Stakeholder involvement in the poverty reduction strategy formulation

Abstract

This study examines the role of Government departments in the formulation of the Poverty Reduction Strategy Paper (PRSP). Broadly stated, the purpose of the study is to strengthen knowledge about, and highlight the role of stakeholders in policy formulation and particularly the formulation of the Poverty Reduction Strategy. The study specifically focuses on government departments, which have been particularly instrumental in the formulation of the Poverty Reduction Strategy in Kenya. The starting point for the study is the major proposition forwarded to the extent that poverty reduction strategies in the past have not cognisance of the involvement of stakeholders. Given the widespread consultations during the PRSP formulation, it is not clear what roles the stakeholders have played in the policy formulation. The conceptual framework employed by the study is the strategic management approach to research. Using this instrument, it is demonstrated that strategic management is a fundamental planning process since strategic decisions influence the way organizations responds to their environment. The involvement of stakeholders is central to national policy formulation, since it ensures participation and -. ownership and commitment to the achievement of the policy objectives. In order to achieve the objectives of the study, a questionnaire with both structured and semi structured questions were administered to the respondents by the researcher. A sample of 22 government departments engaged in the Medium Term Expenditure Framework were selected out of 45 for this study and were considered an adequate sample to provide the measure of their involvement in the policy formulation process. Data was collected and analysed using a five point Likert scale to measure the extent of the department's perceived involvement in the Poverty Reduction Strategy formulation process. Both ordinal and nominal scales were used to rate the different variables. Descriptive statistics were used to summarise data including frequency counts and qualitative analysis of the data gathered from the population of study. Cross tabulations were used for purposes of comparison. The findings of this study clearly indicate that while the departments as stakeholders provided valuable technical expertise to the formulation process they were clearly constrained by the prevailing International Financing Institutions agenda. Donor overshadowing in the process clearly compromised the achievement of identified Poverty Reduction Strategy priorities through the constantly changing resource conditionalities. From the findings of the study, it can be concluded that despite the centrality of stakeholder involvement in national policy formulation that ensures participation and ownership, and commitment to the achievement of the policy objectives, the practice however through this study, demonstrates that when external factors come into play in this case the development partners, stakeholders consultations may be deemed cosmetic leading to a gap between strategy formulation and realisation. The study further reinforces the importance of stakeholders at all levels of the strategy development pr-oc.ess in enhancing ownership and opening up the space for participation. The study recommends the further entrenchment of stakeholder consultations in national policy formulation. Taking cognisance of the fact that the policy formulation strategies supported by international development partners like (IMF and World Bank) sometimes clash with traditional domestic policy formulation strategies, it is also recommended that as a first step, there is need to inculcate among all stakeholders including government departments, a culture of inclusion and participation in national policy formulation.