The recent economic boom in Kenya has taken its toll on more than just the corporate bottom line. It has also had a significant impact on the employment scenario and the work environment, as companies battle it out to retain employees. Some employees are left wondering what happened to the organizations they originally joined or even worse, most employees never really figure out what kind of organization it is that they are a part of. As Kenyan companies grow in size and become important players in the global market place, the very essence of these companies - its culture, is becoming of profound importance in order to maintain a competitive edge.
Employees are now looking for something better and more fulfilling in their lives and at work. As the battle for talent begins to heat up, it is more essential than ever for companies to provide employees with a strong and open corporate culture, and a meaningful work experience with a nurturing day-to-day work environment.
Although it surrounds us, corporate culture is hard to define. Simply stated, it is the glue that holds a company together through good times and bad. What is corporate culture? At its most basic, it's described as the personality of an organization, or simply as "how things are done around here." It guides how employees think, act, and feel. Corporate culture is a broad term used to define the unique personality or character of a particular company or organization, and includes such elements as core values and beliefs, corporate ethics, and rules of behavior. Corporate culture can be expressed in the company's mission statement and other communications, in the architectural style or interior decor of offices, by what people wear to work, by how people address each other, and in the titles given to various employees.
A strong corporate culture should be able to align an entire organization around a shared set of goals and objectives, while at the same time empowering employees to make decisions in their areas of responsibility.
A corporate culture should also reflect shared principles and values among all employees, from the bottom to the top of the corporate ladder. These values should remain constant and be recognized as being at the heart of the organization.
The importance of a company culture should not be overlooked. A good corporate culture goes a long way toward attracting the very best people and retaining that top talent. One outcome that has been quantified, in fact, is employee loyalty; turnover rates at companies with strong cultures are usually significantly lower than the industry average.
The core values of corporate culture remain constant. But it's important to recognize that for any organization to excel and survive in business today, systems, structures, styles and business practices must adapt -- often quickly -- to shifting business needs. Change is always over the horizon, and it is exciting as well as challenging. In fact, the ability to change when necessary is a key element of a strong and lasting company.
Managing Corporate Culture
Because corporate culture is based on taken-for-granted assumptions and beliefs, it can be an elusive concept. There may not be a single culture, but a number of cultures spread throughout the organization, and this does not make managing the corporate culture easier. There is no such thing as a "good" or "bad" culture, but only cultures that are appropriate or inappropriate.
The strength of culture clearly influences its impact on corporate behaviour. Strong cultures have more widely-shared and more clearly expressed beliefs and values than do weak ones. These values will probably have been developed over a considerable period of time and they will be perceived as functional in the sense that they help the organization achieve its purpose.
Culture is learned. Schein (1983) suggests that it is learned in two ways. First, there is the trauma model, in which members of the organization learn to cope using defense mechanisms. Second, there is the "positive reinforcement" model, where things that work become embedded and entrenched. Learning takes place as people adapt to and cope with external pressures, and as they develop successful approaches to carrying out organizational goals. The nature of those goals largely determines the way it goes about its business, and this in turn affects the way the corporate culture develops and is manifested within the organization. Against this background, organizational members, with the values, philosophy, beliefs, assumptions, and norms of top management playing a dominant role, create corporate culture.
According to Armstrong (1991) approaches to managing corporate culture and achieving cultural change in the workplace are:
● Reorganization to facilitate integration, to create departments or jobs which are responsible for new activities or to eliminate unnecessary layers of management.
● Organizational development to help the organization respond to change.
● Communication to get the message across
• Increase the identification of staff with the firm and therefore enhance their commitment. This could be done easily by creating a website with staff pictures, departments, and job titles.
• Provide the opportunity for all levels of staff to become more involved in the organization's affairs. Participatory management will help to improve the corporate culture. The sense of belonging will result in the increase in staff productivity and hence firm efficiency.
• Generate ideas from staff to develop the business, improve the levels of customer service, and increase productivity.
• Training can help form new attitudes about customer service, quality, managing and motivating people, or productivity; to increase commitment to the firm and its values; to review and challenge assumptions, and to improve skills or teach new skills.
• Recruitment of new employees to fit the desired culture or to reinforce the existing culture.
• Performance management to ensure that managers, supervisors, and staff are aware of their objectives and are assessed on results, and that performance improvement programmes consisting of self-development, coaching, counseling, and training are used to capitalize on strengths or overcome weaknesses.
• Reward management to enhance the cultural assumption that rewards should be related to achievement.
Corporate culture doesn't just happen. Making it work takes time and effort and a great deal of communication. Managers and executives must demonstrate commitment at every level of the organization to a positive, open and caring corporate culture. Taking the time to listen to employees, understand their needs and concerns, and then address them in our work environment will go a long way to help ensure the long-term viability of our business.
Oct 12, 2007
PROFESSIONALISM AT WORK- WHAT IT TAKES
It's sometimes difficult to identify the true meaning of "professionalism." Many individuals use professionalism as a facade to cover their lack ability to perform their job effectively. Others use it to for intimidation to gain power. Still others use it as a way to impress the unknowing. However, it seems that very few individuals use it for its original intent---to provide a foundation for effective communications and efficient performance.
During one of my recent weekly group emails, I decided to touch on an issue that often frustrates us at work and a word we use so often. What exactly does ‘being professional’ or professionalism mean? And I got varied answers. This got me thinking more. What defines professionalism in a work place?
“Keep your emotional and private life to yourself. Volunteer to do more then what you are paid for. Get a rhinoceros hide to petty people in the work place. Your attitude will open more doors for you or allow you to get a good referral if you have to leave your job”
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
“Professionalism is a work practice or culture enforced throughout an organization whereby all the processes/procedures are implemented and practiced to achieve effectiveness/efficiency thereby delivering '' A'' class service to customers/clients and hence creating a ‘feel good factor ‘about the organization in the customers”
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
“It simply means operate by the book/company rules/policies! And be SMART”
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
“Professionalism at work? Well it depends on the environment, the country and the culture. It’s a bit like driving; no matter how safely you drive, someone else might be reckless and cause lots of damage. Similarly, at work it all depends on the organization’s culture. If you try and be professional in a laid back place you are not going to be in anyone's good books and your job security will not be so bright; bosses like to keep 'yes sir’ people close to them. In such a place, if you are professional then you will be deemed to be cold, and won't get too many invites for drinks etc”
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Professionalism has many levels and is handled many different ways. You might find that what one person sees as being professional, another would see otherwise. This can cause considerable confusion for someone trying to define professionalism in their own career.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The answers varied, but it became evident that the challenges that we all face at some point are not in our ability to handle our job, but in our lack of a definitive understanding of professionalism in their workplace. Nevertheless, the core definition of professionalism is always the same and will hardly change from firm to firm or country to country.
What is "Professionalism"?
Power lunches and golfing with associates has little to do with the definition of professionalism. Extracurricular activities are great for networking; however, they are also situations in which individuals make their greatest mistake: trusting the situation and letting down their professional facade. Your emotional self begins to rise to the surface and you immediately alter the playing field against yourself.
Drinking with the boss has absolutely nothing to do with the definition of professionalism. While it is possible to get into the "inner circle" this way, I have seen careers come crashing down over a single beer because the boss was able to use the alcohol as a way to find "the real you" beneath the business-shield. You begin to relax and eventually your professional being takes a hike.
Business suits do not define professionalism; however, the professional situation defines which clothes you should wear. Whether it is casual day or formal day in your office, you must dress to look your part. How you look demonstrates how you feel and will define how people see your professional being, inside and out.
So, what is professionalism if it's not power lunches, golf, drinking with the boss, and business suits? A general, raw view of professionalism is, "a focused, accountable, confident, competent, motivation toward a particular goal, with respect for hierarchy and humanity, less the emotion." What this means is that you leave out the outbursts and emotional thralls that accompany stressful situations and success. You maintain focus, with a sense of urgency, and accept responsibility on a path toward a specific goal. In the process, you maintain respect for your superiors, peers, and subordinates as well as respect them as human beings.
Handling Professional Situations
The advantage to dealing with professional situations without emotion, and base business-related interactions on intellect, industry, and experience, is that it provides a common foundation from which professional relationships can flourish. Emotion varies wildly between individuals; however, competency in a particular field provides a basis of understanding. From this basis, everyone can function and exercise their power on the same playing field.
Understand that a business situation has a purpose and a goal. Jocularity and emotional responses have no place in such a situation because it takes away from the time spent moving toward that goal. By including such emotion into a professional relationship can make others, who are focused on their direction, see you as someone that doesn't take their position seriously. I am not saying that a sense of humor is not acceptable, but it can sometimes get you labeled as someone who is not a "team player," among other things.
The point to realize is that, if a professional situation seems to be turning against you, maybe you are not behaving in a professional manner.
Are you unprofessional?
Most people feel that professionalism is a subjective term based on a hidden set of standards. Many companies use these standards to criticize you if they don't like you, and to praise you otherwise.
One can justifiably be seen as unprofessional if you have not taken the time to understand your corporate culture and learn the "hidden standards." Corporate culture plays a considerable role into the idea of professionalism. You have to learn how to maintain your level of raw professionalism and, once you learn the corporate culture, add the new expectations to your professional facade.
In summary, professionalism can be measured using the following indicators:
Responsiveness as the golden rule: Giving timely feedback and positive criticism is crucial in enhancing communication
Organization and time management
Email/voicemail best practices
Importance of planning and adhering to the plan
Problem solving attitudes
Manners matter
Integrity always
Impact communications
Presentation development
Dressing appropriately
Speaking politely and courteously
Performing your job duties to the best of your ability
Arriving and leaving at the designated times
Not abusing sick and vacation time
Leaving personal life at home
During one of my recent weekly group emails, I decided to touch on an issue that often frustrates us at work and a word we use so often. What exactly does ‘being professional’ or professionalism mean? And I got varied answers. This got me thinking more. What defines professionalism in a work place?
“Keep your emotional and private life to yourself. Volunteer to do more then what you are paid for. Get a rhinoceros hide to petty people in the work place. Your attitude will open more doors for you or allow you to get a good referral if you have to leave your job”
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
“Professionalism is a work practice or culture enforced throughout an organization whereby all the processes/procedures are implemented and practiced to achieve effectiveness/efficiency thereby delivering '' A'' class service to customers/clients and hence creating a ‘feel good factor ‘about the organization in the customers”
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
“It simply means operate by the book/company rules/policies! And be SMART”
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
“Professionalism at work? Well it depends on the environment, the country and the culture. It’s a bit like driving; no matter how safely you drive, someone else might be reckless and cause lots of damage. Similarly, at work it all depends on the organization’s culture. If you try and be professional in a laid back place you are not going to be in anyone's good books and your job security will not be so bright; bosses like to keep 'yes sir’ people close to them. In such a place, if you are professional then you will be deemed to be cold, and won't get too many invites for drinks etc”
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Professionalism has many levels and is handled many different ways. You might find that what one person sees as being professional, another would see otherwise. This can cause considerable confusion for someone trying to define professionalism in their own career.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The answers varied, but it became evident that the challenges that we all face at some point are not in our ability to handle our job, but in our lack of a definitive understanding of professionalism in their workplace. Nevertheless, the core definition of professionalism is always the same and will hardly change from firm to firm or country to country.
What is "Professionalism"?
Power lunches and golfing with associates has little to do with the definition of professionalism. Extracurricular activities are great for networking; however, they are also situations in which individuals make their greatest mistake: trusting the situation and letting down their professional facade. Your emotional self begins to rise to the surface and you immediately alter the playing field against yourself.
Drinking with the boss has absolutely nothing to do with the definition of professionalism. While it is possible to get into the "inner circle" this way, I have seen careers come crashing down over a single beer because the boss was able to use the alcohol as a way to find "the real you" beneath the business-shield. You begin to relax and eventually your professional being takes a hike.
Business suits do not define professionalism; however, the professional situation defines which clothes you should wear. Whether it is casual day or formal day in your office, you must dress to look your part. How you look demonstrates how you feel and will define how people see your professional being, inside and out.
So, what is professionalism if it's not power lunches, golf, drinking with the boss, and business suits? A general, raw view of professionalism is, "a focused, accountable, confident, competent, motivation toward a particular goal, with respect for hierarchy and humanity, less the emotion." What this means is that you leave out the outbursts and emotional thralls that accompany stressful situations and success. You maintain focus, with a sense of urgency, and accept responsibility on a path toward a specific goal. In the process, you maintain respect for your superiors, peers, and subordinates as well as respect them as human beings.
Handling Professional Situations
The advantage to dealing with professional situations without emotion, and base business-related interactions on intellect, industry, and experience, is that it provides a common foundation from which professional relationships can flourish. Emotion varies wildly between individuals; however, competency in a particular field provides a basis of understanding. From this basis, everyone can function and exercise their power on the same playing field.
Understand that a business situation has a purpose and a goal. Jocularity and emotional responses have no place in such a situation because it takes away from the time spent moving toward that goal. By including such emotion into a professional relationship can make others, who are focused on their direction, see you as someone that doesn't take their position seriously. I am not saying that a sense of humor is not acceptable, but it can sometimes get you labeled as someone who is not a "team player," among other things.
The point to realize is that, if a professional situation seems to be turning against you, maybe you are not behaving in a professional manner.
Are you unprofessional?
Most people feel that professionalism is a subjective term based on a hidden set of standards. Many companies use these standards to criticize you if they don't like you, and to praise you otherwise.
One can justifiably be seen as unprofessional if you have not taken the time to understand your corporate culture and learn the "hidden standards." Corporate culture plays a considerable role into the idea of professionalism. You have to learn how to maintain your level of raw professionalism and, once you learn the corporate culture, add the new expectations to your professional facade.
In summary, professionalism can be measured using the following indicators:
Responsiveness as the golden rule: Giving timely feedback and positive criticism is crucial in enhancing communication
Organization and time management
Email/voicemail best practices
Importance of planning and adhering to the plan
Problem solving attitudes
Manners matter
Integrity always
Impact communications
Presentation development
Dressing appropriately
Speaking politely and courteously
Performing your job duties to the best of your ability
Arriving and leaving at the designated times
Not abusing sick and vacation time
Leaving personal life at home
Aug 1, 2007
Oshwal Youth in the 21st Century
In which direction is the youth of today?
Being a youth in the 21st century is a challenging and dynamic experience. We live in an era influenced by myriad factors; in a global melting pot where our lives are shaped by the media, technology, the internet and Western influences.
The Oshwal youth face many more challenges socially and emotionally. They are brought up in a multi-cultural environment where they are constantly exposed to and reminded of their culture and identity and yet experience a Western lifestyle, in terms of education, diet, and music.
Who are we? Where do we come from? Whether it is a search for belonging or just curiosity about our heritage, we all wonder about our ancestral roots. Do these questions perplex the minds of young Oshwals? This is where they face a dilemma- are we Kenyans? Indians? Or Kenyans of Indian origin?
In spite of four generations of Oshwals proliferating in Kenya, we have not made up our minds. We claim to be African and yet completely personify Indian social and cultural behaviour. As a society we are completely segregated from the political and socio-economic environment of Kenya. Yet this isolation has not fostered as strong a preservation of our own heritage as would have been expected. Thus, our youth seem to be ‘neither here nor there’.
