Thesis (Ph.D.)--Duquesne University, 2009. / Title from document title page. Abstract included in electronic submission form. Includes bibliographical references (p. 331-367) and index.

M.A. / All countries compete to attract a larger share of FDI inflows. Developing countries, especially in Africa, receive a relatively small share of FDI inflow. Furthermore, the FDI inflows that Africa receives are concentrated in a small number of countries. While FDI is regarded as the engine for growth, some studies have even shown a weak and unstable relationship between FDI and growth in Africa, with wide variations between African countries. Against this backdrop, this study aims to determine why developing countries benefit differently from FDI. To achieve this aim, a comparative case study between South Africa and Kenya was conducted. This study focused on the institutions responsible for providing linkage support to both new and existing foreign direct investors in South Africa and Kenya. It argues that institutions assist countries to adopt and absorb technologies introduced in domestic economies by foreign investors. In this light, the research attempted to compare the best practice to actual practice of the institutions in South Africa and Kenya. At the end of the research process, it was discovered that even though South African institutions have challenges, they perform better than their Kenyan counterparts because they are well-funded and receive strong support from the South African government.

Financial reforms were a major component of structural adjustment programs deemed necessary for developing countries in the mid 1980s. These were not only meant to improve the sector, but would ultimately enhance economic growth and help in poverty alleviation. At the top of these reforms was financial liberalisation. Kenya, like many other sub-Saharan African countries, undertook financial liberalisation in 1991, one of the measures was decontrolling interest rates. With market driven interest rates in place it was assumed that there would be increased efficiency in bank lending, as well as growth in credit availability as deposits increased. A key indicator of this improved intermediation process would be a narrowing interest rates spread, that is, the margin between the deposit and lending rate. Paradoxically, however, the expected benefits of these reforms did not accrue to Kenya's banking sector. This study focuses on financial reforms and the spread of interest rates in Kenya's banking sector. Using a trend analysis, spanning the period before and after liberalisation, interest rates spread are shown to have escalated dramatically upwards after liberalisation. An analysis of three macroeconomic variables, namely, the exchange rate, inflation rate and economic growth offer little, or inconclusive evidence, that they were the main causes of the wide interest rate spread. In fact, the spread is closely linked to institutional/structural factors such as non-competitiveness in the banking sector, imprudent lending practices and poor and/or inadequate banking supervision. Policies for improving the institutional infrastructure and thus moderating the spreads are highlighted.

Good governance is a critical element to economic development both at the local and national level. Devolution, which is a form of decentralization, is a means of achieving good governance if implemented appropriately. Government plays a pivotal role in the governance framework of a country. This study aimed at exploring how governance of Nairobi City can be improved under a devolved system of government to foster economic development. The study specifically looked at government effectiveness which is one of the Worldwide Governance Indicators. Through a literature review, the study looks at how devolution can improve governance, and what government effectiveness entails, not only from the World Bank perspective but also from other related literature. The major assumption of this study is that improved governance consequently leads to enhanced economic development, as argued by numerous scholars and practitioners in previous studies (Todaro and Smith, (2009) Mcneil and Malena, (2010) and UNDESA 2007). Furthermore, this study assumed that despite only focusing on one of the six indicators, an idea of good governance as a whole will be obtained. The study used a mix of qualitative and quantitative approach of a case study of Nairobi City. Nairobi City is not only a unit of devolution under the new constitution, but will also host the national government. Furthermore, it is also the financial stronghold of the country. Data was collected from two sets of respondents using two different instruments. A questionnaire was used to collect data from the citizenry, and face to face interviews were used to collect data from government officials. The questionnaire focused on capturing citizen perceptions on government effectiveness. Respondents were selected through convenient sampling at pre-determined service delivery points within Nairobi City. The face-to-face semi-structured interview gauged the level of government effectiveness of selected government institutions within Nairobi City. For the former instrument, the data was analyzed through SPSS and Microsoft Excel; and presented in tables, charts and graphs. For the latter, a descriptive discussion has been used to illustrate findings. The study found that government institutions within Nairobi to an extent have established mechanisms and systems to improve service delivery, and consequently promote government effectiveness. It is observable from the study that, the systems in place do not respond to the citizen needs and expectations as illustrated by a satisfaction index of 54 percent.

