Is poverty an early warning for bad governance or where does the third world poverty largely stem from?
A. Reducing poverty requires human and financial resources. Good governance ensures that these resources, when available, are used for this purpose. In many cases, failure to make progress in reducing poverty stems from bad governance. Empirical evidence shows that good governance and controlling corruption are fundamental to ensuring that economies not only grow but that the benefits of that growth are shared widely. Q. With Kenya’s national budget increasingly becoming independent of the development partners’ (external) support, what will be the new World Bank’s strategy in Kenya? A. Kenya has made good progress in financing its regular budget from internal sources. Indeed, the Government now finances about 96% of the Budget, while development partners provide only 4%, equivalent to 1% of GDP. However, Kenya needs much more to achieve Vision 2030 which seeks to transform the economy from low to middle income status. There are still large gaps between Kenyas resources and its investme
