Kenya contributions of foreign aid to economic development

Kenya contributions of irrelevant fear to economic nurtureextraneous aid is the sell of capital, goods and services from one soil to an early(a). This aid whitethorn be given or transferred in nominate of capital transfers or technical assist and training for either military or civilian purposes. contrasted aid is oft given with full terms attached such as requirement that all or incite of it maybe capital be used goods from the donor hoidenish or company given as a grant with no repayment obligation or a loan with a condition that the recipient country or res publica secure goods or services with the aid from the donor nation or company. These aids pile be classified in to bothBilateral aid joint aidBilateral aid is aid transferred from one single state or one country to another.Multilateral aid is aid transferred from alliances of multiple states e.g. international monetary fund.Development on the other attitude is a social phenomenon and it describes solutions t hat are associated with human beings. It is the extension of the theoretical or practical aspects of a concept, design, discoery, or invention. A process of economic and social transformation which is based on complex cultural and environmental factors and their interactions. It tail also be defined as a process of adding improvements to a parcel of land, such as grading, subdivisions, drainage, opening, roads, utilities. All these stop be used to describe victimization as the transition from a state of poor livelihood to an improved recrudesce state.A multinational pot is a potty that has its production facilities or other fixed assets in at least one foreign country and makes its major decision of management in a global context. In production, grocerying, research and development and delve relations the multinational corporation makes its decision in terms of the host countrys customs and traditions. In pay many of its problems such as the need to shelter on the job(p) capital from the risk of devaluation , or the choices amongst owning or licensing arouse no domestic counterpart. In addition to foreign exchange risks and the special line of reasoning risk of operating in unfamiliar environments, there is an issue of political risk that sovereign governments may interfere with operations or even terminate the operations. Corporations invest in other countries for a bod of reasons that include untieding new markets or holding into the existing ones, to get new sources of raw materials and unpolished production, to take advantage of cheap resources like labour and others. roughly critics argue that these transnational corporations work totally in their own best of inte take a breather and exhibit no loyalty to the countries in which they are in unifiedd.CONTRIBUTIONSForeign aid had a lot of contribution to the economy of Kenya some that are irrefutable and others negative. The use of foreign aid in the modern era began in the 18th century this was when Prussia subsided some of its allies. It then certain in to to a greater extent sophisticated instrument of foreign policy after World War II. external organizations such as United Nation Relief and Rehabilitation Administrations were created to provide aid to countries affected by war and newly freed colonies. About 15% of foreign aid is provided by international bodies while the rest by various non-governmental organizations, Inter national Development association, multinational corporations and the International finance Corporation regional development Banks, the UN Development program, the European Development Fund and special agencies of the United Nations such as nourishment and Agriculture Organization.U.S. Corporations switch various motives for establishing a corporate presence in other countries. The main viable motive is the want of growth. In this case a corporation may have reached plateaus in come cross steerings domestic demands and anticipate litt le additional growth and so a new foreign market might provide opportunities for new growth. Also by means of direct foreign investment a corporation may bypass luxuriously tariffs that prevent its goods from being competitively priced this is all done because of some corporations desire to escape protectionists policies of an importing country. another(prenominal) motives include preventing ambition and reducing bell. Preventing actual or potential competition from foreign nations is by acquiring their stage channeles and on the other side reducing cost can be attained by the use of cheap foreign resources like labour in development countries. Some corporations can lower their costs by shifting some or all of its production facilities to other countries. This can also be done as they have the ability to use foreign subsidiaries to besmirch their tax liability. The rise of multinationals which is a relatively recent occurrence has resulted to a great deal of licit ambiguit y as they can operate in many area codes.transnational corporations (MNCs) engage in useful and morally defensible activities in ternary World countries Kenya being one of the countries and they have been receiving assign for the activities. Some of the significant activities that these MNCs did was extending of opportunities for earning elevateder incomes and also opportunity of consuming improved quality of goods and services by multitude living in areas below the poverty line.Although the MNCs came to Kenya with good intentions, they have misrepresented by horrifying and ugly images of Marxists and the Dependency Theory advocates. Because many of these MNCs firms originate from industrialized countries including the U.S., the U.K., Canada Germany France and Italy, they have been viewed as instruments for the imposition of westward cultural values on third world countries rather than allies in their economic development. thusly some proponents of these views urge for the ex pulsion of this firms while others less hostile have argued for their close monitoring or regulation by Third World governments.Close observation or supervision of the nature and activities of the MNCs in the Third World countries reveal a positive image of the firms as the allies in development process of these countries inclusive of Kenya. For the greater wellbeing of the majority of Kenyas poor, it is all-important(prenominal) that the positive contributions of these firms to the economies become more diversely understood. Even though MNCs may be primarily motivated by profits and low cost to invest in Kenya, the morality of their activities in improving the living standards of Kenyan