In our globalized world it is inevitable to be completely immersed and absorbed by other backgrounds. Our youth can no longer be expected to confine their choice of life partners within our community. However, their cross-cultural marriages which are celebrated in accordance with Hindu rites and rituals are an illustration that our youth have still maintained Indian values. To a certain extent they are still cognisant of and respect our customs.
Materialism and individualism are inevitable aspects of the 21st century. Young Oshwals have high-flying careers and as a result, they are independent- financially, socially and even emotionally. The greater their independence, the more difficult it becomes for them to personify traditional Indian values such as joint families, leading simple lives enriched by moral ethics, and financially supporting relatives.
The pillars of community spirit that our institutions were founded on are slowly crumbling because of this materialism. Today it’s all about ‘work hard and party even harder’. The youth would rather enjoy frivolous night life with their peers than attend or volunteer at community events. Our youth should be inspired to give back to, and, be part and parcel of, the community from which they have derived their identity. Let us remind them of our forefathers’ immense sacrifices and foresight and inspire them to build upon and cherish them.
When in school the demands of achieving academic success almost suffocate our youth. Later, in their working lives, it is the pressure to be financially successful that becomes of paramount importance. As a result the youth have lost sight of the simple and basic values of social living such as courtesy and etiquette. Apart from friends and contemporaries they cannot converse easily with the generation above them. Students in our community schools have such a well established comfort zone that they tend to stick to their cliques even at university. As a result they never find the need to be curious or share their knowledge and experiences with other international students.
Most young Oshwals do not return to Kenya once they leave for university. Consequentially, our community suffers from a huge brain drain which has multi-dimensional repercussions. Families are fragmented; the vast distances creating impenetrable barriers to nurturing close family ties. Oshwals are known for their entrepreneurial spirit and family businesses. The very businesses that made it possible for the youth to study overseas are today on the verge of winding up because there is no new family blood to take over the reins of running these businesses.
The youth of yesteryear were much more docile and would take our social and cultural customs at face value, believe in them for what they were. Exposed to todays interactive environment, our youth question some of these values and demand rational explanations. Yet, there are some customs that add intrinsic richness to our heritage, without necessarily having any logical reasoning. Because of their insatiable thirst for rationalism, the youth fail to observe many age old beliefs and customs, leading to a self-imposed dilution of our ethnicity.
Mahatma Gandhi once said:
“Neglect of mother tongue is a national suicide”
Social values can only be fostered through our mother tongue. The fact that the youth cannot converse in Gujarati with their grandparents, is creating an ever widening generation gap within our families. This builds barriers to the passing on of valuable and interesting family history and traditions. Most of the generation that emigrated from Gujarat in the early 1900s are no longer with us. Links with our ‘motherland’ are now more tenuous than ever before and the present youth will have no stories to tell to their children. As if to exacerbate this dilemma, none of these stories have been documented and if they have been, they are in Gujarati, which is as good as Greek to our youth. In this respect, let us rekindle our mother tongue by ensuring that we learn it, read it, write it and speak it.
Oshwals are renowned world over for their accomplishments in every field: business, academia, sport... The basic values that have been the foundation of our success might still be intact in our youth. They have not completely lost sight of them nor have they been eroded. But, as a community we need to guide and nurture our youth towards preserving the best of our heritage. Traditional values must be readapted in a way that they complement, not substitute the basis of modern day life. Let us discover ways of preserving our culture, so that our youth can harmoniously co-exist in modern society. The scent of Halar’s hard baked earth in which our ancestors toiled for a modest living may not mean anything to our youth. From Gujarat to present day Kenya, and onwards to the West, we have come a full circle and lost some of our ‘Oshwalness’. But our youth can definitely learn the significance of cultural pride. They may succumb to Western influence but in the process will gain awareness and appreciation of our roots,
Being a youth in the 21st century is a challenging and dynamic experience. We live in an era influenced by myriad factors; in a global melting pot where our lives are shaped by the media, technology, the internet and Western influences.
The Oshwal youth face many more challenges socially and emotionally. They are brought up in a multi-cultural environment where they are constantly exposed to and reminded of their culture and identity and yet experience a Western lifestyle, in terms of education, diet, and music.
Who are we? Where do we come from? Whether it is a search for belonging or just curiosity about our heritage, we all wonder about our ancestral roots. Do these questions perplex the minds of young Oshwals? This is where they face a dilemma- are we Kenyans? Indians? Or Kenyans of Indian origin?
In spite of four generations of Oshwals proliferating in Kenya, we have not made up our minds. We claim to be African and yet completely personify Indian social and cultural behaviour. As a society we are completely segregated from the political and socio-economic environment of Kenya. Yet this isolation has not fostered as strong a preservation of our own heritage as would have been expected. Thus, our youth seem to be ‘neither here nor there’.
In our globalized world it is inevitable to be completely immersed and absorbed by other backgrounds. Our youth can no longer be expected to confine their choice of life partners within our community. However, their cross-cultural marriages which are celebrated in accordance with Hindu rites and rituals are an illustration that our youth have still maintained Indian values. To a certain extent they are still cognisant of and respect our customs.
Materialism and individualism are inevitable aspects of the 21st century. Young Oshwals have high-flying careers and as a result, they are independent- financially, socially and even emotionally. The greater their independence, the more difficult it becomes for them to personify traditional Indian values such as joint families, leading simple lives enriched by moral ethics, and financially supporting relatives.
The pillars of community spirit that our institutions were founded on are slowly crumbling because of this materialism. Today it’s all about ‘work hard and party even harder’. The youth would rather enjoy frivolous night life with their peers than attend or volunteer at community events. Our youth should be inspired to give back to, and, be part and parcel of, the community from which they have derived their identity. Let us remind them of our forefathers’ immense sacrifices and foresight and inspire them to build upon and cherish them.
When in school the demands of achieving academic success almost suffocate our youth. Later, in their working lives, it is the pressure to be financially successful that becomes of paramount importance. As a result the youth have lost sight of the simple and basic values of social living such as courtesy and etiquette. Apart from friends and contemporaries they cannot converse easily with the generation above them. Students in our community schools have such a well established comfort zone that they tend to stick to their cliques even at university. As a result they never find the need to be curious or share their knowledge and experiences with other international students.
Most young Oshwals do not return to Kenya once they leave for university. Consequentially, our community suffers from a huge brain drain which has multi-dimensional repercussions. Families are fragmented; the vast distances creating impenetrable barriers to nurturing close family ties. Oshwals are known for their entrepreneurial spirit and family businesses. The very businesses that made it possible for the youth to study overseas are today on the verge of winding up because there is no new family blood to take over the reins of running these businesses.
The youth of yesteryear were much more docile and would take our social and cultural customs at face value, believe in them for what they were. Exposed to todays interactive environment, our youth question some of these values and demand rational explanations. Yet, there are some customs that add intrinsic richness to our heritage, without necessarily having any logical reasoning. Because of their insatiable thirst for rationalism, the youth fail to observe many age old beliefs and customs, leading to a self-imposed dilution of our ethnicity.
Mahatma Gandhi once said:
“Neglect of mother tongue is a national suicide”
Social values can only be fostered through our mother tongue. The fact that the youth cannot converse in Gujarati with their grandparents, is creating an ever widening generation gap within our families. This builds barriers to the passing on of valuable and interesting family history and traditions. Most of the generation that emigrated from Gujarat in the early 1900s are no longer with us. Links with our ‘motherland’ are now more tenuous than ever before and the present youth will have no stories to tell to their children. As if to exacerbate this dilemma, none of these stories have been documented and if they have been, they are in Gujarati, which is as good as Greek to our youth. In this respect, let us rekindle our mother tongue by ensuring that we learn it, read it, write it and speak it.
Oshwals are renowned world over for their accomplishments in every field: business, academia, sport... The basic values that have been the foundation of our success might still be intact in our youth. They have not completely lost sight of them nor have they been eroded. But, as a community we need to guide and nurture our youth towards preserving the best of our heritage. Traditional values must be readapted in a way that they complement, not substitute the basis of modern day life. Let us discover ways of preserving our culture, so that our youth can harmoniously co-exist in modern society. The scent of Halar’s hard baked earth in which our ancestors toiled for a modest living may not mean anything to our youth. From Gujarat to present day Kenya, and onwards to the West, we have come a full circle and lost some of our ‘Oshwalness’. But our youth can definitely learn the significance of cultural pride. They may succumb to Western influence but in the process will gain awareness and appreciation of our roots,
Apr 24, 2007
KENYA 2002-2007- A synopsis
By guest writer: M.S
This government came in with a bang… brought 5-6 months or less of fresh air, showed true potential of what good leadership to this country could achieve, and then started on its most probably pre-planned act of looting the coffers. Just as NARC came in, dodgy contractors were forced off, the corrupt in the civil service – Police, CID, City Council, Lands offices, etc started fearing and stopped demanding bribes; and there were several incidences where the public beat up policeman who were caught demanding bribes. Infrastructure started to improve; the proof being the beautification, repair and lighting up of Uhuru Highway and roundabouts.
But as the improvements were dieing, the political elite already had their hands in the coffers – Anglo Leasing was inherited from Kanu and it grew under NARC. There is not enough publicized evidence out there that Anglo Leasing, and the Artur Brothers – all had links to State House.
Very soon after elections, Kiraitu Murungi – who was nearly bankrupt just before the 2002 elections, had already taken over a huge chunk of businesses and buildings in Nyeri, and Mr Chris Murungaru was already a multi billionaire. Lucy Kibaki who had been active in the public for the wrong reasons went quiet after a series of blunders while Uncle Moody, who was since appointment as VP – active in the public spotlight, hid away from the press after directly being linked to the Anglo Leasing scandal – as the man who had approved the projects.
By this time, the lone man who was fighting to save Kenya, John Githongo, had seen he could not win and he was a lone fish in a sea full of huge corrupt sharks. For the sake of his life, he escaped the country and remains the only person with full evidence of all scandals. More and more bodies and committees are formed to supposedly fight graft, yet each have done absolutely nothing to halt the vice. Mr Aaron Ringera, who despite taking home KSh 2.5million a month and being the highest paid civil servant, heads the Kenya Anti Corruption Authority who have not proven guilty even a single serious offender involved in corruption. The corrupt politicians have got long hands into all these authorities to ensure there is no action taken – shown by the total hibernation of Transparency International – once a brave warrior against graft, and until recently became clogged with allies of President Kibaki's advisors.
Presidential aspirants took advantage of the government scandals to boost their popularity by forming the ODM which humiliatingly trounced the government in the referendum. Kenyans had finally spoken – the referendum loss was more a political defeat for the government by the majority of Kenyans who had seen the senior government officials were already on the ladder to boost personal coffers, against the grounds it was voted in for – to fight corruption.
The embarrassment of the referendum loss led to the dissolving of the cabinet. Kenyans now expected the powerful ODM members to be included in the new cabinet – to prevent the president further embarrassment, or a vote of no-confidence in the government, yet the president boldly left out most ODM members from his new Cabinet. Interestingly, the power-loving Mr Kombo and Ngilu accepted their new roles after first rejecting them. This new cabinet distinctly broadcasted the Kenyan Political Game – all about Cabinet posts for the more votes the candidate gets the president. No wonder why we see in parliament, the greatest of crooks with the least intelligence, some having only completed high school education.
As 2006 drew towards a close and the election year arrives, the greed for power and wealth intensifies. The more you earn this year, the more you can campaign with to win the jackpot of another 5 years in Parliament, or be elevated onto the cabinet. As presidential aspirants announce their promises, the government attempts to match them to defeat the opposition – hence the government appears close to promising free secondary education if voted in again.
The president launches yet another Anti-Corruption steering committee, which brings to over 20 the number of authorities created to fight graft, yet all are simply wasting government or donor funding.
The president launches the Vision 2030 – to have Kenya a developed nation. Why suddenly, as the elections approach? Simply to get the backing of Kenyans for another 5 years at the helm. In the last 4 years, what really has his government done to back this new plan for the future?
Yes, his men constantly boast about the rising economic growth – which in reality has only benefited the rich – most of who are in some way politically connected to the leaders. The country has seen a boom in the financial sector including the stock market, the tourism sector, and the agricultural sector amongst others. Yet, the numbers of new graduates and the unemployed are simply far higher for the country to derive real benefit and the entire population enjoying improved standards of living. 60 or 70% of Kenyans are just equal or worse than they were under the previous regime.
Corruption still thrives at the senior level. Despite laws such as Public Procurement Act, there is far too much secrecy for it to really be implemented and lengthy arms of senior politicians will always make their way to win lucrative contracts. Wealthy crooks under the KANU regime, who were charged with corruption are still freely walking around, as the corrupt legal system has not dealt with their cases, or simply thrown them away – once again all thanks to the brotherhood of corrupt individuals. Judges who had been suspended for corruption in 2003 are all making their way back to their seats as the totally ineffective justice system can prove no wrong doing, or rather, being tried by their true friends and former colleagues who can see no wrong.
The country's transport system is once again a menace. Even Police efforts to crack down on offenders is halted by our embarrassing minister who shot the government in the foot by admitting to owning matatus – the reason for the country's transport troubles. Only in Kenya can this be legal, where the greatest offenders on the roads – Matatus are owned by Ministers, MPs, Police Inspectors and any other powerful individual – and for this reason the offenders are untouchables!
Being a victim of harassment is a part of every middle and low class Kenyan's life. It comes from Kenya Police, the CID, The Nairobi City Council, The Kenya Revenue Authority, NEMA – The National Environmental Management Authority, The Lands Office, and the list is endless. Corruption is now deep-rooted in the blood of 99% of Kenyan civil servants, from a Minister down to a Junior Police Officer. Without parting with wealth, you can simply not even attempt to get something you are entitled to.
1) Kenya Police:
- Getting a Police Abstract for a robbery/ theft is not straightforward without the officer receiving cash
- Commit a small offence and you'll be charged for something huge, if you do not fill the officer's pockets
- Theft and Robbery victims very often identify the thugs as Police officers themselves
- You will be falsely charged for offences that are not even in Kenyan law – e.g. for not wearing a rear seat belt, not carrying a fire extinguisher/ first-aid kit in a private car… yet they will lie and prove you wrong.
- A Kenyan driving license is valid abroad for a year, yet Kenya, being so advanced – only accepts foreign licenses for 2 weeks! Being unaware, you will simply be arrested until you bribe.
- Road license was abolished, yet you will still be harassed for it – expecting the victim to be scared and naive
2) Nairobi and Municipal Councils:
- You will falsely by accused and man handled/ assaulted into their trucks for littering, even when you are far away from any rubbish on the floor, or are setup by their own colleagues. You will not be set free for days without giving into their bribes, as legally you will never win them either
- Rates for Sewer/ Water/ Rubbish/ Land are often incorrect and overcharged yet no one will ever admit their mistake. Payments made will not appear in statements, and you are forced to bribe them to stop being assaulted and falsely arrested
- Car parking attendants will hide, while your car will be clamped or towed away as you attempt to seek an attendant to make a payment.
- Building owners are forced into repairs, yet the repairs take months for themselves to approve – during which time you are arrested and taken to court wrongful negligence
3) NEMA – Factories are given notices or sued for even little pollution they may cause, yet hugely guilty offenders which are controlled by politically powerful leaders will be totally exempted.
