Dr. Mary Amuyunzu-Nyamongo Ms. Alice Sereti Sinkeet& Mr. Gabriel Oguda. African Institute for Health & Development (AIHD)

Similar documents
GLOBAL FINANCIAL CRISIS: IMPACTS, COPING MECHANISMS AND IMPLICATIONS IN KENYA. Dr. Mary Amuyunzu-Nyamongo & Ms. Alice Sereti Sinkeet

Global Financial Crisis: Impacts, Coping Mechanisms and Implications. Mary Amuyunzu-Nyamongo

THE GLOBAL ECONOMIC CRISIS DEVELOPING ECONOMIES AND THE ROLE OF MULTILATERAL DEVELOPMENT BANKS

African Local Governments and the Global Economic and Financial Crisis

Trade led Growth in Times of Crisis Asia Pacific Trade Economists Conference 2 3 November 2009, Bangkok. Session 13

Africa s Recovery from the Global Recession: Challenges and Opportunities

Migration and Development Brief

NASIR IQBAL & SAIMA NAWAZ. Pakistan Institute of Development Economics (PIDE) Pakistan

By Peter Quartey (PhD) Centre for Migration Studies & ISSER, University of Ghana

AFRICAN DEVELOPMENT BANK GROUP

Lessons from the Gulf s Twin Shocks

The Importance of Migration and Remittances for Countries of Europe and Central Asia

GLOBAL JOBS PACT POLICY BRIEFS

The Role of the African Development Bank in Assisting Member States to Cope with the Global Financial Crisis

Economic Outlook and Macro Economic Policies

Impact of Global Crisis on attainment of MDGs

Remittances in times of financial instability

ACP-EU JOINT PARLIAMENTARY ASSEMBLY

The first eleven years of Finland's EU-membership

BOARDS OF GOVERNORS 2009 ANNUAL MEETINGS ISTANBUL, TURKEY

Phoenix from the Ashes: The Recovery of the Baltics from the 2008/09 Crisis

Tusheti National Park

The economic crisis in the low income CIS: fiscal consequences and policy responses. Sudharshan Canagarajah World Bank June 2010

MEXICO: ECONOMIC COUNTRY REPORT

Table 1. Nepal: Monthly Data for Key Macroeconomic Indicators.

A 13-PART COURSE IN POPULAR ECONOMICS SAMPLE COURSE OUTLINE

The Global Financial Crisis: Critical Social Issues For Jamaica

Migration and Remittance Trends A better-than-expected outcome so far, but significant risks ahead

Reg ional Economic Ou O tl ttlook Middle East and Central Asia Department Middle International Monetary Fund October 2009

Presentation. Bangladesh s Experience during the Crisis: Lessons Learnt and Challenges

The global financial crisis and developing countries Taking Stock and Taking Action

ARMENIA WORKSHOPS ON SUPPORTING ASIA PACIFIC LLDCS AND BHUTAN IN MOBILIZING RESOURCES FOR THE SDGS

ENHANCING DOMESTIC RESOURCES MOBILIZATION THROUGH FISCAL POLICY

ECONOMICS 0455/02. Paper 2 Structured Questions For examination from 2020

Dollarization in Ecuador. Miguel F. Ricaurte. University of Minnesota. Spring, 2008

HAS GROWTH PEAKED? 2018 growth forecasts revised upwards as broad-based recovery continues

Figure 1. Nepal: Recent Macro-Economic Developments

A REBALANCING ACT IN EMERGING EUROPE AND CENTRAL ASIA. April 17, 2015 Spring Meetings

ECONOMIC ANALYSIS (SUMMARY) 1

Policy Instruments to Enable Inclusive Growth

Circumstances and Prospects for Economic Cooperation Between Israel and its Neighbors

SR: Has the unfolding of the Dubai World debt problem in the UAE hampered broader growth prospects for the region?

Boosting the Crisis Economy Competition as an Ally

Figure 1. Nepal: Recent Macro-Economic Developments

Figure 1. Nepal: Recent Fiscal Developments

VENEZUELA: Oil, Inflation and Prospects for Long-Term Growth

CDP Working Group on Gender and Development Women s work and livelihood prospects in the context of the current economic crisis

The Global Financial and Economic Crisis and the South: What Have We Learned and Where Do We Go from Here?

