The Effectiveness of Policies: Kenya and South Africa - Term Paper Example

Evaluate the effectiveness of policies used to reduce poverty and inequality in a developing economy in Africa Name Professor Name Course Date Table of Contents Table of Contents 2 Case Overview 3 Introduction 3 Creation of Employment 4 Education 5 Health Care 7 Social Welfare 8 Conclusion 10 References 11 Case Overview With regard to per capita income, Kenya and South Africa are middle-income countries. In spite of their relative wealth, the experiences of most households are of abject poverty, or persistent vulnerability to poverty. Additionally, distribution of wealth and income in both countries are among the most unequal globally, with most households still having poor access to education, energy, clean water and health care. This paper examines the effectiveness of policies adopted by Kenya and South Africa to reduce poverty and inequality. It concludes that the effectiveness of the policies in developing countries continues to be undermined by social, economic and political factors. Introduction Reduction of poverty and inequality is a central feature of the international development agenda. In which case, what accounts for the continued poverty and inequality has been on high policy agenda in most developing economies around the world, particularly in Africa. The United Nations highlights three important aspects of sustainable and comprehensive development strategy (UNRISD 2010). These include persistent growth and structural change that can create employments and increased incomes for the majority of people, inclusive social policies whose basis are on universal rights, and lastly, political frameworks and civic activism that guarantees state has the ability to respond to the overall needs of the citizens (UNRISD 2010). This paper argues that the effectiveness of the policies in developing countries continues to be undermined by social, economic and political factors. It examines case study of two African economies: South Africa and Kenya. Both countries have either implemented or are in the process of adopting heterodox that reflect on the conditions of their economies rather than strictly embracing market-oriented prescriptions. South Africa and Kenya have adopted similar models of reducing poverty and inequality, gender equity, where aspects of land reform, food security, cultural rights, democracy and social policy are preeminent. Creation of Employment Accessing to quality employment is on the policy agenda of both countries as a means of attaining sustainable livelihoods. This in return serves as important means of reducing poverty and equality. South Africa’s National Development Plan, which was launched by President Jacob Zuma in 2010, has sought to reduce poverty and inequality by 2030, through creating employments (Anon 2012). The focus has been to increase employments from 13 million in 2012 to over 24 million by 2030. Evidences show that employment rates have increased in South Africa since 2010. South Africa’s unemployment rate has been persistent. It averaged 25.5 between 2000 and 2013. South Africa also introduced the Basic Conditions of Employment Bill to improve the welfare of the workers in South Africa (Finn, Laibbrandt and Wegner 2012). However, it has faced various challenges making it to be ineffective. For instance, it has had limited impact on the most vulnerable workers who form the majority of the South African workforce. However, in circumstances where employment per se is not supply sustainable livelihoods, it has increased job security but failed to reduce poverty. The policy’ focus should therefore have been on maintaining the right balance between job security and flexibility in the labour market (May 1998). Under Kenya’s policy called Economic Recovery Strategy (ERS), which ran between 2003 and 2007, the country made significant macroeconomic management policies that implemented reforms and structural changes, aimed at reducing poverty and inequality. The outcome was that the country experienced an accelerated GDP from around 0.5 percent in 2002 to 7 percent in 2007. Among the key policies in ERS included the Economic Recovery Strategy and Employment Creation (EWSWEC) that was launched in 2003. EWSWEC provided framework for reducing poverty and inequity. Its key goals included restoring equitable economic growth that reduced poverty through creation of employment (Njeru 2005). The target was to reduce the level of poverty by 5 percent and to create over 500,000 new jobs each year (World Bank, 2003). However, DPMF (2013) statistics provide evidence that the policy intervention has not been effective in reducing poverty and income inequality. The income distribution of the Kenyan workforce is in the form of a pyramid, showing great income disparities in the economy. Up to 90 percent of the wage group receive KSH15,000 (US$176) a month. Around 9 percent earns wage that extends towards KSH100,000 (US$1177) a month, while 1 percent earn over KSH100,000. This shows great poverty levels. The great income inequality and high poverty rates show that the policy is far from meeting its objectives (World Bank 2003). Therefore, in both countries, the policies for reduction of poverty and inequality through creation of employment have not been effective. Education South Africa’s National Development Plan policy was created with the view of ensuring that all children in the country have at least two years of pre-school