4) Kenya Revenue Authority officials will falsely accuse you of not paying or paying less tax, where as thousands of traders who do significantly more businesses are untouched. At the ports and airports, those who 'cleanly' import goods and pay charges – their goods will not be cleared for weeks and months, yet those of the politically powerful leave the ports and airports in hours, without any taxes, yet they will never be caught. A clear example – the goods sold in Eastleigh mostly by Somali traders who bring them in illegally without any taxes/ duties paid, and do not pay a cent in tax, yet are untouchable.
These are just some of the low-end harassments that Kenyans encounter daily. With the huge brain drain the country experiences, it is not even shocking that the talented and brainy would want to escape such harassment where they are proven wrong, assaulted when innocent.
With the hugely corrupt justice system, law makers and authorities such as the Law Courts and Kenya Police, there is no bright future for the average Kenya. Ruined further by our corrupt leaders who deal illegally at multi-billion shilling level, the majority of Kenyans have a very bleak future to strive for their daily bread while they see the evil & guilty offenders living in luxury.
Back to Parliament – where each MP earns about KSh 600,000 per month – tax free [whereas the minimum wage for a Kenyan is about Ksh 5,200]. Ministers, their assistants and other post-holders earn even more. They are paid these obscene sums to do well for the country – yet the majority of the times are out at political events or attending to their thriving private businesses. Out of about 250 MPs, very often the Parliament runs with 20-30 MPs, yet not a single law exists to force their presence. These careless leaders bag a minimum KSh150million a month, yet do not care a rat's ass about the public! They are not even satisfied with these obscene figures and give themselves pay rises every year or 2 – during which case the government and opposition forget their differences to boost their coffers. They are the highest paid MPs in the world, while the country remains one of the poorest in the world!
To add insult to injury, simply to please the international community, the finance minister said during the 2006 budget that they will be introducing taxing the MPs. Nearly 10 months on, not a word from the Finance Minister again. Let alone Mr Brave Finance Minister dare anything – the opposition will unite with the government to shoot the action down. The 2006 budget also stated a reduction in Government vehicles from all ministries, yet only about 150 were returned, though in reality must have been about a 1000 vehicles. Ministers, Assistants etc were ordered to reduce the official cars they were provided – several of them objected and rebelled – yet, being powerful and having no law against them – no action has ever been taken 10months on.
This is Kenya – a country ruled by corrupt leaders who have injected corruption into the blood of civil servants. Politics here is a dirty game where only the politically powerful and dirty survive. The innocent here have no law to protect them, while the corrupt have a huge brotherhood covering every corner of the law to eliminate any barrier/victim and protect their interests. Sadly, as a patriotic Kenyan, I see no bright future for most of us low and middle class Kenyans, yet the corrupt will always remain untouchables.
This government came in with a bang… brought 5-6 months or less of fresh air, showed true potential of what good leadership to this country could achieve, and then started on its most probably pre-planned act of looting the coffers. Just as NARC came in, dodgy contractors were forced off, the corrupt in the civil service – Police, CID, City Council, Lands offices, etc started fearing and stopped demanding bribes; and there were several incidences where the public beat up policeman who were caught demanding bribes. Infrastructure started to improve; the proof being the beautification, repair and lighting up of Uhuru Highway and roundabouts.
But as the improvements were dieing, the political elite already had their hands in the coffers – Anglo Leasing was inherited from Kanu and it grew under NARC. There is not enough publicized evidence out there that Anglo Leasing, and the Artur Brothers – all had links to State House.
Very soon after elections, Kiraitu Murungi – who was nearly bankrupt just before the 2002 elections, had already taken over a huge chunk of businesses and buildings in Nyeri, and Mr Chris Murungaru was already a multi billionaire. Lucy Kibaki who had been active in the public for the wrong reasons went quiet after a series of blunders while Uncle Moody, who was since appointment as VP – active in the public spotlight, hid away from the press after directly being linked to the Anglo Leasing scandal – as the man who had approved the projects.
By this time, the lone man who was fighting to save Kenya, John Githongo, had seen he could not win and he was a lone fish in a sea full of huge corrupt sharks. For the sake of his life, he escaped the country and remains the only person with full evidence of all scandals. More and more bodies and committees are formed to supposedly fight graft, yet each have done absolutely nothing to halt the vice. Mr Aaron Ringera, who despite taking home KSh 2.5million a month and being the highest paid civil servant, heads the Kenya Anti Corruption Authority who have not proven guilty even a single serious offender involved in corruption. The corrupt politicians have got long hands into all these authorities to ensure there is no action taken – shown by the total hibernation of Transparency International – once a brave warrior against graft, and until recently became clogged with allies of President Kibaki's advisors.
Presidential aspirants took advantage of the government scandals to boost their popularity by forming the ODM which humiliatingly trounced the government in the referendum. Kenyans had finally spoken – the referendum loss was more a political defeat for the government by the majority of Kenyans who had seen the senior government officials were already on the ladder to boost personal coffers, against the grounds it was voted in for – to fight corruption.
The embarrassment of the referendum loss led to the dissolving of the cabinet. Kenyans now expected the powerful ODM members to be included in the new cabinet – to prevent the president further embarrassment, or a vote of no-confidence in the government, yet the president boldly left out most ODM members from his new Cabinet. Interestingly, the power-loving Mr Kombo and Ngilu accepted their new roles after first rejecting them. This new cabinet distinctly broadcasted the Kenyan Political Game – all about Cabinet posts for the more votes the candidate gets the president. No wonder why we see in parliament, the greatest of crooks with the least intelligence, some having only completed high school education.
As 2006 drew towards a close and the election year arrives, the greed for power and wealth intensifies. The more you earn this year, the more you can campaign with to win the jackpot of another 5 years in Parliament, or be elevated onto the cabinet. As presidential aspirants announce their promises, the government attempts to match them to defeat the opposition – hence the government appears close to promising free secondary education if voted in again.
The president launches yet another Anti-Corruption steering committee, which brings to over 20 the number of authorities created to fight graft, yet all are simply wasting government or donor funding.
The president launches the Vision 2030 – to have Kenya a developed nation. Why suddenly, as the elections approach? Simply to get the backing of Kenyans for another 5 years at the helm. In the last 4 years, what really has his government done to back this new plan for the future?
Yes, his men constantly boast about the rising economic growth – which in reality has only benefited the rich – most of who are in some way politically connected to the leaders. The country has seen a boom in the financial sector including the stock market, the tourism sector, and the agricultural sector amongst others. Yet, the numbers of new graduates and the unemployed are simply far higher for the country to derive real benefit and the entire population enjoying improved standards of living. 60 or 70% of Kenyans are just equal or worse than they were under the previous regime.
Corruption still thrives at the senior level. Despite laws such as Public Procurement Act, there is far too much secrecy for it to really be implemented and lengthy arms of senior politicians will always make their way to win lucrative contracts. Wealthy crooks under the KANU regime, who were charged with corruption are still freely walking around, as the corrupt legal system has not dealt with their cases, or simply thrown them away – once again all thanks to the brotherhood of corrupt individuals. Judges who had been suspended for corruption in 2003 are all making their way back to their seats as the totally ineffective justice system can prove no wrong doing, or rather, being tried by their true friends and former colleagues who can see no wrong.
The country's transport system is once again a menace. Even Police efforts to crack down on offenders is halted by our embarrassing minister who shot the government in the foot by admitting to owning matatus – the reason for the country's transport troubles. Only in Kenya can this be legal, where the greatest offenders on the roads – Matatus are owned by Ministers, MPs, Police Inspectors and any other powerful individual – and for this reason the offenders are untouchables!
Being a victim of harassment is a part of every middle and low class Kenyan's life. It comes from Kenya Police, the CID, The Nairobi City Council, The Kenya Revenue Authority, NEMA – The National Environmental Management Authority, The Lands Office, and the list is endless. Corruption is now deep-rooted in the blood of 99% of Kenyan civil servants, from a Minister down to a Junior Police Officer. Without parting with wealth, you can simply not even attempt to get something you are entitled to.
1) Kenya Police:
- Getting a Police Abstract for a robbery/ theft is not straightforward without the officer receiving cash
- Commit a small offence and you'll be charged for something huge, if you do not fill the officer's pockets
- Theft and Robbery victims very often identify the thugs as Police officers themselves
- You will be falsely charged for offences that are not even in Kenyan law – e.g. for not wearing a rear seat belt, not carrying a fire extinguisher/ first-aid kit in a private car… yet they will lie and prove you wrong.
- A Kenyan driving license is valid abroad for a year, yet Kenya, being so advanced – only accepts foreign licenses for 2 weeks! Being unaware, you will simply be arrested until you bribe.
- Road license was abolished, yet you will still be harassed for it – expecting the victim to be scared and naive
2) Nairobi and Municipal Councils:
- You will falsely by accused and man handled/ assaulted into their trucks for littering, even when you are far away from any rubbish on the floor, or are setup by their own colleagues. You will not be set free for days without giving into their bribes, as legally you will never win them either
- Rates for Sewer/ Water/ Rubbish/ Land are often incorrect and overcharged yet no one will ever admit their mistake. Payments made will not appear in statements, and you are forced to bribe them to stop being assaulted and falsely arrested
- Car parking attendants will hide, while your car will be clamped or towed away as you attempt to seek an attendant to make a payment.
- Building owners are forced into repairs, yet the repairs take months for themselves to approve – during which time you are arrested and taken to court wrongful negligence
3) NEMA – Factories are given notices or sued for even little pollution they may cause, yet hugely guilty offenders which are controlled by politically powerful leaders will be totally exempted.
4) Kenya Revenue Authority officials will falsely accuse you of not paying or paying less tax, where as thousands of traders who do significantly more businesses are untouched. At the ports and airports, those who 'cleanly' import goods and pay charges – their goods will not be cleared for weeks and months, yet those of the politically powerful leave the ports and airports in hours, without any taxes, yet they will never be caught. A clear example – the goods sold in Eastleigh mostly by Somali traders who bring them in illegally without any taxes/ duties paid, and do not pay a cent in tax, yet are untouchable.
These are just some of the low-end harassments that Kenyans encounter daily. With the huge brain drain the country experiences, it is not even shocking that the talented and brainy would want to escape such harassment where they are proven wrong, assaulted when innocent.
With the hugely corrupt justice system, law makers and authorities such as the Law Courts and Kenya Police, there is no bright future for the average Kenya. Ruined further by our corrupt leaders who deal illegally at multi-billion shilling level, the majority of Kenyans have a very bleak future to strive for their daily bread while they see the evil & guilty offenders living in luxury.
Back to Parliament – where each MP earns about KSh 600,000 per month – tax free [whereas the minimum wage for a Kenyan is about Ksh 5,200]. Ministers, their assistants and other post-holders earn even more. They are paid these obscene sums to do well for the country – yet the majority of the times are out at political events or attending to their thriving private businesses. Out of about 250 MPs, very often the Parliament runs with 20-30 MPs, yet not a single law exists to force their presence. These careless leaders bag a minimum KSh150million a month, yet do not care a rat's ass about the public! They are not even satisfied with these obscene figures and give themselves pay rises every year or 2 – during which case the government and opposition forget their differences to boost their coffers. They are the highest paid MPs in the world, while the country remains one of the poorest in the world!
To add insult to injury, simply to please the international community, the finance minister said during the 2006 budget that they will be introducing taxing the MPs. Nearly 10 months on, not a word from the Finance Minister again. Let alone Mr Brave Finance Minister dare anything – the opposition will unite with the government to shoot the action down. The 2006 budget also stated a reduction in Government vehicles from all ministries, yet only about 150 were returned, though in reality must have been about a 1000 vehicles. Ministers, Assistants etc were ordered to reduce the official cars they were provided – several of them objected and rebelled – yet, being powerful and having no law against them – no action has ever been taken 10months on.
This is Kenya – a country ruled by corrupt leaders who have injected corruption into the blood of civil servants. Politics here is a dirty game where only the politically powerful and dirty survive. The innocent here have no law to protect them, while the corrupt have a huge brotherhood covering every corner of the law to eliminate any barrier/victim and protect their interests. Sadly, as a patriotic Kenyan, I see no bright future for most of us low and middle class Kenyans, yet the corrupt will always remain untouchables.
IS KENYA'S GROWTH SUSTAINABLE?
I recently conducted a mini survey on peoples perception of Kenya and its future. Below is the email I sent out, followed by the responses I received.
IS KENYA'S GROWTH SUSTAINABLE?
Over the past four years Kenya's economic growth has continued to exceed expectations, surging ahead at an annual rate of more than 4%. Additionally, Kenya's recent Vision 2030 predicts that 10% percent annual growth will be achieved in the coming years. Do you think this is an achievable rate?
Have the dividends been notable so far, in terms of declines in poverty and increases in living standards? What about better governance? Corruption? What are the biggest worries for the near future?
What are the real prospects for Kenya's economy, and can growth continue in a balanced and sustainable way? How? What must Kenya do right? What in your opinion is it doing wrong?
______________________________________
Vision 2030 is realistic! (the only optimisitc response!)
This administration has done a great deal for the economy! The only thing is we are yet to see the real economic gains due to policy lags. Consider all the following sectors or industries: dairy, coffee, flower & horticulture, the stock market, and real estate. All have increased tremendously over the past four years and have seen high returns and growth rates.
In the dairy sector -farmers are getting a better rate for each liter of milk delivered. This would of course have a positive multiplier effect on the economy. The farmers have more income available to spend and invest.
Roads: Contracts have been awarded and this time they have ensured and complied with strict procurement rules so that shady and/or bogus contractors are locked out. Money and all is available, but again the government has taken a back seat in terms of enforcing the contractors to do their jobs
KRA: Their revenue has increased by a huge margin!! This means better tax collection, sealing loopholes by which businesses used to evade tax.
Banks: Look at National Bank, KCB, Consolidated Bank, Co-operative Bank. All were loss making prior to 2002 and now?
Coffee industry-we are currently the third largest exporters of coffee in the world! can anyone remind me where we stood prior to 2002!???
Corruption: Any other major cases after Anglo leasing??
However, the police remain the worst public sector. They want to extort money and harass law abiding citizens for any small reasons!
Kenyans also enjoy living in a democracy: try criticizing the government in Zimbabwe...!!
***********************************
“Kenya has lots of natural and potential-look at the success of horticulture exports. Kenyan businesses and entrepreneurs need financing and help from Govt - corruption needs to be curbed. Also, Kenya needs to make use of technology to increase productivity and drive efficiency for growth - which also means IT/technology education needs to be part of the school curriculum.
************************************
In my opinion it’s simple – each person does his job/duty in the most ideal and effective way that they can. Yes, it is true at times circumstances/conditions may be a constraint to working ideally...but hey...what's life without challenges...keep focusing on your target. For e.g....if a sweeper doesn’t sweep properly, garbage will pile...creating a dump, diseases, take up useful space. In the same way if a government does not govern properly (meaning they just eat, drive 4WDs and grow fat)....you have Kenya :) Kenya and Kenyans have the potential....that's where it ends sadly!
************************************
Note: The following comments were in response to me putting up an “optimistic scenario” argument for Kenya
IS KENYA'S GROWTH SUSTAINABLE?
