Transcript Political Economy in Kenya By Sahr Kpundeh

Political Economy in Kenya
By
Sahr Kpundeh
Politics in Kenya
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New Coalition Government took office in December
2002
Addressing corruption was a big campaign promise
Strong opposition that organized to defeat an incumbent
party that has been in power for over 20 years.
Dominant President (Daniel arap Moi) who controlled
almost everything, including suppressing opposition, civil
society and the media.
Lots of goodwill from Development Partners to support
new Coalition Government
Challenges
• Difficult entry points for reform due to entrenched corruption,
executive dominance, and a culture of lack of accountability and
transparency, including weak rule of law and inefficient service
delivery mechanisms.
• Weak civil society due to poaching by new Government.
• Managing the unrealistic expectations from citizens
• Over-promising by new Government (jobs, anti-corruption actions,
code of conduct, etc).
• major focus on “getting the rascals” out of government
• Unpredictable responses to support from Development Partners
• Role of politics---coalition government does not translate into
coalition of reformers (some were old players from previous
government and had a clear agenda)
Reform Agenda for new
Government
• The new Government’s strategy to improve
public sector effectiveness was outlined in its
Poverty Reduction Strategy Paper (PRSP), titled
the Investment Program for the Economic
Recovery Strategy for Wealth and Employment
Creation.
• The Strategy centers on three inter-linked pillars:
(a) strengthening economic growth; (b)
enhancing equity and reducing poverty; and (c)
improving governance.
How We Responded
A number of Analytical and empirical work was done that influenced our
response especially in the area of designing our on-going public sector
reform support program.
• Wage Bill Study
• Understanding Politics and potential entry points for reform (Joel Barkan
before elections)
• Transparency International Annual Surveys on corruption
• Report on IFMIS
• Public Expenditure Reviews
• Leadership and Ethics pilots—Results-based management
• CFAAs, and CPARs
• Studies conducted on APNAC, especially the local chapter in Kenya
• Other local studies especially the “Name and Shame Report”
• Lessons learned from on-going PSM-TAP project –institutional
arrangements, composition of Steering Committee, forensic audits
How we used Knowledge of
Political Economy
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Decision to re-engage with Government with new CAS aligned to support the
Government’s program
Links with ERSSC—capacity building support for meeting prior actions and
subsequent benchmarks (Capacity Building Fund)
IRCB design---focus on delivering results—supportive for transformative leadership,
change management and public sector values and ethics as critical elements to be
addressed as part of capacity building for public sector reforms to succeed.
No support to Civil Service Reform due to unwillingness of new government to take
tough action
Push for greater harmonization and alignment of operational policies, procedures,
and practices between development agencies with the Government’s medium-term
planning, budgeting, and disbursement procedures can help enhance the
effectiveness of support to the Government.
Strong leadership is required from the Cabinet which demonstrates political will, as
well as Permanent Secretaries and Accounting officers, who have the primary
responsibility of spearheading public Sector Reforms (no more Dream Team).
A long-term strategic approach to technical assistance, which is not donor driven, is
needed to achieve results. No quick fix approach to reform.
Lessons Learned
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Important to understand and appreciate the political economy dynamics in
a country to help you have a sense of what is holding back reforms in a
country and the potential entry points.
Importance of collective action---involving other stakeholders in playing a
role in a reform agenda
Important role of the Media in pushing for change and helping to enhance
transparency and accountability
The “one man show” approach does not work in the new dispensation of
politics and openness in Kenya. Reforms are bigger than one individual.
Demonstrated ability of “wounded leadership” to take some tough action
when necessary helps to keep momentum for reform moving forward. The
President’s response to the “referendum” was unique in a way by gracefully
accepting defeat and taking steps to keep his Government together.
Need to go beyond populist actions and make tough decisions for the good
of the country—Goldenberg revisiting, judiciary review, pay raise deals
struck with key service delivery sectors, etc., has put the Government in a
difficult situation regarding the affordability of the wage bill.