Remittances and the Macroeconomic Impact of the Global Economic Crisis in the Kyrgyz Republic and Tajikistan

Regional Economic Context and Economic Trends in Ukraine

The Impact of Decline in Oil Prices on the Middle Eastern Countries

Speech by. Hon. Dr. Theo-Ben Gurirab, MP. Speaker of the National Assembly of Namibia and. President of the Inter-Parliamentary Union

Albania Building Competitiveness from the Ground Up

Cambridge International Examinations Cambridge Ordinary Level

HURRICANE KATRINA AND ITS IMPACT ON LATIN AMERICA

Tell us about your role within the Syrian Opposition Coalition (SOC).

1. Define GDP. The market value of all final goods and services produced within a nation in a given time period

Recent developments. Note: This section is prepared by Lei Sandy Ye. Research assistance is provided by Julia Roseman. 1

International Monetary Fund Washington, D.C.

Southeast Asia s Policy Response to the Global Economic Crisis

Public Forum on Kenyan-German Perceptions on the Economy Dr. Sebastian Paust: Germany s Perception of the Present Economy Situation in Kenya Date

Gertrude Tumpel-Gugerell: The euro benefits and challenges

Global Development Finance 2003

Fourteen years after the war in Bosnia and Herzegovina (BH),

ASIAN CURRENCY CRISES IMPACT ON THAILAND, INDONESIA& SOUTH KOREA

UNITED NATIONS. The Global Crisis and its Impact on Poverty in the ESCWA Region. By Mahmoud Abdel-Fadil

China s Response to the Global Slowdown: The Best Macro is Good Micro

UNDERSTANDING TRADE, DEVELOPMENT, AND POVERTY REDUCTION

Global Economic Prospects 2009

Regional Economic Outlook Caucasus and Central Asia. November 2, 2016

Emerging Market Consumers: A comparative study of Latin America and Asia-Pacific

The repercussions of the crisis on the countries of Latin America and the Caribbean

PROJECT INFORMATION DOCUMENT (PID) ADDITIONAL FINANCING Report No.: PIDA Project Name Parent Project Name. Region Country Sector(s) Theme(s)

The Human Face of the Financial Crisis

Monitoring the Philippine Economy Fourth Quarter Report for 2016

Middle States Geographer, 2013, 46: CONTRIBUTIONS OF REMITTANCES TO AFRICA S DEVELOPMENT: THE CASE STUDY OF KENYA

Deepening South Asian Economic Integration in an era of crisis. A Presentation Feb-09 2

A BRIEF NOTE ON POVERTY IN THAILAND *

The North Wind Doth Blow: U.S. Recession Brings Turbulence to the Mexican Economy Presented to: Maquiladora Industry Outlook Conference May 16, 2008

Harnessing Remittances and Diaspora Knowledge to Build Productive Capacities

Governing Body Geneva, March 2009

How to Generate Employment and Attract Investment

INDEPENDENT EVALUATION GROUP INDONESIA: COUNTRY ASSISTANCE EVALUATION APPROACH PAPER

EXPORT-ORIENTED ECONOMY - A NEW MODEL OF DEVELOPMENT FOR THE REPUBLIC OF MOLDOVA

Policy Challenges for Armenia in the context of Recent Global and Regional Shocks

Recession in Japan Part I

Conflict THE COST OF. Middle East strife is exacting a heavy toll on regional economies. Phil de Imus, Gaëlle Pierre, and Björn Rother

The opinions expressed in these papers represent those of the author(s) and not The Initiative for Policy Dialogue. These papers are unpublished.