Over the past four years Kenya's economic growth has continued to exceed expectations, surging ahead at an annual rate of more than 4%. Additionally, Kenya's recent Vision 2030 predicts that 10% percent annual growth will be achieved in the coming years. Do you think this is an achievable rate?
Have the dividends been notable so far, in terms of declines in poverty and increases in living standards? What about better governance? Corruption? What are the biggest worries for the near future?
What are the real prospects for Kenya's economy, and can growth continue in a balanced and sustainable way? How? What must Kenya do right? What in your opinion is it doing wrong?
______________________________________
Vision 2030 is realistic! (the only optimisitc response!)
This administration has done a great deal for the economy! The only thing is we are yet to see the real economic gains due to policy lags. Consider all the following sectors or industries: dairy, coffee, flower & horticulture, the stock market, and real estate. All have increased tremendously over the past four years and have seen high returns and growth rates.
In the dairy sector -farmers are getting a better rate for each liter of milk delivered. This would of course have a positive multiplier effect on the economy. The farmers have more income available to spend and invest.
Roads: Contracts have been awarded and this time they have ensured and complied with strict procurement rules so that shady and/or bogus contractors are locked out. Money and all is available, but again the government has taken a back seat in terms of enforcing the contractors to do their jobs
KRA: Their revenue has increased by a huge margin!! This means better tax collection, sealing loopholes by which businesses used to evade tax.
Banks: Look at National Bank, KCB, Consolidated Bank, Co-operative Bank. All were loss making prior to 2002 and now?
Coffee industry-we are currently the third largest exporters of coffee in the world! can anyone remind me where we stood prior to 2002!???
Corruption: Any other major cases after Anglo leasing??
However, the police remain the worst public sector. They want to extort money and harass law abiding citizens for any small reasons!
Kenyans also enjoy living in a democracy: try criticizing the government in Zimbabwe...!!
***********************************
“Kenya has lots of natural and potential-look at the success of horticulture exports. Kenyan businesses and entrepreneurs need financing and help from Govt - corruption needs to be curbed. Also, Kenya needs to make use of technology to increase productivity and drive efficiency for growth - which also means IT/technology education needs to be part of the school curriculum.
************************************
In my opinion it’s simple – each person does his job/duty in the most ideal and effective way that they can. Yes, it is true at times circumstances/conditions may be a constraint to working ideally...but hey...what's life without challenges...keep focusing on your target. For e.g....if a sweeper doesn’t sweep properly, garbage will pile...creating a dump, diseases, take up useful space. In the same way if a government does not govern properly (meaning they just eat, drive 4WDs and grow fat)....you have Kenya :) Kenya and Kenyans have the potential....that's where it ends sadly!
************************************
Note: The following comments were in response to me putting up an “optimistic scenario” argument for Kenya
The targeted 10% growth that forms the Vision 2030 is indeed laudable. But will this be the kind of growth where the rich shall be richer and poor poorer....so the growth just pertains to barely 20% of the entire country?! I want to see overall growth...not the superficial kind that shows up in the international polls whilst there still remain joblessness, hunger, and disease.
************************************
While I agree with a lot of the things, I also think that Kenya’s performance in things like manufacturing, agriculture is affected by the lack of infrastructure, especially a good transport system. Our roads are terrible. Look at the Mariakani/Mombasa road…..Mombasa is Kenya’s only port and yet the road that connects it to the main city is in a sad state. This affects business tremendously. The same goes for the Nairobi-Naivasha highway. Kenya has some of the best flower farms yet they lose out in terms of international competitiveness because of the high transport and maintenance costs of trucks using the Naivasha road to transport flowers
As for brain drain and emigration, it is true that a lot of people are returning to Kenya because of the huge prospects here. But it is also more a case of people who are not getting jobs overseas and are likely to get jobs here through their connections and the unfair recruitment process.
Security is a big issue in Kenya as well (not just because it is an election year), there is a lot of constant police harassment going on which is and will continue to eventually drive people to move out if it’s not curbed. As much as statistics show a rosy picture, there are so many thorns which affect the whole economy especially in terms of lost business and investment opportunities.
************************************
Kenya's recent outlook of 10% GROWTH is quite ambitious. The effects of the growth even if any will be hardly felt. For example, if the US economy is growing by only a meager 2% in a given period, the effects will be felt because USA is already developed ,but for a country like KENYA 10% will not be felt as she is still a third world country, coming out from years of negative growth.
So far I haven’t seen any decline in poverty as there still rampant growth in crime all over the country. This indicates that a lot of the population is still poor and jobs are so scarce that they have to resolve to crime. Living standards are still below as the per capita income is still below a dollar a day. And, how do you reduce poverty when the inflation rate is so high. If the inflation is so high this means that there is need to increase interest rates thus increase cost of borrowing so as to contain inflation. This effect will be felt across the board as money will not be cheaply accessible thereby making the economy slowdown again and hampering growth. In terms of governance, I still think it is a pathetic government. Take the example of ministry of roadworks- it is are still sleeping on the job. Most of the upcountry roads are inaccessible and yet they assert they are doing the job. The funding that they receive is still being siphoned. That is where the economy growth sets in again; if most roads are bad then how will farmers transport their good to and fro? Kenya is an agricultural dependent country; if the farmers face these kinds of difficulties then how do you expect the economy to grow? In sum, the biggest worries for Kenya are:
************************************
While I agree with a lot of the things, I also think that Kenya’s performance in things like manufacturing, agriculture is affected by the lack of infrastructure, especially a good transport system. Our roads are terrible. Look at the Mariakani/Mombasa road…..Mombasa is Kenya’s only port and yet the road that connects it to the main city is in a sad state. This affects business tremendously. The same goes for the Nairobi-Naivasha highway. Kenya has some of the best flower farms yet they lose out in terms of international competitiveness because of the high transport and maintenance costs of trucks using the Naivasha road to transport flowers
As for brain drain and emigration, it is true that a lot of people are returning to Kenya because of the huge prospects here. But it is also more a case of people who are not getting jobs overseas and are likely to get jobs here through their connections and the unfair recruitment process.
Security is a big issue in Kenya as well (not just because it is an election year), there is a lot of constant police harassment going on which is and will continue to eventually drive people to move out if it’s not curbed. As much as statistics show a rosy picture, there are so many thorns which affect the whole economy especially in terms of lost business and investment opportunities.
************************************
Kenya's recent outlook of 10% GROWTH is quite ambitious. The effects of the growth even if any will be hardly felt. For example, if the US economy is growing by only a meager 2% in a given period, the effects will be felt because USA is already developed ,but for a country like KENYA 10% will not be felt as she is still a third world country, coming out from years of negative growth.
So far I haven’t seen any decline in poverty as there still rampant growth in crime all over the country. This indicates that a lot of the population is still poor and jobs are so scarce that they have to resolve to crime. Living standards are still below as the per capita income is still below a dollar a day. And, how do you reduce poverty when the inflation rate is so high. If the inflation is so high this means that there is need to increase interest rates thus increase cost of borrowing so as to contain inflation. This effect will be felt across the board as money will not be cheaply accessible thereby making the economy slowdown again and hampering growth. In terms of governance, I still think it is a pathetic government. Take the example of ministry of roadworks- it is are still sleeping on the job. Most of the upcountry roads are inaccessible and yet they assert they are doing the job. The funding that they receive is still being siphoned. That is where the economy growth sets in again; if most roads are bad then how will farmers transport their good to and fro? Kenya is an agricultural dependent country; if the farmers face these kinds of difficulties then how do you expect the economy to grow? In sum, the biggest worries for Kenya are:
- BAD/DIRTY POLITICS
- ENVIROMENTAL EFFECTS
- FOOD INSECURITY
- JOB INSECURITY
- BUDGET IMBALANCES
- CORRUPTION
- POOR INFRACSTRUCTURE
- HIGH INFLATIONARY PRESSURES
- SECURITY ISSUES
I think to make the economy grow we first need to work out these problems facing kenya then forge ahead with the growth
************************************
About banking/ICT....it seems again that there are extremes....we have M-banking, internet billing and the likes...where as we have manual ledgers and typewrites as well....so...any sane person can see that the technology is SO available, it's for industries/companies/individuals to take advantage of it if they want to be at par with the market (global and local)....yes, you do need the capital to invest in these expensive technologies...but in the long term the ROI will be well worth it!
************************************
About banking/ICT....it seems again that there are extremes....we have M-banking, internet billing and the likes...where as we have manual ledgers and typewrites as well....so...any sane person can see that the technology is SO available, it's for industries/companies/individuals to take advantage of it if they want to be at par with the market (global and local)....yes, you do need the capital to invest in these expensive technologies...but in the long term the ROI will be well worth it!
************************************
Nov 18, 2006
One more reason why I love Kenya!
Nationmedia.com Daily Nation NEWS 7th Wonder of the world: "7th Wonder of the world
Story by ERIC SHIMOLI
Publication Date: 11/18/2006
Kenya's tourism received a shot in the arm yesterday when a panel of experts and a major American television channel declared the annual Wildebeest migration one of the seven new wonders of the world.
Broadcasting live from the Maasai Mara to millions of American homes, the channel made the declaration during its breakfast show 'Good Morning America.'
Wildebeest cross a river during their migration from the Maasai Mara in Kenya to the Serengeti National Park in Tanzania. The unique event has earned the animals and the two parks a distinction as one of the new wonders of the world. Photo/Camerapix
Every year, the wildebeest migrate from the Mara in Kenya to the Serengeti National Park in Tanzania, attracting thousands of tourists to witness the rare event in nature.
Yesterday's TV show, which featured a live interview with Kenya Wildlife Service director Julius Kipng'etich, was the culmination of six days during which panelists invited by the channel voted for new wonders of the world.
The new wonders are separate from the conventional Seven Wonders of the World known for centuries and which are classified by Unesco.
Coming at a time when the West, including the USA have been issuing travel advisories warning their citizens against travelling to East Africa over alleged security threats, the declaration and exposure during the live broadcast will be a major boost to the tourism industry in Kenya and Tanzania.
The panel of experts included an oceanographer, a tour expert, a range and wildlife management expert.
The Maasai Mara and Serengeti and the wildebeest migration were selected as one of the new wonders "
Story by ERIC SHIMOLI
Publication Date: 11/18/2006
Kenya's tourism received a shot in the arm yesterday when a panel of experts and a major American television channel declared the annual Wildebeest migration one of the seven new wonders of the world.
Broadcasting live from the Maasai Mara to millions of American homes, the channel made the declaration during its breakfast show 'Good Morning America.'
Wildebeest cross a river during their migration from the Maasai Mara in Kenya to the Serengeti National Park in Tanzania. The unique event has earned the animals and the two parks a distinction as one of the new wonders of the world. Photo/Camerapix
Every year, the wildebeest migrate from the Mara in Kenya to the Serengeti National Park in Tanzania, attracting thousands of tourists to witness the rare event in nature.
Yesterday's TV show, which featured a live interview with Kenya Wildlife Service director Julius Kipng'etich, was the culmination of six days during which panelists invited by the channel voted for new wonders of the world.
The new wonders are separate from the conventional Seven Wonders of the World known for centuries and which are classified by Unesco.
Coming at a time when the West, including the USA have been issuing travel advisories warning their citizens against travelling to East Africa over alleged security threats, the declaration and exposure during the live broadcast will be a major boost to the tourism industry in Kenya and Tanzania.
The panel of experts included an oceanographer, a tour expert, a range and wildlife management expert.
The Maasai Mara and Serengeti and the wildebeest migration were selected as one of the new wonders "
Nov 13, 2006
BBC NEWS | Business | Challenges facing Africa's entrepreneurs
This is yet another article that makes me all the more optimistic about Africa's prospects and Africa's future!
Vive l'afrique!!!
BBC NEWS Business Challenges facing Africa's entrepreneurs
Vive l'afrique!!!
BBC NEWS Business Challenges facing Africa's entrepreneurs
Nov 11, 2006
Sep 13, 2006
CHINA IN AFRICA: IT’S STRICTLY BUSINESS
China, it seems, is suddenly everywhere in Africa, not just in oil-rich states. This recent interest shown not only by China, but by Russia and Venezuela is a clear indication of a new perspective to the current world order. Africa has recently become more important to large industrial countries, resulting in a state of heightened competition between them to tap the continent’s many natural resources and to capture its vast potential markets.
Sino-African trade grew by 700 percent during the 1990s, and the 2000 China-Africa Forum in Beijing set off a new era of trade cooperation and investment that is producing notable results. From 2002 to 2003, trade between China and Africa doubled to $18.5 billion, and then nearly doubled again in the first ten months of 2005, jumping 39 percent to $32.17 billion. Most of the growth was due to increased Chinese imports of oil from Sudan and other African nations . China's foreign direct investment in Africa represented $900 million of the continent's $15 billion total in 2004. China is now the continent's third most-important trading partner, behind the United States and France, and ahead of Britain.
Africa registered 5.2 percent economic growth in 2005, its highest level ever, in part because of Chinese investment. The roads, bridges, and dams built by Chinese firms are low cost, good quality, and completed in a fraction of the time such projects usually take in Africa. If a G8 country had wanted to rebuild the stadium, they would still be holding meetings! The Chinese just come and do it. They don't hold meetings about environmental impact assessment, human rights, bad governance and good governance. Whether it's right ir not is debatable; it’s just that Chinese investment is succeeding because they don't set high benchmarks.
Its presence is certainly greatest in the resource-rich countries like Nigeria, Angola and Sudan (where its role has been criticized as contributing to the crisis in Darfur). But China's growing presence is also manifest in less obvious spots. In Sierra Leone, Chinese companies have built and renovated hotels and restaurants. In Mozambique, Chinese companies are investing in soybean processing and prawn production. At the African Union meeting in Banjul, Gambia, the Chinese delegation dwarfed the ones sent by France, Britain and the United States.
Chinese companies see Africa as both an excellent market for their low-cost consumer goods, and a burgeoning economic opportunity as more countries privatize their industries and open their economies to foreign investment. Some textile manufacturers, for example, are reportedly investing in African factories as a way to get around U.S. and European quotas on Chinese textiles.
Fewer prescriptions and more remedies
One of the interesting things about doing business with China is that it's a full-on supplier. They will come in and provide everything that surrounds the development of the country. What China really seems to be offering Africa is some breathing space; a straightforward business relationship between equals based on mutual interest and noninterference in the internal affairs of its allies. Or as the economist Jeffrey Sachs phrased it at a conference in Beijing, "China gives fewer lectures and more practical help."
Competition is always the answer
But whatever role China ultimately plays, perhaps the most important element it introduces is competition in the aid and poverty ‘business’. The West has for too long relied on the ‘one size fits all prescription and set of ideas, aimed at fixing Africa's problems. The West has to recognise that it cannot consider Africa any more their 'chasse garde' [private hunting ground].
China's diplomatic philosophy, which preaches non-interference in other countries' internal affairs, may have important and probably possible consequences for Africa. Chinese foreign policy follows five basic guidelines of peaceful coexistence: mutual respect for sovereignty and territorial integrity; mutual non-aggression; non-interference in each other's internal affairs; equality and mutual benefit; and peaceful coexistence. For African governments it is quite a welcome change from the approach they get from Western governments that manages to be both patronizing and demeaning at the same time
Now African countries have more choices; they have the panaceas of the World Bank and the IMF, and at the same time the experience of China. They can compare and choose the best. China's recent history presents seductive possibilities for sub-Saharan Africa. In the past two decades, China has pulled hundreds of millions out of poverty and transformed itself into the world's fastest-growing economy.
