THE ROLE OF RESEARCH AND DEVELOPMENT IN THE ....pptVIP

THE ROLE OF RESEARCH AND DEVELOPMENT IN THE INDUSTRIALIZATION PROCESS IN KENYA Moturi C. and Ogada T. Kenya Industrial Research and Development Institute (KIRDI) Technical workshop on Industrialization 22nd November 2006, KICC, Nairobi CONTENTS Background Background The Kenyan economy has enjoyed both periods of great advances and disheartening downturns. Incidences of poverty and unemployment, meagre foreign exchange earnings (exports of primary product mainly - agro-produce) have resulted in unfavourable balance of payment and low per capita income It is estimated that 60% of Kenya’s population live below the poverty line contd While, the overall population growth rate has experienced a decline over the last 2-decades, unemployment continues to increase As a result, lack of productive employment opportunities has led to a fall of real wages in nearly all the sectors of the economy As well, the population pressure on agricultural land and the associated decline in individual holdings have resulted in low and decreasing productivity contd It has been acknowledged that in order to cope with these challenges, the economy will have to consistently grow at between 8-10% annually. Thus, through rapid sustained economic growth, national wealth can be created, leading to increased employment and incomes and viable enterprises These in turn will provide the resources to support measures to alleviate poverty, protect vulnerable groups and provide rising standards of living for Kenyans contd It is well recognized that industrialization is a means through which Kenya can accelerate its economic growth Indeed, all indicators show that Kenya’s goal of rapid and sustained growth cannot be achieved in the absence of industrialization, as has also been demonstrated in all NICs Indicators of Industrialization and Industrial Competitiveness Manufacturing Value adding per capita (MVA) measures the level of industrialization of a country Manufactured exports