families, Kenyans should not be obscured through and through misperceptions or misrepresentations.In Kenya, the firms might have been acknowledged through their high final payment to topical anesthetic employees than what they would have earned elsewhere. Also higher rents for land and varietyi ngs contributed to their acknowledgement. As much as Kenyans believed they were earning higher wages and rents, the MNCs argued that the wages were still low as compared to wages and rents paid to employees and owners of land and buildings in the developed countries.The above bill on how wages are paid to employees in Kenya and the developed countries but on the other tump over unless workers find it most profitable to work for MNCs at the wages they offer, they would choose employment elsewhere . likewise unless MNCs can make as much profit as they can make at topographic point as well as compensation for the additional risks taken to invest in Kenya or Third World countries, including the risk of asset satisfaction by a hostile future government they would not venture into those parts of the world. Thus, there has to be net benefits for al parties in transaction that is multi national corporations and the workers or foreign employees for the transactions to exist.However the c omparison misses several key points. For specimen the working conditions of developing countries e.g. Kenya and the working conditions of developed countries were not the same standard. The skills or educational levels of workers in Kenya and those of developed countries are different. The amount of machinery and equipment handled by workers in developed countries are different as compared to the ones that are used in Kenya or in the developing countries. In short the output generated by developed countries is higher than the output generated in the developing countries.The company, who is a major contributor of foreign aid in the world which Kenya is one of the beneficiaries, is SMART Company. there exists a number of smart aid programs achieving results across Kenya in different ways such as fighting disease, upgradeing agriculture, promoting literacy, helping in trading and attracting investments, giving power or encouraging Kenyans to fight decadency and hold their own gover nments to accountancy. The smart company has aid in putting Kenyans in school or educating them and has helped in reducing malarial deaths rate.Most of the community living in Kenya are at high risk areas of malaria. A number of people have been dying of the dreaded disease but the aid programs established in Kenya together with the Kenyan government unveiled their ambitious strategy to deliver mosquito nets in in the ratio of ii nets per family at risk. Within three years of the start of the program by the donors, case of malaria and death rate had been halved. This success was also brought about by delivering effective malaria treatment at lower costs to Kenyans.Kenya is working to expand access to primary health services particularly through the training of two health extension workers per village with the help of MNCs donors thirty thousand young women have been mobilized to transfer health skills to communities, a vital initiative towards a country where health services ofte n fail to reach those in isolated rural areas. The training of these workers and the provision of disease test kits as well as drugs are all paid for by The Global Fund to fight AIDS, TB and malaria, all these leads to development.In Kenya as in many strays in Africa, opening a bank account requires a minimum deposit which is often beyond the reach of poor families. In rural areas, banks can be far away and inconvenient to reach. M-PESA is money is a money transfer system which allows people to deposit, withdraw, and send money by mobile phone without a bank account. The model was piloted by Vodafone with financial aid from U.K. department for international development (DFID). it was implemented in early 2007 by Safaricom, Kenyas bangingst mobile provider at the time. It now has approximately five million users. A worker in capital of Kenya can open an account at any M-PESA agent, in a local shop, a Safaricom dealer or a petrol station. He or she can deposit earnings into an M-PE SAaccount and transfer money to family members via SMS. The recipients can then go to a local store in their village and cash the SMS using a secret code contained in the short message, and their identification card. Considering that mobile phone subscriptions in sub Saharan Africa grows by more than sixty percent annually.The investment climate facility (ICF) is an initiative that grew from the 2005 commission of Africa and started operations in July 2007. Its aim is to work with receptive African governments to make the continent an even better place to do business. It is currently active in ten African countries and working on four pan-regional projects and two other initiatives. The CIF is funded by eight donor agencies Germany, Ireland , the Netherlands, South Africa, the U.K., the African Development Bank and International Finance Corporation and nine companies Anglo American, the coca cola company, Microsoft, SABMiller, Sasol, Shell metrical foot , Standard Bank, Unilever and Zain.The Alliance for Green change in Africa (AGRA) is an initiative funded by international donors including the Bill and Melinda Gates foundation and the Rockefeller Foundation. AGRA whole kit to enhance plain productivity in Africa, Kenya included by training small holder farmers supporting the development of high yielding seed varieties, and ensuring that farmers have access to good quality seeds, tools, and fertilizer. AGRAs Program for Africas Seed Systems (PASS) provides grants and scholarships to agricultural scientists who then take their knowledge to local communities, working with farmers to see which seed variety best suit their land. AGRA works on innovative ways to make these seeds and their supplies widely available to rural farmers.Since 2006, AGRA has trained and certified over 5000 new agro-dealers, and aims to reach 9000 by 2011. This is having a real impact to farmers in 2006 in WesternKenya, for example a farmer had to travel a distance of about 17 km t o an agro dealer to purchase seeds and fertilizer today that distance is an average of 5 km. AGRA has also provided loan guarantees through which farmers can access credit to purchase supplies that0 will boost their yields and in this case encouraging development.Kibera in Nairobi, Kenya is of east Africa largest slums and the panorama for the recent film, The Constant Gardener, which presents images of grinding