Kenya

Presented By, Shwetambari

Introduction to the Case

Brief about Kenya:

Kenya, is a country located in East Africa. has a land area of 580,000 km 2 and a population of nearly 39 million residents, representing many different people and cultures.

It

Kenya

is classified as a developing and sometimes an emerging African nation. Its economy is the largest by GDP in East and central Africa, Kenya's capital, Nairobi is a major commercial hub.

Geography of Kenya:

It has a diverse geographic and climatic endowment & 3/5 of the nation is semiarid desert. The infertility Kenya has dictated the location of 85% of the population & almost all economic activity in the southern 2/5 of the country. Kenyas population is composed of many tribes and is extremely heterogeneous, including traditional herders, subsistence and commercial farmers, Arabs Muslims and cosmopolitan residents of Nairobi.

The standard of living, in the major cities is relatively high compared to the average of other SubSaharan African countries.

In Agriculture

Comprising 23% of 2000 GDP and 77% of merchandise exports, agricultural production is the backbone of Kenyan economy

Kenyas chief agricultural exports are coffee, tea, sisal, cashew nuts, pyrethrum, and horticultural products.

Traditionally, coffee has been Kenyas chief earner of foreign exchange.

In Industry:

It is the most Industrialized country in eastern Africa.

Public and private industry accounted for 16% of GDP in 2000

The Kenyan government has implemented several policies to nourish the agriculture sector. Two such policies are: Fixing attractive producer prices Making available amounts of fertilizer.

 

Kenyas chief manufacturing activities :

food processing
       

Production of beverages Tobacco Footwear Textiles Cement Metal products Paper chemicals

IndoIndo-African Trade Relations

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POSITIVE PART OF INDIAN ECONOMY

GDP of India has an average growth rate of 5.3% in the 1980s and 6% in the 1090s and is now well past 9%. Tortuous, bribe-laden procedures have been abolished. Captains of industries are free to decide and implement. India has become robust for the industrial sector, and is center of attraction for software and I.T.

NEGATIVE PART OF INDIAN ECONOMY

On Global Hunger Index, India ranks 94, out of 118 countries researched. More than 1,50,000 farmers have committed suicide, 1 suicide every 30 mins. Senses is skyrocketing and real estate price are shooting up. As a result, the poor are increasingly getting isolated & the rich are aggrandising themselves. Quality of public sector is pathetic.

Major Items of Trade, 2004-05 2004Exports (% share)

Others 24.5% Petroleum prdts. 1 3.0%
Raw Cotton 3% Others 20%

Imports (% share)

Manmade yarn & fabrics 3.8%

Plastic & linoleumpdts. 4.5%

Mfgs. of metals 9.6%

Gold 42.3% W ood & wood pdts 4%

Pharmaceuticals 8.4%

Primary & semifin. iron & steel 4.8% Cotton yarn & fabrics 7.4%

Machy. & instruments 8.2% Transport equipment 7.8% Non-basmati rice 8.1 %

Metaliferrous ores 6% Cashew nuts 8.8%

Inorganic chemicals 16.2%

Source: MOCI, GOI

South Asia
Fishery products India (other countries) HACCP standards Bangladesh (Aug97) India EU bans on exports of fishery products (May97 & Aug97) Peanuts India Aflatoxin standards: setting national standards and promoting indigenous development of technology Standards for pesticide residues Aflatoxin standards and other SPS measures Meeting standards on pesticide residues Standard-setting, certification, exports and institutional support
11

Rice Spices Tea Organic food products

India India, Sri Lanka India India

Indias Major Trade Partners in Africa, 2004-05 2004Exports (% share) Imports (% share)

Others 29.4% Libya 3.2% Ghana 3.2% Algeria 4.2% Mauritius 4.6%

South Africa 17.8% Nigeria 11.4% Egypt 7.9% Kenya 7.7%

Benin 2.1% Tunisia 2.3% Tanzania 3.4% Egypt 3.6%

GuineaBissau 1.9%

Ghana 1.3% Others 12.5%

South Africa 57.3% Morocco 6.8%

Togo 4.9%

Sudan 5.7%

Cote d'Ivoire Senegal 4.5% 4.2%

Source: MOCI, GOI

Case studies: Central America

Poultry
12

Costa Rica (and other Central American

10

Effects of (a) the application of US SPS regulations concerning specific avian diseases (New castle disease) and (b) HACCP requirements on exports to the US and intra-Central American trade. Policy responses.
Column 1 Column 2 Column 3

Shrimp 4
2

Costa Rica

US measures concerning imports of shrimp (turtle excluder devices). Standard-setting, certification, exports and institutional support
Row 2 Row 3 Row 4

Organic food 0 products

Costa Rica
Row 1

13

Africa: Kenya
Fishery products Kenya, Mozambique, Tanzania and Uganda: Kenya, Tanzania and Uganda (1997): Kenya, Mozambique, Tanzania and Uganda (1997) Kenya, Tanzania and Uganda (1999) Peanuts Kenya Regulation 91/493/EEC EU Import ban: presence of salmonellae in nile perch from Lake Victoria EU Import ban: outbreak of cholera

EU Import ban: fish poisoning in Lake Victoria Kenya : EU regulation on pesticide application (Maximum Residue Levels, MRLs) Standard-setting, certification, exports and institutional support
1

Organic food products

Uganda

Exim Bank : Partner in Development

Technology Capital (Foreign Investment) Raw Materials Capital Goods Final Products Capital Goods Capital (Overseas Ventures)

Product Development Production Marketing Pre shipment Post shipment