Publication: Kenya Country Economic Memorandum: From Economic Growth to Jobs and Shared Prosperity
Loading...
Files in English
594 downloads
Date
2016-03-01
ISSN
Published
2016-03-01
Author(s)
Editor(s)
Abstract
The Kenya CEM has five main messages. First, Kenya has performed well in the past decade in terms of economic growth, and modern services are behind the acceleration of growth. Expansion in these services, such as financial intermediation and mobile communications have stimulated demand for other services such as trade. The CEM discusses how to maximize the potential of services, especially given that most formal, high quality jobs are created in this sector. Second, agriculture, which still contributes to over a quarter of the economy, and manufacturing have stagnated. The CEM discusses the reasons behind this stagnation, noting that agriculture and manufacturing have not been able to create enough jobs for Kenya's growing working age population. Most of the jobs are created by the informal economy and are concentrated in low productivity segments of trade, hospitality, and jua kali. Improving the ease of doing business is one way towards job creation and higher productivity. However there is still a need for creating job opportunities for the rural poor, for poverty reduction and achieving shared prosperity. Reviving agriculture, in particular, remains the pathway for poverty reduction. Third, accelerating growth to meet Kenya's development goals requires technological advances and innovation that raise firms' productivity. Fourth, achieving rapid growth will require macroeconomic stability to boost investment and savings. And as the government strives to build Kenya's energy and transport infrastructure, this needs to be complemented with improvements in the public investment management process and better execution. Fifth, the discovery of oil opens a possibility for raising Kenya's growth. Kenya's recent oil discoveries, if used prudently, can contribute to achieving the Vision 2030 goals. The World Bank Group is proud of its long-standing relationship with Kenya, and looks forward to continuous collaboration with both National and County Governments and other partners. Working together, Kenya can realize its potential to lift millions of families out of poverty and achieve shared prosperity.
Link to Data Set
Citation
“World Bank Group. 2016. Kenya Country Economic Memorandum: From Economic Growth to Jobs and Shared Prosperity. © World Bank. http://hdl.handle.net/10986/24008 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Madagascar : Back to the Future on the Road to Sustained and Balanced Growth, Country Economic Memorandum, Volume 2, Annexes(Washington, DC, 2008-12)The objective of this study is to accompany Malagasy authorities in their transition towards economic emergence. If the contribution of foreign capital and the abundance of natural resources should help the Malagasy economy escape from the poverty trap by increasing its domestic savings and investment capacities, as well as its technological capacities. International experience reminds us that this transition is far from being automatic. Indeed, there are more examples of countries that have failed than of those who have succeeded. The successes of Chile, Tunisia, Malaysia, Mauritius, and Botswana can inspire the Malagasy policy makers while showing them which economic policy choices become imperative. This study is divided into four parts. The first part begins with an analysis of Madagascar's economic performance, trying to recall its fragility in spite of the good results recorded over these last few years. This fragility will be highlighted through the relatively narrow basis of the economic growth that has greatly relied on foreign capital inflows, putting the need to follow an adequate foreign exchange management policy at the center of the agenda and, thus, minimize its possible negative impact on exports. The second part will focus on the issue of private sector promotion. Recent diagnoses of Madagascar's economy and the strategy adopted by Malagasy authorities (with the support of its development partners) have shown that to be sustained and shared out over time, economic growth will have to rely on a dynamic and competitive private sector. The third part is dedicated to sharing the fruits of economic growth by giving a special emphasis to the distribution of the benefits related to the large mining and tourism investment projects within the population. These large projects represent a unique opportunity for Madagascar's development but also undoubtedly a danger if they do not allow the emergence of spillover effects among the local businesses and labor force. Finally, the fourth and final part proposes an agenda of economic reforms. Ambition is not to formulate a patchy list of proposals, but rather to propose a series of options that will help address the issues of competitiveness and shared growth that are central to the success of the current strategy followed by the Malagasy authorities.Publication Madagascar : Back to the Future on the Road to Sustained and Balanced Growth, Country Economic Memorandum, Volume 1, Main Report(Washington, DC, 2008-12)The objective of this study is to accompany Malagasy authorities in their transition towards economic emergence. If the contribution of foreign capital and the abundance of natural resources should help the Malagasy economy escape from the poverty trap by increasing its domestic savings and investment capacities, as well as its technological capacities. International experience reminds us that this transition is far from being automatic. Indeed, there are more examples of countries that have failed than of those who have succeeded. The successes of Chile, Tunisia, Malaysia, Mauritius, and Botswana can inspire the Malagasy policy makers while showing them which economic policy choices become imperative. This study is divided into four parts. The first part begins with an analysis of Madagascar's economic performance, trying to recall its fragility in spite of the good results recorded over these last few years. This fragility will be highlighted