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A special investment to capitilise local innovations and products ---

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A special investment to capitilise local innovations and products ---

    Giving The Economy Back To The People

    PROPOSALS FOR DEVOLVED MANAGEMENT OF KENYA’S ECONOMY

    A Report Submitted to the Ministry of Planning

    By Civil Society Organizations

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    Contents

    Acronyms ………………………………………. I

    Preamble and Acknowledgement ………………………………………. II

    Introduction ………………………………………. III

    Summary of Core Proposals ………………………………………. IV

    Management of Development ………………………………………. 1

    Agricultural Production ………………………………………. 4

    Chart I ………………………………………. 6

    Chart II ………………………………………. 7

    Table I ………………………………………. 8

    Trade and Industry ………………………………………. 11

    Management Of Natural Resources ………………………………………. 16

    Human Resource Development ………………………………………. 22

    Water Development ………………………………………. 31

    Urban Development ………………………………………. 33

Annex: Implementation Matrix

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ACRONYMS

    AIDS: Acquired Immune Deficiency Syndrome ASALS: Arid And Semi Arid Lands

    COMESA: Common Market for Eastern and Southern Africa CSO: Civil Society Organization

    EAC: East Africa Community

    EMCA: Environmental Management and Coordination Act (1999)

    HIV: Human Immuno-deficiency Virus ICT: Information and Communication Technologies IIPS: Industrial Innovation Promotion Scheme IT: Information Technology

    KRDS: Kenya Rural Development Strategy KWS: Kenya Wildlife Society

    MOP: Ministry Of Planning

    SME: Small And Medium Enterprises

    MTEF: Medium Term Expenditure Framework MTI: Ministry of Trade And Industry NACADA: National Campaign Against Drug Abuse NGO: Non-Governmental Organization NHCC: National Health Cares Council NSSF: National Social Security Fund NYDRS: National Youth Development And Rehabilitation Service

    SME: Small And Medium Enterprise Sector WTO: World Trade Organization

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PREAMBLE AND ACKNOWLEDGEMENTS

    This report is the product of an intensive consultative process undertaken by the National Council of NGOs over a period of one month. The report represents the desire by civil society organizations to contribute to the evolution of policy solutions to Kenya’s economic and development challenges.

    The proposed Economic Recovery Strategy is viewed by civil society organizations, as providing a valuable opportunity to all sectors of the economy, to identify and define immediate and long-term strategies for meeting Kenya’s developmental

    challenges.

    About forty civil society organizations representing diverse interests and concerns were consulted in the process. The proposals contained herein represent the outcome of these consultations. The report was compiled and edited by a technical panel of seven persons namely: Dr. Beatrice Khamati Njenga; Ms. Faith Kisinga (Ufadhili Institute), Ms. Violet Matiru (Environment Liaison Centre), Dr. Wellington Otieno (Foodlink), Ms. Wairimu Munyinyi and Njore Njoroge (NGO Council).

    We appreciate the special input from Mr. Abdilahi Abdi (Northern Aid), Ms. Mary Njuguna (SNV-Kenya), Mr. Fanuel Otolo (Climate Network Africa), Mr. Aleke Dondo (K-REP), Ms. Eve Odette (Action Aid), Benard Meso (Resource Projects) and Mr. Eliud Wakwabubi (PAMFORK), Ms. Jane Weru (Pamoja Trust) and Rahab Mundara (ITDG). The consultative process and production of the report was led and coordinated by Mr. Awori Achoka, a consultant in development policy.

    The National Council of NGOs, Oxfam GB and Action-aid Kenya provided resource support for the consultative process.

This report will form the basis of a living policy dialogue between civil society

    organizations, the government, policy makers, the development community and other sectors of the economy, in the search for lasting solutions to Kenya’s development problems. Through the Civil Society Pro-Poor Policy Working Group, the National

    Council of NGOs, will sustain discourse on the issues contained in the report leading to its finalization and eventual publication in July 2003.

