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	<title>Inter Press ServiceMinistry of Agriculture Topics</title>
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		<title>Forests and Crops Make Friendly Neighbors in Costa Rica</title>
		<link>https://www.ipsnews.net/2016/07/forests-and-crops-grow-hand-by-hand-in-costa-rica/</link>
		<comments>https://www.ipsnews.net/2016/07/forests-and-crops-grow-hand-by-hand-in-costa-rica/#respond</comments>
		<pubDate>Tue, 26 Jul 2016 18:55:58 +0000</pubDate>
		<dc:creator>Diego Arguedas Ortiz</dc:creator>
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		<guid isPermaLink="false">http://www.ipsnews.net/?p=146239</guid>
		<description><![CDATA[While Latin America keeps expanding its agricultural frontier by converting large areas of forest, one country, Costa Rica, has taken a different path and is now a role model for a peaceful coexistence between food production and sustainable forestry. The UN Food and Agriculture Organization (FAO) flagship publication The State of the World&#8217;s Forests revealed [&#8230;]]]></description>
		
			<content:encoded><![CDATA[<p><font color="#999999"><img width="300" height="169" src="https://www.ipsnews.net/Library/2016/07/28461105551_bacff324c9_z-300x169.jpg" class="attachment-medium size-medium wp-post-image" alt="Tapantí National Park lies east from the capital San José covering more than 50.000 hectares of forest, which in turn provides valuable watershed protection. Picture: Diego Arguedas Ortiz / IPS" decoding="async" srcset="https://www.ipsnews.net/Library/2016/07/28461105551_bacff324c9_z-300x169.jpg 300w, https://www.ipsnews.net/Library/2016/07/28461105551_bacff324c9_z-629x354.jpg 629w, https://www.ipsnews.net/Library/2016/07/28461105551_bacff324c9_z.jpg 640w" sizes="(max-width: 300px) 100vw, 300px" /><p class="wp-caption-text">Tapantí National Park lies east from the capital San José covering more than 50.000 hectares of forest, which in turn provides valuable watershed protection. Picture: Diego Arguedas Ortiz / IPS</p></font></p><p>By Diego Arguedas Ortiz<br />SAN JOSE, Jul 26 2016 (IPS) </p><p>While Latin America keeps expanding its agricultural frontier by converting large areas of forest, one country, Costa Rica, has taken a different path and is now a role model for a peaceful coexistence between food production and sustainable forestry.<span id="more-146239"></span></p>
<p>The UN <a href="http://www.fao.org/">Food and Agriculture Organization (</a>FAO) flagship publication <a href="http://www.fao.org/3/a-i5588e.pdf">The State of the World&#8217;s Forest</a>s revealed that commercial agriculture was responsible for 70 percent of forest conversion in Latin America between 2000 and 2010.</p>
<p>“What FAO mentions about the rest of Latin America, clearing forests for agriculture or livestock, happened in Costa Rica during the 1970s and 1980s,” Jorge Mario Rodríguez, the director of Costa Rica’s National Fund for Forestry Finance (Fonafifo), told IPS.“Agricultural development doesn’t necessarily require the expansion of croplands; rather, it demands the coexistence with the forest and the intensification of production by improving national farmers’ productivity and competitiveness" -- Octavio Ramírez.<br /><font size="1"></font></p>
<p>At its worst moment, during the 1980s, Costa Rica’s forest cover was limited to 21 to 25 percent of its land area. Now, forests account for 53 percent of the country’s 51,000 square kilometers, with almost five million inhabitants.</p>
<p>The country has managed to hold and even push back the advance of the agricultural frontier while strengthening its food security, according to FAO, which says that Costa Rica’s malnutrition rate is under 5 percent, something the organisation accounts as “zero hunger”.</p>
<p>“Here’s a learned lesson: there’s no need to chop down forests to produce more crops,” <a href="http://http://www.fao.org/countryprofiles/index/en/?iso3=CRI" target="_blank">FAO Costa Rica</a> director Octavio Ramírez told IPS.</p>
<p>Despite the increase in forest cover, FAO states the average value of food production per person increased by 26 percent in the period 1990–1992 to 2011–2013.</p>
