Donor conditional ties on good governance : A case study of Kenya (1980 to 2000)

Abstract

Conditionality on good governance has become a major component in the granting of donor aid. The donor community now takes the position, that bad governance has direct consequences on their operatives as it affects the performance and outcome of all development efforts they are engaged in. This study analyses the various conditionalities on good governance in Kenya since 1980 to 2000. The focus of the study is specifically on those aspects of good governance that are most closely related to the development of macroeconomics policies, such as transparency and accountability of the public sector and tackling corruption which are viewed to be essential elements of a framework within which economies can prosper. (IMF. 1997) Additionally, the study also centers on democratic politics as another issue of governance set as a conditionality by donors. The Bretton Woods institutions have been highlighting the need to create an enabling political environment for equal participation. Henceforth, financial aid would be given only if the government is tending towards pluralism and public accountability. There have been instances in which the authorities failed to actively address governance conditionalities. In such circumstances, aid was withdrawal by the donors. During the 1990s multilateral donors declined to prolong its credit to Kenya, due to misgovernance in the country. The study shows the general challenges that Kenya faces in the implementation of the donor conditionalities. These obstacles to good governance

reforms include the weak capacity in government to carry out comprehensive institutional changes and lack of ownership especially among the ruling elites who benefit from the status quo. In conclusion, the study carries suggestions for both donors and recipient, on alternative approach to bring about good governance reforms.