In this paper, we employed a blend of multiple and historical case study design, and a mix of institutional, behavioral, resource-based, and multinational theories, to examine the nature of... Show more In this paper, we employed a blend of multiple and historical case study design, and a mix of institutional, behavioral, resource-based, and multinational theories, to examine the nature of multinational companies’ (MNC) engagements in local economic development and capital export practices in an African context. Evidence from our Nigerian case analysis (FrieslandCampina, Nigerian Breweries Plc. and Dangote Cement) confrms the proposition that, faced with a similar degree of uncertainty and constrained institutional environment and laying claims to difering sources of competitive advantage, both local and foreign MNCs would repatriate profts and limit exposures to local value chains (LVCs) mainly as a strategy for mitigating country risks and preserving corporate value. Such limited exposures detach MNCs, especially the foreign ones, from the LVCs, and by doing so push them to deeper reliance on the global value chains (GVCs). Linking local businesses to the GVCs is central in the inclusive development (ID) debate essentially because it allows for the redistribution of economic benefts, helps in building a complementary (rather than competitive) relationship between MNCs and local businesses, and facilitates local businesses’ access to international markets. We, therefore, recommend that in pursuit of the inclusive and sustainable development projects in Africa, industrial policies need to be tailored toward stabilizing the policy environment, protecting investments from risk of expropriation, and incentivizing MNCs’ participation in the LVCs. Show less
Kamau, P.; Kinyanjui, B.; Akinyoade, A.; Mukoko, C. 2018
This paper documents and assesses productive employment policies in Kenya. The main objective being to reflect on the current state of affairs, identify constraints and gaps among these policies.... Show moreThis paper documents and assesses productive employment policies in Kenya. The main objective being to reflect on the current state of affairs, identify constraints and gaps among these policies. The paper is mainly based on desk-top research which reviews available literature and policy papers on employment in Kenya since independence in 1963 in order to determine how these policies have impacted on productive employment in Kenya.The paper argues that the primary challenge in the labor market in Kenya is not unemployment per se but rather lack of productive employment and decent work among the poor population given that most of the population works in the informal sector. This population working in the informal sector tends to be vulnerable and has low productivity and low earnings, which effectively undermine the efforts for inclusive and sustainable growth. We use the framework related to productive employment to document and analyze different policies. While employment creation has been central in all government policies, the focus has largely been on increasing the number as opposed to the quality of employment creation. It is for this reason the informal economy has remained the main contributor of employment opportunities. Apparently jobs in the informal sector tend to be largely casual, temporary, low wage, and without effective job security.The Agriculture and Manufacturing sectors have potential for creating employment but again the nature of jobs in these two sectors remain largely casual which compromises on productive employment. To promote productive employment, these sectors require increased funding and establishment of stakeholders’ consultative forums. There is also the need to attract FDI most of which come with better terms of employment compared to indigenous investments. Show less
Kazimierczuk, A.H.; Kamau, P.; Kinuthia, B.K.; Mukoko, C. 2018
The flower sector in Kenya accounted for over 65 per cent of new jobs created in the agricultural sector between 2010 and 2015 and remains a major employer in the country. The floriculture value... Show moreThe flower sector in Kenya accounted for over 65 per cent of new jobs created in the agricultural sector between 2010 and 2015 and remains a major employer in the country. The floriculture value chain involves a variety of players involved in activities, such as plant development and growing, providing necessary inputs, transport and handling – each of them generating a part of the direct or indirect employment. The quality of this employment is, however, less clear.In 1978, the flowers’ export volume was 3,000 tons. Since then, the sector has grown by an average of 16 per cent per year in terms of volume and 25 per cent in terms of value of production. Foreign investors and partners played a critical role in launching and expanding the floriculture industry in Kenya. Dutch companies started flower export businesses, and Dutch and Israeli advisors have been important sources of technical support. Initially, large and medium flower farms were mostly owned by foreigners, Kenyans of foreign descent or members of the Kenyan (political) elite. Kenyan smallholders were also involved in flower growing at that stage. In 2016, approximately 190 flower farms and 5,000 smallholder farmers were involved in the flower production. Today, flower growing is done predominantly by Kenyan-owned farms, while Dutch companies dominate the breeding and propagation activities. Growers provide the highest employment opportunities in the entire chain, predominantly for women, due to the labour intensive character of their operations. Breeders, propagators and other companies in the chain hire less people directly but create important indirect employment in the sector.The support of the Kenyan government in promoting the floriculture sector was mixed through the years and was not the decisive factor in the sector development. The success of the industry is, to an extent, a result of the capacity of the private sector to develop independently from the state and the capacity to quickly adapt to changing circumstances. Following the rapid development of the sector in the mid-1990s, flower companies have been criticized for poor labour standards and a number of other abusive practices. In response to this criticism, the companies have adapted a range of international and national social and environmental standards that should lead to improved labour conditions.This working paper’s primary objective is to assess to the extent to which the flower sector and the jobs created have been sustainable, inclusive and productive; and whether there are any differences between practices and quality of employment created by the international players, particularly Dutch companies in comparison to the non-Dutch counterparts. The secondary objective is to assess and understand what are the main challenges for the companies in the flower sector to create and maintain (productive) employment, as well as other pitfalls in their day-to-day operations. For this purpose, a mixed methods approach to data collection was implemented, including a sector-wide standardized questionnaire, case studies and a number of key informant interviews. This report concludes with a set of policy recommendations targeting the Kenyan government and the international community. Show less