<p>FAO attributes this change “to structural changes in the economy and the priority given to forest conservation and sustainable management” which were seized upon by Costa Rican authorities in a specific context.</p>
<p>“It has to do with the livestock crisis during the 1980s but also the priority given by Costa Rica to forest management,” said Ramírez, born in Nicaragua but Costa Rican by naturalisation.</p>
<p>In The State of the World’s Forests report, launched on July 18, FAO explains that Costa Rican forests were regarded as “land banks” that could be converted as necessary to meet agricultural needs.</p>
<p>“To keep the forest intact was looked upon as a synonym of laziness and unwillingness to work,” Ramírez explained.</p>
<p>But there were two key elements during the 1980s that led to better forest protection, the environmental economist Juan Robalino told IPS.</p>
<div id="attachment_146240" style="width: 639px" class="wp-caption aligncenter"><a href="https://www.ipsnews.net/Library/2016/07/Crica-chica-629x418.jpg"><img fetchpriority="high" decoding="async" aria-describedby="caption-attachment-146240" class="size-full wp-image-146240" src="https://www.ipsnews.net/Library/2016/07/Crica-chica-629x418.jpg" alt="José Alberto Chacón weeds between bean plants on his small farm in Pacayas, on the slopes of the Irazú volcano, in Costa Rica. The terraces help control water run-off that would otherwise cause soil erosion. Picture: Diego Arguedas Ortiz/IPS" width="629" height="418" srcset="https://www.ipsnews.net/Library/2016/07/Crica-chica-629x418.jpg 629w, https://www.ipsnews.net/Library/2016/07/Crica-chica-629x418-300x199.jpg 300w" sizes="(max-width: 629px) 100vw, 629px" /></a><p id="caption-attachment-146240" class="wp-caption-text">José Alberto Chacón weeds between bean plants on his small farm in Pacayas, on the slopes of the Irazú volcano, in Costa Rica. The terraces help control water run-off that would otherwise cause soil erosion. Picture: Diego Arguedas Ortiz/IPS</p></div>
<p>Meat prices plummeted while eco-tourism became a leading economic activity in the country, explained the specialist from Universidad de Costa Rica and the Tropical Agricultural Research and Higher Education Center.</p>
<p>“This paved the way for very interesting policy-making, like the creation of the Payments for Environmental Services (PES) program,” said Robalino, one of the top experts in Costa Rican forest cover.</p>
<p>FAO states that a big part of Costa Rica’s success comes from PES, a financial incentive that acknowledges those ecosystem services resulting from forest conservation and management, reforestation, natural regeneration and agroforestry systems.</p>
<p>The program, established in 1997 and ran by Fonafifo, has a simple logic at its core: the Costa Rican state pays landowners who protect forest cover as they provide an ecosystem service.</p>
<p>From its launch until 2015, a total of 318 million dollars were invested in forest-related PES projects.  64 percent of the funding came from fossil fuel tax, 22 percent from World Bank credits and the remainder from other sources.</p>
<p>After studying PES impacts for years, Robalino explains the challenge for 2016 is to look for landowners with less incentives to protect their forests and bring them on board with the financial argument.</p>
<p>“The goal is to always look for those who’ll change their behavior because of the program,” Robalino stated.</p>
<p>Because of budget limitations, the program must decide which properties to work with, as applications exceed its capacity fivefold, according to Fonafifo director Rodríguez.</p>
<p>Priorities for PES funding include ecosystem services like watershed protection, carbon capture, scenic beauty and biodiversity conservation.</p>
<p>“Costa Rica learned that forests are worth more for their environmental services than because of their timber,” Rodríguez pointed out.</p>
<p>Fonafifo is now looking for new partnerships with the Ministry of Agriculture and Livestock to launch a new program focused on small landowners who require more technical support, a road also favoured by FAO.</p>