A strong voice for developing countries
If Russian, Chinese, Japanese, European and American companies compete for Africa, the competition between them is in the best interest of Africa. Political partnership between African governments and China has also ensured that decisions made in international organizations are in the best interest of the developing countries and not the industrial ones. Many African countries see China as a counterbalance to the heavy domination of social and economic development of Africa by the big powers, mainly in the West. China is supporting democracy and good governance in Africa through positive encouragement and not by imposing or applying punitive measures.
What’s more, the Chinese come to Africa as equals, with no colonial hangover, no complex relationship of resentment. China wants to buy and Africa has something to sell. China’s presence on the continent is many ways like a breath of fresh air, and a way to ending Western domination.
Of course, no government can truly be altruist; but even if the motives may be selfish, what is important here, from the African perspective, is that if African leaders act prudently, their countries can gain from this trend, by pushing forward with its own development. China offers an alternative source of support. China's aid and investments are attractive to Africans, precisely because they come with no conditionality related to governance, fiscal probity, or the other concerns of Western donors.
Sino-African trade grew by 700 percent during the 1990s, and the 2000 China-Africa Forum in Beijing set off a new era of trade cooperation and investment that is producing notable results. From 2002 to 2003, trade between China and Africa doubled to $18.5 billion, and then nearly doubled again in the first ten months of 2005, jumping 39 percent to $32.17 billion. Most of the growth was due to increased Chinese imports of oil from Sudan and other African nations . China's foreign direct investment in Africa represented $900 million of the continent's $15 billion total in 2004. China is now the continent's third most-important trading partner, behind the United States and France, and ahead of Britain.
Africa registered 5.2 percent economic growth in 2005, its highest level ever, in part because of Chinese investment. The roads, bridges, and dams built by Chinese firms are low cost, good quality, and completed in a fraction of the time such projects usually take in Africa. If a G8 country had wanted to rebuild the stadium, they would still be holding meetings! The Chinese just come and do it. They don't hold meetings about environmental impact assessment, human rights, bad governance and good governance. Whether it's right ir not is debatable; it’s just that Chinese investment is succeeding because they don't set high benchmarks.
Its presence is certainly greatest in the resource-rich countries like Nigeria, Angola and Sudan (where its role has been criticized as contributing to the crisis in Darfur). But China's growing presence is also manifest in less obvious spots. In Sierra Leone, Chinese companies have built and renovated hotels and restaurants. In Mozambique, Chinese companies are investing in soybean processing and prawn production. At the African Union meeting in Banjul, Gambia, the Chinese delegation dwarfed the ones sent by France, Britain and the United States.
Chinese companies see Africa as both an excellent market for their low-cost consumer goods, and a burgeoning economic opportunity as more countries privatize their industries and open their economies to foreign investment. Some textile manufacturers, for example, are reportedly investing in African factories as a way to get around U.S. and European quotas on Chinese textiles.
Fewer prescriptions and more remedies
One of the interesting things about doing business with China is that it's a full-on supplier. They will come in and provide everything that surrounds the development of the country. What China really seems to be offering Africa is some breathing space; a straightforward business relationship between equals based on mutual interest and noninterference in the internal affairs of its allies. Or as the economist Jeffrey Sachs phrased it at a conference in Beijing, "China gives fewer lectures and more practical help."
Competition is always the answer
But whatever role China ultimately plays, perhaps the most important element it introduces is competition in the aid and poverty ‘business’. The West has for too long relied on the ‘one size fits all prescription and set of ideas, aimed at fixing Africa's problems. The West has to recognise that it cannot consider Africa any more their 'chasse garde' [private hunting ground].
China's diplomatic philosophy, which preaches non-interference in other countries' internal affairs, may have important and probably possible consequences for Africa. Chinese foreign policy follows five basic guidelines of peaceful coexistence: mutual respect for sovereignty and territorial integrity; mutual non-aggression; non-interference in each other's internal affairs; equality and mutual benefit; and peaceful coexistence. For African governments it is quite a welcome change from the approach they get from Western governments that manages to be both patronizing and demeaning at the same time
Now African countries have more choices; they have the panaceas of the World Bank and the IMF, and at the same time the experience of China. They can compare and choose the best. China's recent history presents seductive possibilities for sub-Saharan Africa. In the past two decades, China has pulled hundreds of millions out of poverty and transformed itself into the world's fastest-growing economy.
A strong voice for developing countries
If Russian, Chinese, Japanese, European and American companies compete for Africa, the competition between them is in the best interest of Africa. Political partnership between African governments and China has also ensured that decisions made in international organizations are in the best interest of the developing countries and not the industrial ones. Many African countries see China as a counterbalance to the heavy domination of social and economic development of Africa by the big powers, mainly in the West. China is supporting democracy and good governance in Africa through positive encouragement and not by imposing or applying punitive measures.
What’s more, the Chinese come to Africa as equals, with no colonial hangover, no complex relationship of resentment. China wants to buy and Africa has something to sell. China’s presence on the continent is many ways like a breath of fresh air, and a way to ending Western domination.
Of course, no government can truly be altruist; but even if the motives may be selfish, what is important here, from the African perspective, is that if African leaders act prudently, their countries can gain from this trend, by pushing forward with its own development. China offers an alternative source of support. China's aid and investments are attractive to Africans, precisely because they come with no conditionality related to governance, fiscal probity, or the other concerns of Western donors.
Sep 8, 2006
Is Kenya Film Board sleeping on the job?
Letter to the editor published in the East African Standard, 6 September 2006
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Although a majority of Bollywood movies can pass for family entertainment, a lot of them are fast changing and portraying diverse issues and have scenes unsuitable for General Exhibition (GE).
For example, the movie Kabhi Alvida na Kehna, that was recently playing on local screens was rated either as ‘GE’ or ‘TBA’. The term ‘TBA’ generally means ‘to be announced’ or ‘to be determined’. Unless this is a new rating category created by the Kenya Film Board, I am not aware of any such rating.
The Board must keep pace with changing times and exercise due diligence when reviewing such movies and rate them appropriately.
I was embarrassed to watch the movie with my young and inquisitive cousins.
Copyright © MMIV . The Standard Group
--------------------------------------------------------------------------------
Although a majority of Bollywood movies can pass for family entertainment, a lot of them are fast changing and portraying diverse issues and have scenes unsuitable for General Exhibition (GE).
For example, the movie Kabhi Alvida na Kehna, that was recently playing on local screens was rated either as ‘GE’ or ‘TBA’. The term ‘TBA’ generally means ‘to be announced’ or ‘to be determined’. Unless this is a new rating category created by the Kenya Film Board, I am not aware of any such rating.
The Board must keep pace with changing times and exercise due diligence when reviewing such movies and rate them appropriately.
I was embarrassed to watch the movie with my young and inquisitive cousins.
Copyright © MMIV . The Standard Group
Aug 31, 2006
REVIEW OF 'WHITE MAN'S BURDEN'
EXCERPTS FROM ‘THE WHITE MAN’S BURDEN’: Why the West’s efforts to Aid The Rest have Done So Much Ill And So Little Good
WILLIAM EASTERLY
This book is a must read for development economists or anyone seriously concerned about the plight of the million of people living in absolute poverty. Of course many factors contribute to why poor countries are poor. Easterly focuses on analyzing the effect of aid, which goes by various names “foreign assistance, Overseas Development Assistance, Poverty Reduction Strategies, Donor assistance and the works.
What this book did for me was really drive some point home, the major one being, why markets are the answer. It was also a thought provoking read. Some issues such as why charity fails, why poor people behave recklessly, why preaching institutional reforms is not so easy, and how the colonial history of African countries is partly to blame for present day instability.
Whereas easterly in no way suggests that he has the answer, he does offer some insightful and interesting solutions to the problem of aid ineffectiveness. The one that impressed me the most was that of issuing development vouchers to the poor. The poor could then redeem these at any NGO or aid agency for any good or service they want- food, books, bed nets and so. In this way demand and supply mechanism would come into play and the poor would have a say in what they require most. NGOs too would feel competitive pressure to deliver because the poor would choose where to get the goods from.
Below are just a few excerpts from a 400 page book. My intention is that it will whet your appetite to learn more
Examples of why the price mechanism is the best way of delivering services to the poor
1) Selling treated bed nets to the poor
PSI sells bed nets for 50cents to mothers through antenatal clinics in rural Malawi, which. The nurse who distributes the nets gets nine cents per net to keep for herself, so the nets are always in stock. PSI also sells nets to richer urban Malawians through the private sector channels for $5. The profits from this are used to pay for the subsidized nets sold at the clinics, so the program is self sustaining. PSI’s bed net program increased the nationwide average of children under five sleeping under nets from 8% in 2000 to 55% in 2004, with a similar increase for pregnant women.
By contrast, a study of a program to handout free nets in Zambia to people, whether they wanted them or not, found that 70% of the recipients didn’t use the nets.
2) Gonoshasthaya Kendra (GK)- the ‘Peoples Health center’, in rural Bangladesh.
GK is the brainchild of Dr. Zafrullah Chowdhury, a Bangladeshi doctor who returned from Britain after Bangladesh won independence in 1971. Dr Zaf trained teenage girls to treat common ailments, deliver prenatal and postnatal care to pregnant women and to refer any emergencies to the hospital that he built. Foreign donors and the Bangladeshi government gave Dr. Zaf money but he also charged the poor modest fees to expand services further. He found that even the poor were willing to pay for good service. Charging the poor modest fees for health care -a notion that outrages anti-globalization activists and ‘planners’ is a way to increase accountability for delivering health services. If the villagers don’t get good service after they have sacrificed to pay for it, they loudly complain. “If a woman dies, the worker has to face the whole village. Accountability is here”, says Dr. Zaf. GK has been successful in lowering maternal deaths in childbirth, infant mortality, and also the number of children that women choose to have. Maternal mortality in the area covered by GK is one fourth the national average.
On free market reforms
Free markets work but free market reforms often don’t. Introducing free markets from the top down is not so simple. It overlooks the long sequence of choice, institutions, and innovations that have allowed free markets to develop in the rich Western economies. It also overlooks the bottom-up perspective on how markets often don’t function well in the low-income societies of Africa, Latin America, Asia and the former Communist bloc. Markets everywhere emerge in an unplanned, spontaneous way, adapting to loyal traditions and circumstances, and not through reforms designed by outsiders. The free market depends on the bottom-up emergence of complex institutions and social norms that are difficult for outsiders to understand, much less change.
Paradoxically, the West tried to plan how to achieve a market. Even after evidence accumulated that these outsider-imposed free markets were not working, unfortunately, the interests of the poor did not have enough weight to force a change in Western policy. Planners underestimated how difficult it is to get markets working in a socially beneficial way. People everywhere have to explore with piecemeal, experimental steps how to move towards free markets.
On ethnic networks
Ethic societies or ‘closed’ groups, in many cultures and societies help solve the problem of cheating. Easterly gives examples of Indians in Kenya, the American entrepreneurs in the 19th century all served together in the Civil war and hence trusted one another. However, he goes on to say that such networks are far from a perfect solution in making markets work. The networks exclude as well as include, missing many entrepreneurs and suppliers when they limit trade to a minority. The gains from trade through personalized exchange are much less than through the impersonal exchange made possible by formal institutions.
On colonialism and forced tribal divides
Given administrative limitations, the colonizers in Africa often relied on ‘chiefs’ to rule for them. But many societies in Africa had no chiefs. The British appointed chiefs anyway, sometimes choosing a village head to rule another village. And in this way Europeans increased despotism in Africa. They left behind a legacy of mistrust between the educated class and the traditional rulers. A rare exception was Botswana where the British left largely intact the traditional structures of the Tswana tribes.
Easterly concludes by saying that Western interference during colonization and at present has been unhelpful. The West should learn from its colonial history when it indulges in neo-imperialist fantasies. They didn’t work then and won’t work now.
WILLIAM EASTERLY
This book is a must read for development economists or anyone seriously concerned about the plight of the million of people living in absolute poverty. Of course many factors contribute to why poor countries are poor. Easterly focuses on analyzing the effect of aid, which goes by various names “foreign assistance, Overseas Development Assistance, Poverty Reduction Strategies, Donor assistance and the works.
What this book did for me was really drive some point home, the major one being, why markets are the answer. It was also a thought provoking read. Some issues such as why charity fails, why poor people behave recklessly, why preaching institutional reforms is not so easy, and how the colonial history of African countries is partly to blame for present day instability.
Whereas easterly in no way suggests that he has the answer, he does offer some insightful and interesting solutions to the problem of aid ineffectiveness. The one that impressed me the most was that of issuing development vouchers to the poor. The poor could then redeem these at any NGO or aid agency for any good or service they want- food, books, bed nets and so. In this way demand and supply mechanism would come into play and the poor would have a say in what they require most. NGOs too would feel competitive pressure to deliver because the poor would choose where to get the goods from.
Below are just a few excerpts from a 400 page book. My intention is that it will whet your appetite to learn more
Examples of why the price mechanism is the best way of delivering services to the poor
1) Selling treated bed nets to the poor
PSI sells bed nets for 50cents to mothers through antenatal clinics in rural Malawi, which. The nurse who distributes the nets gets nine cents per net to keep for herself, so the nets are always in stock. PSI also sells nets to richer urban Malawians through the private sector channels for $5. The profits from this are used to pay for the subsidized nets sold at the clinics, so the program is self sustaining. PSI’s bed net program increased the nationwide average of children under five sleeping under nets from 8% in 2000 to 55% in 2004, with a similar increase for pregnant women.
By contrast, a study of a program to handout free nets in Zambia to people, whether they wanted them or not, found that 70% of the recipients didn’t use the nets.
2) Gonoshasthaya Kendra (GK)- the ‘Peoples Health center’, in rural Bangladesh.
GK is the brainchild of Dr. Zafrullah Chowdhury, a Bangladeshi doctor who returned from Britain after Bangladesh won independence in 1971. Dr Zaf trained teenage girls to treat common ailments, deliver prenatal and postnatal care to pregnant women and to refer any emergencies to the hospital that he built. Foreign donors and the Bangladeshi government gave Dr. Zaf money but he also charged the poor modest fees to expand services further. He found that even the poor were willing to pay for good service. Charging the poor modest fees for health care -a notion that outrages anti-globalization activists and ‘planners’ is a way to increase accountability for delivering health services. If the villagers don’t get good service after they have sacrificed to pay for it, they loudly complain. “If a woman dies, the worker has to face the whole village. Accountability is here”, says Dr. Zaf. GK has been successful in lowering maternal deaths in childbirth, infant mortality, and also the number of children that women choose to have. Maternal mortality in the area covered by GK is one fourth the national average.
On free market reforms
Free markets work but free market reforms often don’t. Introducing free markets from the top down is not so simple. It overlooks the long sequence of choice, institutions, and innovations that have allowed free markets to develop in the rich Western economies. It also overlooks the bottom-up perspective on how markets often don’t function well in the low-income societies of Africa, Latin America, Asia and the former Communist bloc. Markets everywhere emerge in an unplanned, spontaneous way, adapting to loyal traditions and circumstances, and not through reforms designed by outsiders. The free market depends on the bottom-up emergence of complex institutions and social norms that are difficult for outsiders to understand, much less change.
