate in the life of
one’s community.

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THE CONCEPT OF UNDERDEVELOPMENT
Meaning of underdevelopment
There is no single definition that is comprehensive enough to incorporate all the features of the an
underdeveloped country
Several definitions
 Underdevelopment refers to the failure to utilize fully the productive potential of a nation due to
existing state of technology, knowledge, failure of social institutions, lack of resources
 Can mean backwardness in economic performance compared with the few economically leading
countries
 Underdevelopment can describe economic poverty, i.e. failure by a country to provide/ assure
adequate subsistence and material provision to most of the country’s population
 Under-developed country is one that is characterized by the co-existence of unutilized and under-
utilized man power, on the one hand, and of unexploited natural resources on the other.
 An under developed country is one characterized by chronic mass poverty which is not as the
result of some temporary misfortune, and by obsolete methods of production and social
organization, ‘which means that the poverty is not entirely due to the poor natural resources and
hence could presumably be lessened by methods already proved in other countries.”

CHARACTERISTICS OF UNDERDEVELOPMENT
1. Predominance of Agriculture:
An underdeveloped country is predominantly a primary producing economy that mainly depends on
the production of agricultural materials and minerals. Majority (70 -80%) of the population engaged
in Agriculture or related activities whose production remains low due to lack of capital and efficient
technology and yet the population pressure on agriculture is very high. Nearly 40 per cent of the
national income is derived from agriculture. Industries in such countries are mainly agro—based.

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2. Population Pressure and Unemployment:
Another feature of underdeveloped countries is that they are over-populated. The rate of population
growth is very high, and the economic development low, not capable of keeping pace with the
increase in population. Alarming increase in population, excessive pressure on land and poor
industrial development creates unemployment problems.

3. Low Income and Poor Savings:

Another important feature of underdevelopment is the low per capita income of the people and the
consequent little or no savings in the economy. Poor income leads to little saving or no savings in the
economy. Savings play a vital role in economic growth, as savings and investments are the two
crucial determinants of economic growth.

4. Under-Utilization of Resources:
The natural resources of the underdeveloped economies are either unutilized or under-utilized.
Generally, underdeveloped countries may not be deficient in natural resources like land, water,
minerals, etc. but the resources are poorly utilized due to various reasons like inaccessibility, lack of
technical knowledge, shortage of capital and limited markets.

5. Capital Deficiency:
Capital occupies a strategic role in production and economic development of a nation.
Underdeveloped countries suffer from capital deficiency. Stock of capital is small, and is generated at
a low rate. The basic shortcoming of underdeveloped economies is lack of incentives to invest, low
propensity and capacity to save and lack of dynamic entrepreneurship.

6. Low Level of Technology and Skills:

In underdeveloped economies, there is an acute shortage of skilled personnel and as such the methods
of production used are primitive with limited technology. These countries have very low levels of
literacy and technical education hence employ inferior production techniques making their goods and

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services less competitive in the international market. As a consequence, productivity in agriculture
and industries is very low.

7. Foreign Trade Orientation:

Most of the underdeveloped countries depend on the export of a few primary commodities, consisting
mainly of raw materials and minerals but import high value consumer goods and machinery. The
ratio of export production to total output is normally high. Any drastic change in the foreign demand
for the products of underdeveloped economies results in dislocation in the economy, depressing the
home market and ultimately reducing the income and employment level.
8. Lack of Suitable Socio-economic Set Up:
In underdeveloped countries, the prevailing socio-economic set up is the greatest impediment to
development. Mass poverty and illiteracy combined with social systems, religious beliefs, culture
etc., adversely affects the course of economic development. For example, in India, the caste system
proved detrimental to economic progress, as it impeded the movement of capital and labor and
dampened the spirit of enterprise.

9. A Dualistic Economy:
Another important feature of underdevelopment is ‘Dualism’, the presence of dualistic nature of
economic. We have fast-moving electric trains and also slow-moving country-carts. We have capital
markets and stock exchanges with many communication facilities like STD, ISD and Fax system in
cities; while we have no proper roads in the rural areas and many villages are unconnected with the
railway system. The barter system is still prevailing in many villages. This type of dualistic feature is
not conducive to economic development.

10. Mass poverty, Misery and Low-Standard of Living:

Most of the people in underdeveloped countries are economically very backward, poor and leading a
miserable life without any norms of standard of living. This results in, low labour productivity, factor
immobility, lack of entrepreneurship and poor specialization.

11. Inadequate infrastructure and social services

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The countries lack adequate Infrastructure and provision of social services such as health and
education is strained. This contributes to lower levels of life-expectancy in LCDs compared to DCs.

DEVELOPMENT THEORIES
A theory is a tool of explanation or a mechanism with which to make sense of complex realities.
In development studies, theories have been advanced to try and explain what development is, how it
happened in the past and how it should happen or why it fails to happen. Development theories offer
justification for policies. Different positions in development policy are based on differences in
underlying development theories. Models are based on theories and try to explain the process of
development

MODERNIZATION THEORY
Is a social economic theory that is recognised as one of the first theories of development that emerged
just after World War 2 in an effort to explain the differences in wealth between the rich and poor
countries. According to the theory, rich countries are rich because of embracing modernity

Modernity represents conditions of development characterised by the spread of scientific knowledge,

development of technology, attainment of higher standards of material welfare and the emergence of
lawful, humane and liberal democratic systems of governance
Cultural values, social, political and economic institutions that were a precursor to the rich country’s
development are all embodied in the notion of modernity
According to W.E Moore, the concept of modernization represent total transformation of a traditional
society into the types of technology and associated social, political and economic organization that
characterize the countries of western Countries
 Development is possible if pursued through urbanization and industrialization with technological
transformation of agriculture
 Attainment of a modern society is seen as the strategic goal for new nations.

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 Modernization theory can be seen as an analytical tool to provide a framework within which to
analyse the transition of nations from tradition to modern forms of society
 Theory assumes the rate of transformation from a primitive society to a modern one is slow, gradual
and in piecemeal.

Characteristic of Traditional Societies vs Modern Societies

1. Traditional societies are deeply rooted in either in religion or culture and rely on tradition or
customs to solve societal problems and have little incentive for change or innovation. On the other
hand, most modern societies are secular, believe in the power of reason to transform nature and are
creative and open to change
2. Traditional societies are pre-dominantly rural and based on subsistence agriculture while modern
societies are urban based and more reliant on industries
3. Status of an individual is determined by the status of parents ie it is inherited e.g sons of a trader
are traders while those of a peasant are peasants. In contrast, modern societies are characterised by
social mobility where by an individual can move up through hard work, education.
4. Modern societies are characterized by high division of labour and job specialization while
traditional societies are characterized by low division of labour and lack of job specialization
5. Problem solving in modern societies is scientific and objective hence universal while in traditional
societies it is subjective with no particular application

Acc. To modern theorists, countries are poor because they persist in the traditional ways and cultural
values and institutions which are incompatible with economic growth and industrialization. Such
countries need to undergo the same transition experienced by rich countries from traditional to
modernity
 Traditional poor societies need to adopt some xtics of modern societies to develop which include;
the ability to mobilize capital for development, development of entrepreneurial values as well as
investment culture that is technologically driven, structural capacity to absorb change,
performance based vale-system, universalistic attitude etc
 Proponents of this theory agree that interdependency between the rich and poor countries is useful
for the beneficial impact of such a relationship in helping the poor societies to transit to be modern
societies. Therefore less developed countries can be helped to develop by a process of interacting

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 with developed nations with the assumption that development in the advanced nations will trickle
down to the poor countries given certain policies and conditions. The poor countries can also
benefit from earlier growth experiences of other countries

Rostow
Among the most prominent modernization theorist is WW Rostow
Identified 2 factors that play an important role in the transformation of a society from a traditional
one to a modern industrialised society;
1. Non economic factors; Attitudes, ideas, achievement, individualism, competition
2. Economic factors: capital and technology, savings and accumulation of wealth for investment in
productive sectors.
Since developing countries lack capital he proposes injecting of capital to finance new methods of
production by developed countries in form of foreign aid in order to stimulate economic activities –
economic growth and development
Rostow argued that although modernization first occurred in the west, it can occur in all societies
provided these societies meet certain preconditions.
Explains economic growth based on a theory which gives 5 stages through which all countries must
pass through to realize development
Countries can be placed in one of five categories in terms of its stage of growth:
Rostow - Stages of Growth
1. Traditional Society
 It’s the lowest in economic growth characterized by limited output /productivity because of
lack of technology and science.

 Political power is centralized and the values are fatalistic

 The economy is usually of a subsistence nature – % of the working population is involved

in direct food production.
 Traditionalism- persisting values and attitudes that represent obstacles to economic and
political development.
 Labour intensive agriculture production

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2. Pre-condition for takeoff

In this stage there are new ideas that favor economic progress, new levels of education and
entrepreneurship, institutions are also able to mobilize investment there4 there is expansion of
commerce and the economy in general
However, society is limited at this stage because social structures are still traditional:
– Development of mining industries
– Increase in capital use in agriculture
– Necessity of external funding
– Some growth in savings and investment

Stage 3: Take off stage

Characterised by commercialized Agriculture, growth and rise in productivity, expanding urban

population that provides market for goods and services, new political groups represent new economic
push towards industrial economy.
– Increasing industrialisation
– Further growth in savings and investment
– Some regional growth
– Number employed in agriculture declines
Stage 4: Drive to maturity
Characterised by 10-20% growth in GDP,
- economy takes place in the international order,
- Use of advanced technology;
- Productivity is not the outcome of social necessity but to maximize profits
- Growth becomes self-sustaining – wealth generation enables further investment in value adding
industry and development
- Industry more diversified

Stage 5: Stage of Mass Consumption,

This last stage involves the achievement of a high standard of living characterized by mass
production and consumption of material goods and services.

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At this stage, a society has attained a certain level of income for everybody and nearly everybody
joins in the consumption of goods and services.

- Basic needs have been met; the emphasis is on social welfare and security.
- High output levels/productivity
- Mass consumption of consumer durables
- High proportion of employment in service sector

Strength of the theory

The theory has helped in the identification of several aspects of social and cultural change that lead to
development

Criticisms
i. One of the criticisms is that the applied model of modernization has failed to produce
technological and economic development in third world countries. Despite massive injections of
foreign aid and education projects sponsored by first world countries, most third world countries
remain underdeveloped. An underdeveloped country has a low GNP (the total value of goods and
services in a country).
ii. Some critics view modernization theory as ethnocentric or Western-centric. They don’t agree that
all societies must emulate the West to progress economically.
iii. The theory has also been criticised for citing traditional values as obstacles to technological and
economic progress in third world countries. While it lays emphasis on the internal factors in third
world countries, it neglects the factors of global economic and political power, conflict and
competition within and among societies which contribute to underdevelopment.
iv. The other problem with the theory is that it leads to the categorization of societies into three
worlds: the first world (composed of modern industrial states with predominantly capitalist or
hybrid economic systems. they became industrialized first. Second world countries consist of
industrial states with socialist economies like the countries of Eastern Europe. The third world
countries refer to pre-modern agricultural states that maintain traditionalism. It encompasses the
vast majority of people in the world including Africa, Asia, and Middle East).

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v. This categorization of countries is too simplistic today to account for the great diversity that is
found in these societies. The theory failed to recognize that the underdeveloped countries are
characterized by poorly organized commodity and money markets, communication and
transportation problems, limited skilled labour, highly inefficient bureaucratic government and
corruption
vi. It failed to take into account that third world nations are part of a highly integrated and complex
international system and therefore some external factors come into play like the vested interests
of developed world.

B) DEPENDENCY THEORY
The theory was put forward in the late 50’s by American Scholars who are largely disillusioned by
development policies based on Modernization theory. This was so because the optimism in the
modernization theory was contradicted by the actual situation in the underdeveloped world
According to Raul Prebisch economic growth in industrialised countries did not necessarily lead to
growth in the poor countries. In fact economic activities in the developed countries often led to
serious economic problems in the poor countries

Dependence is a condition in which the economy of one group is determined by the development of
another. While dominant economies develop on their own, dependent economies can only develop as
a reflection of the development of the dominant country which has a positive or negative effect on
their immediate development.

Dependence is a historical phenomenon that resulted from the contact of poor countries and the rich
mainly European countries which resulted in patterns of relationship characterised by domination
It has been said that dependency is of international nature and mainly resulted from colonial
domination and has ensured that poor countries have no capacity to exercise choice in external
relations and can never be self-reliant. Colonialism and the international expansion of capitalism are
two processes that have propagated development and underdevelopment. As the underdeveloped
countries are becoming poorer, the local political and economic elites in these poor nations
collaborate with international capitalism to exploit their nations.

21
The theorists believed the process of social change was not gradual and evolutionary as assumed by
the modernization theory but is instead characterised by conflict of interest between classes of
societies and countries in the international system i.e. class struggle as the engine of social change
and development.
Dependency theorists showed conclusively that some aspects of underdevelopment are related to the
dynamics of power, conflict, class, relations and exploitation. The dependency theory states that the
less developed countries (LDCs) are dependent on developed countries and this dependency is the
cause of underdevelopment in the LDCs

According to Andre Gunter Frank (1967), underdevelopment in the world is the result of deliberate
and systematic exploitation of poor countries by rich countries through the forces of capitalism on a
global scale. Hence capitalism is regarded as the motive force behind dependency relationships

The international system is comprised of two sets of states which he described as dependent/
dominant, Centre/ periphery, Metropolis/ satellites. The dominant countries include the advanced
countries while the dependent countries include Latin America, Asia and Africa which have low per
capita income, GNP and rely heavily on the basic products of raw materials for foreign exchange.
They exploits the satellites through the extrapolation of economic surplus. Real development can
therefore only occur when this vicious cycle of dependency relationship is completely removed

Policy Implications for Dependency

1. Advocate for complete withdrawal from international capitalistic system that is exploitive. From
the prevailing view that that the relation between the developed and developing countries was
unequal where the developed countries took advantage of the developing countries in terms of
access to benefits of development
2. The dependent countries can still welcome international capital but should institute strong local
controls to reduce or eliminate its capacity to dominate and exploit
3. Developing countries can develop closer relations with one another to guarantee benefits based on
equality and sovereignty and a relation founded on shared historical experience

22
 These policies are important to build up national capital or institute some kind of development
plan aimed at building national capacity for self reliance/development.