<p>“Agricultural development doesn’t necessarily require the expansion of croplands; rather, it demands the coexistence with the forest and the intensification of production by improving national farmers’ productivity and competitiveness,” said Ramírez, FAO’s local representative.</p>
<p>Both FAO and local experts interviewed by IPS agreed that PES seized upon a national and international crossroads to launch a program that despite its success, is not the only cause for Costa Rica’s recovery.</p>
<p>“Costa Rica’s success cannot be exclusively attributed to PES since other policies, like the creation of the National Protected Areas System and its education system, also played a major role,” Rodríguez explained.</p>
<p>Beyond this program, the country has a longstanding environmental tradition: close to a quarter of its territory is under some type of protection, the forestry law bans forest conversion, and sports hunting, open-air metallic mining and oil exploitation are all illegal.</p>
<p>The country’s Constitution declares citizens’ right to a healthy environment in its article 50.</p>
<p>“I remember my school teacher telling us students that we had to protect the forest,” Robalino recalled.</p>
<p>However, Costa Rica’s forest recovery didn’t reach all ecosystems in the country and left mangroves behind. Their area has diminished in the past decades.</p>
<p>According to the country’s 2014 report to the <a href="https://www.cbd.int/" target="_blank">Convention on Biological Diversity</a>, mangrove coverage fell from 64.452 hectares in 1979 to 37.420 hectares in 2013, a 42 percent loss.</p>
<p>This ecosystem is particularly vulnerable to large monoculture plantations on the Pacific coast, where the local Environmental Administrative Tribunal denounced the disappearance of 400 hectares between 2010 and 2014, due to human-induced fire, logging and invasion.</p>
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		<title>‘Permaculture the African Way’ in Cameroon’s Only Eco-Village</title>
		<link>https://www.ipsnews.net/2015/08/permaculture-the-african-way-in-cameroons-only-eco-village/</link>
		<comments>https://www.ipsnews.net/2015/08/permaculture-the-african-way-in-cameroons-only-eco-village/#comments</comments>
		<pubDate>Sun, 02 Aug 2015 08:16:10 +0000</pubDate>
		<dc:creator>Mbom Sixtus</dc:creator>
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		<guid isPermaLink="false">http://www.ipsnews.net/?p=141834</guid>
		<description><![CDATA[Marking a shift away from the growing trend of abandoning sustainable life styles and drifting from traditional customs and routines, Joshua Konkankoh is a Cameroonian farmer with a vision – that the answer to food insecurity lies in sustainable and organic methods of farming. Konkankoh, who left a job with the government to pursue that [&#8230;]]]></description>
		
			<content:encoded><![CDATA[<p><font color="#999999"><img width="300" height="225" src="https://www.ipsnews.net/Library/2015/08/Ecovillage-Flickr-300x225.jpg" class="attachment-medium size-medium wp-post-image" alt="" decoding="async" loading="lazy" srcset="https://www.ipsnews.net/Library/2015/08/Ecovillage-Flickr-300x225.jpg 300w, https://www.ipsnews.net/Library/2015/08/Ecovillage-Flickr.jpg 1024w, https://www.ipsnews.net/Library/2015/08/Ecovillage-Flickr-629x472.jpg 629w, https://www.ipsnews.net/Library/2015/08/Ecovillage-Flickr-200x149.jpg 200w, https://www.ipsnews.net/Library/2015/08/Ecovillage-Flickr-900x675.jpg 900w" sizes="auto, (max-width: 300px) 100vw, 300px" /><p class="wp-caption-text">Scene from Ndanifor Permaculture Eco-village in Bafut in Cameroon’s Northwest Region, the country’s first and only eco-village which is based on the principle that the answer to food insecurity lies in sustainable and organic methods of farming. Credit: Mbom Sixtus/IPS</p></font></p><p>By Mbom Sixtus<br />YAOUNDE, Aug 2 2015 (IPS) </p><p>Marking a shift away from the growing trend of abandoning sustainable life styles and drifting from traditional customs and routines, Joshua Konkankoh is a Cameroonian farmer with a vision – that the answer to food insecurity lies in sustainable and organic methods of farming.<span id="more-141834"></span></p>