Afternoon Keynote Speech at Harvard University s 9th Annual African Development Conference

Title: Barbados and Eastern Caribbean Crisis Poverty and Social Impact Analysis (PSIA)

Utafiti Sera Research Policy Community on Social Protection in Kenya

Implementing the Global Jobs Pact in Africa

CAMBODIA SYSTEMATIC COUNTRY DIAGNOSTIC Public Engagement

Deconstructing Structural Unemployment

Lessons and proposed key policy responses to mitigating the risks from the current global financial crisis

The International Economic Crisis and the Colombian Economy. Ricardo Arguello

Ministry of Trade and Industry Republic of Trinidad and Tobago SMALL STATES IN TRANSITION FROM VULNERABILITY TO COMPETITIVENESS SAMOA

respect to its external environment (Anton, 2015). Further, it undertakes the most crucial factors

Development Policy Choice in Ethiopia

THE MACROECONOMIC IMPACT OF REMITTANCES IN DEVELOPING COUNTRIES. Ralph CHAMI Middle East and Central Asia Department The International Monetary Fund

Transcription:

Dr. Mary Amuyunzu-Nyamongo Ms. Alice Sereti Sinkeet& Mr. Gabriel Oguda African Institute for Health & Development (AIHD)

A decline in the demand for Kenyan exports Collapse of external institutions with links to Kenyan banks and other monetary institutions Decline in remittances as disposable incomes decline in the countries experiencing global recession Decline in tourism revenue through postponement and cancellation of bookings Source: Nyangito (January 2009)

Reduced value of exports and increased cost of imports Depreciation of the Kenya shilling against the US dollar with adverse implications on transaction costs A fall in the stock markets A decline in international aid to the country and to non-governmental organizations

Kenya s GDP recorded a major decline in 2008 of 1.6% due to three adverse shocks: effects of the global economic downturn which depressed Kenya s main export markets the erratic, delayed and shorter rainfall had a negative impact on the agricultural and energy sectors the prolonged effects of the 2008 post-election violence depressed investor confidence and had adverse effects on the whole Kenyan economy and population

There was a rise in October 08 and slumped in Nov Dec 2008 The sources are North America 52% and Europe 30% The pick up in April 2010 indirectly attributed to improving economic conditions in the source regions, and improved prospects for economic recovery at home SOURCE: COMMENTARY ON REMITTANCES FOR APRIL 2010 MR. CHARLES GITARI KOORI, DIRECTOR RESEARCH DEPARTMENT

Inflation is closely linked to GDP growth Some of the effects of high inflation included high cost of food

Restoring investor confidence Expansionary fiscal policy (e.g. establishing an economic stimulus package) Monetary policy focusing on achieving and maintaining price stability within a single digit inflation rate of 5.0% The 2010-11 budget, with a focus on infrastructure and business, is aimed at job creation as a measure of addressing poverty

Data were collected in four sites with a total of 11,845 households: Tana River (July October 2010): 5,882 (poverty level at 72%) Murang a Local Authority: 2,286 (39% below the poverty line) Kilifi Local Authority: 2,649 (65% of the people classified as poor) Kisumu Local Authority: 1,028 (48% live below the poverty line)

Few households received remittances Substantial declines experienced in Murang a, Kilifi and Kisumu Source: CBMS data (2009-2010)

Source: CBMS data (2009-2010)

Source: CBMS data (2009-2010)

Source: CBMS data (2009-2010)

The study population was not engaged in any major export activity that could expose them to inflation and currency depreciation The impact on tourism was not felt directly mainly due to the location of the four sites - although Kisumu and Kilifi are tourist destinations, the study communities were removed from the mainstream activities Most of the households engaged in this study did not have savings either in bank accounts or in the form of shares therefore they were cushioned from the impact on the stock market

Decline in remittances, for affected households, led to high levels of food shortage (especially Kilifi), borrowing and reduced expenditure on healthcare, education and clothing Loss of jobs had effects on the households affected in terms of food shortages, limited access to healthcare, education and clothing Access to Government programmes, apart from food relief in Tana River, was also limited

Government should invest in poor areas to create employment opportunities and provide alternative coping strategies during shocks The country has an array of poverty mitigation funds through devolved funding, which do not seem to reach the people there is need to refine targeting mechanisms The implementation of the National Social Protection Policy would mitigate the impacts of shocks on the poor and vulnerable

THANK YOU