Strengths of the Dependency Theory

1. The theory attempts to explain the present underdevelopment of many nations in the world by
examining patterns of interactions among nations
2. Dependency theories tend to recognise the role of industrialization in raising the productive
capacity of dependent economies. However unlike the modernization theories they are inward
looking in terms of sources of capital so as to avoid the exploitative nature of international capital
in order to build capacity and self-reliance
3. By advocating collective self reliance strategy based on mutual cooperation and economic
integration of the LCDs it draws attention to joint action by poor countries
4. Draws attention to the significance of planned development with the view of promoting self-
sustenance in national deve lopment

Criticisms
1. It is overly pessimistic. It suggests that dependency and impoverishment can be undone only by a
radical restructuring of the world economy to reallocate wealth and resources from wealthy
industrial capitalist countries to impoverished pre-capitalist countries.
Economic development however has occurred in some countries that have had extensive contact
with industrial capitalist societies. Notably Japan moved from an underdeveloped society to a
wealthy industrial capitalist position after the 1950s. In contrast, some poor societies have had
less contact with industrial capitalist society remain highly underdeveloped.
2. Dependency theorists also neglect the internal conditions of underdeveloped countries that
may inhibit economic development.
3. The theory does not clearly spell out how LDCs are to get the capital necessary for development
instead of external sources of capital. Mobilizing the same from poor countries is unrealistic
4. The theory uses a large and unclear unit of analysis as it lumps together countries that are at
different stages of development in the same category. E.g. Kenya and brazil which are lumped
together have different levels of capacity for economical and political devt

23
5. It can also be argued that capitalism is not always as bad as portrayed in the theory. Critics of the
theory have pointed out that the spread of capitalism in LCDs has led to development rather than
underdevelopment( consider the case of Tanzania which embraced socialism)

World Systems Theory

It was proposed by Emmanuel Wallerstein and pursues the line of thought of the dependency theorist
in an attempt to explain world patterns of inequality. Developed to remedy some of the inadequacies
of the Dependency theory. The theory considers development in the global context of a single
world system and maintains that the capitalist world system develops rather than individual
economies.

The position and relative strengths of an economy in the world system determines its levels of
development. Hence the development process in the low developing countries cannot be studied in
isolation from the industrialised countries. The world has to be treated as one single world system. .
According to this theory the modern capitalist economy world is made up of four groups of
economies; the core countries, the semi-periphery and the periphery.
i. Core countries
- Represent modern societies, in which economic enterprises first emerged,
- Countries with global economic power and wealth, and the associated political & military
strength and influence hence politically and economic dominant countries.

- They have strong manufacturing industries and advanced forms of Agriculture

- Feature high skill, capital intensive production
- Politically they, they collectively establish and enforce rules of the global order and through
these advantages appropriate surplus from noncore countries.
- They organize the world trade to favour their interests and export their culture and supporting
technology to support their economic and political advantage
- Core societies are the most powerful industrial nations that exercise economic domination over
other regions.
- Include USA, Japan, Canada, Australia, New Zealand
ii. Semi periphery

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Wallerstein notes that between the core and peripheral countries are the semi peripheral societies
which are somewhat industrialized and have some economic autonomy but are not as advanced as the
core societies.
- The most dynamic group as members constantly move up and down from the category
- In these countries there is hope for development and joining the core countries but narrow
windows of opportunity to do so
- This category accounts for the newly industrializing countries that relatively sophisticated that
cannot fit in the periphery category like Argentina, Brazil, Latin America, China, Asian Tiger –
Malaysia, South Korea, Hong Kong, and Taiwan

iii. Periphery
Are at the lower end of the world system and are characterized by low skill production and raw
materials for industries elsewhere, poor living conditions and bleak development prospects
Non-industrialized countries which have very little control over their own economies and are
dominated by the core societies.
Were initially unconnected to core countries but have since been drawn to world economy through
colonialism, missionary activities and the activities of large international cooperation.

As the World system evolves, it becomes more difficult for these less developed countries at the
periphery to improve their status significantly, but sometimes opportunities are created for them to
move up. These countries are disadvantaged in the world system’s order and are often exploited

The countries in these categories are not fixed; over-time countries are able to move in and out of the
categories depending on their economic status.

The WST rejects the notion that underdevelopment can be dealt merely through economic growth
promoted by foreign aid or investment. It sees underdevelopment as a product of world capitalist
system in which economic activities are organized in such a manner that facilitates accumulation
through exploitation. Economic power rests with those who own the means of production. The
industrialized nations prosper through economic domination and exploitation of non- industrialized.

Note; A capitalist system entails profits maximization and use of advantage of continuous capital
accumulation and exploitation of labour

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Criticisms
i. Fails to explain how development takes or should occur
ii. The theory focuses exclusively on economic factors at the expense of non economic factors such as
politics and cultural traditions. It also fails to address the question of why trade between industrial
and non industrial nations must always be exploitative. Some theorists have noted that in certain
cases, peripheral societies benefit from trade with core societies i.e. when they need western
technology to develop their economies

Although it is not a perfected model it has been more helpful in allowing for a more comprehensive
and flexible view of global economic and political interconnections.

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SESSION 3 - SOCIOECONOMIC INDICATORS OF GROWTH AND DEVELOPMENT

Growth vs Development

Development is differs from growth as it has a broader and deeper meaning. Growth is a subset of
development i.e. is necessary but not sufficient condition of development.

Economic growth- refers to the quantitative sustained increase in a country’s productive

capacity ( an increase in output of goods and services that a country produces over a period of time
usually one year) accompanied by growth in its labour force, consumption, capital and volume of
trade. It’s identified by a sustainable increase in real ( actual,tangible,existing p) national income over
a period of time. It’s made up by taking the average increase in the national income over a given
period of time.
Economic Growth does not consider the composition of output, gives no indication of the social,
economic and physical environment in which the output is produced. It also does not consider
how the output is distributed. It is simply an increase in terms of the country’s GDP or GNP

Economic development encompasses both quantitative and qualitative changes in an economy

It is a process in which an economy not only experiences an increase in output but also undergoes
major technological, structural changes like infrastructure development and re-allocation of resources
between the Agricultural, industrial and service sectors
Economic development encompasses economic growth plus improvement in the distribution of
material welfare within an economy, nutrition, health and education, infant mortality rate and dignity
of the people’s lives. It involves changes in growth, quality of goods produced, methods of
production, employment patterns, population growth rate, foreign trade etc

27
Growth comes about due to increase either in the quantity of inputs used or efficiency ( police
shutting) of the production process and economic development on the other hand comes about when
growth is accompanied by technological and structural changes.

INDICATORS

Indicators can be divided into economic, social, and composite indicators

1. Economic indicators:

Use economic measures of development

1) Gross Domestic Product (GDP)

Value of all goods and services produced in a country in a year measured as the sum of all
income earned from people residing in a country regardless of their nationalities.

It comprises of all s``ources of income: wages, profits, rents, interests, and statistical
adjustments (exports minus imports).

2) Gross National Product:

Value of all goods and services produced in a country in a year plus income earned by its
citizens abroad, minus income earned by foreigners in the country. It measured as the sum of
all income from people with the same nationality regardless of where they are residing.

3) Per capital Income

This is the total income of a nation divided by the total population/ income per person. Measured
in units of a country’s currency but for international comparison we use a common unit of
exchange e.g. dollar
Income per capita

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 GNP per capita = GNP/Total population
 GDP per capita = GDP/Total population

The GNP, GDP and Per Capita Income determine the standards of living of a people and are a
product of the no. of people who work and their productivity

Low GNP can be attributed to low productivity associated with low levels of education and
technology

Using GNP or GDP for Ranking Nations:

Economists have developed some alternative measures of economic welfare. International

Comparisons of Income: Purchasing Power Parity- this considers the purchasing power of income,
how much can the income purchase in that given country. As such PPP measure provides the
estimated value of physical output and income weighted by the prices for such goods and services
prevailing in the U.S.

Weaknesses of the economic development indicators

1. GNP is an economic measurement and by definition does not take into account non economic
criteria such as social, cultural and political considerations.
2. GDP when expressed in per capita terms takes no account of how resources are distributed. GNP
per capita is a statistical average that has no relationship to the actual resources available to any
person in a country.
A country with a high GNP per capita could have a highly unequal distribution of resources with
the majority of its population living in extreme poverty or even destitution (Sen 1999). For
example, Namibia ranks as a middle income country because of the wealth of small elite. The
richest 5% of the population receive 70% of the GDP while the poorest 55% receive 5% of the
GDP (UNDP 2000).
3. GNP is based on market prices and does not take into consideration non market transactions. In
poorer economies, a variety of economic activities such as the cultivation of food, processing and
cooking of food, repair and maintenance of clothing and domestic equipment, provision of

29
 household food and water, caring for children, the elderly and sick and participation in communal
activities may not be included in GNP calculations. These activities are usually performed by
women hence GDP emerge as gender biased indicators of development. However not only
women’s work is undervalued or excluded from GNP as activities in the informal sector such as
barter trade are usually underestimated or ignored completely by GNP measurement.

4. Market prices may not reflect the real social value or cost of producing an economic resource. For
example, a chemical factory might produce a drug which may cause considerable pollution and the
cost of that is unlikely to be reflected in the market price of the drug.

5. There are many conceptual problems in the measurement of GNP and GDP

2. SOCİAL INDİCATORS

These indicators emphasizes on the quality of the development process. Some of the social indicators
include; health, nutrition, education, gender equality, political and human rights, social security,
consumption of basic neccesities, employment etc

The use of social indicators has a major problem; it is difficult to construct a common index of
development relating to the social indicators. There is no agreement as to the number of indicators to
be included,

There is a problem assigning weights to the various items,the social indicators are actually inputs and
not outputs and involve a lot of value judgements

B. COMPOSITE( complex,mutilple) INDICES

HUMAN DEVELOPMENT INDEX (HDI)

Since 1990 UNDP has been representing the measurement of human development of HDI in its
global annual human development report. HDI is a composite index of 3 social indicators:

1. Longevity of life

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This is indicated by life expectancy at birth and it has a minimum of 25 yrs and a maximum of 85yrs.
Kenyans life expectancy for the year 2008 is 56.4 yrs making Kenya to have longevity of life index of
0.527.

2. Educational attainment

It’s an indicator of access to knowledge and information that empower people to pursue a livelihood.
It is measured by a combination of a number of variables like adult literacy ratio and also combined
enrolment ratios at primary, secondary and tertiary institutions. Kenya has an adult literacy rate of
69.9% and when adjusted to enrollment ratios it gives an educational attainment index of 0.701

3. Standards of living

This indicates the extent to which people in a country have access to income earning opportunities.
It’s measured by GDP per capital adjusted for purchasing power parity (PPP) in American dollars. It
ranges between $100 and $40000. Kenyans GDP per capital for 2008 was $1035 giving Kenya a
standard of living index of 0.154.

HDI = 1/3 L + 1/3 E + 1/3 Y

E = Educational attainment

L = Life Expectancy

Y = Income

 HDI value of each country determines the extent to which each country has tried to achieve the 3
determinants of development with the highest being 1 and lowest 0. Kenyans HDI index for 2008
is 0.532 making Kenya a middle human developing country. HDI of a country therefore helps to
address the problems inherent in national economic measures particularly those associated with
income distribution. Developed countries such as Brazil and China have high HDI of 0.75 -
0.90
 Developed countries such as USA and Australia have the highest HDI of 0.90 – 1.00.
 Moderately developed countries such as the former Soviet Union countries and China have the
next highest of HDI of 0.75 - 0.90.
 Less developed countries such as India and Indonesia have moderately low HDI of 0.50 – 0.75.

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 Least developed countries such as the African states of Zimbabwe and Ethiopia have the lowest
HDI of 0.30 – 0.50.
However, HDI as a measure of human development has the following limitations

1. It has been argued that HDI is a crude index that attempts to catch in one symbol a complex
reality that is human development. It means that the 3 indicators of HDI are not the only
indicators of human development. There are others e.g. political participation, gender, access to
nutrition indices.
2. HDI of a country tends to focus more attention on solving inequality problems rather than
focusing on real issues influencing human development e.g. lack of capital, poor technology and
underdeveloped human resources.
3. The attachment of weight (1/3) to each of the components of HDI is said to be arbitrary and
not supported by real life scenarios/ experiences.
4. The index is not a comprehensive measure of human development. It only focuses on three
dimensions of capabilities.
Other aspects of human development that could be captured with available data include the degree of
people’s self-respect and political freedom, and environmental concerns, among others.
5. The HDI is not designed to assess progress in human development over a short-term period
because two of its component indicators—adult literacy and life expectancy at birth—are not
responsive to short-term policy changes.
6. Like any average country measure, the HDI does not account for variations in human
development within the country. Countries with the same HDI may be very different in how
human development is distributed, either from region to region, or from social group to social
group.

C. Gender Development Index (GDI)

GDI is a composite indicator that measures the average achievement of a population in the same
dimensions as the HDI while adjusting for gender inequalities in the level of achievement in the
three basic aspects of human development. It uses the same variables as the HDI, disaggregated by
gender.

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D. Gender empowerment index

The GEM gender empowerment measure is a composite indicator that captures gender inequality
in three key areas:

1. Political participation and decision-making, as measured by women’s and men’s percentage

shares of parliamentary seats;
2. Economic participation and decision-making power, as measured by two indicators— women’s
and men’s percentage shares of positions as legislators, senior officials and managers and
women’s and men’s percentage shares of professional and technical positions;
3. Power over economic resources, as measured by women’s and men’s estimated earned income
(PPP US$).

E. Poverty Indices

1. The Human Poverty Index

It was introduced in the 1997 global HDR as one of the human development indices. The aim was
to create a composite index bringing together the different dimensions of deprivation in the quality
of life, which would indicate the extent of poverty. The HPI is based on the understanding that if
human development is about enlarging choices, then poverty means the denial of opportunities and
choices most basic to human development.

The most fundamental difference between the HDI and the HPI is that the former measures
progress in a country or defined geographical location or for a population group, while the latter
focuses on the most deprived people in a country or defined geographical location. The index
incorporates four dimensions of human life:

Indicators for HPI-1 (for developing countries)

The HPI-1 uses deprivation in the following three dimensions

1. A long and healthy life: -vulnerability to death at a relatively early age as measured by the
probability at birth of not surviving to the age of 40;

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2. Knowledge: -exclusion from the world of reading and communication as measured by the adult
illiteracy rate
3. A decent standard of living:-lack of access to overall economic provisioning as measured by the
percentage of the population without sustainable access to an improved water source and the
percentage of children underweight for age.

Indicators for HPI-2 (for developed countries)

These include:

1. A long and healthy life:-vulnerability to death at a relatively early age as measured by the
probability at birth of not surviving to the age of 60;
2. Knowledge—exclusion from the world of reading and communication as measured by the
percentage of adults (16-65) lacking functional literacy skills;

Other socio-economic indicators

i) People living below poverty lines.

ii) Life expectancy (infants and children below the age of five)

iii) Literacy levels (primary, secondary, tertiary or within given age brackets)

iv) Fertility rates

v) Mortality rates.

vi) Enrolment rates in different levels of education.

vii) People who have access to water and sanitation facilities.

viii) Children who are underweight.

ix) Population lacking functional literary skills.

x) Long-term unemployment.

xi) Private expenditure on health and education.

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xii) Inequalities in maternal and child health.

xiii) Technology creation and diffusion e.g. number of telephone lines, mobile lines, Internet users,
patents granted

NATURE AND CAUSES OF P OVERTY

Introduction
Interest in poverty has grown in recent years, as one of the key problems of development. Extreme
poverty remains widespread in the developing world. Close to 1 billion people live on less than a
dollar per day. The poor carry all the problems of underdevelopment- They suffer from malnutrition/
under nutrition, poor health, illiteracy, poor living conditions, unemployment, are politically and
socially excluded.