<p>Konkankoh, who left a job with the government to pursue that vision, founded <a href="http://betterworld-cameroon.com/">Better World Cameroon</a>, which works to develop local sustainable agricultural strategies that utilise indigenous knowledge systems for mitigating food crises and extreme poverty, and is now running Cameroon’s first and only eco-village – the Ndanifor Permaculture Eco-village in Bafut in Cameroon’s Northwest Region.</p>
<p>“Biodiversity was protected by traditional beliefs.  Felling of some trees and killing of certain animal species in certain forests were prohibited. They were protected by gods and ancestors. We want to protect such heritage” – Joshua Konkankoh<br /><font size="1"></font>Talking with IPS, Konkankoh explained how the eco-village organically fertilises soil through the planting and pruning of nitrogen-fixing trees planted on farms where mixed cropping is practised. When the trees mature, the middles are cut out and the leaves used as compost. The trees are then left to regenerate and the same procedure is repeated the following season.</p>
<p>“Here we train youths and farmers on permanent agriculture or permaculture,” he said. “I call it ‘permaculture the African way’ because the concept was coined by scientists and we are adapting it to our old ways of farming and protecting the environment.”</p>
<p>While government is keeping its distance from the project, Konkankoh said that local councils and traditional rulers are encouraging people to embrace the initiative, which is said to be ecologically, socially, economically and spiritually friendly.</p>
<p>“I was active during the U.N. Decade of Education for Sustainable Development. In studying the reason why many countries failed to meet the Millennium Development Goals (MDGs), we realised that there were some gaps but we also found out that permaculture was a solution to sustainability, especially in Africa. So I felt we could contextualize the concept &#8211; think globally and act locally.”</p>
<p>The permaculture used at the eco-village makes maximum use of limited agricultural land, and villagers are taught how to plant more than one crop on the same piece of land, use a common organic fertiliser and obtain high yields.</p>
<p>Farmers, said Konkankoh, are encouraged to trade and not seek aid, to benefit from their investment and prevent middlemen and multinationals from scooping up a large share of their earnings. The organic agriculture practised and taught in the eco-village is a blend of culture and fair trade initiatives.</p>
<div id="attachment_141835" style="width: 228px" class="wp-caption alignleft"><a href="https://www.ipsnews.net/Library/2015/08/Kankonko-shows-off-his-farm-with-nitrogen-fixing-trees-Flickr.jpg"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-141835" class="size-medium wp-image-141835" src="https://www.ipsnews.net/Library/2015/08/Kankonko-shows-off-his-farm-with-nitrogen-fixing-trees-Flickr-218x300.jpg" alt="Joshua Konkankoh, founder of Cameroon’s first and only eco-village, shows off some nitrogen-fixing trees. Credit: Mbom Sixtus/IPS" width="218" height="300" srcset="https://www.ipsnews.net/Library/2015/08/Kankonko-shows-off-his-farm-with-nitrogen-fixing-trees-Flickr-218x300.jpg 218w, https://www.ipsnews.net/Library/2015/08/Kankonko-shows-off-his-farm-with-nitrogen-fixing-trees-Flickr.jpg 745w, https://www.ipsnews.net/Library/2015/08/Kankonko-shows-off-his-farm-with-nitrogen-fixing-trees-Flickr-343x472.jpg 343w, https://www.ipsnews.net/Library/2015/08/Kankonko-shows-off-his-farm-with-nitrogen-fixing-trees-Flickr-160x220.jpg 160w" sizes="auto, (max-width: 218px) 100vw, 218px" /></a><p id="caption-attachment-141835" class="wp-caption-text">Joshua Konkankoh, founder of Cameroon’s first and only eco-village, shows off some nitrogen-fixing trees. Credit: Mbom Sixtus/IPS</p></div>
<p>“We encourage rural farmers to guarantee food sovereignty by producing what they also consume directly and not cash crops like cocoa and coffee.”</p>
<p>Farmers are trained in the importance of manure, of producing it and selling it to other farmers, as well in innovative techniques of erosion control, water management, windbreaks, inter-cropping and food foresting.</p>