Paradoxically, the West tried to plan how to achieve a market. Even after evidence accumulated that these outsider-imposed free markets were not working, unfortunately, the interests of the poor did not have enough weight to force a change in Western policy. Planners underestimated how difficult it is to get markets working in a socially beneficial way. People everywhere have to explore with piecemeal, experimental steps how to move towards free markets.
On ethnic networks
Ethic societies or ‘closed’ groups, in many cultures and societies help solve the problem of cheating. Easterly gives examples of Indians in Kenya, the American entrepreneurs in the 19th century all served together in the Civil war and hence trusted one another. However, he goes on to say that such networks are far from a perfect solution in making markets work. The networks exclude as well as include, missing many entrepreneurs and suppliers when they limit trade to a minority. The gains from trade through personalized exchange are much less than through the impersonal exchange made possible by formal institutions.
On colonialism and forced tribal divides
Given administrative limitations, the colonizers in Africa often relied on ‘chiefs’ to rule for them. But many societies in Africa had no chiefs. The British appointed chiefs anyway, sometimes choosing a village head to rule another village. And in this way Europeans increased despotism in Africa. They left behind a legacy of mistrust between the educated class and the traditional rulers. A rare exception was Botswana where the British left largely intact the traditional structures of the Tswana tribes.
Easterly concludes by saying that Western interference during colonization and at present has been unhelpful. The West should learn from its colonial history when it indulges in neo-imperialist fantasies. They didn’t work then and won’t work now.
MY FAVORITE BOOKS (READ JAN 2005- AUG 2006)
• ‘In defence of global Capitalism’ by Johan Norberg- This book gives an in-depth explanation on how globalisation in the 21st century is promoting freedom and creating opportunities for the poor. The author uses a lot of examples, which makes it a lively read. The use of graphs also makes and easy reference point
• Lords of Poverty’ by Graham Hancock- A touching expose about the lifestyles, power, prestige and corruption of the multibillion dollar poverty ‘industry’.
• The Mystery of Capital: why capitalism triumphs in the West and Fails Everywhere Else- Hernando de Soto. This book has a simple idea to offer- capital is important for prosperity. But most poor people have assets that de Soto calls ‘dead capital’-assets that they cannot use as collateral to start up businesses. The author proposed how to enable the poor to turn this dead capital into useful productive assets that could help create more wealth.
• Behind the scenes at the WTO: the real world of international trade negotiations- Fatoumata Jawara & Aileen Kwa. Exposes the hooligan methods used by the West and powerful lobby groups in employing arm-twisting techniques when it comes to trade negotiations with poor countries. This book paints a very contradicting picture to that of the mission and role of the WTO- a democratic international organization in which all member countries are equal.
• Lords of Poverty’ by Graham Hancock- A touching expose about the lifestyles, power, prestige and corruption of the multibillion dollar poverty ‘industry’.
• The Mystery of Capital: why capitalism triumphs in the West and Fails Everywhere Else- Hernando de Soto. This book has a simple idea to offer- capital is important for prosperity. But most poor people have assets that de Soto calls ‘dead capital’-assets that they cannot use as collateral to start up businesses. The author proposed how to enable the poor to turn this dead capital into useful productive assets that could help create more wealth.
• Behind the scenes at the WTO: the real world of international trade negotiations- Fatoumata Jawara & Aileen Kwa. Exposes the hooligan methods used by the West and powerful lobby groups in employing arm-twisting techniques when it comes to trade negotiations with poor countries. This book paints a very contradicting picture to that of the mission and role of the WTO- a democratic international organization in which all member countries are equal.
Aug 6, 2006
PATRIOTISM DOES NOT COME NATURALLY, BUT WITH PROGRESS OF SOCIETY
PATRIOTISM DOES NOT COME NATURALLY, BUT WITH PROGRESS OF SOCIETY
Dr. Mutua’s commentary on ‘Why we should all be proud to be Kenyans’ (Sunday Nation, 6 august) was indeed a timely and thought provoking piece. In the one year that I have spent living away from home, I have always pondered over the question what makes Kenya special. Surely there must be more to it than the wildlife, the good weather, the lovely chai and friendly people that explains the magic of Kenya. Upon reflection however, many things that came to mind were not ‘truly Kenyan’ things. This is where the problem lies.
Several factors contribute to the level of pride citizens have towards their country. According to the National Opinion Research Center at the University of Chicago, people rate how proud they are of their countries in 10 areas: political influence, social security, the way their democracy works, economic success, science and technology, sports, arts and literature, military, history, and fair treatment of all groups in society. So, patriotism does not come naturally, it comes with progress of society.
Kenya has been known to be more western than her neighbours, mimicking everything from music, fashion to diet. Today, Kenyans are suffering from a disease called ‘demonstration effect’, that is, the phenomenon of local residents adopting the styles and manners they have observed in foreign cultures and lifestyles.
Kenyans need to embrace a patriotism based on the unconditional love of their country. We need a new sense of patriotism, one that expresses our unconditional love for Kenya and lives up to our responsibility to our fellow Kenyans. Efforts and emphasis must focus around rediscovering on what it means to be Kenyan. This type of patriotism brings with it much more; when your country misbehaves, you can't just roll your eyes as if you had nothing to do with it.
Dr. Mutua’s commentary on ‘Why we should all be proud to be Kenyans’ (Sunday Nation, 6 august) was indeed a timely and thought provoking piece. In the one year that I have spent living away from home, I have always pondered over the question what makes Kenya special. Surely there must be more to it than the wildlife, the good weather, the lovely chai and friendly people that explains the magic of Kenya. Upon reflection however, many things that came to mind were not ‘truly Kenyan’ things. This is where the problem lies.
Several factors contribute to the level of pride citizens have towards their country. According to the National Opinion Research Center at the University of Chicago, people rate how proud they are of their countries in 10 areas: political influence, social security, the way their democracy works, economic success, science and technology, sports, arts and literature, military, history, and fair treatment of all groups in society. So, patriotism does not come naturally, it comes with progress of society.
Kenya has been known to be more western than her neighbours, mimicking everything from music, fashion to diet. Today, Kenyans are suffering from a disease called ‘demonstration effect’, that is, the phenomenon of local residents adopting the styles and manners they have observed in foreign cultures and lifestyles.
Kenyans need to embrace a patriotism based on the unconditional love of their country. We need a new sense of patriotism, one that expresses our unconditional love for Kenya and lives up to our responsibility to our fellow Kenyans. Efforts and emphasis must focus around rediscovering on what it means to be Kenyan. This type of patriotism brings with it much more; when your country misbehaves, you can't just roll your eyes as if you had nothing to do with it.
M-BANKING IN AFRICA
Mobile-Phone Banking Showing Signs of Growth!
***********************************
The mobile phone is the one pervasive device which has fewer barriers to entry than most technologies, and it has penetrated some of the poorest economies due to the overwhelming demand for any form of telecommunications. Mobile phones have presented a unique opportunity to individuals and even companies, not only in the communications and data transfer environments, but the banking environment as well.
"Africa and other developing nations are in the supposedly unenviable position of having a great number of people outside of the realm of traditional financial services. Although this is viewed by many as a challenge, from an African context this presents an opportunity for exploring new avenues of bringing these people into the financial transactional environment though the world of mobile banking or m-banking. Financial institutions on the African continent have acknowledged that in order to achieve greater penetration and ultimately share of wallet, they need to explore new methods of banking," says Hannes van Rensburg, CEO at Fundamo.
"Africa is a cash-based society, and while the Western world views m-banking as almost exclusively about credit card transactions - African companies are proving that it can better be used as a tool to facilitate virtually any form of payment, directly from a mobile phone. To people unable to always make it to the nearest town or transaction point at the drop of a hat, m-banking offers banking to virtually all," adds van Rensburg.
An example of such a deployment is FNB-owned Celpay, a mobile payment facilitator operating in Zambia and the Democratic Republic of the Congo (DRC). It offers mobile phone-based virtual bank accounts with advanced features which compare to many normal bank accounts. Account transfers, bill payments, cash deposits and withdrawals and prepaid airtime vending are all supported with real-time clearing. Celpay has also developed m-banking business services like cash-on-delivery payment functionality and companies like BP, MultiChoice and various caf閟, supermarkets, pharmacies, hair salons and even an O'Hagan's in Zambia use the system.
Mobile transacting has a number of advantages over more traditional banking methods as it breaks down geographical constraints and offers other advantages such as immediacy, security and efficiency.
The knock-on benefits of this are seen by the users, mobile operators, banks and retailers. Operators see M-banking as increased traffic, customer retention and improved service offerings. Banks see it as allowing for immediate transactions (meaning the unbanked become banking customers), an alternative to carrying cash which in turn means better cash retention, increased security and payment efficiencies, reduced dependency on ATMs and branch infrastructures (meaning lowering of operating expenditure) etc. The greatest benefit is probably for the users who are able to affect a payment from anywhere to anyone creating a macroeconomic benefit that is as yet unmeasurable, but is most certainly significant.
The realityM-banking is gaining momentum throughout the continent and Fundamo has already provided solutions and supporting services to providers in South Africa, Kenya, Botswana, Zimbabwe, Zambia and the DRC.
The reality is that African businesses are willing to try new technologies which are safe, cost effective and allow them to break traditional barriers. There is a growing base of retailers accepting payments already and for consumers, buying airtime, paying bills and other payment types make this a worthwhile and convenient tool.
"The use of the mobile phone is still growing rapidly in Africa. Mobile phones not only break communication barriers but can also be seen as a mini-computer - with a mobile phone people are always on, always reachable and have a secure computing device in the palm of their hands. M-banking certainly offers many application opportunities, especially to developing countries, on the back of a technology culture which is already accepted - meaning half the battle is already won," concludes van Rensburg.
***********************************
The mobile phone is the one pervasive device which has fewer barriers to entry than most technologies, and it has penetrated some of the poorest economies due to the overwhelming demand for any form of telecommunications. Mobile phones have presented a unique opportunity to individuals and even companies, not only in the communications and data transfer environments, but the banking environment as well.
"Africa and other developing nations are in the supposedly unenviable position of having a great number of people outside of the realm of traditional financial services. Although this is viewed by many as a challenge, from an African context this presents an opportunity for exploring new avenues of bringing these people into the financial transactional environment though the world of mobile banking or m-banking. Financial institutions on the African continent have acknowledged that in order to achieve greater penetration and ultimately share of wallet, they need to explore new methods of banking," says Hannes van Rensburg, CEO at Fundamo.
"Africa is a cash-based society, and while the Western world views m-banking as almost exclusively about credit card transactions - African companies are proving that it can better be used as a tool to facilitate virtually any form of payment, directly from a mobile phone. To people unable to always make it to the nearest town or transaction point at the drop of a hat, m-banking offers banking to virtually all," adds van Rensburg.
An example of such a deployment is FNB-owned Celpay, a mobile payment facilitator operating in Zambia and the Democratic Republic of the Congo (DRC). It offers mobile phone-based virtual bank accounts with advanced features which compare to many normal bank accounts. Account transfers, bill payments, cash deposits and withdrawals and prepaid airtime vending are all supported with real-time clearing. Celpay has also developed m-banking business services like cash-on-delivery payment functionality and companies like BP, MultiChoice and various caf閟, supermarkets, pharmacies, hair salons and even an O'Hagan's in Zambia use the system.
Mobile transacting has a number of advantages over more traditional banking methods as it breaks down geographical constraints and offers other advantages such as immediacy, security and efficiency.
The knock-on benefits of this are seen by the users, mobile operators, banks and retailers. Operators see M-banking as increased traffic, customer retention and improved service offerings. Banks see it as allowing for immediate transactions (meaning the unbanked become banking customers), an alternative to carrying cash which in turn means better cash retention, increased security and payment efficiencies, reduced dependency on ATMs and branch infrastructures (meaning lowering of operating expenditure) etc. The greatest benefit is probably for the users who are able to affect a payment from anywhere to anyone creating a macroeconomic benefit that is as yet unmeasurable, but is most certainly significant.
The realityM-banking is gaining momentum throughout the continent and Fundamo has already provided solutions and supporting services to providers in South Africa, Kenya, Botswana, Zimbabwe, Zambia and the DRC.
The reality is that African businesses are willing to try new technologies which are safe, cost effective and allow them to break traditional barriers. There is a growing base of retailers accepting payments already and for consumers, buying airtime, paying bills and other payment types make this a worthwhile and convenient tool.
"The use of the mobile phone is still growing rapidly in Africa. Mobile phones not only break communication barriers but can also be seen as a mini-computer - with a mobile phone people are always on, always reachable and have a secure computing device in the palm of their hands. M-banking certainly offers many application opportunities, especially to developing countries, on the back of a technology culture which is already accepted - meaning half the battle is already won," concludes van Rensburg.
MOBILE PHONES IN DRC
This is an article from The Washington Post, Sunday 9 July. It talks about how mobile phone banking is fast catching up in remote areas of developing countries. It aslo illustrates how mobile phones are fast reducing the inequalities in access to technology. Enjoy!
_________________________________________________________________________________
In War-Torn Congo, Going Wireless to Reach Home
For Poor, Cellphones Bridge Digital Divide
By Kevin Sullivan
Washington Post Foreign Service
Sunday, July 9, 2006; Page A01
KINSHASA, Congo -- Until not long ago, if Zadhe Iyombe wanted to talk to his mother, he had to make the eight-day boat trip up the Congo River to the jungle town where he was raised. In a country with almost no roads, mail or telephone system and a grisly guerrilla war raging, making that exhausting and dangerous trip was about the only way he could find out if his 59-year-old mother was still alive.
Then he got a cellphone.
Fiston Disundi, an ex-soldier, receives cash in a transaction recorded on the teller's cellphone. The payment aims to get fighters to turn in their guns. (Kevin Sullivan - Twp)
Crisis in Darfur
More than 2 million civilians have fled their homes and hundreds of thousands have died in the Sudan conflict.
Now he talks to his mother every day. And once a week, with a simple new feature in African cellphones, he uses a text message to transfer five minutes of airtime to her phone to make sure she can always call him.
"Now I know immediately how she is doing," said Iyombe, who lives here in the capital, 400 miles southwest of his mother's home. "These phones make everything easier. It has totally changed life in Congo."
As surely as the light bulb and the automobile before them, the cellphone and text messaging are radically changing the way people live in the developing world. In widespread use for about five years in much of Africa, technology long taken for granted by the world's rich has made life easier, safer and more prosperous for the world's poor.
For the first time, millions of Africans are able to communicate easily with people who are beyond shouting distance. Farmers and fishermen, for example, use text messaging to check market prices, eliminating middlemen and increasing profits -- and preventing long trips to the market on days it is canceled.
In cities, cellphones are becoming a basic tool of electronic commerce, allowing consumers to transfer money to merchants with a few presses on the keypad.
Restaurant owners now can advertise by sending bulk texts to their customers, promising something delicious for lunch. People call a doctor, mechanic or police officer instead of walking miles to find one. News of births, deaths and illnesses instantly reaches the farthest corners of the jungle, where mothers like Iyombe's struggle with the concept of their children's voices emerging from a little plastic box with buttons.