‘The unfinished business of the 21st century is the eradication of poverty’ (Juan Somavia, UN World
Summit for Social Development)
The United Nations Development Programme (UNDP) has emphasised that 'Poverty is the
greatest threat to political stability, social cohesion and the environmental health of the planet'
(UNDP, 1994) Poverty is a complex problem and a moral issue that requires action

Elimination of widespread poverty remains at the core of all development Strategies and in fact
defines for many nations the principal objective of development policies. In the Millennium
Development Goals (agreed international set of development targets), Eradication of extreme
poverty and hunger by 2015 is Goal number 1. Vision 2030, the government is committed to
reducing the number of Kenyans living below the poverty line from 46% to 28% by 2012.

Definitions/ Concept of poverty

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Poverty is a multidimensional phenomenon that cannot be captured by a single indicator/measure. It
means different things to different people. However most agree that POVERTY is an unacceptable
state of affairs. The concept of poverty is translated into policy through a more precise set of
definitions and measures. How we define poverty is critical to politicians, policy makers and
academicians as it has implications for the solutions we seek.

Definitions
United Nations definition of poverty
Defines poverty as a condition characterized by severe deprivation (lack or denial) of basic human
needs, including food, safe drinking water, sanitation facilities, health, shelter, education and
information. Poverty is denial of choices and opportunities, a violation of human dignity which
comprises
 Lack of basic capacity to participate effectively in society.
 Not having enough to feed and clothe a family, not having a school or clinic to go to, not having
the land on which to grow one’s food or a job to earn one’s living, and not having access to
credit.
 Insecurity, powerlessness and exclusion of individuals, households and communities.
 Susceptibility to violence and it often implies living on marginal or fragile environments,
without access to clean water or sanitation

The International Labour Organization suggests that

At the simplest level, individuals or families are considered poor when their level of living, measured
in terms of income or consumption, is below a particular standard.

World Bank Definition

Define poverty as ‘the inability to attain a minimal standard of living’ Their poverty line, probably the
most widely used standard of poverty internationally, is based on a dollars a day and used to identify
poverty by reference to the overall standard of living which such an income must command.

36
Oxfam
According to Oxfam, one approach is not sufficient to define poverty and proposes four aspects that
should be inclusive; not having enough to live on, not having enough to build from, being excluded
from wealth, and being excluded from the power to change things for the better.

Poverty as capability deprivation

Amartya Sen views poverty as capability deprivation- failure of some basic capabilities to function -
education, health. Poverty means an individual lacks the opportunities to achieve a minimum level of
capabilities for human, physical and intellectual functioning.

Poverty as lack of Empowerment

Lack of empowerment refers to the lack of capability to participate, negotiate with, change, hold
accountable institutions that affect their well-being. Often, the poor are not empowered - they are
forced to work at certain jobs or do certain things, and often, this state of existence can be linked to
poverty. When people are disempowered, many times, they are in poverty.

Poverty as Violation of Human Rights – The human Rights approach sees poverty as a violation of
economic, political, social and civil rights. These may include the right to health, the right to adequate
standards of living and the rights to education and employment opportunities. This approach to
poverty imply the moral principal that the capabilities of human beings should not be permitted to fall
below a certain level in so far as nations and the international community are able to produce that
minimum threshold for everyone

Approaches to Poverty
Absolute and Overall Poverty
Absolute poverty was defined as "a condition characterised by severe deprivation of basic human
needs, including food, safe drinking water, sanitation facilities, health, shelter, education and
information. It depends not only on income but also on access to services."
Overall poverty takes various forms, including "lack of income and productive resources

37
to ensure sustainable livelihoods; hunger and malnutrition; ill health; limited or lack of access to
education and other basic services; increased morbidity and mortality from illness; homelessness and
inadequate housing; unsafe environments and social discrimination and exclusion. It is also
characterised by lack of participation in decision-making and in civil, social and cultural life.
It occurs in all countries: as mass poverty in many developing countries, pockets of poverty amid
wealth in developed countries, loss of livelihoods as a result of economic recession, sudden poverty
as a result of disaster or conflict, the poverty of low-wage workers, and the utter destitution of people
who fall outside family support systems, social institutions and safety nets. (UN, 1995)

MONETARY OR NON-MONETARY APPROACH TO POVERTY

1. The Money Metric Measure (Quantitative approach)
Traditionally, poverty is measured with a monetary measure of welfare.
 Money is seen as the means for purchasing some of the basics of well-being, such as food, health,
education, clothing and shelter. A threshold amount can be estimated that serves as a poverty line
separating the poor from the non-poor.
 A person is considered poor if his or her income level falls below some minimum level necessary
to meet basic needs. This minimum level is usually called the "poverty line."

The poverty line approach

Poverty can be classified according to the level of disadvantage experienced. The poverty line defines
a level of income or expenditure that is presumed to provide people with some basic level of
consumption. There are two main types: Relative poverty and Absolute poverty.

Absolute poverty line:

This uses the basic needs approach and classifies households as poor if their earnings or consumption
expenditures are insufficient to buy the minimum necessities for the maintenance of physical
efficiency.
 The World Bank (1975:19) describes absolute poverty as a situation where incomes are so low
that even a minimum standard of nutrition, shelter and personal necessities cannot be
maintained.

38
Relative poverty line
This is defined in relation to income distribution in a particular society without taking into account
basic needs.
It interprets poverty in relation to prevailing living standards.
It stresses economic inequality as the primary indicator of poverty, and may be set at some
percentage of a median or mean of household per capita income or expenditure (UNDP 2007).
Relative poverty: is an expression of poverty of one entity in relation to another entity.

NON-MONETARY DIMENSIONS OF POVERTY

Poverty is associated not only with insufficient income or consumption, but also to insufficient
outcomes with respect to health, nutrition and literacy, to deficient social relations, to insecurity, and
to low self-confidence and powerlessness. In some cases, it is feasible to apply the tools developed
for monetary poverty measurement to non-monetary indicators of well-being which include;

Health and nutrition poverty: One could focus on the nutritional status of children as a measure of
outcome, as well as on the incidence of specific diseases (diarrhea, malaria, respiratory diseases) or
life expectancy for different groups within the population.

Education poverty: One could use the level of literacy as the defining characteristic, and some level
judged as the threshold for illiteracy as the “poverty line”. In countries where literacy is close to
universal, one might opt for specific test scores in schools or for years of education as the relevant
indicators.

Composite indices of wealth: An alternative to using a single dimension of poverty could be to

combine the information on different aspects of poverty. One might want to create a measure which
takes income, health, assets and education into account. It is important to note that a major limitation
of composite indices is that it is not possible to define a ‘poverty line’

Subjective perceptions: Such measures of poverty are based on questions to households about
1) Their perceived situation, such as ‘do you have enough?’, ‘do you consider your income to be very
low, rather low, sufficient, rather high, or high?’,

39
2) A judgment about minimum standards and needs, such as ‘what is the minimum amount necessary
for a family of two adults and three children to get by?’ or ‘what is the minimum necessary for
your family?’, or
3) Poverty rankings in the community, such as ‘which groups are most vulnerable in the village?’

On the basis of the answers, one can also derive poverty lines. Self-reported measures have important
limitations, however. They might reproduce existing discrimination or exclusion patterns, if these
patterns are perceived as 'normal' in the society. More generally, the observed perceptions of poverty
need not provide a good basis to establish priority public actions. This may be the case if policy
makers have a different time horizon and/or a different focus than the population.

CHARACTERISTICS OF THE POOR

a) Incomes

◦ The poor suffer from very low incomes that cannot sustain minimal basic needs. Subsistence
farmers are among the poorest and most vulnerable.
b) Expenditure
The poor devote a higher proportion of their income on food (71 per cent in 1994 compared to 59
per cent for the non-poor (PRSP 2001).
c) Health
 Limited Access to health services by the poor: Availability, affordability and physical accessibility
of drugs and consultations is been limited due to factors ranging from cost sharing and long
distances to health facilities.

d) Limited Access to safe drinking water and sanitation

 In areas where poverty incidence is high, major sources of drinking water are ponds, lakes and
rivers.
 A large proportion of rural residents have limited or no access to safe drinking water and proper
sanitation.
 In urban areas large proportion living in informal settlements in town and cities have no access to
safe water.

40
e) Limited Access to Clean sources of Energy
 Firewood is the main source of energy for many poor households in rural areas and kerosene is the
main source of lighting. In urban areas, charcoal and kerosene are the main sources of energy for
the poor.
e) Low productivity
 The poor have low yield per acre due to differential access to fertilizers, quality of land, credit,
irrigation and other inputs.
 For livestock, lack of high grade stock, poor access to markets could account for low sales among
the poor.
f) Level of education of household head
 Education is considered as a vehicle for poverty reduction. Poverty has been observed to be
highest among people without any schooling. For example, studies show that there was virtually
no poverty among households headed by university graduates.
G) Location
 The poor are disproportionately found in rural areas and in informal and squatter settlements in
urban areas.
 About half of the rural population and between 29-50 % of the urban population were poor in the
1990s and 2000s
 The incidence of poverty is high in arid and semi arid areas of the country.

In Kenya, the poor tend to be clustered into certain social categories such as:
• The landless
• People living with disabilities
• Female headed households
• Households headed by people without formal education.
• Pastoralists in drought-prone ASAL districts
• Unskilled and semi skilled casual labourers
• AIDS orphans and street children
• Subsistence farmers
• Urban slum dwellers

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CAUSES OF POVERTY
1. Low levels of economic growth
◦ Due to low productivity
◦ Is partly attributed to economies that are overseas oriented. Most rely on exportation of a few
primary agricultural products.
◦ Economies are not diversified thus lowering bargaining power.
◦ Economic policies that do not pay adequate attention to the poor and vulnerable.
2) The negative impact of globalization on the African economy
 Spread of diseases including lifestyle diseases that pose a burden to the population in terms of
expenditure and reduced productivity
 Erosion and/loss of indigenous production systems
 Massive brain drain.
 Structural adjustment programmes
3) The Poverty trap
 People with extremely low incomes are caught in a series of short-term emergencies just to
survive, and thus they can never make choices that might allow them to eventually improve their
lives. For example, a poor family that cannot grow enough food to feed itself is unlikely to grow
enough to have a surplus to sell in order to buy fertilizer to improve its crop, thus it becomes stuck.
 Poverty trap, where a whole society may be too poor to grow fast. These countries cannot afford to
make investment such as in roads or schools that might allow their economies to grow quickly and
help to raise incomes, so they become stuck in their state of poverty.

4) HIV/AIDS
 UN estimates that out of the roughly 40 million people living with HIV worldwide, two-thirds are
in Sub-Saharan Africa. The recent death rate on the continent from the disease has been nearly
7000 per day.
 Majority of those infected are the most productive age group (15-49) This can lead to a “hollowing
out” of the population.
 In Africa, 1/4 of all those infected with HIV are young people (15-24 age group).
 Of all infected adults in Africa, an estimated 57% are women. Among the 15-24 year olds the
disease is even more biased, with young women and girls accounting for 75 % of those infected.

42
 The loss of working adults, especially women has a devastating effect on households, and long
illnesses drain family savings and strain social networks i.e. change in the concept of breadwinner.
 Increased sickness and time spent caring for family members is likely to affect labour supply and
productivity.
 Losses of skilled and capable people pose a risk by breaking the normal process of passing
information between generations in the long term.
 Compromises the future of Africa’s next generation for instance, the incentive to invest in
children’s education is reduced and it impacts negatively on school attendance and perfomance.

5) Political instability, civil strife, wars

 Conflicts spill over into neighbouring countries not only in form of refugees but also in form of
disruption of trade links, infrastructure, worsening of Africa’s image.
 The crises direct the energies of the state to the primary task of survival and maintenance of law
and order than to priorities of long term development.
 Adult HIV prevalence rates are also thought to be near 20% in parts of war affected Central Africa.
 Increase the number of the poor due to loss of human capital, displacement and destruction of and
diversion of limited national resources to unproductive ends (buying arms, and to health and
reconstruction.
6. Debt trap
 African governments are the most responsible for Africa’s debt problems since they are the ones
who used the initial funds in a manner not productive, resulting in a situation in which the loans
could not be repaid, even on very easy terms.
 Many of the loans taken out by African governments are extremely long term loans (40 year loans;
World Bank).
7. Cultures, traditions and structures
 Some cultures, traditions and structures are obstacles to poverty reduction e.g. the traditional role
and rights of women.
 There are major cultural barriers to fighting HIV/AIDS in Africa. Even in the face of death, there
is still a widespread stigma attached to AIDS in Africa as well as a common reluctance to discuss
sexual issues in public.

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 Cultural practices such as levirate marriage (obligation to marry a brother’s widow), polygamy
(having more than one wife) woman to woman marriage and female genital cutting may speed
HIV transmission.
8) Environmental degradation
 Amartya Sen suggests that poverty and environmental concerns be integrated into the idea of
“sustainable freedom”—preserving and expanding the substantive freedoms of people today
without compromising the ability of future generations to have similar, or more, freedoms (Sen
2004).
 If deforestation leads to drought and soil erosion, the poor lose their sources of livelihoods.
 Destruction of forests affects women and children who have to forage for fuel.
 It has implications for their health, the time they have for productive activities, their level of
poverty and general well-being. It limits children’s choices with respect to school attendance.
 Conflict over decreasing resources leads to attacks on weak ethnic groups and the elimination of
their freedom to pursue their preferred livelihoods.
The poor are the most exposed to effects of pollution and natural disasters (droughts, floods). Acute
respiratory infection caused by air pollution is the principal cause of absenteeism in school,
accounting for more than one-third of school time Uganda (2005).
9) Poor governance and leadership
 Lack of broad participation
 accountability
 transparency by political leaders.
 Lack of government’s responsiveness to the population.
 Misuse of resources
10) Rapid urbanization
The poor are not only confined to rural areas.
 There has been an increase in the size of the urban poor going hand in hand with deteriorating
social indicators (education, health, water sanitation and environment).
11) Rapid population growth that cannot be sustained by the existing resources and economic
growth rate
12) Unutilized or underutilized resources due to lack of skills, technology and capital
Conclusion

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 There are internal and external causes of poverty in Africa. Hence poverty reduction will require
concerted actions by both developed and underdeveloped countries.
Poverty Reduction Strategies
They should focus on Income security, improving capabilities –education, health, Empowerment.
This can be achieved through;
 Widening or providing economic opportunities – growth and rising incomes for the poor
 Through pro-poor policies – macro-policies that seek to ensure macro-stability, reduce inflation
 Regulatory and Judicial structures – Justice, equal rights, good governance
 Asset endowment- human capital, infrastructure, land, credit
 Structural policies that would improve markets – removal of barriers to access goods, technology
and investment opportunities
 Improvement of capabilities- education, health- nutrition
 Improvement of security
 Empowerment: refers to the Influence of the poor, access to, and influence over state institutions
and social processes that set public policies. Level of empowerment among the poor increases as
they gain access to economic opportunities, develop human capabilities and there is an
establishment of greater income security. Empowerment also increases participation

Measures of poverty
Incidence of Poverty measured by head Count
This refers to the ratio/ share of population whose income or consumption is below the poverty line or
share of population that doesn’t reach a defined threshold expressed in monetary terms
The headcount ratio can be expressed as the percentage of income or family units below the poverty
line, or as the percentage of individuals living in poor units or families.