education, and are able to read and write by the time they attain grade three. This policy has been effective in increasing the literacy levels among the various races, individual of different income levels and different age groups in South Africa (Finn, Laibbrandt and Wegner 2012). In addition, a third of the government budget is channeled to education. The focus on reducing poverty and inequality has been emphasized in provinces where some 85 percent of the Education budget and the majority of the students and staff originate. An estimated 80 percent of the budget is channeled to the public ordinary schools in all provinces (May 1998). Further, ECD projects have been run across South Africa, particularly in provinces where home-based or community-based services were the norm. With regard to adult further education, the Department of Education has trained functions of the Department of Labour. The outcome is that the policy has indeed been effective as it is currently well-resourced. Today, some 92.9% of South Africans can read and write (CIA 2013). In the case of Kenya, the Free Primary Education (FPE) program was enacted in 2003 as part of the Kenya Education Sector Strategic Plan 2003-2007 to promote literacy rates in order to reduce poverty and inequalities (Boit, 2012). The policy was to ensure that children learn in primary schools free of charge. Current statistics show that the policy has been effective in improving enrollments and the transitional rates to secondary level of education from primary. In addition, it has endeavored to reduce inequalities by enabling the poor in arid areas of Kenya to access free learning opportunities as their counterparts in the metropolitan areas of the country. However, the policy has been affected by some underlying challenges that have made it ineffective in reducing inequalities (DPFM, 2013). The high poverty levels have made the policy ineffective. For instance, since its introduction, the high enrollments have caused congestion in class rooms and poor child-student ratio. This has led to poor education standards in the rural areas, with children from the able families being transferred from public schools to private schools, where higher education standards are expected (Boit, 2012; Mars Group, 2008). Further, gender disparities still exist, since HIV/AIDs and cultural practices have negatively impacted enrollment of the female students across education divide. In conclusion, the South African policies have been far more effective in reducing poverty and inequalities through the education system. In fact, the Kenyan FPE program has only served to deepen the class, regional and gender differentiation in the country. Health Care The South African and Kenyan health policies have generally regarded health care as a key determinant of health. Focus has been on a range of factors such as access to safe drinking water, sanitation and housing and their impact on health status (Finn, Laibbrandt and Wegner 2012). In South Africa, the initiatives that have had the greatest impact on poverty and inequality comprise the creation of the District Health System in 1994, whose task include reallocating financial resources, construction and creation of clinics and most importantly, the introduction of free health care. Indeed, most of these have tended to shift focus towards providing universal primary health care (Sharma 2012). The policy has indeed been effective as it has prioritized the health needs of most vulnerable groups, particularly the poor women and children living in the urban, peri-urban and rural regions of South Africa. However, District Health Systems has been hindered by the slow and unequal development of the local governments in South Africa. Even so, through its program called Clinic Upgrading and Building Program, the healthcare policy has made remarkable contribution in reducing poverty and inequality through building new clinic in under-served areas (May 1998). Other health care programs that have been instrumental in addressing inequities include National Health Insurance System which has effectively addressed inequality between those who have access to private healthcare and those who rely on public delivery (Finn, Laibbrandt and Wegner 2012). In Kenya, the Economic Recovery Strategy for Wealth and Employment Creation (ERSWEC) was enacted in 2003 to reduce poverty and inequality. The policy was an addition to the then ongoing Kenya Health Policy Framework (KHPF) that was initiated in1994 , and which was altered to the Second National Health Sector Strategic Plan (NHSSP II) 2005-2010 (Nyanjom, 2005). The policies have indeed effectively reduced health inequalities among different social structures in the country (Gakuru and Mathenge 2012). For instance, diseases that were initially correlated to economic disparities in the country such as HIV/AIDs have declined significantly, according to the UNAIDS Report. In addition, 92 percent of the women in Kenya today receive antenatal care, compared to less than 88 percent in 2003 and less than 50 percent more than two decades ago (KNBS, 2010). Therefore, in both countries, the policies for reduction of poverty and inequality through promotion of education have not been effective. Social Welfare Social welfare and social security has been on the focus of the South African and Kenyan governments’ strategies for resolving poverty and inequality. In South Africa, the key focus of the Department of Welfare has been on poverty