<p>Konkankoh also told IPS that it was a mistake to have left the spiritual principle out of the MDG programme. “Biodiversity was protected by traditional beliefs.  Felling of some trees and killing of certain animal species in certain forests were prohibited. They were protected by gods and ancestors. We want to protect such heritage.”</p>
<p>The eco-village has started a project to replant spiritual forests with 4,000 medicinal and fruit trees in a bid to reduce CO2 emissions.</p>
<p>Fon Abumbi II, traditional ruler of Bafut, the village which hosts the Ndanifor Permaculture Eco-village, believes that the type of cultivation of fruits, vegetables and medicinal plants used by the eco-village will improve the health of local people.</p>
<p>He is also convinced that with many firms around the world producing health care products with natural herbs, the demand for the products of the eco-village is high, guaranteeing a promising future for the villagers who cultivate them.</p>
<p>Houses in the eco-village are constructed with local materials such as earth bags and mud bricks, and grass for the roofs. Domestic appliances such as ovens and stoves are earthen and homemade.</p>
<p>Sonita Mbah Neh, project administrator at eco-village’s demonstration centre, said that the earthen stoves bit not only reduce the impact of climate change by minimising the use of wood for combustion but the local women who make then also earn a living by selling them.</p>
<p>Lanci Abel, mayor of the Bafut municipality, told IPS that his council is mobilising citizens to embrace permaculture. “You know, when an idea is new, people only embrace it when it is recommended by authorities. We are carrying out communication and sensitisation of the population to return to traditional methods of farming as taught at the eco-village.”</p>
<p>Abel also had something to say about the performance of genetically modified plantain seedlings planted by the Ministry of Agriculture at the start of the 2015 farming season in Cameroon’s Southwest Region, which recorded a miserable 30 percent yield.</p>
<p>The issue had been raised by Mbanya Bolevie, a member of parliament from the region who asked Minister of Agriculture Essimi Menye about the failure of the modern seeds during the June session of parliament.</p>
<p>Julbert Konango, Littoral Regional Delegate for the Chamber of Agriculture, said the failure was due the fact that seeds are often old because “there is inadequate finance for agricultural research organisations in Cameroon as well as a shortage of engineers in the sector,” a sign that the country not fully prepared for second-generation agriculture.</p>
<p>Commenting on the incident, Abel said that citizens using natural seeds and compost would not have faced these problems, adding that “besides the possibility of failure of chemical fertilisers, they also pollute the soil.”</p>
<p>The eco-village, which would like to become a model for Cameroon and West Africa, is a member of the <a href="http://gen.ecovillage.org/">Global Ecovillage Network</a>.</p>
<p><em>Edited by </em><a href="http://www.ips.org/institutional/our-global-structure/biographies/phil-harris/"><em>Phil Harris</em></a><em>    </em></p>
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		<title>Kenya’s Economy Sees Growth at Top But No ‘Trickle-Down’</title>
		<link>https://www.ipsnews.net/2014/12/kenyas-economy-sees-growth-at-top-but-no-trickle-down/</link>
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		<pubDate>Wed, 17 Dec 2014 23:03:42 +0000</pubDate>
		<dc:creator>Miriam Gathigah</dc:creator>
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		<category><![CDATA[Poverty & MDGs]]></category>
		<category><![CDATA[productivity]]></category>
		<category><![CDATA[Slums]]></category>
		<category><![CDATA[Socio-Economic Atlas of Kenya]]></category>
		<category><![CDATA[structural transformation]]></category>
		<category><![CDATA[trickledown effect]]></category>
		<category><![CDATA[World Bank]]></category>