One limitation of the headcount poverty measure is that it takes no account of the severity of poverty
- how far below the poverty line the poor actually are. Poverty is an all-or-nothing state. Furthermore,
changes in income which cause people to move from just below to just above the poverty line may
cause the headcount poverty ratio to decline markedly, but reflect only minor changes in living
standards. In addition, government policies which raise the incomes of the poor without pushing them
above the poverty line will have no effect on the headcount poverty ratio.

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To counter these criticisms, a range of more complex indices of poverty has been developed that
reflect both the severity of poverty as well as the numbers below the poverty line. The most well-
known of these measures is the poverty gap,
Poverty gap
The Poverty Gap Measures the depth of poverty by estimating the total gap between actual income
and the poverty line for all those who are in poverty. It measures the total cost of raising all of the
poor to the poverty line but no further. It indicates the severity of the poverty problem and the
(minimum) cost of addressing it. But even the poverty gap can be criticised because it assigns an
equal weight to all income shortfalls below the poverty line. If, instead, it is thought desirable to
assign more weight to those who are in deepest poverty, then even more sophisticated (and complex)
poverty measures are required.

Needs and equivalence scales

The poverty line varies according to needs which in turn depend upon the characteristics of each
income unit, the most obvious being the number of income unit members. The income unit itself is
defined to approximate a basic economic unit comprised of related individuals who are living
together. There are four basic types of income unit; single people; married couples (de jure or de
facto) without children; couples with children; and sole parents.
The scale reflects the relative needs of different family types and is designed to allow the standards of
living of different families to be compared on a single scale. It expresses the needs of each income
unit relative to those of a benchmark type - a single person unit, for example. The benchmark or
reference unit is assigned an equivalence value of 1.0 and the equivalence scale then assigns values to
other units relative to this. Thus, a married couple may have an equivalence value of 1.7, implying
that the needs of a couple are 70% higher than the needs of a single person. In this case, the value is
less than 2 because of the existence of cost economies in household living arrangements.
Another key assumption concerns the fact that, within income units, there is assumed to be equal
sharing of resources. This means that the standard of living, and hence the poverty status, of each
individual unit member are the same.
The Henderson poverty line
It attempts to estimate the extent of poverty using a poverty line for a reference two-adult, two-child
family set at an income equal to the value of the basic wage plus child endowment payments (later

46
 called family allowances).
It is a proportion of average earnings and average incomes. Updating the poverty line by average
earnings has been replaced by the use of household disposable income per capita.
Other measures include the human Poverty Index which is a composite measure (refer to notes on
Social-economic indicators of development)

ASSETS OF DEVELOPMENT
The development of a country depends on the assets that the country possesses among other things.
Assets are resources which can be used to create value or which contribute to development
In recent times, a development strategy has emerged based on Assets; the asset based economic
development that builds on the existing resources of a nation

Assets of Development Include:

1. Cultural Resources
Culture includes knowledge, belief, art, systems, morals, law, customs and any other capabilities
and habits acquired by man as a member of society.
Culture is an asset for development but it can present serious obstacles to development.
Cultural resources include:
a) Indigenous/ Traditional Education systems:
 Helps people meet their basic needs
 Prepares people to perform vital roles and to fit in the society.
 Imparts values and morals necessary for a society to operate harmoniously
 Important in the promotion of peace, security and conflict resolution mechanism
 Traditional folklore – songs, stories, dances – literature ( this can be copyrighted)
b) Traditional Agricultural production systems:
 Important in the production of food- food security
 Production of raw materials,
 Production of medicinal products
c) Cultural tourism:

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 Is the subset of tourism that focuses on traditional communities who have diverse customs, unique
form of art and distinct social practices which distinguishes it from other cultures. Kenya has a
wide variety of indigenous cultures that can be explored for tourism purposes.
 This include the rich cultural heritage that Kenya enjoys – Maasai culture, Swahili culture,
 Cultural festivals- Malindi festival, Moran passing out
 Cultural sites-
 Cultural artefacts-rift valley, kisii, Akamba, kiondo, kikoy
In vision 2030, the government proposes to set up and use cultural villages, festivals for cultural
tourism and the promotion of cultural products for development

2) Environmental/Natural resources
One of the main factors affecting the development of a nation is the availability of natural resources
They include land, forests, minerals, wild life, water, physical features – mountains, escarpment,
geysers, craters, waterfalls.
All forms of productive activity depend on the resource base, as raw materials and energy sources, for
production, manufacturing etc
The presence of diverse mineral supplies within a nation is a potential source of comparative
advantage in economic development, as shown by the historical experience of Europe and North
America. Currently, mineral production is extremely important in the economies of many developing
nations. As well as contributing to the export earnings of a country, mineral development can assist in
attracting foreign capital, creation of jobs and stimulating demand for local goods and services, in
raising taxes, in prompting infrastructure developments and in providing options in a country’s route
to industrialization

A country with abundant natural resources can develop faster than one without. However it is good to
note that the mere existence of natural resources alone cannot initiate economic development the
resources have to be harnessed.
 Livelihood of many people around the globe remains directly dependent on the natural
environment for basic survival needs. The poor depend on a wide variety of materials that
constitute their livelihood food, fuel, fodder, building materials and medicine.

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  In developing countries, 80-90% of jobs are based on natural resources i.e. agriculture, forestry,
fisheries and tourism. 80% of export earnings come from agricultural products like cash crops.
Tropical forests supply gum, oils, rubber, dyes, etc.
 Ecotourism depends on many types of natural landscapes and wildlife found in African countries.
 Wildlife tourism and water based tourism can be exploited to provide income, foreign exchange
 Natural resources provide invaluable raw materials for pharmaceutical industries.
 The environment provides water, a basic necessity in life.
Countries can engage in proper utilization of resources for development – exploitation of
minerals (oil, gold) Discuss the case of Kenya.
Point of discussion – Mineral resources: curse or cure for development- consider the mineral rich
countries in Africa DRC, Sudan, Nigeria, - have they given them an advantage in development, if
not what is the problem( war over resources, minerals being controlled by a few, other sectors of
the economy being ignored, lack of capital for exploitation-giving it over to expatriates.
3) Technological assets
Technology is one of the key drivers of economic growth. Technology permeates all economic
activities and can be harnessed for production, processing, marketing, distribution. Improved
technology leads to increased productivity of labour, capital and other factors of production. Use of
technology facilitates communication, production of quality products and increases efficiency.
Countries can use technology to gain a competitive advantage to facilitate development
 Genetic engineering can be used to increase yield and to produce plants and animals with
desired characteristics- drought resistant, disease free, early maturing, high yielding
 Information technology facilitates communication, trade, education, knowledge and
information transfer
 IT facilitates globalization and international trade
Mobile phones, cable and satellite television and internet enable the flexible and rapid transfer
of information in a variety of forms.
 Technology is needed for industrialization, increased productivity, and utilization of resources
Vision 2030 proposes the intensified use of technology in all the key sectors to facilitate
development

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4) Good governance
Good governance is the process through which public institutions conduct public affairs, manage
public resources and guarantee the realization of human rights in a manner essentially free of abuse
and corruption, and with due regard for the rule of law. The true test of "good" governance is the
degree to which it delivers on the promise of human rights: civil, cultural, economic, political and
social rights
Key attributes of good governance:
• Transparency,
• Accountability,
• Participation,
• Responsiveness to the needs of the people.
Poor governance has been identified as a major cause of underdevelopment in Sub-Saharan Africa.
These countries need to employ good governance to facilitate development

Vision 2030 states that the government is committed to continuing governance reforms. This is
necessary to create a conducive environment for doing business and other economic activities and to
allow citizens to enjoy the full rights they are entitled to in the constitution. To that end the
government has put in place an anti-corruption programme and instituted judicial and legal reforms to
promote good governance for development

Human Capital – Health and Education

Health and education are basic objectives of development as they are ends in themselves as well as
means to development. Health is central to well-being while education is essential for a satisfying and
rewarding life both fundamental to the notion of expanded capabilities that lie in the at the heart of
development
Health and education are vital components of growth and development as inputs to the aggregate
production function hence important in economic development
4) Health
Good health of citizens is an asset to any nation because it boosts human capacity to be productive;
increasing productivity leading to economic growth. Health is a pre-requisite for increased
productivity and successful education

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  The government of Kenya recognized the need to fight disease from as far back as 1963 at
independence.
 Vision 2030 good health is hoped to improve the livelihood of citizens. The government
endeavours to promote good health by providing equitable and affordable health care at the
highest affordable standards.
 Good health is expected to play an important role in boosting economic growth, poverty reduction
and the realisation of social goals.
 Good health is also important in achieving one’s personal ambitions and exercising one’s political
rights. Good health reduces the disease burden to a nation.
6) Education/knowledge
Illiteracy and ignorance were identified as obstacles to national development by the Kenyan
government at independence.
Education plays a key role in the ability of a developing country to absorb modern technology and to
develop the capacity for self-sustaining growth and development
• Education is an input to the aggregate production function. Investment in Human capital( health
and Education) yield a higher return in investment
• Education is an integral part of economic development of a nation and requires investment in
human resources and infrastructure.
• Quality higher education benefits both individuals and the society.
Private benefits: Better employment opportunities, higher wages, increased ability to save/invest,
more opportunity for upward social mobility.
Public benefits: creation of a well trained workforce or human capital for the economy. Skilled
personnel i.e. doctors, accountants, engineers, etc).
Vision 2030 recognises that education is fundamental to development. Education equips citizens with
understanding and knowledge that enables them to make informed choices about their lives and the
society. Education need to provide the citizens with the skills and knowledge\ required for social and
economic development.
- The government thus seeks to provide universal education for all, increase transition rates, improve
needs.
6) Human Resources
Closely linked to human capital is human resources.

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People are agents of development and thus People's participation has been recognised as a key
element towards relevant and sustainable development.
HR determines a country’s productivity an important factor in economic growth. HR contributes to
efficiency gain in economic activities and helps in diversifying economic activities to realise
productivity gains. The HR endowment i.e. the managerial and technical skills of a country
determines how it will use the other assets of development e.g. its ability to exploit natural resources,
ability to develop and use technology
According to Vision 2030, Kenya’s potential lies in its people’s creativity, education, entrepreneurship
and other skills. A competitive HR is therefore required to meet developmental objectives

7) Economic resources
Economic resources are key in any developmental process. Economic resources include capital
resources of a given country. Capital is required for production, trading, manufacturing, exploitation
of natural resources. Capital is also required in the other sectors to facilitate education, procurement
of services and infrastructure, for investment and for trade
8) Peace and security
Peace and security is the foundation of good governance, individual social welfare and economic
development. It is necessary to provide a conducive environment for economic activities and
especially investments
Lack of peace and security increases the cost of living and doing business
 Conflicts lead to loss of lives, destruction of infrastructure, loss of property, gross violations of
human rights and diversion of resources.
 Insecurity impacts negatively on the tourism sector and other important sectors in economic
development
Vision 2030 envisages security of all persons and property throughout the republic. The Government
aims at enacting and implementing necessary policy, legal and institutional frameworks around
security, peace building and conflict management.
9) INFRASTRUCTURE
Includes roads, rail, waterways, air transport, energy, telecommunication
Infrastructure is an important enabler for sustained economic growth and development. Transport and
communication ensure easy mobility of factors of production, raw materials and product, breaking

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isolation and encourage trade, industrialization, urbanization, education which all contribute to
development
The presence of an effective and reliable infrastructure is critical in lowering the cost of doing
business and increasing competitiveness of the country

TECHNOLOGY AND DEVELOPMENT

Science and technology is closely associated with the development process; development of new
technology has always preceded greater human and social development. Technology is the
application of scientific knowledge to production.
Development results from two simultaneous processes; growth and change and technology has the
capacity to increase growth through the devising of more knowledge and better ways of production
Today technology accounts for between 20 -50 % of annual growth experienced in the developed
world. As a result, technology has the potential to create more income, more food, and more public
utilities. However, society has to be organized in such a way that technology can play a role in
growth.
The Role of Technology in Development
Health
Technology has an obvious linkage with the quality of life/
 Medical technology - Examples of useful medical technology include surgery without pain,
artificial organs and vaccinations. These and other technological advances in the field of medicine
have contributed to a decrease in mortality rates and an increase in life expectancy.
 Telemedicine can help reduce cost and improve efficiency in health care delivery.
 Technology plays an important role in the development of education an important asset through:
 Distance learning contributes significantly to reducing inequalities of opportunities between
regions in a country. Students can apply online, check application status, register for classes,
make direct payments, view grades etc. Technology provides exciting opportunities for more
effective teaching e.g. e-learning. Audiovisuals enable lecturer to pull information from anywhere

53
 in the world to enhance class presentations. it also extends interaction and access to information
beyond the class.
In Agriculture:
 Tele agriculture can assist farmers to increase productivity by using remote expertise, share data
and experiences and transfer know how in agriculture.
 Biotechnology has been used to increase productivity, development of disease free crops
 Improving animal breeds
In Communication and Information transfer:
 It promotes social solidarity, exchange of information, exchange of TV programmes and African
Tradition and culture.
 The expansion and developments in telecommunications has transformed lives and impacted on
industries i.e. publishing, music and films in terms of how they carry out their business making it
the fastest growing sector in the economy
 ICT adds value to the provision of, access to information services for improved planning and
organizational management. It provides tools for data collection, analysis, storage and
dissemination to support decision making in an organization.
 People can access affordable entertainment through ICT. Showing of VCDs in rural kiosks is
financially lucrative. Hence it creates jobs directly and indirectly by attracting investment.
In trade and Commerce
It has revolutionized business organizations bringing forth new ways of doing business that are
innovative, efficient and more effective. Organizations today access new markets, new competition
and increasing customer expectations. Technology facilitates cross border and International trade,
Provision of Government Services
Transforming government services from paper based, over the counter channel to fully online
transactional modes will require time and resources. The government is spending millions of shillings
to avoid wasteful spending on paper and duplication of services (computer, mobile phone, radio, TV,
internet).It is a citizen cantered approach to government that aims to reduce frustration in search of
government services.
In Industries; technology has lead to increased efficiency and productivity

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URBANIZATION, GLOBALIZATION & GENDER AND DEVELOPMENT

URBANIZATION AND DEVELOPMENT

Definition of terms:
Urbanization; The process of transition from a rural to a more urban society. Statistically,
urbanization reflects an increasing proportion of the population living in settlements defined as urban,
primarily through net rural to urban migration. The level of urbanization is the percentage of the total
population living in towns and cities while the rate of urbanization is the rate at which it grows.
Urban growth; increase in the number of people who live in towns and cities, and the amount of
land devoted to urban places.
The urban transition; passage from a predominantly rural to a predominantly urban society.