reduction. Among the key policy interventions aimed at reducing poverty and inequality through making the welfare programs to be conditioned include the Conditional Cash Transfers (CCT) (Sharma 2012). CCT refers to a type of social grant that requires mutual exchange of responsibility from the beneficiaries. Under this policy intervention, the government transfers the money to individuals who meet the criteria, such as those who enroll children to public schools, receive vaccinations or get regular check-ups at the public hospitals. CCT has been effective in helping the South Africans languishing in poverty to break the cycle of poverty through creation of human capital. Going by the current trends, CCT has indeed been effective. For instance, the share of social expenditure grant has increased tremendously, even as the number of the recipients of the social grant increased in a meaningful way. According to the 2009 statistics, some 13.4 million South Africans benefitted from the social grants, 2.3 million of them were benefitting from old age pensions, around 9.1million comprised children while 1.4 million were benefitting from disability grants. In addition, social grants served as the chief source of income for populations that were the lowest income earners. However, the policies enacted by the South African government such as the Growth, Employment and Redistribution (GEAR) programme have not been effective as welfare provision in the country is still characterized by the Apartheid-like inequalities. In that respect, rural residents still have limited or no access to welfare services. In South Africa, welfare is among the four largest beneficiaries of the government budget, and currently accounts for 10 percent of the sum of 99 percent that is assigned to provinces (Sharma 2012). In Kenya, the primary social welfare policy is the National Social Security Fund (NSSF), which was initiated in 1965 to operate a national provident fund with the view of reducing income inequalities and poverty among the working group and the retirees (Chepkwony 2008). Despite its broad mandate and long-term existence, its positive effects have failed to be realized. For instance, the universal and affordable access to reduction in income inequity and poverty has been slow because of constant shifts in the country’s demography through increased population of the aged, low wages and spread of HIV/AIDs, changeful family structures and high refugee rates (Chepkwony 2008). Therefore, in both countries, the policies for reduction of poverty and inequality through social welfare have not been effective. Conclusion In conclusion, the effectiveness of the policies in developing countries continues to be undermined by social, economic and political factors. From the analysis of the policies relevant to the reduction of poverty and inequalities, the effects of these factors have emerged. In sum, although the policies in both countries have made conscious efforts in designing and implementing programs that target the most vulnerable groups, such as the poor, children, expectant women and the disabled in order to reduce poverty and inequalities, their major obstacles have been the lack of clear-cut understanding of the developmental social welfare and the budgetary constraints. References Anon 2005, Social Policy in Kenya, viewed 11 Oct 2013, Anon 2012, South Africa's plan for a better future, viewed 11 Oct 2013, http://www.southafrica.info/business/economy/policies/ndp2030.htm#.UljHLtJkMps Boit, L 2012, National policies and practices for education, skills and sustainable growth: The Kenyan case, viewed 11 Oct 2013, Chepkwony, C 2008, Challenges Of Provision Of Social Welfare Services In Sub- In Sub-Saharan Africa: The Kenyan State Of Affairs Saharan Africa: The Kenyan State Of Affairs, viewed 11 Oct 2013, http://www.phasi.org/public/socialsecurity_and__welfare_in_kenya.pdf CIA 2013, Literacy, viewed 11 Oct 2013, https://www.cia.gov/library/publications/the-world-factbook/fields/2103.html DPFM 2013, A Brief General Profile on Inequality in Kenya, viewed 11 Oct 2013, Finn, A, Laibbrandt, M & Wegner, E 2012, Policies for reducing income inequality and poverty in South Africa, viewed 11 Oct 2013, http://transformationaudit.org/blog/wp-content/uploads/2012/02/Review-Policies-for-reducing-income-inequality-and-poverty-in-SA.pdf Gakuru, R & Mathenge, N 2012, Poverty, Growth, and Income Distribution in Kenya, AGRODEP Working Paper 0001 June 2012 Keriga, L & Bujra, A 2009, Social Policy Development and Governance in Kenya, Development Policy Management Forum, Nairobi KNBS 2010, Kenya Demographic and Health Survey, viewed 11 Oct 2013, Mars Group 2008, Kenya Poverty and Inequality Assessment, viewed 11 Oct 2013, http://marsgroupkenya.org/pdfs/2011/01/AID_EFFECTIVENESS/Documents/Donor_works/Executive_Summary-KPIA_Report.pdf May, J 1998, Poverty and Inequality in South Africa, viewed 10 Oct 2013, http://www.polity.org.za/polity/govdocs/reports/poverty.html Njeru, E 2005, Policy-Based Approaches To Poverty Reduction In Kenya: Strategies And Civil Society Engagement, UNDP, Nairobi Nyanjom, O 2005, Inequality in Kenya’s Health Sector, viewed 11 Oct 2013, UNRISD 2010, Combating Poverty and Inequality, United Nations, Geneva Sharma, S 2012, Rising inequality in South Africa: Drivers, trends and policy responses, consultancy in Africa Intelligence, viewed 11 Oct 2013, World Bank 2003, Economic Growth and Measures to Reduce Poverty and Inequality, viewed 11 Oct 2013, Read More