Kenya: Statement Of Concern About Development Impact Of Current Crisis
The following statement was released Thursday in Nairobi by a number of development agencies, including the World Bank:
“Several of Kenyas development partners on the ground, including multilateral agencies like the World Bank, and bilateral agencies like those of Canada, Denmark, the European Commission, France, Norway, Sweden, the UKs Department for International Development, and the United States have called upon Kenyan leaders on all sides to quickly resolve the post-election issues being raised by both political parties.
They are concerned that the unrest that continues in some parts of the country threatens impressive recent gains in economic growth and poverty reduction.
At stake is the pre-election Gross Domestic Product (GDP) growth rate of seven percent, rising business confidence, increasing tourism, measurable progress in firm level productivity, significant gains in democratic development, and the lifting of over two million Kenyans out of poverty over the last few years.
All this has been achieved with donor assistance of only about one percent of Kenyas GDP compared to about ten percent of GDP for Tanzania and Ghana.
Also at stake is the opportunity to begin addressing the serious challenges of insufficient employment creation, infrastructure deficits, inadequate health care, unequal access to productive services, and massively scaling up the campaign against corruption.
The current situation may have had some negative impact already. Business leaders estimate that about 2 billion Kenya shillings per day is being lost. At the Nairobi Stock Exchange, Ksh 40 billion (about 5 percent of market capitalization) was wiped off the value of shares when the market resumed business after the elections, hurting investors large and small.
Tea auctions were suspended, since a large portion of Kenyas production originates from the Rift Valley, where much of the recent insecurity has been centered. Over the medium term, tourism could be impacted negatively. There may still be time to salvage the situation, but urgent action is needed.
Strong anecdotal evidence indicates that the poorest and most vulnerable Kenyans, including women and children, are the worst affected by the ongoing violence, displacement, loss of property and livelihood, and hunger. This concerns us deeply.
Kenyans place a high value on education, and the doors it opens for personal development and wealth creation. Prompt action is necessary to avoid any disruptions to the start of the school year next week, which could threaten the significant recent gains in educational access and learning outcomes.
As a growing regional economic hub, Kenya is the transit point for one quarter of the GDP of Uganda and Rwanda, and one third of the GDP of Burundi. This includes the supply of many essential commodities. Hence, the regional impact of the situation in Kenya could be significant.
We recognize the rights of all Kenyans to freely assemble while seeking more permanent solutions to their post-election concerns.
We urge that all actions be considered and conducted in a manner that does not disrupt the functioning of the economy, the movement of goods and services to neighboring countries, or the delicate task of building trust across all political, social and ethnic groups.
We note the “Save our Beloved Country” campaign that the media has launched, and the outpouring of concerns for ethnic harmony from civic and religious leaders. We encourage the upholding of media freedom and its responsible use, especially when reporting violence and potentially inflammatory speech.
The events of this week are a forceful reminder of the need to strengthen reforms that respect human rights, advance democratic governance and the rule of law, and target development programs to “poverty hotspots” across the country.
We stand ready to work on these issues with all Kenyans of good will, as outlined in our Kenya Joint Assistance Strategy”, the donors conclude.
Kilde: www.worldbank.org
