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LESSON 3
Development Strategies
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Learning Outcomes
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Several developing countries including Kenya were fairly successful with ISI since in the initial years intended to provide correct
signals and incentives to the manufacturing and other sectors
increased the level of competition and technical efficiency and
to stimulate total productivity.
However, ISI as a method of achieving industrial development was not very successful and was official discontinued in
1984. Some of the reasons as to why ISI failed are as follows:
i) The main beneficiaries in ISI were mainly for firms. This
is because the industries that existed in subsidiaries of international corporations which did not support the govJKUAT: Setting trends in higher Education, Research and Innovation
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ii) ISI was made possible by government subsidized importation of capital goods and intermediate product capital
goods are meant to produce other goods.
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Integrated Rural development involved the focusing of development effort on the transformation of rural society in Africa. The
focus on rural life was justified by the fact that about 75% of
Africas population live in the rural areas, where agriculture is
the main economic activity. IRD assumed that the focusing of
development on rural society was necessary to ensure the maximum benefit to the most people as well as the growth of the
entire economy. Integrated Development means that all aspects
of development are coordinated and flow together to form an
unbroken whole. IRD was conceptualized by the United Nations and elaborated at the African Regional conference on the
Integrated Approach to Rural Development held at Moshi in
Tanzania in 1969.
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3. There were disagreements between civil servants and university based researchers in the project.
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4. This program was also undermined by inability of government planners to prepare integrated area specific plans and
also too much freedom given to donors to shape the plans
so as to fit their own funding objectives
In spite of these problems, SRDP provided opportunities for development of rural management systems and several of its innovations provided models and components of the current district
planning system.
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3. Lack of accountability and good governance and transparent also affected the implementation of Development
projects.
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2. There was lack of genuine capacity to debate issues reasonably and exhaustively
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2. The harambee spirit over shadows the role of the government in some cases by pushing the burden of development
to some local people while the central government has the
resources and management expertise for development.
3. Harambee encouraged dubious politicians in manipulating
the political process to favoritism since leadership would
be judged according to how much money one contributes.
4. Harambees encourage corruption. A lot of money is siphoned from planned projects to other projects with minJKUAT: Setting trends in higher Education, Research and Innovation
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Example . In vow view, what are the problems that the District Focus for Rural Development intended to address?
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Solution:
Reduce rural urban migration
Increase citizen participation in development decision making
Provided incentives for dispersion of industries the country
Fair distribution of resources
Better use of local resources
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Economic integration refers to the action of a group of nations towards free trade. The relationship of member states inter
se and with the rest of the world is determined by the type of
economic integration. Free trade refers to the condition in which
the free flow of goods and services in international exchange is
neither restricted nor encouraged by direct government intervention.
3.5.1. The levels of economic integration
i) A free trade area. This is a form of regional integration
where member countries agree to reduce the barriers to
trade among themselves, whereas each member country is
free to pursue its own trade policy vis-`a-vis non- member
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iii) Benefits of regional integration have been unequally distributed among the different countries. Countries that are
more industrialized tend to gain more from regional integration since they already enjoy a certain level of economies
scale.
iv) Regional integration has given rise in some cases to trade
diversion. Trade diversion refers to an economic phenomenon
where trade leads to the shifting of sources of commodities
from low to high cost producers.
v) Since the formation of economic blocks entails the reduction of tariff barriers between member countries, there is
a certain loss of revenue from tariffs, which implies that
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Example . In your view, why are Non Government organization (NGOs) more suitable in facilitating development is
Africa compared to government.
Solution:
Since they have been created by the community initative,
they enjoy a higher degree to legitimacy
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Exercise 1.
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Exercise 3.
In what ways is the export promotion industrialization an improvement over import substitution.
Exercise 4.
Argue the case for and against regional integration within the Africa continent.
References and Additional Reading Materials
1. Anyang Nyongo The possibilities and Historical limitations of import substitution industrialization Kenya,
in Congulin P and G. K Ikiara (eds) Industrialization in
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3. Constitution of Kenya Review commission (2010) Harmonized Draft, Nairobi: Government Printer
4. Makokha, J. (1985). The District Focus: Conceptual and
Management problems. Nairobi: East Africa Research Bureau.
5. Oyugi, W. O. (1991) Decentralization and Development
Planning Management in Kenya: An assessmentin Chitere,
P. O and Mutiso, R. (eds.) working with Rural communiJKUAT: Setting trends in higher Education, Research and Innovation
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8. Kellick, T. (1981). Policy Economics: A Textbook of Applied Economics in Developing countries. London: Heinmann.
9. Jhingan M. L., (2003). The economics of Development
and Planning, Delhi Konark
10. Gatheru W. & Shaw (1998) (eds)Our problems, Our Solutions: An Economic and Public Policy Agenda for Kenya.
Nairobi: Institute of Economic Affairs.
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13. Kenya Republic of (1987a) District Focus for Rural Development. Nairobi Government printer. Kenya Republic
of (1987c).selection criteria and guidelines for Rural Trade
and Production centres: technical Report No. 2 Nairobi:
MPND
14. Chitere, P. O and Ireri O. N. (2004) District Focus for Rural Development in Kenya. Its limitations as a Decentralization and participatory planning strategy and prospects
for the future. IPAR Discussion paper series Nairobi: IPAR
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Exercise 1.
Plan for District specific activities
Monitor and evaluate progress in implementation
Coordinate all development activities in the district.
Supervise implementation.
Exercise 1
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