INTERNATIONAL DEVELOPMENT

International Development: The Case of Kenya



International Development: The Case of Kenya

Introduction

Uganda, Tanzania and Kenya are the three east African countries that were under the rule of Britain. Though mainly settlements, they had varied classifications and titles legally. Tanzania was a trusteeship, Uganda a protectorate and Kenya a colony. In the initial years of 1960, these east African states regained their independence in 1961(Tanzania), 1962(Uganda) & 1963(Kenya). Following that varied constitutional arrangements were followed keeping in mind their economical situation. Kenya has had a very interesting constitutional history. The importance of foreign aid relative to Kenya's domestic resource mobilization is diminishing. While this trend weakens EU influence on reform, it advances the possibility of moving EU Kenya cooperation from aid towards a more strategic partnership. Talk of 'post-aid' relationships is fashionable. Kenya is not there yet, though recent European debates on 'differentiating' categories of aid recipients should have paid more attention to Kenya's internal transformations (Swamy, 2010, pp 56-89).

Statement of the Problem

Form the past two decades have observed a decade of economic crises in the country, which leads to the drastic effect on the standard of living. Although Kenya has faced a gradual increase in growth, increase in economic growth is coinciding with the skyrocketed prices for basic commodities. However, the studies carried in Kenya have shown the level of FDI to be lower, both in relative and absolute terms. Arising from poor economic performance of past decades, Kenya has taken its place as the regional business leader amid these poor FDI inflows. Discussion and Analysis

Foreign aid can alleviate the painful process of transition when the country is suffering from the serious economic issues. But free enterprise cannot be developed until the foreign aid is used in an efficient manner. Foreign aid can come through various channels, i.e. from the international donor agencies, from neighboring countries or from the NGOs. Foreign aid should not go solely by national governments. There are strong arguments in favour of working with local governments and NGOs. Democratic governments should not oppose the distribution of aid through NGOs (White, 2010, p 12-56). They should welcome such an opportunity. Those governments that cannot be trusted for utilizing foreign aid oppose the use of non-governmental channels. Although foreign aid has contributed to addressing problems associated with food shortages for the African population. Many experts believe that in the long term, these problems cannot continue to carry out the same way. Indeed, experience shows that food aid may be withdrawn only temporary difficulties. But such measures would undermine the long-term plans to create conditions for complete food self-sufficiency in Africa. It is believed that foreign food aid only eliminates the symptoms of disease rather than its cause (McGuire, 2009, 847-73). In order to analyze the impact of foreign aid on economic development of Kenya's economy we first need to be brief over view of the economic trend of Kenya.

Theoretical Overview

The concept of foreign aid is ineffective and often ...