"Before, if you had a sick baby in the middle of the night, he could easily die," Iyombe said, holding the Nokia phone that has raised his ambitions and expectations of life. "Now you can call somebody to help."
Worldwide, there are more than 2.4 billion cellphone users, with more than 1,000 new customers added every minute, according to industry analysts. About 59 percent of users are in developing countries, making cellphones the first telecommunications technology in history to have more users there than in the developed world.
Cellphone usage in Africa is growing faster than in any other region and jumped from 63 million users two years ago to about 152 million today, according to David Pringle, a spokesman for the GSM Association, a trade group that represents cellular companies whose customers account for 80 percent of the global total.
Few places are seeing faster growth than Congo, which has 3.2 million cellphone customers and just 20,000 conventional land lines. At least 8,000 new cellphone customers sign up each day here; the number of users has increased more than tenfold in the past five years.
_________________________________________________________________________________
In War-Torn Congo, Going Wireless to Reach Home
For Poor, Cellphones Bridge Digital Divide
By Kevin Sullivan
Washington Post Foreign Service
Sunday, July 9, 2006; Page A01
KINSHASA, Congo -- Until not long ago, if Zadhe Iyombe wanted to talk to his mother, he had to make the eight-day boat trip up the Congo River to the jungle town where he was raised. In a country with almost no roads, mail or telephone system and a grisly guerrilla war raging, making that exhausting and dangerous trip was about the only way he could find out if his 59-year-old mother was still alive.
Then he got a cellphone.
Fiston Disundi, an ex-soldier, receives cash in a transaction recorded on the teller's cellphone. The payment aims to get fighters to turn in their guns. (Kevin Sullivan - Twp)
Crisis in Darfur
More than 2 million civilians have fled their homes and hundreds of thousands have died in the Sudan conflict.
Now he talks to his mother every day. And once a week, with a simple new feature in African cellphones, he uses a text message to transfer five minutes of airtime to her phone to make sure she can always call him.
"Now I know immediately how she is doing," said Iyombe, who lives here in the capital, 400 miles southwest of his mother's home. "These phones make everything easier. It has totally changed life in Congo."
As surely as the light bulb and the automobile before them, the cellphone and text messaging are radically changing the way people live in the developing world. In widespread use for about five years in much of Africa, technology long taken for granted by the world's rich has made life easier, safer and more prosperous for the world's poor.
For the first time, millions of Africans are able to communicate easily with people who are beyond shouting distance. Farmers and fishermen, for example, use text messaging to check market prices, eliminating middlemen and increasing profits -- and preventing long trips to the market on days it is canceled.
In cities, cellphones are becoming a basic tool of electronic commerce, allowing consumers to transfer money to merchants with a few presses on the keypad.
Restaurant owners now can advertise by sending bulk texts to their customers, promising something delicious for lunch. People call a doctor, mechanic or police officer instead of walking miles to find one. News of births, deaths and illnesses instantly reaches the farthest corners of the jungle, where mothers like Iyombe's struggle with the concept of their children's voices emerging from a little plastic box with buttons.
"Before, if you had a sick baby in the middle of the night, he could easily die," Iyombe said, holding the Nokia phone that has raised his ambitions and expectations of life. "Now you can call somebody to help."
Worldwide, there are more than 2.4 billion cellphone users, with more than 1,000 new customers added every minute, according to industry analysts. About 59 percent of users are in developing countries, making cellphones the first telecommunications technology in history to have more users there than in the developed world.
Cellphone usage in Africa is growing faster than in any other region and jumped from 63 million users two years ago to about 152 million today, according to David Pringle, a spokesman for the GSM Association, a trade group that represents cellular companies whose customers account for 80 percent of the global total.
Few places are seeing faster growth than Congo, which has 3.2 million cellphone customers and just 20,000 conventional land lines. At least 8,000 new cellphone customers sign up each day here; the number of users has increased more than tenfold in the past five years.
FOREIGN AID: CHALLENGES AND OPPORTUNITIES
WOLFOWITZ ON FOREIGN AID: CHALLENGES AND OPPORTUNITIES
I recently attended a lecture by Paul Wolfowitz, president of the World Bank, at the Heritage Foundation in Washington DC.
Since he came into office, Mr. Wolfowitz has stressed on Sub-Saharan Africa and fighting corruption.
In his speech, he acknowledged the incredible energy and ambition that can be seen in ordinary Africans. This, he said makes it possible to change the continent. Although the region of Sub-Saharan Africa faces an enormous challenge, it is not a hopeless case. The reason for this is that, today, in Africa, there are two important transformations taking place. First, Africans themselves are taking the lead in overcoming challenges. The progress in countries such as Liberia, Sierra Leone and Mozambique speak is evidence. Secondly, both donors and recipients worldwide are putting an increasing importance on aid effectiveness and that in turn is demanding institutions and policies that work. Corruption is really not separable from any of the other areas of priority.
The world has seen significant progress in the last 15 years and in the last 25 years; half a billion people have escaped extreme poverty- defined as the number of people living below the poverty line. Most of this progress, however, came from south East Asia and China. However, this progress was not inevitable as it may see today. In the 1960s there was a frequently used expression, ‘oriental fatalism’, which described what people in China thought- Life has been miserable for 400 years and its going to be so for another 4000 years- there is no point in making any efforts to change things. In the 1960s South Korea was considered to be a basket case, with no natural resources, griddled with corruption, and burdened with a Confucian ethic that men don’t work. But things did change and they too can change in Africa. The challenges it faces are HIV/AIDS, and education.
Africa’s greatest and most important resource are its people and the challenge is how to the unleash this energy and potential, in a way that can improve their lives.
15 African countries have been able to maintain growth rates of 4% or better over the last 10 years, and the median of that group is better than 5%. The top performers are Rwanda and Mozambique. However, this trend will not automatically translate into less poverty. Investors have increased private debt and equity flows from $10 billion five years ago to $30 billion. The average annual return on investment in Africa is one of the highest in the world, averaging around 30%.
African government are making it easier for investors to do business and for entrepreneurs to set up business. For example, entrepreneurs in Burkina Faso which used to be one of the most overregulated economies can now open a business in fewer days, using fewer forms and following lesser procedures. One entrepreneur launched a cell phone company in the Democratic Republic of Congo, not a place once thought to be promising. The initial forecast was a market for only 10,000 subscribers; his company reached his first 1 million customers in less than five years.
Importantly, Africa is moving toward greater peace and stability. Just four years ago there were 16 active conflicts destroying countries, families and businesses. Today that number is down to six- still six too many. There is hope and opportunity emerging from the ashes of these conflicts. Just 5 years ago, Sierra Leone and Liberia seems truly hopeless. Sirleaf-Johnson, Africa’s first female president (a former World Bank employee), has promised to electrify the entire capital city in 6 months. Rwanda, after a gruesome genocide had no infrastructure, no capital, but today, it is doing well, because the government invested in its people. In fact it ranks as one of the best reformers.
Throughout the continent countries are adhering to their constitutions, the voices of civil society in parliament have become stronger; people are demanding stronger public governance and more accountability.
However, it must be remembered that corruption is not a disease or a plague of developing countries. Every corrupt transaction has 2 parties, very often the bribe being developed countries, multinationals and foreign banks. Stolen assets end up in the banks of developed countries, which have an obligation and responsibility to help African government recover these assets.
Developed countries have promised to double aid to Africa. But as Tony Blair put it it is ‘a deal for a deal’- in exchange for increased assistance, developing countries must strengthen their institutions and ensure resources are spent wisely. Mutual accountability has been top on the agenda in the development community and as a result, governance is also gaining importance. Research suggests that a country that can improve its governance can almost triple its income per capita in the long term, can reduce infant mortality and illiteracy by two-thirds; that’s what some people call the triple dividend of good governance.
In Dec 2005, Gallup International took a poll asking people around the world whether they thought 2006 would be better that 2005. Africans came out as the most optimistic. 57% of them though things would be better. Now more than ever the opportunity exists for Africans to transform Africa and determine their own future.
I recently attended a lecture by Paul Wolfowitz, president of the World Bank, at the Heritage Foundation in Washington DC.
Since he came into office, Mr. Wolfowitz has stressed on Sub-Saharan Africa and fighting corruption.
In his speech, he acknowledged the incredible energy and ambition that can be seen in ordinary Africans. This, he said makes it possible to change the continent. Although the region of Sub-Saharan Africa faces an enormous challenge, it is not a hopeless case. The reason for this is that, today, in Africa, there are two important transformations taking place. First, Africans themselves are taking the lead in overcoming challenges. The progress in countries such as Liberia, Sierra Leone and Mozambique speak is evidence. Secondly, both donors and recipients worldwide are putting an increasing importance on aid effectiveness and that in turn is demanding institutions and policies that work. Corruption is really not separable from any of the other areas of priority.
The world has seen significant progress in the last 15 years and in the last 25 years; half a billion people have escaped extreme poverty- defined as the number of people living below the poverty line. Most of this progress, however, came from south East Asia and China. However, this progress was not inevitable as it may see today. In the 1960s there was a frequently used expression, ‘oriental fatalism’, which described what people in China thought- Life has been miserable for 400 years and its going to be so for another 4000 years- there is no point in making any efforts to change things. In the 1960s South Korea was considered to be a basket case, with no natural resources, griddled with corruption, and burdened with a Confucian ethic that men don’t work. But things did change and they too can change in Africa. The challenges it faces are HIV/AIDS, and education.
Africa’s greatest and most important resource are its people and the challenge is how to the unleash this energy and potential, in a way that can improve their lives.
15 African countries have been able to maintain growth rates of 4% or better over the last 10 years, and the median of that group is better than 5%. The top performers are Rwanda and Mozambique. However, this trend will not automatically translate into less poverty. Investors have increased private debt and equity flows from $10 billion five years ago to $30 billion. The average annual return on investment in Africa is one of the highest in the world, averaging around 30%.
African government are making it easier for investors to do business and for entrepreneurs to set up business. For example, entrepreneurs in Burkina Faso which used to be one of the most overregulated economies can now open a business in fewer days, using fewer forms and following lesser procedures. One entrepreneur launched a cell phone company in the Democratic Republic of Congo, not a place once thought to be promising. The initial forecast was a market for only 10,000 subscribers; his company reached his first 1 million customers in less than five years.
Importantly, Africa is moving toward greater peace and stability. Just four years ago there were 16 active conflicts destroying countries, families and businesses. Today that number is down to six- still six too many. There is hope and opportunity emerging from the ashes of these conflicts. Just 5 years ago, Sierra Leone and Liberia seems truly hopeless. Sirleaf-Johnson, Africa’s first female president (a former World Bank employee), has promised to electrify the entire capital city in 6 months. Rwanda, after a gruesome genocide had no infrastructure, no capital, but today, it is doing well, because the government invested in its people. In fact it ranks as one of the best reformers.
Throughout the continent countries are adhering to their constitutions, the voices of civil society in parliament have become stronger; people are demanding stronger public governance and more accountability.
However, it must be remembered that corruption is not a disease or a plague of developing countries. Every corrupt transaction has 2 parties, very often the bribe being developed countries, multinationals and foreign banks. Stolen assets end up in the banks of developed countries, which have an obligation and responsibility to help African government recover these assets.
Developed countries have promised to double aid to Africa. But as Tony Blair put it it is ‘a deal for a deal’- in exchange for increased assistance, developing countries must strengthen their institutions and ensure resources are spent wisely. Mutual accountability has been top on the agenda in the development community and as a result, governance is also gaining importance. Research suggests that a country that can improve its governance can almost triple its income per capita in the long term, can reduce infant mortality and illiteracy by two-thirds; that’s what some people call the triple dividend of good governance.
In Dec 2005, Gallup International took a poll asking people around the world whether they thought 2006 would be better that 2005. Africans came out as the most optimistic. 57% of them though things would be better. Now more than ever the opportunity exists for Africans to transform Africa and determine their own future.
Jul 23, 2006
TOURISM IN KENYA
GEDI RUINS - NEAR MALINDI -
COULD BE A MAJOR ATTRACTION
TO MAKE KENYA INTO EUROPE'S "NUMERO UNO"
DESTINATION IS NOT REALLY ALL THAT DIFFICULT
Coastweek - - Although the tourism industry has seen some recent signs of robust growth a lot more needs to be done to make Kenya the number one tourist destination in Africa.
Tourism not only creates direct employment through the investment of capital but it also creates indirect jobs in related sectors such as transport companies, car hire firms, hardware shops, food processing factories and so on.
The problem however, is that the current set of incentives for the tourism industry are completely exclusive of the local people.
They are segregated and uninvolved in many tourism activities and decisions.
.
INVOLVEMENT CREATES A SENSE OF PRIDE
If the local community in certain tourism destination were involved more, they would feel a greater sense of pride in contributing to development of their areas.
This would automatically sustain a sustainable way of promoting tourism- ecotourism.
Last summer, while on Holiday at home, a trip to the Coast filled me with grief as I saw the abundant potential that still exists to boost tourism.
The stretch along Mama Ngina Drive is a perfect example of the many opportunities that exist.
Here alone exists the historic lighthouse, the popular Florida nightclub, and a golf course with the most magnificent view of the sea at large.
By evening this place becomes a bustling hub with the locals selling the traditional Swahili food - mandazi, mhogo cooked in various forms and madafu.
But does one ever see bus loads of tourists venturing to try these delicious fares?
.
Insecurity, pothole filled roads
and a general lack of publicity.
Why, what or who is to blame?
Insecurity, pothole filled roads and a general lack of publicity.
With some private investment and help from the government, the place could become just like one those popular touristy night markets that are found in Malaysia and Singapore.
The historical Fort Jesus, a slightly more popular and visited attraction is still not exploited to its full potential.
It is the main attraction in Old Town which offers lovely colonial era architecture and typical Arabic and Lamu style buildings, all of which could be offered as walking tours of the city that once was.
The city council could help restore and clean up this area by giving local inhabitants incentives to maintain their buildings.
The Vasco de Gama pillar in Malindi, a famous colonial era monument is also probably even unheard of by tourists who visit the Coast.
In fact Malindi is now only known to be a 'party' town.
There also used to once exist an underground wartime tunnel between the now derelict Hotel Manor and the watchtower on Mama Ngina Drive.
Developers with innovative ideas wanted to turn this into a major tourist attraction were prohibited from doing so due to politicizing of the issue.
Also near Malindi lie the historic but unexplored Gedi ruins, which is another place that could be a major attraction.
Tourists in other parts of the world, in Rome for example solely visit the city for its ruins in Fora Romano and the Colesseum.
Perhaps the Gedi ruins can become like these places.
Just like the "Gondola" trips in Venice, we can have "dhow trips" from the Likoni Harbour.
Tourism in Kenya is the most feasible and viable way forward since the primary infrastructure already exists.
All that is required investing in secondary infrastructure - improving the roads to these particular areas, encouraging the tourism board to market Kenya for more things than just the Big Five, and most important of all, maintaining these sites by ensuring that they are easily accessible by all, have tourist police on site and have public facilities.
To make Kenya Europe's number one destination is not all that difficult as it may seem even in the era of 'travel advisories'.
With the right incentives to the private sector and little help from the government, Kenya could very soon overtake Tanzania, Egypt and Mauritius.
