TECHNOLOGY NOT TO BLAME FOR KENYA’S UNEMPLOYMENT

TECHNOLOGY NOT TO BLAME FOR KENYA’S UNEMPLOYMENT

Re: Daily Nation, Monday 3rd July, ‘Why there aren’t 500,000 new jobs a year’, Kwamchetsi Makokha, http://www.nationmedia.com/dailynation/nmgcontententry.asp?category_id=25&newsid=76419

Yes Kenya is an agricultural country but must it also be a backward country? Mr. Makokha (‘Why there aren’t 500,000 new jobs a year’, Daily Nation 3 July) makes dangerous conclusions on why Kenya’s unemployment rate remains high. That we managed to sustain the economy when the donor taps ran dry is indeed a fact to be proud about. But to imply that ‘foreign business interests’ have resorted to taking away the jobs they promised is nothing but hot air. As for the corruption scandals, they had every right to expose the truth and it was Kenya’s own Mr. Githongo who really blew the whistle.
Ever wondered why a country such as Brazil is the world’s largest coffee exporter Kenya isn’t? It is certainly not because Brazil resisted technology. Brazil is considered to be a trend setter in the coffee sector. In fact, Brazil was a pioneer in innovations on production, giving high tech access to even the smallest of growers. Drought is perceived as the biggest risk for Brazilian coffee growers so an industry and government consortium helps farmers access irrigation techniques and conducts research to improve quality and production efficiency. Additional techniques include issuances of bonds for production on coffee not yet harvested. Brazil has created a risk management model now being copied by other countries.
Logistical improvements in highways and other transportation infrastructure helped growers distribute production more quickly and easily. Privatization efforts also improved rail systems and harbors. Domestic transport costs declined, allowing even small scale grower to tap into the export market. According to a World Bank report- ‘Why is the Brazilian Coffee Sector so Competitive?’ technology remains the key to lowering production costs and making greater efficiency gains.
It is indeed very easy to blame Kenya’s problems on ‘the rest’ but before we do so we must analyze what really has the government done lately to create an investment friendly climate in the our key agricultural sectors in terms of investment in infrastructure and institutions. As it is, Kenya risks losing its premier position in many industries such as horticulture to more cost effective and technologically advanced nations such as South Africa, and suggesting an import tax of 300% on agro-machinery will only speed up the process.

Shreya Hasmukhlal Shah
International Business School, Brandeis University
USA