1 Classe : IF2 Dure : 3h REFORMS IN KENYA

Local industries such as textiles used to be protected by a ban1 on imported material or competing products. Industry and business grew in the late 1960s and 1970s, when the government tried to reduce imports through the establishment of import-substitution industries. However by 1980, these industries had failed to achieve their objectives. But the government changed tack2, influenced by bilateral and multilateral donors such as the IMF and the World Bank. Most key sectors, including agriculture, manufacturing, trade, banking and finance have undergone big changes in the past five years. The government has liberalized imports, eased controls on the prices of goods and encouraged foreign private investment. In addition there has been a move towards privatization. While pushing the structural adjustment, the government has continued to offer some protection to vulnerable sectors such as textiles, the larger employer, and the local motor industry. The authorities are continuing to encourage industry to move to rural areas, a policy which goes back to 1984. The idea being that rural development will reduce the influx of people into urban areas. The reforms have extended to agriculture. Following a World Bank recommendation, the government has been trying since 1983 to boost3 output4 of products such as maize, wheat, sugar, rice and milk by increasing prices each year. Elsewhere the government has tried to rationalize its spending on public services. In recent years it has concentrated on cutting current expenditure, particularly in education and health, to free funds for development. But it is promoting only priority development projects which give high returns on investment. The people are now expected to meet part of the cost of health, education and urban services a move which has had a mixed reception, especially in urban areas. Peter Karaithi, South, January 1989 Notes: 1.ban = prohibition 2.to boost = to increase 3.to change tack = to change policy. 4.output = production

I/ COMPRHENSION (10 pts) 1. Information transfer. Fill in this table about reforms in Kenya. Sectors Industry Reforms 1 .. Objectives 2 .. 4 .. 6 ..

Agriculture 3 . Education 5 ..

2. Questions (3 pts) a.) Why did industry and business develop in the late 1960s and 1970s ? b.) Why did the Kenyan government change its policy of the 1960s and 1970s? c.) What measures were taken in the trade sector? d.) What sectors were not affected by the reforms? 3. Are these statements true or false? Quote the text to justify the choice. a.) Reforms will make people face part of the costs of education and health. T/F. . b.) The local motor industry offers as many jobs as textiles. T/F. . c.) Moving industry to rural areas is expected to favour rural exodus. T/F. .. d.) The liberalization of material imports dates back to the late 1960s and 1970s. T/F. .. 4. What do the following words or phrases refer to ?
a.) Bilateral and multilateral donors (l.5):

b.) Vulnerable sectors (l.l 10-11): c.) A policy (l.12):

d.) A move (l.21):

II./ LINGUISTIC COMPETENCE (4pts) Exercise 1: Complete the passage with the words given: funds expenditure undergone vulnerable. Several key sectors in Kenya have .. reforms. While offering protection to sectors like textiles and the motor industry, the government has reduced in education and health with a view to raising for development. Exercise 2: Rewrite the following sentences without changing the meaning. 1. The government has liberalized imports. Imports ..

2. He asked Nafi: Why did you restrict the budget?

-

He wanted

3. Come into my office, we can talk in private there, the Director told Linda. The Director .

4. Our local industries used to be protected by a ban. We

III./ WRITING: Essay. Choose one topic. (6 pts) 1. Choose three sectors which have undergone reforms in Kenya. Why were the reforms taken? What were their expected effects? 2. What do you think of cutting expenditure in education and health in a developing country?