Standards and Development: Perspectives from Kenya’s Horticultural Export Industry

markdownabstractThis thesis examines perspectives on standards and development in Kenya’s horticulture sector. The debate on standards and development is at the forefront of global policy discussions. The proliferation of trade standards is often seen as a threat to poor countries that will diminish their export opportunities and lead to an unequal distribution of the gains from trade and result in marginalization of poor farmers. However, empirical studies have produced diverse conclusions about the effects of standards on development. The ability to comply with international standards has emerged as a key factor of success in developing countries’ participation in international trade. Kenya’s horticulture sector continues to play a major role in development as it directly provides export income to numerous small and large scale producers, provides labour and is the second largest forex exchange earner for the country. The success of this sector largely depends on the ability of key stakeholders to meet market requirements. The thrust of this thesis is to present the different perspectives of standards and development in Kenya’s horticulture sector using case studies that provide linkages and insights into this debate. These different aspects of analysis generate different dimensions of the link between standards and development. In this research, three key aspects are analysed: the effect of standards on export supply; the link between standards, governance and distribution of rent along the value chain; and the social micro-processes of smallholder participation in this global value chain. Finally, the different institutional implications of standards are also discussed. Key findings indicate that standards negatively affect export supply with rejections affecting exports in the short run and SPS measures affecting exports in the long run. Intricacies at the value chain level indicate that governance structures as a result of standards and subsequent power relationships influence the distributional outcomes of value chains with smallholders bearing the burden for compliance and reaping the lowest benefits comparatively. Participation of smallholders in these global chains is influenced by a number of factors including levels of capitalization, having contracts and belonging to a producer organization. The importance of intermediaries such as producer organizations, contracts and private public partnerships in capacity building, upgrading and linking smallholders to export markets is underscored