Global Policy Forum

By Callisto Madavo

Africa is often seen as a continent in crisis, and one of the most serious challenges is institutionalising change in political leadership through democratic means. What happened in Kenya after the December 27 General Election was truly amazing.

The people of Kenya were given the political space to make their free choice. They chose President Mwai Kibaki and the National Rainbow Coalition (Narc). Former President Daniel arap Moi, after being in office for 24 years, handed over the reins of power to Mr Kibaki at a moving installation ceremony witnessed by hundreds of thousands of Kenyans and their friends the world over.

Such a smooth and peaceful transition is too seldom seen in Africa and truly, Kenya has set a great example. I wholeheartedly congratulate the people of Kenya and join them in celebrating a new beginning; a hope, a determination that is echoed by all and a vision that is so coherently articulated by the new government. This is, indeed, an exciting moment and opportunity for all Kenyans, and I was pleased to be there to witness the changes taking place.

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I recently visited Kenya with a team of senior officials of the World Bank Group, representing the Bank, International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (Miga). The purpose of the visit was threefold: To listen to the vision of the Government and its priorities; to discuss where our assistance would be most helpful; and to clearly signal to the Government that the World Bank Group is ready to re-engage and provide the necessary support in order to re-energise the development process. We are ready to work with the Government and other development partners to bring about sustainable change and development.

Kenya has been an important country for the World Bank Group. Regrettably, the events of the past, including corruption and lack of transparency and accountability, considerably slowed down our engagement. But amidst these difficulties, we maintained at least some level of engagement and dialogue in hope of improvement. Historically, Kenya has played a leadership role in Africa, but over time this was eroded by its poor performance in many sectors of development, and, in particular, in the area of governance as it relates to management of its economic and financial resources.

However, now the situation is changing. The Government is aiming at achieving a growth rate of six to seven per cent and creating half a million jobs a year. As I listened to President Kibaki and the Ministers whom I met, I clearly sensed the commitment to change. I was particularly struck by the coherent and consistent message I heard from the President and each and every Minister that I talked to. The message is that the Government is determined to address the issues of governance, corruption and transparency.

The Minister for Justice and Constitutional Affairs, Mr Kiraitu Murungi, outlined a powerful and compelling approach on how this will be done. The message I got is that the Government wants to hold itself accountable and it is well aware that if this is not done, Kenya will not be able to resume its leadership role and attract the support internally and externally that it needs to develop rapidly.

What does Kenya need to do? Along with addressing governance issues, there are some clear priorities to get development moving.

First, if Kenya is to succeed in its economic recovery agenda, then the business climate has to improve. The cost of doing business has become unacceptably high due to corruption and poor infrastructure - roads, telecommunications and energy.

The size of resources needed to bring back infrastructure to an efficient level will require certainly a large involvement of the private sector, which can only occur if the conditions are favourable. The Government will need to tackle corruption in a forceful and systematic manner by enacting the pending legislation on anti-corruption and ethics.

Second, there is a need to attend to human development. Education is fundamental to Kenya's future. It is unacceptable in today's world that more than three million children were out of school because their parents could not afford fees. The Government's decision to provide free primary education to all children is a critical and welcome step. At the same time, there is no more urgent challenge than to stop and reverse the scourge of HIV/Aids in Kenya; failure in this area would undo all progress in all other areas and lead to a human catastrophe.

Third, there is a need to put in place a sound economic and development framework which all supporters of Kenyan development - internal, external, public and private - can use as a guidepost. The integration of the Government's economic manifesto with its Poverty Reduction Strategy, which is well advanced, would be a key step in this regard.

How Will the World Bank Help? Window of opportunity

The World Bank Group is prepared to provide resources from all of its affiliates - the Bank, IFC, and Miga - to support the revival of development in Kenya.

In the short term, we see a window of opportunity and are prepared to take reasonable risks to ensure the early signs of promise can turn into solid progress. First, we are prepared to release the $50 million tranche of the budget support operation suspended in 2001, after passage of critical governance legislation. Second, we are prepared to process on an expedited basis a facility of $40-50 million to support the Government's efforts to achieve Universal Primary Education.

For support over the medium term, the bank will be guided by the strategy that the Government is preparing for the Poverty Reduction Strategy Paper (PRSP). We are hopeful that this will lay the basis for a strong and durable partnership in the years to come.

The bank is prepared to play a strong role in helping Kenya mobilise the resources it needs to capitalise on the opportunities that are so evident today.

Mr Madavo is the World Bank Vice-President for Africa Region

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