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		<description><![CDATA[David Kamau is a small-scale maize farmer in Nyeri, Central Kenya, some 153 kms from the capital Nairobi. He recently diversified into carrot farming but is still not making a profit. He says that inputs cost too much and if this trend continues he will sub-divide and sell his five hectares. This is the story [&#8230;]]]></description>
		
			<content:encoded><![CDATA[<p><font color="#999999"><img width="300" height="193" src="https://www.ipsnews.net/Library/2014/12/David-Kamau-at-his-farm-in-Nyeri-County-Central-Kenya.-Though-he-now-grows-carrots-for-sale-in-addition-to-maize-he-says-his-efforts-are-yet-to-pay-off.-Photo-Miriam-Gathigah-300x193.jpg" class="attachment-medium size-medium wp-post-image" alt="" decoding="async" loading="lazy" srcset="https://www.ipsnews.net/Library/2014/12/David-Kamau-at-his-farm-in-Nyeri-County-Central-Kenya.-Though-he-now-grows-carrots-for-sale-in-addition-to-maize-he-says-his-efforts-are-yet-to-pay-off.-Photo-Miriam-Gathigah-300x193.jpg 300w, https://www.ipsnews.net/Library/2014/12/David-Kamau-at-his-farm-in-Nyeri-County-Central-Kenya.-Though-he-now-grows-carrots-for-sale-in-addition-to-maize-he-says-his-efforts-are-yet-to-pay-off.-Photo-Miriam-Gathigah-1024x661.jpg 1024w, https://www.ipsnews.net/Library/2014/12/David-Kamau-at-his-farm-in-Nyeri-County-Central-Kenya.-Though-he-now-grows-carrots-for-sale-in-addition-to-maize-he-says-his-efforts-are-yet-to-pay-off.-Photo-Miriam-Gathigah-629x406.jpg 629w, https://www.ipsnews.net/Library/2014/12/David-Kamau-at-his-farm-in-Nyeri-County-Central-Kenya.-Though-he-now-grows-carrots-for-sale-in-addition-to-maize-he-says-his-efforts-are-yet-to-pay-off.-Photo-Miriam-Gathigah-900x581.jpg 900w" sizes="auto, (max-width: 300px) 100vw, 300px" /><p class="wp-caption-text">David Kamau on his farm in Nyeri County, Central Kenya. Although he now grows carrots for sale in addition to maize, he says his efforts are yet to pay off. Credit: Miriam Gathigah/IPS</p></font></p><p>By Miriam Gathigah<br />NAIROBI, Dec 17 2014 (IPS) </p><p>David Kamau is a small-scale maize farmer in Nyeri, Central Kenya, some 153 kms from the capital Nairobi. He recently diversified into carrot farming but is still not making a profit.<span id="more-138313"></span></p>
<p>He says that inputs cost too much and if this trend continues he will sub-divide and sell his five hectares.</p>
<p>This is the story of many small-scale farmers in this East African nation, where agriculture accounts for about one-quarter of the Gross Domestic Product (GDP). But small-scale farmers – accounting for about 75 percent of total agricultural produce – barely break even.</p>
<p>“A 150 kg bag of carrot is now going for about 27 dollars, up from 22 dollars, but as prices go up, so does the cost of inputs,” says Kamau.“The growth of both urban and rural slums is an indication that more people are falling on hard times” – Dinah Mukami of the Bunge la Mwananchi pro-poor social movement<br /><font size="1"></font></p>
<p>According to the Ministry of Agriculture, an estimated five million out of about eight million Kenyan households depend directly on agriculture for their livelihoods. Yet agriculture fails to provide an adequate return to farmers because their sector is significantly underfunded, explains Jason Braganza, an economic analyst based in Nairobi.</p>
<p>The percentage of the budget for the agricultural sector is 2.4 percent, down 0.6 percent from the 3 percent in the 2012/2013 budget and well below the threshold of the 2003 African Union <a href="http://www.nepad.org/nepad/knowledge/doc/1787/maputo-declaration">Maputo Declaration</a> on Agriculture and Food Security, which mandated that at least 10 percent the national budget should be allocated to agriculture.</p>
<p>The result, says Kamau, is that “farmers are slowly moving out of the farms and trying other economic ventures, Central Kenya used to be a breadbasket but farmlands are being replaced by residential and commercial complexes.”</p>
<p>Farming is not the only sector feeling an economic downslide. Small businesses in Kenya are faced with a lack of essential business support services, especially financial services. Two-thirds of Kenyans do not have access to basic financial services such as banking accounts.</p>