Causes of urbanization in the developing Countries

i) Natural increase that is fuelled by improved medical care, food supplies and sanitation which
reduce death rates and cause population growth.
ii) Rural urban migration due to:
 Pull factors: In many developing countries, rural poverty drives people from rural areas to the city
in search of better lives (employment, education, food, shelter etc)
 Push factors: In Africa, most people move into urban centres because they are pushed by factors
such as environmental degradation, conflict, religious strife, political persecution, food insecurity,
lack of basic infrastructure and services (water, sanitation, housing, hospitals, electricity, hospitals)

55
 Effects of urbanization
Although, cities serve as ‘engines’ of growth in most developing countries by providing opportunities
for employment, education, knowledge and technology transfer and ready markets for industrial and
agricultural products, high urban populations place enormous stress on natural resources and imposes
‘ecological footprints’ on the peri-urban areas
The conversion of farm lands and watersheds for residential purposes have negative consequences on
food security, water supply as well as the health of the people, both in the cities and in the peri-urban
areas.
Social effects
i. The influx of people into urban areas has not been accompanied by an increase in the provision of
certain amenities and as a result, health care facilities, educational institutions, water and sewerage
facilities, electricity, housing have been stretched not matching demand. As a result there is a lot of
pressure that has created a ripple effect to certain illicit activities like crime, drug-peddling,
prostitution and street families.
ii) Cities impact on health in many ways. In the areas of the environment and health, problems of
emission reduction, supply of clean drinking water, sewage and rubbish disposal, food security and
poverty reduction are the most important. Vulnerability of the urban population to natural disasters
and diseases, especially HIV/AIDS and atmospheric pollution has also been recognized.
iii) Urban populations are vulnerable to natural disasters and diseases associated with pollution due to
congestion.
iv) Cultivation of crops through sewerage irrigation and use of chemical pesticides affect the health of
consumers who are urban dwellers health hazard
Economic effects Include;
i. Land has become more unavailable and scarce with the growth of industries and
mushrooming of residential areas. As a result slums arise in congested areas leading to social
problems like crime, water borne diseases and STD’s.
ii. Exploitation of the unskilled workers. Most of the unskilled workers are paid meagre salaries
which is not able to provide the basic amenities and as result engage in illegal activities.
iii. Creation of small and medium scale industries. The jua-kali sector has sprawled with the
increase of urbanization.

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 iv. Loss of property rights as a result of people being unable to pay the normal royalties and
rights. The black market has thrived and this undercuts the tax amounts which the
government should be reaping.
v. Growth of cartels in different sectors for example the matatu industry, textile and others.
vi. A large proportion of the urban population is also affected by poor sanitation that threatens
their health. River pollution is particularly found to be worse where rivers pass through cities
and the most widespread is contamination from human excreta, sewage and oxygen loss
vii. It is estimated that about 400 million people or about one-third of the population in the
developing countries do not have safe drinking water (World Bank, 1990).

Technological effects
Increase in innovation as a result of the increase in small scale industries for example the jua-kali
industry. Formation of middle-men and commercial attaches who provide a promise to market the
urban goods to other areas

The urbanization process

One significant feature of the urbanization process in Africa is that unlike Europe and Asia much of
the growth is taking place in the absence of significant industrial expansion. Mega cities defined as
cities with 10 million inhabitants are few. Urbanization also finds expression principally in outward
expansion of the built up area and conversion of prime agricultural lands into residential and
industrial uses.
- Urbanization process is also driven by government development policies and budget allocations
which favour urban residents over rural areas.

Urbanization is increasing in both the developed and developing countries. However, rapid
urbanization, particularly the growth of large cities, and the associated problems of unemployment,
poverty, inadequate health, poor sanitation, urban slums and environmental degradation pose a
formidable challenge in many developing countries.

Although urbanization is the driving force for modernization, economic growth and development,
there is increasing concern about the effects of expanding cities, principally on human health,

57
 livelihoods and the environment. The implications of rapid urbanization and demographic trends for
employment, food security, water supply, shelter and sanitation, especially waste disposal
The question that arises is whether the current trend in urban growth is sustainable considering the
accompanying urban challenges such as unemployment, slum development, poverty and
environmental degradation, especially in the developing countries (PERN 2003).

Policy Implications for urbanization

 Imbalance in Urban-rural employment opportunities are caused by urban bias of development

strategies. It is important that strategies should aim at minimizing the imbalance between urban –
rural opportunities and improving rural wages
 Rural development – electrification, provision of clean drinking water, improvement of infrastructure
 Proper urban planning
 Decentralization of some essential services to the rural areas
 Agricultural development strategies
 Creating an appropriate rural-urban economic balance
 Population growth control strategies
 Education systems that produce graduates oriented towards office jobs

GLOBALIZATION
Globalization has affects trade, political economy, social structures and consequently development.
Integration into the world economy has proven to be a powerful instrument for countries to promote
economic growth and development. Over the past decades, economies of the world have become
increasingly linked through improved technology and communication, expanded international trade,
investment in form of multinationals

Definitions:
- Globalization is a process by which economies of the world become increasingly integrated
leading to a global economy and global economic policy-making
- Globalization is the accelerating interdependence of nations in a world system linked
economically through the mass media and modern information systems

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- Globalization as the intensification of world-wide interconnectedness in terms of economies,
cultures and politics
- According to Albrow (1990) globalization refers to all those processes by which the peoples of the
world are incorporated into a single society.

Strands of Globalization
Allen (1995) recognised three strands to Globalisation: economic, socio-cultural and political.
i. Economic – distance becomes less important to economic activities which operate in a borderless
world and barriers to trade are removed. Globalization involves integration of national economies
into the international economy through trade, Multinational corporations, foreign investment,
capital flows, migration and the spread of technology.
ii. Cultural – cultural globalization spread of the western forms of consumption and lifestyles across
the globe. Increasing convergence of cultural styles and global norms
iii. Political globalization- internationalization leading to the erosion of the former role and powers
of the nation state, international courts

Globalization is characterised by;

 Development and use of new technologies
 Changing experiences of time and place – the world has become compressed and contracted due
to advanced technology, communications- internet, phones, aircraft
 Increased interactions between people, nations and regions
 Free movement of goods and services, capital, information and people across national boundaries
 Development of a global culture which is characterised by converging lifestyle, people
consuming similar goods and services, use of common languages, formation of global bodies
and agencies
 Increased openness of economies to international trade, financial flows, foreign direct investment
 Emerging Transnational organizations
 Liberalization of trade and markets

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  Increased connectivity.

Driving forces of globalization

1. Changing concepts of space and time
2. An increasing volume of cultural interactions
3. The commonality of problems facing all the worlds’ inhabitants.
4. Growing interconnections and interdependencies.
5. A network of increasingly powerful transnational actors and organization.
6. The synchronization of all dimensions involved in globalization.

1. Changing concepts of space and time

There is a radical shift in our understanding of space and time. This has been brought about by the
unfolding revolution in transport and communication technology associated with industrialization.
2. Increasing cultural interaction
Increased travel and tourism and contact between peoples have increased cultural interactions
exposing all humans to the growing flows of cultural meanings and knowledge from other
societies. The electronic mass media enables people to encounter new ideas and experiences.
3. Commonality of problems
Climate change - The impact of global industrialization on the planet’s biosphere provides the
most compelling example of the shared global nature of many problems.
Another reason for sharing concerns is that certain global problems require global solutions i.e
global warming, international drug trafficking, terrorism, diseases, poverty
4. Interconnectedness and interdependencies
Fast expanding interconnections and interdependencies bind localities, countries, companies,
social movements, professional groups and individual citizens into an ever a more dense network
of transnational exchanges and affiliations.
5. Transnational actors and organizations
Transnational corporations (TNCs) (Shell, BP, Microsoft, Agip, Toshiba, Nokia etc)
International governmental organizations (IGOs) - (League of Nations and United Nations)
Diasporas and stateless people

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 International nongovernmental organizations (INGOS)(Red Cross, Oxfam, Amnesty International
which operate transnational.)
Other transnational actors (Migrants in search of income opportunities, international tourists,
professionals such as lawyers, journalists, scientists ,media, rock, pop and sports personalities.)
6. Synchronization of all dimensions
All the dimensions of globalization appear to be coming together at the same time, each reinforcing
and magnifying the impact of others.

IMPACT OF GLOBALIZATION
The impact of globalization to development vary from place to place, region to region and group to
group
 On one hand, globalization presents exciting opportunities in terms of free trade, growth and
spread of knowledge, technology and innovation, unity due to interdependence
 On the other hand globalization may lead to international dominance of rich countries,
environmental degradation, unfair trade rules and increasing inequality.
Positive Impact of globalization
- Increased foreign investment.
- Multinational companies that Creates employment.
- Innovativeness in solving global problems.
- Expanded markets for goods and services
- Emergency of democratic forms of political governance.
- Diffusion of technology and knowledge needed for development Industrial technology has spread
from the core nations to developing countries.
- ICT technology is contributing to space compression, and has revolutionized communication
(internet, email, teleconferencing)
- Promotion of tourism – creation of job opportunities, contribution to taxes, increased economic
activities, increased income

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- The integration of many agricultural village communities into wider regional and global economic
patterns. The village peasantry was no longer isolated from cities and the global market determined
the prices for agricultural goods.
- Unified economic and political structure
- The price of African labour and goods came to be determined by the world market. Global
economic conditions began to shape the socio-cultural systems of native people.
Technological change- Industrial technology has spread from the core nations to developing
countries. ICT technology is contributing to space compression, and has revolutionized
communication (internet, email, teleconferencing)

Negative Impact of Globalization to the Developing nations

- The introduction and spread of diseases (Avian flu, typhoid fever, measles, influenza).
- Food shortages due to the collapse of the indigenous patterns of agricultural production
- Increased urbanization- Migrants are pushed from the countryside by population growth, poverty,
lack of opportunity and absence of land reform. They are pulled to the city by the prospects of
regular employment, education and medical care for their children and the excitement of urban
life. Rapid urbanization has led to the development of illegal squatter settlements in and outside
urban areas.
-Brain drain – The educated in developing countries move to the developed countries that offer
better job opportunities
-Global production - Competition to local Industries, environmental degradation in the developing
world, exploitation of workers
-Unfair trading rules, unfair level playing ground leading to marginalization of the developing
economies- Increased inequality
-Increased dependency syndrome by the developing nations on te developed world Secularization of
societies and erosion of important values

Implications for Development

To take advantage of globalization, countries need to position themselves properly with right
policies. Economies that open themselves to trade and capital flows on a free and fair basis and are
able to attract international capital and benefit the most from globalization.

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 Open and integrated markets place a premium on good macroeconomic policies, and on the
ability to respond quickly and appropriately to changes in the international environment.
 Success in open markets, and in attracting new investment and advanced technology, means rapid
change in the structure of economies .This results in some segments of society that are at a
disadvantage in the short term, even while other segments, and the economy as a whole, are
benefiting.
 This implies that governments must fully embrace globalization in awareness of its potential
risks, and seek to provide adequate protection for the vulnerable segments of society during the
process of change.
 While globalization raises the rewards of good policy, it also accentuates the costs of poor policy.
The perception of markets that economic policy formulation and implementation is consistent and
predictable is critical. Hence the importance of flexible and well-informed policy-making, of
solid, well-governed institutions, and of transparency in governance.
 Countries with a poor or inconsistent policy record will inevitably find themselves passed by,
both from expanding trade and from private capital flows for development. These are the
countries that run the risk of marginalization.

What are the policy response options to globalization by African Countries?

Africa and developing countries need to come up with appropriate combination of policies with three
main objectives:
1. Achieving and preserving macroeconomic stability;
2. Promoting openness to trade and capital flows;
3. Limiting government intervention to areas of genuine market failure and to the provision of the
necessary social and economic infrastructure.

No one set of policies is a sufficient condition for success--indeed, experience shows that poor
policies in one area can obstruct progress, even if policies in other areas are good. The three
objectives of policies complement and reinforce each other:

Five main areas where African countries need to achieve greater progress in order to speed up
their participation in globalization:

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 Maintaining macroeconomic stability and accelerating structural reform
Macroeconomic stability, embodied in low inflation, appropriate real exchange rates and a prudent
fiscal stance, is essential for expanding domestic activity, and is a precondition for benefiting from
and sustaining private capital flows;
 Emphasis must be to maintain economic stability and to reinforce the implementation of
structural policies that will make the economies more flexible, encourage diversification, and
reduce their vulnerability to exogenous shocks. These include reforms in the areas of public
enterprise activity, the labor markets, and the trade regime. Governments must also ensure that
public services--including transportation networks, electricity, water, and telecommunications, but
also health services and education--are provided in a reliable and cost-efficient fashion.
 Governments should create an enabling environment that encourages foreign and domestic
investment, and of a solid infrastructure to support an expanding economy. It should also
implement policies that eliminate the structural weaknesses that would be exposed by the
heightened international competition.
Ensuring economic security
Establishing the right framework for economic -removing the sense of uncertainty that still plagues
economic decision-making in most of Africa. This requires the creation of a strong national capacity
for policy formulation, implementation and monitoring. Moreover, the transparency, predictability
and impartiality of the regulatory and legal systems must be guaranteed.
Reforming financial sectors
Rising capital flows place additional burdens on banking regulation and supervision, and require
more flexible financial structures. This aspect of globalization thus confronts developing countries
with a new challenge--to accelerate the development and liberalization of their financial markets, and
to enhance the ability of their financial institutions to respond to the changing international
environment.

Achieving good governance

National authorities should tackle corruption and inefficiency, and enhance accountability in
government. This is through reducing the scope of distortionary rent-seeking activities; eliminating
wasteful or unproductive uses of public funds; and providing the necessary domestic security.

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Undertaking comprehensive reforms of the civil service, aimed at reducing its size while enhancing
its efficiency.

A partnership with civil society

African governments need to actively encourage the participation of civil society in the debate on
economic policy, and to seek the broad support of the population for the adjustment efforts. To this
end, governments will need to pursue a more active information policy, explaining the objectives of
policies and soliciting the input of those whom the policies are intended to benefit.

Globalization and Regional Integration

With closer economic integration, each country has an interest in ensuring that appropriate policies
are followed in its partner countries.

This could be achieved by coordination the relevant national policies within a regional context.
Throughout the continent, African governments are coming together to coordinate components of
their policies, and virtually all countries are now members of regional organizations. Efficient
regional cooperation allows the economies of Africa to overcome the disadvantages of their relatively
small size and, by opening access to larger markets, to realize economies of scale. The obligations of
membership in some of these organizations also make it easier for each individual country to achieve
further progress in regulatory and judicial reform to rationalize payments facilities and to relax
restrictions on capital transactions and investment flows (as in the Cross-Border Initiative); and to
develop the mutual economic infrastructure (as in the SADC). Enhancing the trade links among
themselves naturally also strengthens their ability to participate in trade on a global scale, and could
lead toward further progress in the direction of non-discriminatory multilateral trade liberalization.

