A Case Study on Pricing as a Trade Policy and Poverty Levels at Mwea Irrigation Scheme

Abstract

The last fifteen years have seen Kenya's Economy decline with GDP growth falling from 5.1% in 1988 to 1.1. in 2002. Poverty has increased and so has unemployment. According to the Economic Recovery Strategy for Wealth and Employment Creation, 2003-2007, the number of people living in poverty is estimated to have risen from 11 million or 48% of the population in 1990 to 17 million or 56 % of the population in 2001. The Welfare Monitoring Survey of 1997 indicated that 85% of the poor live in the rural areas. This situation is demonstrated by the worsening of key social indicators including increase in illiteracy levels, decline in enrolment in primary school and the worsening of life expectancy and child mortality. It is therefore significant to note that any initiatives to address poverty in Kenya should, in the first instance, address poverty in the rural areas. This case study attempts to identify the key trade policies that would have significant impact on net incomes of households in the Mwea Irrigation Scheme. The study is organized in five chapters as follows: -. Chapter one provides the background information to trade policies and poverty reduction; identifies the problem; sets the goals and objectives of the study; indicates the study hypotheses and provides the justification for the study. Chapter two provides both theoretical and empirical literature review. Vll1 Chapter three outlines the Research Methodology including the identification of data types and sources, data sampling and how the data is analysed. Chapter four discusses the results and findings of the study. Both planned and unplanned findings are discussed. Three simulations are also applied in the findings. Chapter five is on Summary and Conclusions. The Conclusions and Recommendations arising out of the study findings are outlined in this chapter. This chapter has also identified suggestions for further work.