through the relatively narrow basis of the economic growth that has greatly relied on foreign capital inflows, putting the need to follow an adequate foreign exchange management policy at the center of the agenda and, thus, minimize its possible negative impact on exports. The second part will focus on the issue of private sector promotion. Recent diagnoses of Madagascar's economy and the strategy adopted by Malagasy authorities (with the support of its development partners) have shown that to be sustained and shared out over time, economic growth will have to rely on a dynamic and competitive private sector. The third part is dedicated to sharing the fruits of economic growth by giving a special emphasis to the distribution of the benefits related to the large mining and tourism investment projects within the population. These large projects represent a unique opportunity for Madagascar's development but also undoubtedly a danger if they do not allow the emergence of spillover effects among the local businesses and labor force. Finally, the fourth and final part proposes an agenda of economic reforms. Ambition is not to formulate a patchy list of proposals, but rather to propose a series of options that will help address the issues of competitiveness and shared growth that are central to the success of the current strategy followed by the Malagasy authorities.Publication Madagascar Country Economic Memorandum(World Bank, Washington, DC, 2020-02)Madagascar is characterized by an expanding economy and a peaceful transition of power, providing a solid basis for achieving a more productive, inclusive, and sustainable growth trajectory. Given the vast opportunities, but also substantial challenges, the objective of the Madagascar country economic memorandum is to inform the policy dialogue on how the country’s inclusive growth potential can be harnessed. The country economic memorandum takes an evidence-based approach to informing policy on how opportunities for achieving productive, inclusive, and sustainable growth can be realized. Accelerating the current pace of growth requires further expanding the bright spots of the economy, which are focused on exports and investment related activities. The bright spots are creating jobs at the fastest pace, are resilient to shocks and have linkages with other sectors of the economy. Scaling success requires addressing constraints related to connectivity, human capital, and the business environment, while incentivizing the uptake of improved technologies to enable other sectors, such as agriculture, to realize their potential.Publication Benin - Constraints to Growth and Potential for Diversification and Innovation : Country Economic Memorandum(World Bank, 2009-06-18)With favorable geographical location, macroeconomic stability, debt reduction, progress on structural reforms, and political stability, Benin will seem to have the foundations for a dynamic, diversified economy. Yet the country's economic structure has not evolved, remaining highly dependent on cotton and transit trade, and per-capita growth has slowed down in recent years. The government has requested the World Bank's assistance in understanding the constraints to growth and evaluating the country's potential for diversification and innovation as it seeks to lead the country to emerging market status by 2020. The government is well aware that the vulnerabilities associated with the country's dependence on cotton and transit trade impede the attainment of this goal. Response to the government's request, the objective of the Benin Country Economic Memorandum (CEM) is therefore to identify and analyze the key economic and institutional constraints to growth, including through diversification and innovation. The CEM contains four main chapters, each providing theoretical or empirical analyses of Benin's economic situation and prospects: a) cross-sectoral binding constraints to growth; b) analysis of specific constraints in the cotton and transit trade sectors; c) diversification and innovation potential; and d) political economy of growth.Publication Georgia Sustaining Rapid Economic Growth : Country Economic Memorandum(Washington, DC, 2013-07)Sustaining rapid economic growth for reduced poverty and shared prosperity over the next decade and beyond in Georgia is an important goal and a key challenge for the authorities. While the record of growth over the last decade has been strong, the forces that drove this growth are unlikely to be sustained in the coming years. Sustaining strong growth in Georgia going forward will require new policies that help support both high investment financed increasingly from domestic sources as well as sustained rapid productivity growth in the tradable sectors. Ensuring a more sustainable source of financing for investment and accumulation will require raising low rates of national savings in Georgia. Sustaining rapid productivity growth of tradables will require reforms to address firm level constraints to improved allocative efficiency and productivity over the firm lifecycle. Supporting productivity growth will also require improved skills and deployment of workers that will also support employment generation and more inclusive growth going forward. Expanding productivity and growth of exports will require ensuring price competitiveness, enhancing market access, and improving logistics infrastructure. This report is structured in five chapters. Chapter one looks at the sources and prospects for growth, the record on national savings, and the prospects for raising savings. Chapter two is a diagnostic of the dynamics of firm-level productivity growth and the policies that may be constraining improved allocative efficiency and lifecycle productivity. Chapter three looks at employment and skills to assess whether Georgia's labor resources are adequately deployed. Chapter four is a diagnostic of exports and international trade and the policies that may be holding back growth and productivity of the export and tradable sectors in particular. Two appendices on the apparel and wine industries provide additional insight into policies to support export growth.