poverty tempered by peoples spirit of endurance. It is because of this film that the MNC offers to train the local individuals business skills that will enable them to be self sufficient. This past summer, a six-person group that included two Cornell university graduates and one alumna worked alongside residents of Kibera and Nyota, about three and a half hours North West of Nairobi as part of a project called the Base of Pyramid (BoP) protocol. Headed by Johnson graduate school of managements optic for sustainable global enterprise, the project seeks to design and test a new process by which large corporations can work closely with poor communities to create new business opportunity for themselves and the community.Kenya, which is home to a subsidiary of SC Johnson was the firs site chosen to test the protocol. As much as it hasnt been attempted anywhere before, this protocol leaves no doubt about the goodwill of multinational corporations in Kenya. This is related to aid as the company seeks to help those willing poor individuals in the country. This has brought development in Kibera residence. One of the team members, Erik simanis, a doctoral candidate at the Johnson school who co-directs the BoP protocol project said we think that business alliance between corporations and poor communities, when undertaken in a spirit of mutual respect, can be a powerful way to serve the needs of these communities while creating new opportunities for growth and innovation in the company.Multinational companies in Kenya work hand in hand with the government duri ng or when national disasters occur. For instance, during the 2008 drought mollify which saw many poor living Kenyan citizens who depended on agriculture as their main source of living get exceedingly affected. This forced the government to seek foreign aid and assistance from donors and weel wishers. Varriour governments across the world donated and participated in the contributions, however, major multinational companies in Kenya took the drivers seat. this corporationa donated various things varying from food to livestock.The Nokia mobile company, a major phone manufacturing company, donated many containers of maize flour and cooking oil to distribute to affected communities. Other companies such as Barclays Bank, Coca Cola, Nakumatt also participated. Nakumatt supermarket which has many branches across east Africa started a campaign to support it customers to donate o the needy. The company thus helped Kenyans assist other Kenyans.Realizing that building healthy communities i nvolve more than just donating dollars, Toyota manufacturing companies runs Volunteers in Place Program (VIP). This program was developed to encourage and recognize team members in the company who volunteer to work in foreign aid while supporting the companies operating principle and firm belief to be a good corporate citizen. Through the years, Toyotas program has become an important volunteer network to respond to needs in the communities where the various Toyota company team members live.For many of Toyotas push back company team members, volunteering is a way of life. For others the desire to volunteer is there but help is unavoidable to get them involved. Thats where the VIP program is most helpful to team members. In addition to volunteering to individual selected charities, team members are given the opportunity to support group volunteer activities and project sponsored by the Toyota Company. This has helped in development of Kenyas economy.TechnoServe is a leader in a mov ement that empowers people in the developing world to build businesses that break the cycle of poverty. Growing enterprises generate jobs and other income opportunities for poor people, enabling them to improve their lives and secure better future for their families. Since its founding in 1968 the U.S. Based non profit organization has helped to create or expand thousands of businesses benefiting millions of people in more that 30 countries. The Financial Times has rated TechnoServe one of the top 5 NGOs for corporate partnerships. TechnoServes corporate partners include Cagill, Kraft, Nestle-Nespresso, Olam International, Peets Coffee and Tea and Unilever among others. Charity Navigator has also awarded his highest foster ranking to TechnoServe.since it was founded in 2000, GM Global Aid has facilitated millions of dollars in donations for disaster support general. Through this program, GM and it national and international business units and the GM Foundation can quickly direct v ehicles, services, or supplies as well as cautionary contributions to charitable organization assisting in local disaster relief efforts. An essential component of our disaster relief efforts are that which allows GM employees and others worldwide to contributes funds to disaster relief. On an occasion, contributions from our employees are matched by GM Foundation and their contributions helped in development.The company who knows that no one can effectively tackle child hunger alone, the challenges are too large and complex. Partnerships with other businesses, governmental and non governmental organizations and communities around the world are the best way to achieve our objectives. Together for child vitality builds on Unilevers long tradition of responsible corporate behavior, delivered through businesses firmly rooted in local communities all round the world.World food program brings to partnership more than 40 years experience in providing food assistance to people mostly moth ers and children, in worlds poorest countries. The agency has unique knowledge of their nutritional needs and food habits, coupled with logistical expertise and capacious government and health authority relationships. World food program is the worlds larges humanitarian organizations, fighting hunger worldwide and has become the worlds largest provider for school meals and take-home rations for poor children school meals attract children too school and boost primary school enrolment, attendance, performance and completion as education contributes to development.CONCLUSIONThis among other contributions of multinational corporations in Kenya and other third world countries has enabled them make tremendous step in development. The government with little assistance from these corporations has been able to efficiently serve its most needy and poor people and thus their contributions are highly relevant and may be credited to most of Kenyas achievement in development. Foreign aid can bri ng a lot of development if implemented in the right way. It has a lot of positive contributions to economic development.