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INTRODUCTION

    This report and the proposals contained here represent a strong commitment and interest by Kenyas civil society organizations, to contribute meaningfully to the search for realistic and pragmatic solutions, to the countrys economic and

    development problems.

    Civil society organizations in the country have the conviction that Kenya is not a poor country in terms of her human and natural resource potential. The crippling poverty facing the populace of the nation is a result of the neglect, under-valuation and mismanagement of this potential by preceding governments.

    It is quite difficult to turn around the economy of a nation that has undergone decades of neglect and plunder, through rushed short-term strategies and plans. While the current drive to expedite mass employment may be politically attractive, it is not likely to lead to sustained economic growth and enhanced livelihoods for the majority of the nations population.

We are of the opinion that lasting solutions to Kenyas economic and development

    challenges will only be found through concerted efforts, to invest in strategies that will harness the immense potential lying in the countrys human and natural

    resource base. In this regard we call for a major review of the way government functions are structured with the aim of devolving their management to lower levels.

    Devolution must be both in form and substance. This should comprise of a comprehensive package involving change in function, structure and the flow of financial resources. The District Focus for Rural Development devolved structures but not the management of the substance nor the resources. The result is a symbolic structure with minimal control over the way resources are allocated and used. Most decisions over the use of resources are still a preserve of ministry headquarters in Nairobi. Current and future plans must be based on a vision and strategy that places the people in the center of the economy, in order to re-capture the relevance of development. Giving the economy back to the people is the challenge facing the

    nations planners and development specialists. The proposed Economic Recovery Strategy offers the nation a great opportunity to attain this goal.

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SUMMARY OF CORE PROPOSALS

1. Re-Structure Government Functions and Services

    The civil society sector calls for a radical review and re-orienting of government services, to place the people and the nation’s developmental needs at the centre of

    service delivery. The highly centralized bureaucratic approach to the management of government services is a major impediment to innovation and efficiency in the delivery of services to the public. To achieve desired strategic goals, we recommend that an independent panel of experts spearhead the proposed structural re-orientation.

2. Make Development Relevant to People’s Needs

    Ministries, departments and parastatals that provide essential development services to the people such as health, water, agriculture, education, energy, environment and natural resource management, trade and industry should devolve the management of their core functions and services so as to make them relevant to people’s needs. The model for the devolution of agricultural services provided in this report offers a possible option that could be adopted for most ministries.

    3. Re-engineer approach to Economic and Development Planning Planning for economic growth and development should take into consideration the potential and uniqueness of the country’s regions. Economic growth models and strategies apart from taking into consideration priorities at the center, must recognize the human and natural resource potential of each region, and integrate them into current and future economic projections.

4. Invest In the Potential of Kenya’s Youth

    Kenya’s greatest economic potential lies in the nation’s population. The country should devise special programs and strategies to develop the latent productive potential found in her youth. The skill and entrepreneurship potential of the youth within and outside the formal educational environment should be harnessed and developed further. Efforts to combat crime will never yield results unless programs targeting youth unemployment in urban and rural areas are devised.

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    5. Establish a Judicial Inquiry Into the Mismanagement of NSSF Resources

    The wanton looting of public funds by previous managers of the NSSF, represent one of Kenya’s worst crimes against humanity. Kenyan workers and the populace at large

    will continue to suffer from the impact of these destructive actions for a long time to come. It is proposed that a judicial commission of inquiry be established to look into the conduct of the former officials of the fund.

    6. Invest in Beneficial Use and Sustainable Management of Natural Resources

    The country’s natural resources form the bedrock of the health of the nation’s economy. New approaches that endow social, ecological and economic value to the nation’s resources should urgently be devised. The people’s place in the management of the nation’s resources must be restored.

