Aid and Inequality in Kenya: British Development Assistance by Gerald Holtham, Arthur Hazelwood

By Gerald Holtham, Arthur Hazelwood

This reissue, first released in 1976, considers the speedy expense of financial progress in Kenya, mixed with its obvious political balance, to figure out even if this is often certainly a case of ‘growth with out improvement’ and, if this is the case, the place the accountability for relief lies during this situation.

The publication concludes that whereas Kenyan development has now not been to a terrific development, observed by way of a rise in inequality, there's very little cause to think that dwelling criteria haven't enhanced. It examines the impression of relief on Kenya’s development at either the microeconomic and macroeconomic point and offers an institutional research of the impression of reduction on Kenyan govt coverage formation and management and a dialogue of British aid’s political reasons and impression in Kenya.

The authors finish that a few of the results estimated by means of the critics of reduction are obvious, yet that the web impact on normal dwelling criteria has been strongly confident, concluding that the issues represent a case for bettering relief techniques, yet now not opposed to relief itself.

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5 per cent 73. Compare Sessional Paper No. 10 of 1965 and Sessional Paper No. 10 of 1973. 74. Development Plan 1974–1978, Part I, p. 1. 75. Introduction to Development Plan 1974–1978. 76. Sessional Paper No. 4 of 1975. 3 THE FACTS OF AID Many different states and international bodies give aid to Kenya. The UK’s relative importance as a donor has quite naturally declined since independence. 6 per cent of aid net of amortisation in 1972. West Germany and the United States have remained significant donors for much of the independence period and a development has been the emergence of the Scandinavians and the Dutch as important donors.

Grants accounted for a third of the latter and the loans have a grant equivalent of at least 80 per cent, depending on discount rate. Net British aid in the superior sense of grant equivalent would thus be over 87 per cent of gross aid. For many purposes, therefore, the gross aid figures give a better picture of the transfer than the net figures. The Facts of Aidâ•… 37 We now attempt to refine the figures for aid disbursements given in official statistics by taking account of important developments that they ignore.

3 interest payments) a Excluding pension payments. 1966 £m. 7 There are other costs, however, when procurement-tying is combined with project-tying (making aid conditional on the execution of approved projects) which may well be even more considerable. The commitment of aid funds to specific projects might well be delayed and there is a drain of administrative resources.

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