GENDER AND DEVELOPMENT

It is widely accepted that development must be informed by gender analysis. This implies that all
development activities, policies and undertakings should make gender consideration to avoid
marginalization of one group. A major strategy to address issues of underdevelopment in Africa is for

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governments to redirect their planning to make them address priority needs of all their targets
irrespective of gender. There is need for gender main streaming in the development process to ensure
that the different needs and concerns for men, women and boys and girls are met when formulating
and implementing different strategies for development
Gender
Gender as a sociological term describes differences in social behaviour. Gender is what is socially
constructed by men and women of a society as to how the two sexes should behave.
Gender is a product of culture and is culture specific.
Gender is dynamic. Gender roles and relations are not static, but keep changing.
Gender roles
Are the social constructed responsibilities of men and women which can be influenced by class, caste,
ethnicity, age and religion acquired through the process of socialization
Gender relations
Gender relations are ways in which a culture or society defines rights, responsibilities and identities
of men and women in relation to one another.
More equitable relationships will need to be based on a redefinition of the rights and responsibilities
of women and men in all spheres of life, including the family, the workplace and the society at large.
Gender equity vs. Gender equality
Gender equity is the process of being fair to women and men. To ensure fairness, strategies and
measures must often be available to compensate for women’s historical and social disadvantages that
prevent women and men from otherwise operating on a level playing field. Equity leads to equality.
Gender equality does not mean that men and women become the same; only that access to
opportunities and life changes is neither dependent on, nor constrained by, their sex. Gender
equality refers to equal enjoyment by women and men of socially-valued goods, opportunities,
resources and rewards. Achieving gender equality requires women’s empowerment to ensure that
decision-making at private and public levels and access to resources are no longer weighted in men’s
favour, so that both women and men can fully participate as equal partners in productive and
reproductive life.
Patriarchy
It is a system of social relations in which men as a class have power over women as a class. These
power relations are social constructs and are not biologically given.

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Thus patriarchy can be economic (the right to be serviced), cultural (devaluation of women’s work or
achievements, or ideological (representations of women as creatures inherently different from men).
Secular ideologies include taboos, myths which have been incorporated in African tradition to justify
why either woman should not do some things or why some things should be done by them without
much questioning.
Examples include food taboos, the sexual division of labour, myths and domestic violence.
The impact of gender on development
- Women make up more than 50% of the world’s population and yet in every country, their social
position is inferior to that of men. What this means in practice is that they work longer hours,
have poorer educational opportunities, poorer health care and less control over their lives.
a) Gender and education
- In all provinces in Kenya, girl’s enrolment rates in primary and secondary schools are lower than
that of boys. Even where there is gender parity at lower classes in primary school, girls drop out,
mainly due to:
- The burden of household responsibilities (heavy domestic workload)
- Negative cultural practices
- Limited infrastructure and amenities (especially water and sanitation in schools),
- Early pregnancies and marriages
- Gender-based violence within communities.
- Lack of formal education is a great disadvantage to girls as it keeps them in a subservient
position. It enhances productivity and health.
b) Gender and legislation
Some legislation are biased towards women in terms of their rights and welfare
- A Kenyan woman married to a foreigner does not pass her citizenship to her husband and
children though this applies if a Kenyan man marries a foreign woman.
- Plural legal systems. Under statutory law, a man and woman should have attained the age of
18 years to contract marriage. Under customary law, the capacity to contract marriage is
linked to puberty and circumcision rites and is not regulated by statutory law. Thus early girl
marriages are sanctioned under customary law.
c) Gender and property rights

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 - Majority of agricultural societies and all pastoral societies are patrilineal where important
kinship relations are traced through the male line and property is owned and inherited through
the male line. In such situations, a woman’s economic security is precarious because a wife
farms her husband’s land and does not have land rights in her natal home.
- In principle it means, women without male children are dispossessed of their land.
- If a widow refuses to be inherited, and leaves her husband’s lineage it puts her sons at risk of
losing their rights to land.
- Women in conflict situations are pushed further into the margins of society thus exacerbating
their struggle to achieve health and wellbeing.
d) Gender division of labour
- Generally men’s work tends to be work that is more socially prestigious or pays higher cash
income.
- Women’s work tends to be in the domestic sphere, it is seasonal, part time, time intensive,
unpaid or low paying. In addition, the product of women’s work is often consumed therefore
it is less likely to be recognized in national accounting systems. as a result the value of
women’s’ work is assumed to be often low.
Reduction of women’s work in the field by equity in division of labour to give them more time to
participate in societal development.
Gender and politics
- The level of participation of women in the public sphere and especially in politics is not
commensurate with their participation in other realms of life. This is due to the high cost of
campaigning, the gender division of labour but also because women are interested in issues that
affect their family and neighbourhood rather than national affairs.
- Women are excluded from public life and decision making spheres. Even though they make up
52% of the national population in Kenya and also over 60% of the voting population, women
constitute less than 9% of representation in elective political offices
Critical areas for Gender-mainstreaming include; -Access and control of Resources, Access to
Education, Access to employment, Participation in decision-making, Access to the required health
facilities,

CLASS ASSIGNMENT

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How is gender mainstreaming / consideration addressed in the Millennium Development Goals
and vision 2030 ( 2 MDGS specifically address women issues : MDG 3 and MDG 5)

PROJECT MANAGEMENT
Many development strategies and plans are implemented through projects and programmes. (A
programme is a group of related projects). Some good strategies have failed to achieve their
objectives due to poor project management. The success of many development strategies are based on
how they are managed, hence the need for good project management to achieve development
What is a Project?
A project is: A collection of linked activities/tasks, carried out in an organized manner, with a clearly
defined START POINT and END POINT to achieve some specific results desired to satisfy the needs
of the organization/ entity at the current time
- A project is an interrelated set of activities that has a definite starting and ending point and results in the
accomplishment of a unique, often major outcome.
- A project is a series of activities aimed at achieving specified objectives within a defined time-period and
budget
- A project is a means of moving from a problem to a solution via a series of planned activities
- A project is a sequence of activities that has a definite start and finish, an identifiable goal and an
integrated system of complex but interdependent relationships.
Characteristics of a Project
- Unique

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 - Specific deliverable
- Specific due date
- Multidisciplinary
- Complex
- Part of programmes
A project should have clearly identified…
- objectives
- stakeholders and beneficiaries
- problems to be addressed
- monitoring and evaluation system, and
- benefits which exceed expected costs and are likely to be sustainable
- Duration – defined life-span i.e. must be developed within a specified time
- Budget - must be developed within a given budget
- Resources - are carried out by teams of people brought together temporarily from different areas
Every project has stakeholders

Stakeholder is any individuals, group or organization, community, with an interest in the outcome of
a programme/project. May include:
- Government institutions and organisations
- Private sector groups, individual companies
- Civil society groups (NGOs, CBOs)
- Community members (farmers/traders, women/men, young/old, rich/poor
- Partners or actors: those who implement the project
Stakeholder Analysis
Purpose: To identify:
The needs and interest of stakeholders
 The organizations, groups that should be encouraged to participate in different stages of the
project;
 Potential risks that could put at risk the programme;
 Opportunities in implementing a programme;
Why stakeholder analysis:

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 Different groups have different concerns, capacities and interests, which need to be
understood and recognised in the process of problem identification, objective setting and strategy
selection
The key questions are:
- Whose problems are we analysing?
- Who will benefit / loss out and how from a proposed project interventions?
The ultimate aim is to maximise benefits of the project to beneficiaries and minimise its potential
negative impact
Steps in Stake- Holder Analysis
1. Identify the general development problem to be addressed
2. Identify all those groups, which have an interest in the potential project
3. Investigate their respective roles, different interests, relative power and capacity to participate
4. Identify the extent of cooperation/conflicts between stakeholders
5. Make recommendations for project design with a view to ensuring that:
• Resources will be targeted at the needs of priority groups
• Management and coordination arrangements are appropriate
• Conflicts of stakeholder interests are recognised and addressed
Every project addresses a problem
A problem may be defined as any situation that needs a solution and for which there is/are possible
solution(s) e.g.
Problem analysis is an important part of project planning. It involves two tasks:
Analysis of the identified problems faced by the stakeholders and
Development of a problem tree to establish causes and effects
Problems Analysis visually represents the causes and effects of existing problems in the project area
in the form of a Problem Tree. It clarifies the relationships among the identified problems.

Steps in problem Analysis:

1. Brainstorm on Problems:
The parties involved in the analysis/planning process state all the problems which they feel relevant or
which they know to be relevant to others
2. Definition of a problem which may serve as a starting point of discussion

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 3. Prepare a problem tree, which establishes cause and effect relationships and provides a simplified but
robust version of reality
Problem
Lack of rural electricity
Possible solutions
1. Solar panels
- Imported electricity
- Own hydro electricity Project
- Rural electrification dam

Constraints on the completion of projects

Every project has constraints, or limitations which are: time, budget and scope.
a) Time
A project is a set of planned activities with a defined beginning and end point. Most projects will be
close-ended in terms of there being a requirement for completion by a certain point in time. This
point may be the result of an external factor such as new legislation, or may be derived from
organisational requirements. It may also be partly determined by other constraints. There is likely
to be some relationship between the time taken for a project and its cost. A trade-off between the
two constraining factors may be necessary.

b) Resource Availability
There is likely to be a budget for the project and this will clearly be a major constraint. Cost constraints may be set in
a number of ways, for example as an overall cash limit or as a detailed budget broken down over a number of
expenditure headings. Human resources in particular may be a limiting factor on the completion of the project. In
the short run it is likely that labour will be fixed in supply. Whilst the overall resource available may in theory be
sufficient to complete the project, there may be difficulties arising out of the way in which the project has been
scheduled. That is, there may be a number of activities scheduled to take place at the same time and this may not be
possible given the amount of resources available.

c) Scope- project dimension, coverage- division, county, country

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Whether or not a project is considered a success or failure is judged on a combination of these three
constraints. A project that fulfils the scope and budget but that is delivered way past the deadline is
not considered successful.
Some techniques can be used to overcome the problems referred to above. These include: Budgeting,
and the corresponding control of the project budget through budgetary control procedures and Project
planning and control techniques such as Gantt charts and network analysis.

PROJECT MANAGEMENT
"Project management" is the planning and control of events that, together, comprise the project which
aims at ensuring the effective use of resources and delivery of the project objectives on time and within
cost constraints.

- Project management is a combination of techniques, procedures, people, and systems focused

on the successful completion of a project. It supports the planning, implementation, tracking, and
control of projects and involves organizing, coordinating and managing various tasks and
resources in order to successfully complete a project.
- Project management entails defining the various components of a project, equipping those that
have the task of completing those components and ensuring that work is completed within a set
period of time, within a set budget, bearing in mind the bigger picture; the project as a whole, and
in understanding the relevance of each component and how it contributes to the final deliverable.
- Project management will involve the application of the management functions to the project and they
include; planning, controlling, and organizing
Project Management involves; Methods for organizing tasks, a structured framework to help a
group work productively, Tools to aid in task sequencing, dependency analysis, resource allocation,
scheduling, etc and tools to track progress relative to plan

The purpose of project management is to achieve successful project completion with the constraints
e.g. resources available. A successful project is one which:
 Has been finished on time
 Is within its cost budget
 Performs to a technical/performance standard which satisfies the end user.

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Why We Need Project Management?
Complex project needs coordination of:
 Multiple people
 Multiple resources (labs, equipment, etc.)
 Multiple tasks – some must precede others
 Multiple decision points – approvals
 Phased expenditure of funds
 Matching of people/resources to tasks

The Attributes of Successful Project Management

The effectiveness of project management is critical in assuring the success of any substantial
undertaking.
1. A project should be initiated with a feasibility study, where a clear definition of the goals and
ultimate benefits are established.
2. Knowledge, skills, goals and personalities are all factors that need to be considered within project
management. The project manager and his/her team should collectively possess the necessary and
requisite interpersonal and technical skills to facilitate control over the various activities within the
project.
3. The stages of implementation must be articulated at the project planning phase. Disaggregating the
stages at its early point assists in the successful development of the project by providing a number of
milestones that need to be accomplished for completion.
4. In addition to planning, the control of the evolving project is also prerequisite to success.
5. User consultation is an important factor in the success of projects and, the degree of user
involvement can influence the extent of support for the project or its implementation plan.

6. Good and clear communication; an essential quality of the project manager is that of being a good
communicator, not just within the project team itself, and externally with other stakeholders.

PROJECT LIFECYCLE
This refers to a logical sequence of activities carried out to accomplish the project’s goals or
objectives
1) Initiation.

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In this first stage, the scope of the project is defined along with the approach to be taken to deliver the
desired outputs. The project manager is appointed and in turn, he selects the team members based on
their skills and experience.
2) Planning.
The second phase should include a detailed identification and assignment of each task until the end of
the project. It should also include a risk analysis and a definition of criteria for the successful
completion of each deliverable. The governance process is defined, stake holders identified and
reporting frequency and channels agreed.
3) Implementation Execution
During the execution phase, the planned solution is implemented to solve the problem specified in the
project's requirements. It involves committing the necessary resources to the project and various
actors carrying out the project activities.
4) Monitoring and evaluation - Controlling.
The most important issue in this phase is to ensure project activities are properly executed and
controlled. Control requires adequate monitoring and feedback mechanisms by which senior and
project managers can compare progress against initial projections at each stage of the project.
Monitoring and feedback also enables the project manager to anticipate problems (e.g.: the knock-on
effects of late start or finish times) and therefore take pre-emptive corrective measures for the benefit
of the project overall.
5) Closure.
In this last stage, the project manager must ensure that the project is brought to its proper completion.
The closure phase is characterized by a written formal project review report containing the following
components: a formal acceptance of the final product by the client, Weighted Critical Measurements
(matching the initial requirements specified by the client with the final delivered product), rewarding
the team, a list of lessons learned, releasing project resources, and a formal project closure
notification to higher management. No special tool or methodology is needed during the closure
phase.
Why Projects Fail
1. Lack of User Involvement
Without user involvement nobody in the business feels committed to the project, and can even be
hostile to it. If a project is to be a success senior management and users need to be involved from the

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start, and continuously throughout the development. This requires time and effort, and when the
people in a business are already stretched, finding time for a new project is not high on their
priorities. Stake holder identification and involvement very important
2. Long or Unrealistic Time Scales
Long timescales for a project have led to systems being delivered for products and services no longer
in use by an organisation. The key recommendation is that project timescales should be short, which
means that larger projects should be split into separate projects. Many managers are well aware of the
need for fast delivery, leading to the other problem of unrealistic timescales. Some timescales are set
without considering the volume of work that needs to be done to ensure delivery. As a result these
projects are either delivered late or only have a fraction of the facilities that were asked for. The
recommendation here is to review all project plans to see if they are realistic, and to challenge the
participants to express any reservations they may have with it.
3. Poor or No Requirements
Many projects have high level, vague, and generally unhelpful requirements. This has led to cases
where the project team, having no input from the users, come up with what they believe is needed,
without having any real knowledge of the problem. Inevitably when the project is delivered the
beneficiaries feel it does not help them in solving the problem. This is closely linked to lack of user
involvement, but goes beyond it. Users must know what it is they want, and be able to specify it
precisely.
4. Scope Change
Scope is the overall view of what a project will deliver. Scope creep is the growth in the scale of the
project in the course of the life of a project. As an example a project for a system which will hold
customer records, it is then decided it will also deal with customer bills, then these bills will be
provided on the Internet, and so on and so forth. This will have to be achieved at a given timescale.
Management must be realistic about what is it they want and when, and stick to it.
5. No Change Control System/ Change management
Despite everything change is happening at a faster rate than ever before. Environment within which
the project is operating keeps on changing hence the need to have a system to manage this change. So
it is not realistic to expect no change in requirements while a project is being implemented. However
uncontrolled changes play havoc with a project have caused many project failures.