Non Governmental Organisations have been operating in Africa since the 1940’s; then, their work was heavily biased towards relief work. From the 1980s however, the role of NGOs evolved to include development; understandably, African governments were finding it increasingly difficult to provide adequate levels of basic services for their people. To this effect and initially; NGOs got involved in development as short term "gap fillers" in the provision of basic services; health and education amongst others. As Africa’s development discourse continued unabated, NGOs were recognised by donors and host governments alike, as indispensible to the provision of such services; in time however, they became the subject of criticism for allegedly failing to irreversibly ameliorate the conditions of the poor. In delivering services, NGOs work in a complex partnership characterised by power imbalances. The partnership involves donors who own the means of production which facilitate NGOs’ work and host governments who “own” the humanitarian space which NGOs need to fulfil their humanitarian mandate. While seemingly poor and powerless, the communities served wield the power to facilitate or block the success of NGO interventions through their commitment and/or lack thereof; respectively; NGOs’ contribution is their skills and humanitarian spirit. The success of NGO interventions is a function of resources, humanitarian space and the goodwill that donors, host governments and the communities served bring to the partnership table respectively. The study sought to establish why between 2001-2006; NGO post-drought rehabilitation through to development interventions failed to irreversibly reduce vulnerability against drought in communities in Machakos District and the extent to which power imbalances which characterise “partnerships for development” contributed to the failure by NGOs to fulfil their mandate. The study revealed that NGOs are unwaveringly committed to their humanitarian mandate however; the power imbalances that characterise “partnerships for development” and in particular, that between NGOs’ and donors militated against the fulfilment of their mandate in Machakos District. When NGOs fail to deliver on their mandate; they lose credibility amongst the other partners and this reinforces the power imbalances; it’s a vicious cycle. “Caught at Crossroads...” NGOs are indeed. / Development Studies / D.Litt. et Phil. (Development Studies)

Non Governmental Organisations have been operating in Africa since the 1940’s; then, their work was heavily biased towards relief work. From the 1980s however, the role of NGOs evolved to include development; understandably, African governments were finding it increasingly difficult to provide adequate levels of basic services for their people. To this effect and initially; NGOs got involved in development as short term "gap fillers" in the provision of basic services; health and education amongst others. As Africa’s development discourse continued unabated, NGOs were recognised by donors and host governments alike, as indispensible to the provision of such services; in time however, they became the subject of criticism for allegedly failing to irreversibly ameliorate the conditions of the poor. In delivering services, NGOs work in a complex partnership characterised by power imbalances. The partnership involves donors who own the means of production which facilitate NGOs’ work and host governments who “own” the humanitarian space which NGOs need to fulfil their humanitarian mandate. While seemingly poor and powerless, the communities served wield the power to facilitate or block the success of NGO interventions through their commitment and/or lack thereof; respectively; NGOs’ contribution is their skills and humanitarian spirit. The success of NGO interventions is a function of resources, humanitarian space and the goodwill that donors, host governments and the communities served bring to the partnership table respectively. The study sought to establish why between 2001-2006; NGO post-drought rehabilitation through to development interventions failed to irreversibly reduce vulnerability against drought in communities in Machakos District and the extent to which power imbalances which characterise “partnerships for development” contributed to the failure by NGOs to fulfil their mandate. The study revealed that NGOs are unwaveringly committed to their humanitarian mandate however; the power imbalances that characterise “partnerships for development” and in particular, that between NGOs’ and donors militated against the fulfilment of their mandate in Machakos District. When NGOs fail to deliver on their mandate; they lose credibility amongst the other partners and this reinforces the power imbalances; it’s a vicious cycle. “Caught at Crossroads...” NGOs are indeed. / Development Studies / D. Litt. et Phil. (Development Studies)