Users also downloaded
Showing related downloaded files
Publication Growth in the Middle East and North Africa(Washington, DC: World Bank, 2024-10-16)This issue of the MENA Economic Update presents a summary of recent macroeconomic trends, including an update of the conflict centered in Gaza and its regional spillovers, alongside an analysis of factors that shape the long-term growth potential of the region, with special attention to the persistent effects of conflicts. A modest uptick in growth is forecast for 2024, which nonetheless masks important disparities within the region. The acceleration is driven by the high-income oil exporters, while growth is expected to decelerate among developing MENA countries, both developing oil exporters and developing oil importers. Despite current challenges, the region can dramatically boost growth by better allocating talent in the labor market, leveraging its strategic location, and promoting innovation. Closing the gender employment gap, rethinking the footprint of the public sector, and facilitating technology transfers through trade under enhanced data quality and transparency can help the region leap toward the frontier. Peace is a pre-condition for catching up to the frontier, as conflict can undo decades of progress, delaying economic development by generations.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication Europe and Central Asia Economic Update, Fall 2024: Better Education for Stronger Growth(Washington, DC: World Bank, 2024-10-17)Economic growth in Europe and Central Asia (ECA) is likely to moderate from 3.5 percent in 2023 to 3.3 percent this year. This is significantly weaker than the 4.1 percent average growth in 2000-19. Growth this year is driven by expansionary fiscal policies and strong private consumption. External demand is less favorable because of weak economic expansion in major trading partners, like the European Union. Growth is likely to slow further in 2025, mostly because of the easing of expansion in the Russian Federation and Turkiye. This Europe and Central Asia Economic Update calls for a major overhaul of education systems across the region, particularly higher education, to unleash the talent needed to reinvigorate growth and boost convergence with high-income countries. Universities in the region suffer from poor management, outdated curricula, and inadequate funding and infrastructure. A mismatch between graduates' skills and the skills employers are seeking leads to wasted potential and contributes to the region's brain drain. Reversing the decline in the quality of education will require prioritizing improvements in teacher training, updated curricula, and investment in educational infrastructure. In higher education, reforms are needed to consolidate university systems, integrate them with research centers, and provide reskilling opportunities for adult workers.Publication World Development Report 2011(World Bank, 2011)The 2011 World development report looks across disciplines and experiences drawn from around the world to offer some ideas and practical recommendations on how to move beyond conflict and fragility and secure development. The key messages are important for all countries-low, middle, and high income-as well as for regional and global institutions: first, institutional legitimacy is the key to stability. When state institutions do not adequately protect citizens, guard against corruption, or provide access to justice; when markets do not provide job opportunities; or when communities have lost social cohesion-the likelihood of violent conflict increases. Second, investing in citizen security, justice, and jobs is essential to reducing violence. But there are major structural gaps in our collective capabilities to support these areas. Third, confronting this challenge effectively means that institutions need to change. International agencies and partners from other countries must adapt procedures so they can respond with agility and speed, a longer-term perspective, and greater staying power. Fourth, need to adopt a layered approach. Some problems can be addressed at the country level, but others need to be addressed at a regional level, such as developing markets that integrate insecure areas and pooling resources for building capacity Fifth, in adopting these approaches, need to be aware that the global landscape is changing. Regional institutions and middle income countries are playing a larger role. This means should pay more attention to south-south and south-north exchanges, and to the recent transition experiences of middle income countries.