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This emphasizes the advantages of shorter timescales and a phased approach to building systems, so
that change has less chance to affect development. Nonetheless change must be managed like any
other factor of business. The business must evaluate the effects of any changed requirements on the
timescale, cost and risk of project. Change Management and its sister discipline of Configuration
Management are skills that can be taught.
6. Lack of feasibility Studies
Look at potential suitability of the project activities in solving the problem, Availability of resources
to be employed in the project

7. Force Majeure
Of course, not every project fails because of bad execution. There are things beyond our control, the
economy, for instance, or simply a flood that wipes out your data centre at two in the morning

8. Bad Budgets
Too many projects don’t have the money they need to succeed. Bootstrapping is a part of life, but a
miserly budget can kill a project before it even begins. Resource constraint is a major challenge to
many projects
9. Project goals are not clearly defined
The project sponsor or client has an inadequate idea of what the project is about at the start.
There may be a failure of communication between the client and the project manager. The may be
due to a lack of technical knowledge on the part of the client or an overuse of jargon by the project
manager.
The project goals may also be unrealistic and unachievable, and it may be that this is only realised
once the project is under way.
10. Project Complexity
Projects may be highly complex and may have a number of objectives that actually contradict each
other.
Group Work
Identify a key national development problem

• Propose a project to solve the problem

• Justify selection of the problem from among others
• Problem analysis – cause of the problem
• Identify a method(s) of solving the problem (may be from literature review)

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 • List the stakeholders

DEVELOPMENT STRATEGIES
In the context of development, a strategy is a specific programme of action for achieving the
country’s objectives by employing resources efficiently and economically.
A strategy is a framework that guides a nations thinking and action with regard to development
Several strategies have been developed and used by the Government to foster development in Kenya
since independence to date and they include;
i. Industrialization
Kenya’s 1st development strategy that was based on modernization which emphasized
development through urbanization and industrialization.
Industrial development in Kenya had 5 goals;
1. To expand and diversify the country’s export base.
2. To create employment.
3. To raise overall productivity of the economy.
4. To foster the development of local managerial and entrepreneurial talent.
However because of the risk of domination and exploitation by established industrial countries,
Kenya and Africa in general adopted the Imports substitution Industrialization strategy (ISI)

ii. Import Substitution Industrialization Strategy

- Is an industrialization strategy that entailed an attempt to replace imported commodities with
domestic sources of production and supply by setting up domestic industry to supply the same

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 - Contained in the 1966-1970 development plan where the government committed itself to protect
the infant industries and support production that would substitute for imports
Objectives of ISI are broadly outlined as follows;
a. To preserve foreign exchange and improve Kenyans balance of payment positions(BOPs)
b. To create employment opportunities for the many school leavers. In this regard, labor intensive
methods of production were advocated.
c. To transfer critical skills and technology to the domestic economy. In this regard, local training
institutions were to be established.
d. To utilize domestic resources for industrialization thus minimizing the use of imported inputs.
e. To create a process of domestic capital formation necessary for development of an industrial
sector in order to diversify the economy. (However, ISI as a strategy of achieving industrial
development did not succeed very much and was officially discontinued in 1984.)
iii. Rural Development Strategies
Rural development is significant in the national development process of most African countries.
African governments with the support of UN decided to give rural areas a major role in the growth
of economies not only as a solution to poverty but as a way of improving employment creation and
income in order to create wealth.
In Kenya, the importance for rural development was indicated in Sessional paper No. 10 of 1966.
The 1st strategy of transformation of rural areas was the UN developed, Integrated Rural
Development Strategy (IRD) involved in the focusing of development effort on the transformation of
rural society in Africa.

The focus on rural life was justified by the fact that about 80% of Africa’s population lived in rural
areas where agriculture is the main economic activity. Integrated development meant that all aspects
of development were to be coordinated in order to flow together to form an unbroken whole.

IRD was viewed as a centralized program that delivered a combination of goods and services to rural
small scale farmers to improve the quality of life. They included extension services, AI services,
administrative services, subsidized agricultural inputs such as fertilizers. The programs for the
promotion of agriculture education and training health and nutrition as well as community
development had to be planned and implemented in a coordinated manner. The strategy laid

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 emphasis on improving local capacity specifically local knowledge experience, entrepreneurship,
human and social capital.

iii b. District Focus for Rural Development (DFRD)

DFRD was born out of the need to balance rural- urban development with the aim of managing
migration to urban centre’s which led to health sanitation and housing problems in towns.
Emphasis on DFRD was to create employment for the growing youthful population and also to boost
incomes in order to make rural living more attractive to the people.
DFRD grew out of the concern to involve local population in decision making regarding development
initiatives and hence was geared towards ensuring participation of rural population in identifying
priority projects for their districts and also helping in the mechanisms for mobilizing capital.
It was to be achieved through;
Ensuring better use of land through provision of essential services e.g. Extension, credit, market
improving farmers’ income through pricing guidelines for agricultural products.
1. Building of rural infrastructure particularly rural access roads, extending power and
communicative lines to rural areas as well as strengthening institutions such as administration and
security systems training networks and cooperative society.
2. Identifying easy adaptable and low cost technology for farmers.
3. Provision of incentives for dispersion of industry to rural areas.

It was argued that to bring the rural poor into the main stream economic development, the needed
physical access to markets and facilities that are available in a modern economy.
DFRD is thought to have institutionalized the decentralization of the management of public sector
inputs in the district. As a result, it strengthened participatory approach to development activities
which provided avenues for local people to participate in designing and implementing district specific
development project.

However, DFRD as a strategy was not very successful and was officially discontinued in 1988. The
reasons that for this failure are;
i. Lack of resources for development and recurrent operations.
ii. Lack of genuine capacity to debate issues reasonably and exhaustible.

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iii. Political interest overshadowed development agenda to the extent that it wasn’t possible to say
whether the member of DDC represented the people of themselves.
iv. Lack of accountability, good governance and transparency in the implementation of development
process.

Export Oriented Industrialization

In terms of development strategy, the country moved away from RD and ISI towards export oriented
industrialization strategy EOI/EPI export promotion industrialization strategy.
Export promotion refers to deliberate attempts by the government to support exports as a launch-pad
for national development. In this regard, Kenya established the export processing zones (EPZ)
program in 1990 with the objective of promoting export oriented industrial investment within
designated zones.

Structural Adjustment Programmes (SAPs)

SAPs were a series of economic and political reforms initiated by the World Bank and IMF. They
become an important part of economic management after the publication of Sessional paper no. 1 of
1986. They are intended in the long-run to improve the economy but in the short run they are painful
from the immediate consequences especially for the vulnerable groups.
SAPs consist of a set of economic policies designed to generate rapid and sustainable economic
growth with macro-economic stability. Implementation of SAPs involved liberalization of trade and
markets, financial sector reforms, international trade regulation reforms; government budget
rationalization; divestiture and privatization of parastals and civil service reforms.
Key ingredients of SAPs are based on an economic model of private ownership, competitive markets
and outward-oriented development strategy. A stable macroeconomic environment is essential to
allow markets to operate efficiently and investors to make correct decisions based on market signals.

The SAPs were aimed at restoring efficiency in all sectors of the economy and consequently raising
the rate of economic growth.
There were 2 types of Adjustment policies;
1. The Short run or micro economic adjustment, which entails adjusting to living within one’s means

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2. Structural adjustment, which entails changing the structure of the economy to enable your means
to grow more rapidly
SAPs involved such measures as cost sharing in provision of important social services like in health,
reform of civil service using retrenchment programs, privatization of some government functions and
enterprises, removal of government subsidies and budget nationalization away from social
programmes. These reforms became necessary in Kenya because the economy was characterized with
recession; there was reduction in donor aid as well as reduction in public resources.

Consequences of the SAPs include; decline in employment opportunities due to retrenchment and a
freeze on employment, increase in crimes, Cost sharing in the education sector lead to decreased
enrollment rates, increase in the rate of absolute poverty, Cost sharing in health institutions led to a
decline in the health status of the vulnerable groups. Generally the SAPs worsened the poverty
situation in Kenya and the quality of life especially to the vulnerable

Economic Recovery Strategy for Wealth and Employment Creation (ERS) (2003-2007)
Structural Adjustment programmes implemented in the period of 1980 -1990s had limited success in
stimulating economic growth. As such, the economy performed poorly leading to increased poverty,
high unemployment, high domestic and foreign debt, crime, and deterioration in health status,
declining school enrolments and a marked decline in the quality of life. It is against this background
the NARC government formulated the ERS to help in economic recovery (based on NARC
manifesto)

ERS aimed at
- Reversing decades of slow and stagnant economic growth
- Accelerating economic growth
- Reducing poverty
- Job creation
- Wealth creation
- Promote sustainable management of natural resources

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The government hoped to achieve the above through sound macro-economic policies, improved
governance, and efficient public service delivery, providing an enabling environment for the private
sector to do business and public investments and policies that reduce the cost of doing business.
The strategy included an equity and social-economic agenda focusing on reducing inequalities in
access to productive resources and basic goods and services.

ERS was anchored on 3 pillars; Restoration of economic within the context of a stable macro-
economic environment; Enhanced equity and Poverty reduction; and Improvement of governance to
enhance efficiency and effectiveness in the economy.
ERS helped the Kenyan economy to recover and resume the path to rapid growth. This development
plan ended in 2007 where Kenya was able to attain about 7% economic growth, and reduce poverty
levels from 56% to 46%
Despite the development registered under the ERS, the country continued to face challenges in
infrastructure and in institutional reforms the need for highest efficiency in production at firm and
household levels.
Current National Development Strategies;
These are contained in the country’s blue-print national development plan the Vision 2030.
Incorporates UN’s 8 Millennium development goals;
Millennium Development Goals
Reflecting the enormous magnitude of inequalities that characterize the contemporary world order,
the intention to do something about it is embodied in agreed international set of development targets
(The millennium development Goals). The MDGs were adopted by the general Assembly of the UN
in September, 2000, by 189 member countries of the UN, committing themselves to making
substantial progress toward the eradication of poverty and achieving other human development goals
but 2015. Currently about 190 countries have signed up to the commitment.

The UN General Assembly acknowledged that the central challenge faced was to ensure that
globalization becomes a positive force for the entire world’s people. Commitment to making the right
to development a reality for everyone and to freeing the entire human race from want was made by
the general Assembly. To this end, no effort will be spared to free fellow men, women and children
from abject poverty.

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The MDGs originated from the Millennium Declaration which asserts that every individual has
the right to dignity, freedom, and equality, a basic standard of living that includes freedom
from hunger and violence, and encourages tolerance and solidarity. The aim of the MDGs is to
encourage development by improving social and economic conditions in the world's poorest countries
by focusing on 3 major areas of Human development : strengthening human capital, improving
infrastructure, and increasing social, economic and political rights.

1. The human capital focus include improving nutrition, healthcare (including reducing levels of
child mortality, HIV/AIDS, tuberculosis and malaria, and increasing reproductive health), and
education.
2. Infrastructure focus, the objectives include improving infrastructure through increasing access to
safe drinking water, energy and modern information/communication technology; amplifying farm
outputs through sustainable practices; improving transportation infrastructure; and preserving the
environment.
3. The social, economic and political rights focus, the objectives include empowering women,
reducing violence, increasing political voice, ensuring equal access to public services, and
increasing security of property rights.
The MDGs emphasize that individual policies needed to achieve these goals should be tailored to
individual country’s needs; therefore most policy suggestions are general.

The MDGs also emphasize the role of developed countries in aiding developing countries, as outlined
in MDG 8. It sets objectives and targets for developed countries to achieve a “global partnership for
development” by supporting fair trade, debt relief for developing nations, increasing aid and access to
affordable essential medicines, and encouraging technology transfer. Thus developing nations are not
seen as left to achieve the MDGs on their own, but as a partner in the developing-developed compact
to reduce world poverty.

The Eight Millennium Development Goals

Goal 1: Eradicate extreme poverty and hunger
Goal 2: Achieve universal primary education

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Goal 3: Promote gender equality and empower women
Goal 4: Reduce child mortality rates
Goal 5: Improve maternal health
Goal 6: Combat HIV/AIDS, malaria, and other diseases
Goal 7: Ensure Environmental sustainability
Goal 8: Develop a global partnership for development

KENYA VISION 2030

The Kenya vision 2030- A globally competitive and prosperous Kenya
Kenya Vision 2030 is the long-term development blueprint for the country. It is motivated by
collective aspiration for a much better society than the one we have today, by the year 2030. The aim
of Kenya Vision 2030 is “A globally competitive and prosperous country with a high quality of life
by 2030.” It aims at transforming Kenya into “a newly-industrializing, middle income country
providing a high quality of life to all its citizens in a clean and secure environment. In other words the
vision aspires to meet the MDGs for Kenyans

Foundations for Kenya Vision 2030

The economic, social and political pillars of Kenya Vision 2030 is anchored on the following
foundations: macroeconomic stability; continuity in governance reforms; enhanced equity and wealth
creation opportunities for the poor; infrastructure; energy; science, technology and innovation (STI);
land reform; human resources development; security; and public sector reforms.

The vision is anchored on three key pillars Economic: Social and Political Governance
1. The economic pillar aims to achieve an economic growth rate of 10% per annum and sustaining
the same till 2030 in order to generate more resources to address the MDGs.
2. The social pillar seeks to create just, cohesive and equitable social development in a clean and
secure environment.
3. The political pillar aims to realize an issue-based, people-centered, result-oriented and
accountable democratic system.

