Cash and Markets in Development

This is from a story in Kenya’s Standard Newspaper:

Martin Wepukhulu is a small-holder farmer in Trans Nzoia County, popularly described as Kenya’s breadbasket. To produce a two-kilogramme tin of maize known as gorogoro here, he spends about Sh25 on land preparation, seeds and fertilisers on his one-acre farm.

Some 270 kilometre away in Turkana County, one of Kenya’s poorest counties, is Loseny Nguono, a goat keeper, with two wives and 13 children. Turkana is one of the 23 counties affected by drought which has left close to 4 million people in danger of starvation.

Loseny receives Sh8,000 after every two months from the national government through the national safety net programme. He is willing to pay Martin a decent Sh70 for his gorogoro of maize. Unfortunately, neither Martin nor Loseny will get his wish. A reclusive government, ruthless cartels, dilapidated roads and marauding bandits conspire to ensure that while Martin sells his cereals at a low of Sh40, Loseny buys it at a high of Sh150.

Read the whole thing here.

It is great that Loseny has cash; and that unconditional cash transfers for social protection are increasingly becoming a mainstream policy option (notice that the story doesn’t even acknowledge the awesomeness of this reality). But the other lesson that we can learn from the story is that in order to get Loseny out of poverty we need good roads, properly functioning markets, and security. All these are public goods that must be provided through collective action, above and beyond the improvements in Loseny’s private consumption.

Kenyan Elections 2013 and The High Potential for Violence

In an excellent piece over at African Arguments Sheekh and Mosley give a comprehensive discussion of the recent outbreak of violence in the Tana Delta region of Coast Province, Kenya. According to the authors:

Long-standing competition and conflict over access to pasture and water resources were important factors, but did not alone provide the trigger for violence.  A range of political and economic factors have fed into the local dynamics in Tana Delta. These include longer-term trends related to alienation of local people from land due to large-scale government and private sector purchases, and shorter-term impacts related to the process of delineating electoral constituency boundaries and county districts in line with Kenya’s new constitution. The ready availability of small arms has also seen such conflicts intensify in recent decades. Lack of livelihood opportunities for the youth is also a major factor.

As such, the recent clashes are emblematic of wider trends.  Although the Tana Delta (along with the rest of Coast Province) has tended to be politically marginalised, tensions in other areas – such as Mt Elgon and parts of the Rift Valley including Eldoret, Nakaru and Naivasha, and counties in northern Kenya – could also be exacerbated by the same political factors.  Some of these areas were flash-points in the post-poll violence of late 2007 and early 2008, with major national and regional ramifications.”

Spot on.

The Tana Delta conflict is symptomatic of a larger dynamic that will play out in anticipation of the March 4th 2013 elections in Kenya. The new constitution has created 47 county governments, many of them multiethnic or otherwise diverse, that will each have three county-wide elected officials (a governor, deputy governor, and a senator). Ethnic and communal rivalries will inevitably surface in these county contests, with potentially disastrous outcomes such as what we’ve seen so far in Tana River County.

The potential for decentralized violence in Kenya’s 47 counties is a real cause for concern.

In order to limit the potential for violence, the national commission charged with policing ethnic harmony has initiated talks in potential flash-points to broker inter-ethnic power-sharing deals with the hope of avoiding a situation in which certain communities are totally excluded from county-wide elected offices. Sadly, so far there is no sign that these initiatives will work (Not to mention how un-democratic such back room arrangements will be). Plus the violence will not necessarily be exclusively of the inter-ethnic variety (which is what the commission is fixated on at the moment). Even ethnically homogenous counties might experience inter-clan violence.

While most of the attention in the next few months will be on how to avoid a repeat of the aftermath 2007-08 election, Kenya watchers should be warned that the problem will be much more complicated. If nothing is done, many counties will experience inter-communal violence. The new county governments will have real resources (about a third of national revenue) that will generate real patronage networks worth fighting for.

Given the nature of Kenyan politics, the race for the presidency (more blog posts on this soon) will inevitably hog all the attention in the next five months. I hope the contest for State House and its own risks for violence will not overshadow the county-level contests which will also be just as intense and likely to result in violence.

19 burned to death in kenya

Sunday saw the most ghastly violence over the last one week in Kenya’s Rift Valley province. A group of 19, most of them school children were burnt to death in a house in the town of Naivasha as ethnic violence continued in this former oasis of peace and stability. The authorities and politicians seem to be unable to stop or even control the continuing violence. Their calls for calm have been met with deaf ears as more people continue to die in attacks and revenge attacks through most of the central Rift Valley region.

The latest attack brought grim memories of the Eldoret arson attack that left 50 dead, again most of them being children. And as this happened, the politicians – the root causes of the violence – could do nothing but continue to exchange accusations, pointing fingers at each other for being responsible for the killings.

The Rift Valley has seen the worst violence in the last month since the disputed December elections that plunged Kenya into chaos. The military has been deployed in the area, curfews imposed but all this seems to have not changed much. Angry youth, wielding all manner of crude weapons still roam the countryside, burning people’s houses and killing perceived enemies.