Sustainable economic growth key to attaining development targets

In September 2015, leaders of 193 countries attended the UN General Assembly and adopted the 17 Sustainable Development Goals (SDGs), which are a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030.

The goals came into effect in January 2016 and respective countries have domesticated the goals and laid out plans for their achievement.

In Kenya, the goals have been incorporated in the relevant ministries’ agenda and the implementation of activities aimed at achieving them are ongoing.

One of the most important of the 17 is Goal Number 8 on decent work and economicgrowth. Specifically, promotion of sustained, inclusive and sustainable economic growth is critical for Kenya given the high level of economic inequality.

Despite steady economic growth over the past decade, the level of inequality remains high. Less than 0.1 per cent of the population owns more wealth than the bottom 99.9 per cent. The inequality is found even at the level of access to services.

According to the Kenya National Bureau of Statistics, individuals in the capital city have about 15 times more access to secondary education than those living in Turkana.

Also, a household in Nairobi is 36 times more likely to have electricity for lighting compared to one in Tana River. This high level of inequality in Kenya is a threat to the attainment of SDGs as well as Vison 2030 goals. This coupled with unsustainable economic growth may spell doom for Kenya.

Enabling environment

To ensure inclusive and sustainableeconomic growth, deliberate measures must be put in place. These include formulation and effective implementation of progressive economic policies and legislation to reform the fiscal system and provide enabling environment for inclusive and sustainablegrowth.

An audit of existing economic policies should be undertaken to identify gaps and hurdles that may work against inclusive and sustainable economic growth. The Government should also take deliberate steps to promote better access to financial services. For example, small and medium enterprises should be facilitated to get access to affordable credit facilities to enable them to expand and sustain their business.

Promoting use of technology in accessing financial services is also key and enabling legislation and policies should be formulated to support innovations. With increased access to financial services, most low-income groups would be able to improve their economic well-being, thereby reducing the level of inequality.

Reducing the economic inequality gap for women is also key. Most women are disadvantaged economically despite the fact that they make significant contribution to creation of wealth.

For example, 96 per cent of Kenya’s rural women population works on farms and makes significant contribution to family economic wellbeing, yet only 6 per cent of women in Kenya hold a title to land. More women should be empowered and facilitated to get access to economic opportunities, own property and uplift their standards of living.

Bretton Woods

Finally, Kenya’s development partners have a critical role to play in ensuring attainmentof inclusive and sustainable economicgrowth.

The Bretton Woods institutions, for instance, should put in place mechanisms to ensure that projects supported by them have sound plans for promoting inclusivity and sustainability of Kenya’s economic growth. The institutions should continually communicate to Kenyans their role to ensure that Kenya achieves SDGs, and especially Goal 8.

It is laudable that the International Monetary Fund’s resident representative recently spoke about the fund’s spoke about the fund’s role in promoting inclusive and sustainable economic growth in Kenya.

He explained to key stakeholders the measures IMF has put in place to ensure that Kenya was on the right trajectory for sustainable economic growth.

The Government, through its relevant ministries, departments and agencies, should also engage the public on its agenda regarding inclusive and sustainableeconomic growth and provide channels for feedback and public participation.

Achieving inclusive and sustainableeconomic growth requires a concerted effort by various actors. Each stakeholder must take up their role.

Mr Ochieng is the chief executive officer, The Kenya Alliance of Resident Associations