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The vision has identified a number of flagship projects in every sector to be implemented over the
vision period to facilitate the desired growth that can support the implementation of the MDGs on a
sustainable basis. In addition the vision has flagged out projects addressing the MDGs directly in key
sectors such as agriculture, education, health, water and environment.
The vision will be implemented through five year medium-term rolling plans, starting with the first
one which will cover the period 2008-2012. Thus, the performance of the government should in
future be gauged on the basis of these medium term benchmarks. The Vision also aims at creating a
cohesive, equitable and just society based on democratic principles and issue-based politics grounded
on our rich and diverse cultures and traditions.

Vision 2030 addresses the following development issues among others

 Equity and wealth creation opportunities for the poor
 Gender and regional parity in access to education, health and other social services
 Increasing total factor productivity in Agriculture- irrigation. Research and development
 Governance reforms through- enhancing transparency and accountability; improved management
of devolved funds, enhancing effective public procurement
 Infrastructural development- Infrastructure is an important enabler for sustained economic
growth – Port, rail system, road network,
 Policy, legal and institutional reforms
 Public private partnerships- in infrastructure development,
 Promoting ICT as an enabler for economic growth- ICT parks, ICT villages, The east Africa
marine systems, Fibre optic project, technology parks, lowering taxes on ICT hardware
 Enhancing Science, technology and innovation awareness to improve competitiveness
 Land reforms- national land policy, land ownership, sustainable use, land administration, Land
information system.
 Human resource development- creation of productive and sustainable employment opportunities,
job creation- kazi kwa vijana initiative, promotion of an entrepreneurship culture.
 Improvement of Security, peace ad conflict resolution management – increase police/ population,
enhance peace building and conflict resolution programmes, equip police with equipment,
technology, improve security facilities and equipment

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 Manufacturing – development of industrial/ manufacturing zones, SME parks, Business and
technology incubation park
 Promotion of business outsourcing
 Implementation of the privatization strategy
 Decentralization - Community Development Funds, (CDF)
 Education for all - Free primary education, Secondary school education bursary fund,

Development Strategies Proposed in Vision 2030 include;

- Decentralization/ devolution of funds
- Industrialization
- Public –private partnerships
- Gender empowerment

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AFRICAN RESPONSES TO DEVELOPMENT ISSUES
National responses
Solutions to most development problems remain a countries responsibility. First and most important,
individual African countries need a new ‘national’ development programme for reversing
underdevelopment. This implies embarking on internal changes in areas of political mobilization and
participation, popular access to opportunities for majority, the overhaul of inherited socio-economic
and political institutions, and the redefinition of relations with transnational corporations and other
external forces.
Individual countries have come up with national development plans and strategies to provide a
framework for development.

Regional Responses
Regional Integration
The term ‘region’ can be used to describe any international grouping which is less than global in
scope, and which is characterized by some mutual relevance among members (Adetula, 2004:3).
Integration is a process in which states becomes interdependent in aspects of their relations that they
desire. Integration can be Social, Political or Economic

Economic integration
Regional economic integration is an arrangement among countries to enhance their interaction mainly
through elimination or lowering of trade barriers.
The desire to engage in economic integration or to join such a trading arrangement is a result of:
 The need to promote economic growth in the participating countries

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  The need to attract investment
 The need for regional cohesion to foster peace and security
The most compelling reason for regional economic integration is the creation of a larger internal
market which has the following advantages;
- Creation of economies of scale into the economy, both at the market and production levels.
- An enlarged market generates competition in the economy and firms are forced to innovate and
produce new technologies for their own survival – which enhances efficiency, & lowers prices
- Regional cooperation is also acknowledged as a strategy for combating foreign dependence and
underdevelopment.
REGIONAL INTEGRATION IN AFRICA
Several bodies have been formed through regional integration and include; East Africa Community,
COMESA, NEPAD, AU, IGAD.
Objectives of the regional bodies include; reducing trade barriers, development of production and
market structures, fostering closer relations among members’ states, creating an enabling
environment for foreign, cross boarder and domestic investment, promotion of peace, security and
stability among member states to enhance economic development and protection of human rights in
African states, promotion of good governance

East African Community (EAC)

It has three members: Kenya, Uganda and Tanzania. In 2001 it was re-launched with plans for
reduction in trade barriers, coordination of economic policies and other forms of integration. In a
short time it has made some progress. A customs union agreement was signed in 2004
implementation has been slow. The East African court of justice and legislative assembly has been
established. In 2007 EAC expanded to include Rwanda and Burundi. The EAC plans to create a
currency union, a regional stock market

The Common Market for Eastern and Southern Africa (COMESA)

Member countries are Angola, Burundi Comoros, D.R. Congo, Eritrea, Ethiopia, Kenya, Madagascar,
Malawi, Mauritius, Namibia, Rwanda, Seychelles, Sudan, Swaziland, Tanzania, Uganda, Zambia and
Zimbabwe.

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COMESA was established 'as an organization of free independent sovereign states which have agreed
to co-operate in developing their natural and human resources for the good of all their people.'
Its objectives are:
- To attain sustainable growth and development of the member States by promoting a more balanced
and harmonious development of its production and marketing structures;
- To promote joint development in all fields of economic activity and the joint adoption of macro -
economic policies and programmes;
- To raise the standard of living of its peoples, and to foster closer relations among member States;
- To co-operate in the creation of an enabling environment for foreign, cross-border and domestic
investment, including the joint promotion of research and adaptation of science and technology for
development;
- To cooperate in the promotion of peace, security and stability among the member States in order to
enhance economic development in the region;
- To co-operate in strengthening the relations between the Common Market and the rest of the world
and the adoption of common positions in international fora;

The Intergovernmental Authority on Development (IGAD)

It was originally set up in 1986 to deal with drought and desertification in the Horn of Africa. Its
early plans to coordinate funding for agricultural development and environmental projects came to
very little but IGAD has had some successes in mediating political disputes among its seven
members. IGAD has had successes in mediating political disputes in Djibouti, Ethiopia, Kenya,
Somalia, Sudan, Uganda and Eritrea.

Africa’s Pan Regional Organization: African Union

It was launched in 2002 to replace OAU with the main aim of providing a regular forum for all 53
African leaders to meet and discuss common problems and strategies.
The objectives of the AU include:
 To achieve greater unity and solidarity between the African countries and the peoples of Africa.
 To defend the sovereignty, territorial integrity and independence of its Member States.
 To accelerate the political and socio-economic integration of the continent.
 To promote peace, security, and stability on the continent.

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 To promote democratic principles and institutions, popular participation and good Governance.
 To promote and protect human and peoples' rights in accordance with the African Charter on
Human and Peoples' Rights and other relevant human rights instruments.
 To promote sustainable development at the economic, social and cultural levels as well as the
integration of African economies.
 To promote co-operation in all fields of human activity to raise the living standards of Africans
 To advance the development of the continent by promoting research in all fields, in particular in
science and technology.
 To work with relevant international partners in the eradication of preventable diseases and the
promotion of good health on the continent.

The New partnership for Africa’s Development NEPAD

It is the most recent African plan for economic development an economic strategy of the AU. (2001)
It has been described as “Africa’s strategy for achieving sustainable development in the 21st century”
Its main focus is regional infrastructure, agriculture, market access, education, health and
environment. A signature project is the African Peer Review Mechanism which is a voluntary
program to try to monitor agreed standards of government behavior.
Its objectives are:
a) To eradicate poverty;
b) To place African countries, both individually and collectively, on a path of sustainable growth and
development;
c) To halt the marginalization of Africa in the globalization process and enhance its full and
beneficial integration into the global economy;
d) To accelerate the empowerment of women.

Advantages of Regional Economic Integration

 Expanded market opportunities: Since the economies of most African countries are quite small in
size, the formation of regional trade associations should increase the effective size of domestic
markets and enhance the ability of these countries to benefit from economies of large scale
production.

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 Economic growth and employment creation: Free trade will also lead to increased flow of
investment within the region. By allowing free movement of labour and capital, factors of
production will be able to go where returns are higher and this will lead to better use of resources
within the region. Pursuing development projects jointly eliminates duplication of expensive
facilities, improve capacity utilization and lead to a more efficient allocation of scarce resources.
 Political economy: Regional economic integration increases the bargaining power of member
countries in the World Trade organization and other international forums.
 Ability to withstand external shocks: When nations organize themselves into regional economic
blocs, these shocks are not as severe because their policies are unified and harmonized hence the
shocks are spread throughout the entire region instead of being concentrated in one country.
 Dependency syndrome: Most trade in Africa is between the continent and the Western
industrialized countries with the African countries serving as suppliers of raw materials to the
industries of the West and as receptacles or markets for excess manufacturers from the
metropolitan economies. If African countries establish an economic union, the latter will become
a large single market hat can limit the continent’s dependency on trade with the west.
 Macroeconomic and political stability: Closer interaction between countries promotes
cooperation and hence political stability. Harmonizing macroeconomic policies among member
countries ensures macroeconomic stability. This can also be ensured through increased trade and
ability to withstand external shocks.

Africa and other International groups

African countries are represented in a whole range of international groups that also promote
regionalization. The most relevant to development include:
United Nations
By their sheer number of sovereign states, the African bloc makes its presence felt in the General
Assembly. It also is a major focus of the UN’s various agencies including the United Nations
Development Program (UNDP) and the Economic Commission for Africa.
Commonwealth
This group comprises mostly former British colonies. It has many African members and holds annual
meetings to try to promote better governance among its members. It’s mandate remains unclear.
G-24

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It comprises leading developing countries seeking to influence international policies on monetary and
development finance issues. Its sub-Saharan members are Cote d’Ivoire, Ethiopia, Gabon, Ghana,
Nigeria, South Africa and the Democratic Republic of Congo.
G-77
The group is a larger caucus that now has more than 130 members. It tries to coordinate common
negotiating positions for all developing countries on major international economic issues within the
United Nations system.
World Trade Organization (WTO)
This is the largest and probably the most important institution for multilateral trade negotiations.
It has 148 member states with the mandate to facilitate global trade by helping to establish and
interpret trade rules. It is based in Geneva, Switzerland. It was founded n 1995 to succeed the General
Agreement on Tariffs and Trade (GATT), which had been set up in 1947 to provide a forum for
reducing trade barriers on eh principle that countries should all be treated equally.
Objectives of World Trade Organization
- Raising standards of living
- Ensuring full employment
- Realizing these aims consistently with sustainable development and environmental protection
- Ensuring that developing countries, especially the least developed countries (LDCs), secure a
proper share in the growth of international trade.
However, since its creation the WTO’s emphasis has slipped from concentrating on these public
interest goals to seeing itself primarily as ‘an organization for liberalizing trade,’ and declaring that
‘the system’s overriding purpose is to help trade flow as freely as possible.’
This has been the source of one of the fundamental tensions surrounding the mandate and activities of
the organization. Some (such as developing countries and non-governmental organizations) would
like to see added emphasis on the public interest goals, whilst others (private companies and some
industrialized countries, for instance) favour faster removal of obstacles to free trade.

Today, an increasing number of voices are being raised to underline that free trade should not be an
end in itself, but rather a tool to achieve equitable development and a better world. That the WTO’s
public interest objectives remain out of reach of many has drawn criticism that the organization is

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dominated by rich countries, functions in a secretive manner, and helps feed the greed of the rich in
the name of trade liberalization

ACTORS IN DEVELOPMENT
A number of actors are involved in the process of development which entails mobilization allocation
and management of resources. They include the government formal private sector, civil society
organization as well as international development actors.
Government
Prior to the era of reforms, the government dominated the development space in most African
countries crowding out the participation of the private sector as well as the civil society.
Hence development policy making in the early past independent area was highly centralized.
However, since 1992 when major economic and political reforms started taking place, the role of the
government has greatly diminished and that of the private sector and civil society has become more
visible making development a more inclusive and participatory process.

Role of Government in Development

In most LDCs including Kenya, the private sector and civil society do not have the capacity to tackle
the enormous social and economic challenges facing them hence government action is indispensable
for the economic development for such countries.
The Government is involved in;
- Policy making
- Funding
- Creating an enabling environment for development
- Legislation and its implementation
- Creation of institutions

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Role of International Development Actors
The international community is an important partner in the role of LDCs. The participation of
international community in development LDCs is at 3 levels;
a) Foreign direct investment (FDI).
b) Development assistance (foreign aid).
c) Technical cooperation (technical assistance)
FDI
Foreign investment refers to any investment in another country carried out by private company as
opposed to government aid.
FDI plays an important role in development of LDCs by filling the resources gap between desired
investment and locally mobilized servings. This enables LDCs to easily achieve their growth targets.
Foreign investment also plays an important role in generating employment in LDCs since they
produce a substantial proportion of the national output of most LDCs.
Many private foreign firms bring with them technological knowledge while at the same time
transferring modern machinery and equipment to capital poor LDCs.

Foreign AID
It refers to the international transfer of public funds from one government to another (bilateral
assistance) or through multilateral agencies like the World Bank and UN agencies (multilateral
assistance).Traditionally, foreign aid is the assistance given by a DC to a LDC.
Aid can take either of the 2 forms
1. A grant refers to a transfer payment either in the form of money, goods or ideas which do not
have to be repaid.
2. Loans on the other hand refer to funds transferred from one economic entity to another which
must be repaid with interest over a prescribed period of time.
Importance of foreign Aid
1. It may help to finance important but costly projects like hospitals, roads which a country may be
unable to adequately finance from its tax revenues.
2. It is useful in LDCs that have been exposed to natural catastrophes like drought and famine
enabling them to spend their limited resources on important development activities.

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 3. It may open up inaccessible areas by tapping into new resources to complement natural
resources in a country in order realize development.

Technical Corporation.
Technical assistance is aid in form of knowledge, skills, ideas or technology e.g. a country like the
US may give Kenya specialized machines but may have to accompany those machines with
specialized engineers to operate them in the short term and help to train Kenya engineers to operate
this machines in the long term.

It helps in building national capacity, enhancing efficiency in performance and service in delivery so
as to enable the country to achieve sustained social economic development e.g. the building of
JKUAT by the government of Japan has enabled Kenya to build capacity for offering higher
education by also developing specialized human resources that are acting in many aspects of
development.
Technical assistance helps to fill the gap in management entrepreneurship and skill supplying
resources in the form of management experience, entrepreneurial abilities and technology skills that
can be transferred to the local economy through training programs and learning by doing.

CIVIL SOCIETY ORGANISATIONS

They include, NGOs, community based organization, trade unions, human rights organization,
religious groups, consumer groups etc.
- Religious organizations in particular provide educational facilities and bursaries for the needy as well
as the healthcare infrastructure.
- NGOs and CBOs mobilize resources for empowering grassroots organizations to articulate issues of
importance to them and also to strengthen their organizational capacities to deliver services.
- NGOs in particular mobilize resources to help those in social distress such catastrophe e.g. famine.
- Other NGOs provide credit to aspiring business people as well as business development services such
as marketing, book keeping, product design and development.
- NGOs also act as monitors to the government. They can provide an independent assessment on how
public resources are being allocated at the national and local level.

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The Role of professionals in development

- Offer technical advice to the government

- Participate in policy formulation
- Involved in development projects
- Involved in research and development
- Pay taxes

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98