<p>“The growth of both urban and rural slums is an indication that more people are falling on hard times,” according to Dinah Mukami of the <a href="http://www.pambazuka.net/en/category/features/79603">Bunge la Mwananchi</a> [People’s Parliament] pro-poor social movement.</p>
<p>She says that the group is planning to hold the government responsible regarding the use of the information in the ‘Socio-Economic Atlas of Kenya’ which the government <a href="http://www.knbs.or.ke/index.php?option=com_content&amp;view=article&amp;id=281:launch-of-the-socio-economic-atlas-of-kenya-on-10th-november-2014&amp;catid=82:news&amp;Itemid=593">released</a> last month. The report exposes significant disparities in poverty levels across the country.</p>
<p>“The Atlas is a powerful tool, but whether the government will use the information to change lives and improve living standards remains to be seen,” she says.</p>
<p>Felix Omondi, a resident of Kibera, a division of Nairobi considered the largest slum in Africa, and a member of the Unga Revolution, a local activist group, is one of those who believes that the Atlas is doing some good.</p>
<p>He told IPS that that a programme is under way to upgrade slums and said that this is “one of the ways that the government is using the Atlas to improve the lives of people in the slums.”</p>
<p>In the last three months, the government has been working with residents of the slums to establish income-generating projects and provide basic amenities such as toilets, lighting and drainage.</p>
<p>At least 3,000 youths in Kibera will benefit from these projects. Omondi, a beneficiary, says that he is running one of the posho (corn meal) mills set up by the government to generate income.</p>
<p><strong>Kenya now officially a “middle-income country”</strong></p>
<p>Meanwhile, in autumn the news came out that Kenya had seen its economy grow 25 percent after statistical revision and is now officially a “middle-income country”. A few months ago, a similar type of revision brought Nigeria’s economy to the top of African countries in terms of the size of the economy, surpassing South Africa for the first time.</p>
<p>A growing middle class population is an important driver of this growth, but what does that middle class look like? The recently revised Kenyan figures indicate that the Gross National Income (GNI) per capita is 1,160 dollars against the World Bank’s “middle income” threshold of 1,036 dollars.</p>
<p>The latest income-distribution indicators for Kenya (which date back to 2005) show the following:</p>
<ul>
<li>45.9 percent of the population was at the national poverty line;</li>
<li>The income share held by the top 10 percent was 38 percent.</li>
</ul>
<p>This out-of-date, official information excludes the informal economy, observes Africa Arino, professor of strategic management at the IESE Business School in Spain.</p>
<p>“A taxi driver makes KES 15,000 a month (about 178 dollars or 132 euro), and pays KES 3,500 (close to 25 percent of his income) to rent a room where he lives with his wife and two children,” Arino explains.</p>
<p>“They don’t have a kitchen or a bathroom: these are facilities shared with others in the same building lot. His income is pretty much the average salary of a driver, according to the Kenya Economic Survey 2014. Is he middle class?”</p>
<p>According to Braganza, one of the main challenges facing Kenya is that while the country’s economic growth is real and sustainable, the structure of the economy has remained unchanged. Resources have not shifted into the most productive sectors of the economy which would increase overall productivity and an increase in remunerative employment.</p>
<p>Braganza says that for people to feel the trickledown effect of the economic growth, there must also be structural transformation. “There is a need for more investment in the more productive sectors, as well as investment in emerging sectors. This will contribute towards a reduction in unemployment and poverty.”</p>
<p>(Edited by <a href="http://www.ips.org/institutional/our-global-structure/biographies/phil-harris/">Phil Harris</a>)</p>
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