    7. Support the Enhanced Role of Civil Society Organizations in Development

    Civil society organizations at national and grassroots level are important contributors to the nation’s development. At times when the country was faced with major crises in the management of her macro-economic affairs, CSOs played a significant role in filling in the huge gap in welfare support to the poor. The civil society sector continues to be in the forefront of efforts to champion democratic governance; safeguarding the rights of the marginalized and vulnerable in society; observe human rights and promote participatory development. It is of strategic importance for the government not only to recognize their contribution to human development, but also to actually provide resource support to their efforts.

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1.0 MANAGEMENT OF DEVELOPMENT

Forty years after independence, Kenya’s development establishment is still structured

    along colonial ideals, whereby the development machinery was primarily designed to serve the needs of the bureaucrats and technocrats in the center. It was in the interest of the colonial administration to place heavy controls on how development was undertaken. There have been no substantive attempts to place development in the hands of the people. The District Focus For Rural Development, in trying to make amends to this situation, ended up by placing even more powers over the control of development, into the hands of the administrative machinery. The result is that the District Commissioner chairs each and every development committee in a district.

    There is no clear policy on how development is to be planned, coordinated and managed. For this reason the government is not strategically placed to deliver services to the people. Serious attention has never been paid to plan priorities. Allocation of budget resources is highly centralized within government with minimal effort made to create linkages with the actual needs on the ground. In most cases, ministry headquarters consume a large portion of resources meant for development on the ground.

Proposals

1. Sessional Paper on Development Planning and Co-ordination

    The production of a policy blueprint on planning and coordination of development is proposed, with the principle goal of institutionalizing stakeholder participation in the management of development. The policy would be expected to separate the management and coordination of development from the administrative functions of government. The policy would provide clear guidelines on how external development aid is to be used and deployed.

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2. Review and Devolve the MTEF Sectors

    The budgeting process should be reviewed to reflect the needs of the country. The MTEF sectors as currently defined tend to reflect ministerial and departmental interests as opposed to pertinent national needs and priorities. The essence of the Sector Working Group process should be to require ministries, parastatals and other stakeholders to respond to national developmental needs. The budgeting process should be reviewed to reflect the needs of the country. In this regard it is recommended that the sectors be organized as follows: Urban and Rural Development; Human Resource Development; Governance and Access to justice; Natural Resource Management and the Environment; Trade, Industry and Enterprise Development; Physical Infrastructure and Energy; Agriculture and Food Security and finally Planning and Management of Development.

    ; Information Technology should be treated as a cross-cutting issue covering all

    sectors. Each sector should have a section on the application if IT in the sector.

    ; The planning process within the MTEF model should be devolved and

    replicated at the district level. Inputs from the districts should form a core

    basis of the budget prioritization process.

    ; The function of planning and coordination of development should be

    consolidated into a directorate of planning.

     3. Deploy Resources Where Most Needed

    ; The government should adopt a policy that will ensure that 70% of

    professional personnel in any sector are based where the need for services to

    the people is most required. Ministry headquarters should perform the role of

    policy development and review, quality control, performance appraisal,

    monitoring and evaluation. Most (80%) implementation should be undertaken

    at the point of service delivery.

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4. Review Performance Incentives

    Service in the field should be encouraged through provision of attractive service incentives for field-based personnel.

5. Revolutionize Approach to Development Planning

    ; Economic planning is currently fixated on available fiscal resources. Planning

    is undertaken with the hope that the meagre monetary earnings through fiscal

    revenue, will somehow be shared out to all needy cases. It is then hoped

    through this that eventually ‘development’ will trickle down to the rest of the

    nation. The value of the nation’s human and natural resource potential, needs

    to be factored into the economic planning process.

    ; Planning and development coordination functions at the grassroots level

    should be reviewed to reflect the nation’s current development requirements.

    A multi-stakeholder secretariat for planning and co-ordination of development

    at the grassroots level should be established in each district.

    ; The village and sub-location should form the basis for development, planning

    and implementation.

6. Enforce the People’s Right to Information

    There should be a clear policy guideline on disclosure of essential information for development to the public. The budget and the budget development process should be made accessible to all taxpayers in the country.

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