Shreya Hasmukhlal Shah, Kenyan graduate student, International Business School, Brandeis University, U.S.A.
cherieshez@gmail.com
--------------------------------------------------------------------------------
Copyright © '96, '97, '98, '99, '00, '01, '02, '03, '04, '05, 2006.
Coastweek Newspapers Ltd. All rights reserved.
COULD BE A MAJOR ATTRACTION
TO MAKE KENYA INTO EUROPE'S "NUMERO UNO"
DESTINATION IS NOT REALLY ALL THAT DIFFICULT
Coastweek - - Although the tourism industry has seen some recent signs of robust growth a lot more needs to be done to make Kenya the number one tourist destination in Africa.
Tourism not only creates direct employment through the investment of capital but it also creates indirect jobs in related sectors such as transport companies, car hire firms, hardware shops, food processing factories and so on.
The problem however, is that the current set of incentives for the tourism industry are completely exclusive of the local people.
They are segregated and uninvolved in many tourism activities and decisions.
.
INVOLVEMENT CREATES A SENSE OF PRIDE
If the local community in certain tourism destination were involved more, they would feel a greater sense of pride in contributing to development of their areas.
This would automatically sustain a sustainable way of promoting tourism- ecotourism.
Last summer, while on Holiday at home, a trip to the Coast filled me with grief as I saw the abundant potential that still exists to boost tourism.
The stretch along Mama Ngina Drive is a perfect example of the many opportunities that exist.
Here alone exists the historic lighthouse, the popular Florida nightclub, and a golf course with the most magnificent view of the sea at large.
By evening this place becomes a bustling hub with the locals selling the traditional Swahili food - mandazi, mhogo cooked in various forms and madafu.
But does one ever see bus loads of tourists venturing to try these delicious fares?
.
Insecurity, pothole filled roads
and a general lack of publicity.
Why, what or who is to blame?
Insecurity, pothole filled roads and a general lack of publicity.
With some private investment and help from the government, the place could become just like one those popular touristy night markets that are found in Malaysia and Singapore.
The historical Fort Jesus, a slightly more popular and visited attraction is still not exploited to its full potential.
It is the main attraction in Old Town which offers lovely colonial era architecture and typical Arabic and Lamu style buildings, all of which could be offered as walking tours of the city that once was.
The city council could help restore and clean up this area by giving local inhabitants incentives to maintain their buildings.
The Vasco de Gama pillar in Malindi, a famous colonial era monument is also probably even unheard of by tourists who visit the Coast.
In fact Malindi is now only known to be a 'party' town.
There also used to once exist an underground wartime tunnel between the now derelict Hotel Manor and the watchtower on Mama Ngina Drive.
Developers with innovative ideas wanted to turn this into a major tourist attraction were prohibited from doing so due to politicizing of the issue.
Also near Malindi lie the historic but unexplored Gedi ruins, which is another place that could be a major attraction.
Tourists in other parts of the world, in Rome for example solely visit the city for its ruins in Fora Romano and the Colesseum.
Perhaps the Gedi ruins can become like these places.
Just like the "Gondola" trips in Venice, we can have "dhow trips" from the Likoni Harbour.
Tourism in Kenya is the most feasible and viable way forward since the primary infrastructure already exists.
All that is required investing in secondary infrastructure - improving the roads to these particular areas, encouraging the tourism board to market Kenya for more things than just the Big Five, and most important of all, maintaining these sites by ensuring that they are easily accessible by all, have tourist police on site and have public facilities.
To make Kenya Europe's number one destination is not all that difficult as it may seem even in the era of 'travel advisories'.
With the right incentives to the private sector and little help from the government, Kenya could very soon overtake Tanzania, Egypt and Mauritius.
Shreya Hasmukhlal Shah, Kenyan graduate student, International Business School, Brandeis University, U.S.A.
cherieshez@gmail.com
--------------------------------------------------------------------------------
Copyright © '96, '97, '98, '99, '00, '01, '02, '03, '04, '05, 2006.
Coastweek Newspapers Ltd. All rights reserved.
Jul 15, 2006
MEDIA COVERAGE ON AFRICA
THE UNTOLD TRUTHS FROM THE DARK CONTINENT-
WHO WILL BE THE REAL VOICE OF AFRICA?
It is said that Africa is the worst of all continents, a continent of ‘doom and groom’. Yes we may not be the richest, but we certainly are the world's staunchest optimists.
Despite all its difficulties to overcome its economical, social and political problems, Africa is a warm and happy continent. For that, the most important thing in the heart of all the Africans is "HOPE".
Most people in the US, however, don’t know enough about the other side of Africa because the current media coverage is reactionary and suffers from the “if it bleeds, it leads” syndrome. The western media tends to overplay the negative side of events in Africa to serve their “domestic audiences, corporate interests and home governments”.
The most interesting stories are not Africa’s problems but the hope and heroism throughout the continent in the face of those problems. The lack of consistent media attention is obscuring important positive developments in Africa. Today there is a second wind of change blowing across Africa, a trend towards greater democracy and a growing confidence that goes uncovered by the media. Disasters in Somalia, Darfur and West Africa dominate, while transitions to democracy in Kenya, Botswana, Mozambique, Nigeria, Ghana, South Africa, Namibia, and elsewhere are ignored.
Understanding the day-to-day stories of Africa means abandoning preconceived notions. Reporters should try to portray people in ways that are recognizable to Africans. With better media coverage, the United States and the world would realize that there is more to Africa than death, disease, disaster, and despair.
The promotion and visibility of a brighter Africa within society-at-large will play a significant role in creating cultural pride, encourage good business practice and sound investment in African businesses.
WHO WILL BE THE REAL VOICE OF AFRICA?
It is said that Africa is the worst of all continents, a continent of ‘doom and groom’. Yes we may not be the richest, but we certainly are the world's staunchest optimists.
Despite all its difficulties to overcome its economical, social and political problems, Africa is a warm and happy continent. For that, the most important thing in the heart of all the Africans is "HOPE".
Most people in the US, however, don’t know enough about the other side of Africa because the current media coverage is reactionary and suffers from the “if it bleeds, it leads” syndrome. The western media tends to overplay the negative side of events in Africa to serve their “domestic audiences, corporate interests and home governments”.
The most interesting stories are not Africa’s problems but the hope and heroism throughout the continent in the face of those problems. The lack of consistent media attention is obscuring important positive developments in Africa. Today there is a second wind of change blowing across Africa, a trend towards greater democracy and a growing confidence that goes uncovered by the media. Disasters in Somalia, Darfur and West Africa dominate, while transitions to democracy in Kenya, Botswana, Mozambique, Nigeria, Ghana, South Africa, Namibia, and elsewhere are ignored.
Understanding the day-to-day stories of Africa means abandoning preconceived notions. Reporters should try to portray people in ways that are recognizable to Africans. With better media coverage, the United States and the world would realize that there is more to Africa than death, disease, disaster, and despair.
The promotion and visibility of a brighter Africa within society-at-large will play a significant role in creating cultural pride, encourage good business practice and sound investment in African businesses.
Jul 13, 2006
TRAFFIC CONGESTION IN NAIROBI
High parking fee not a solution
Story by: Shreya Shah
Publication Date: 7/13/2006
The proposal by the Matatu Welfare Association's chairman, Mr Dickson Mbugua, that the daily parking fee in Nairobi be increased from Sh70 to Sh500 will do little to ease the traffic congestion.
The reasons for the city's congestion are multiple and have been a key concern for decades.
Nairobi expanded out of a work camp of builders of the Mombasa-Kampala railway when the primary means of transport was the ox-wagon. Since those humble beginnings, few major changes have been made to the road grid in the city centre.
The problem grew with the emergence of reconditioned cars as many urban middle-income families, who could not previously afford personal cars, were now able to drive to work.
Since then the city's roads have become choked with motor vehicles of all kinds and in numbers never initially envisioned. The mushrooming of housing estates in rural peripheries in the 1980s has played a part.
While these estates were going up, the city planners failed to plan. Houses were put up but with no thought of schools, clinics, post offices, fire stations and employment centres alongside.
No provisions were made to develop footpaths or even alternative forms of public transport. A smooth traffic flow can be facilitated by installing lights, four-way and three-way road signs such as "Stop and Yield" at strategic junctions and intersections.
These key elements would not only make driving in Nairobi easier but also allow for a smooth flow of traffic and minimise accidents. Apparently, this noble concept is unheard of in Nairobi.
The experimental set of traffic lights at the Westlands/Mall roundabout is a classic example and causes even bigger traffic jams. Because there are absolutely no road signs or traffic lights, you find cars stuck right in the middle of the road, disrupting the whole flow.
Often the congestion is not due to too many vehicles being on the road, but to the absence of regulating signs or devices. Thus all motorists drive, stop and yield as they feel like.
Mr Mbugua's plan is rent-seeking in nature. It can only work in a city with a well-developed public transport network, where motorists abide by the law and roads have no potholes. Clearly Nairobi is not one of these.
Shreyah H. Shah,
Massachusetts, US.
________________________________________
© 2005 NationMediaGroup All Rights Reserved
Jul 8, 2006
QUOTES ON LIBERTY AND PROSPERITY
You cannot bring about prosperity by discouraging thrift.
You cannot strengthen the weak by weakening the strong.
You cannot help the wage earner by pulling down the wage payer.
You cannot further the brotherhood of man by encouraging class hatred.
You cannot help the poor by destroying the rich.
You cannot keep out of trouble by spending more than you earn.
You cannot build character and courage by taking away man's initiative and independence.
You cannot help men permanently by doing for them what they could and should do for themselves.
Abraham Lincoln
"Those who would give up essential liberty to purchase a little temporary safety deserve neither liberty nor safety."
Benjamin Franklin
"The claims of these organizers of humanity raise another question which I have often asked them and which, so far as I know, they have never answered: If the natural tendencies of mankind are so bad that it is not safe to permit people to be free, how is it that the tendencies of these organizers are always good? Do not the legislators and their appointed agents also belong to the human race? Or do they believe that they themselves are made of a finer clay than the rest of mankind?"
Frederic Bastiat
In reference to the Roman Empire: "Here is the classic example of that kind of insincerity in both foreign and domestic affairs which permeates not only avowed motives but also probably the conscious motives of the actors themselves--that of a policy which pretends to aspire to peace but unerringly generates war, the policy of continual preparation for war, the policy of meddlesome interventionism. There was no corner of the known world where some interest was not alleged to be in danger or under actual attack. If the interests were not those of Rome, they were those of Rome's allies; and if Rome had no allies, then allies would be invented. When it was utterly impossible to contrive such an interest--why, then it was the national honour that had been insulted. The fight was always invested with an aura of legality. Rome was always being attacked by evil-minded neighbours, always fighting for a breathing space. The whole world was pervaded by a host of enemies and it was manifestly Rome's duty to guard against their indubitably aggressive designs. They were enemies who only waited to fall on the Roman people ..."
Joseph Schumpeter, The Sociology of Imperialism
The areas in which the country has done well are the areas where the government doesn't have its hand, which is information technology and beauty. We have had a whole string of Miss World contestants. We are known for our spirituality, because we don't have a ministry of religion
Kiran Karnik - President of Nasscom
Sustainable Development
“Those who fear a sudden depletion of resources do not understand economics. Predictions that we will run out of oil and other resources are notoriously inaccurate. Remember the Club of Rome? In the early 1970s the Club, a private international association of about 75 businessmen, scientists, and scholars, predicted that the world would run out of gold by 1981, mercury by 1985, tin by 1987, zinc by 1990, petroleum by 1992, and copper, lead, and natural gas by 1993. They were wrong on every single count. Not only were they wrong, but proven reserves (reserves that we know about) of most non-renewable resources, including oil, are higher than ever before.”
Laura Jones – “Is Calgary a Sustainable City”, Fraser Forum, July 2002
"What is needed to stop the trend toward socialism and despotism is common sense and moral courage"
Margaret Turnbull
The great virtue of free enterprise is that it forces existing businesses to meet the test of the market continuously, to produce products that meet consumer demands at lowest cost, or else be driven from the market. It is a profit-and-loss system. Naturally, existing businesses generally prefer to keep out competitors in other ways. That is why the business community, despite its rhetoric, has so often been a major enemy of truly free enterprise
Milton Friedman
An honest politician is one who when he is bought will stay bought.
Simon Cameron
Be thankful we're not getting all the government we're paying for.
Will Rogers
The proliferation of bureaucrats and its invariable accompaniment, much heavier tax levies on the productive part of the population, are the recognizable signs, not of a great, but of a decaying society. Historians know that both phenomena were especially marked in the declining eras of the Roman Empire in the West and of its successor state, the Eastern or Byzantine Empire.
William Henry Chamberlin
If a nation values anything more than freedom, it will lose its freedom; and the irony of it is that, if it is comfort or money it values more, it will lose that too.
William Somerset Maugham, 1941
You cannot strengthen the weak by weakening the strong.
You cannot help the wage earner by pulling down the wage payer.
You cannot further the brotherhood of man by encouraging class hatred.
You cannot help the poor by destroying the rich.
You cannot keep out of trouble by spending more than you earn.
You cannot build character and courage by taking away man's initiative and independence.
You cannot help men permanently by doing for them what they could and should do for themselves.
Abraham Lincoln
"Those who would give up essential liberty to purchase a little temporary safety deserve neither liberty nor safety."
Benjamin Franklin
"The claims of these organizers of humanity raise another question which I have often asked them and which, so far as I know, they have never answered: If the natural tendencies of mankind are so bad that it is not safe to permit people to be free, how is it that the tendencies of these organizers are always good? Do not the legislators and their appointed agents also belong to the human race? Or do they believe that they themselves are made of a finer clay than the rest of mankind?"
Frederic Bastiat
In reference to the Roman Empire: "Here is the classic example of that kind of insincerity in both foreign and domestic affairs which permeates not only avowed motives but also probably the conscious motives of the actors themselves--that of a policy which pretends to aspire to peace but unerringly generates war, the policy of continual preparation for war, the policy of meddlesome interventionism. There was no corner of the known world where some interest was not alleged to be in danger or under actual attack. If the interests were not those of Rome, they were those of Rome's allies; and if Rome had no allies, then allies would be invented. When it was utterly impossible to contrive such an interest--why, then it was the national honour that had been insulted. The fight was always invested with an aura of legality. Rome was always being attacked by evil-minded neighbours, always fighting for a breathing space. The whole world was pervaded by a host of enemies and it was manifestly Rome's duty to guard against their indubitably aggressive designs. They were enemies who only waited to fall on the Roman people ..."
Joseph Schumpeter, The Sociology of Imperialism
The areas in which the country has done well are the areas where the government doesn't have its hand, which is information technology and beauty. We have had a whole string of Miss World contestants. We are known for our spirituality, because we don't have a ministry of religion
Kiran Karnik - President of Nasscom
Sustainable Development
“Those who fear a sudden depletion of resources do not understand economics. Predictions that we will run out of oil and other resources are notoriously inaccurate. Remember the Club of Rome? In the early 1970s the Club, a private international association of about 75 businessmen, scientists, and scholars, predicted that the world would run out of gold by 1981, mercury by 1985, tin by 1987, zinc by 1990, petroleum by 1992, and copper, lead, and natural gas by 1993. They were wrong on every single count. Not only were they wrong, but proven reserves (reserves that we know about) of most non-renewable resources, including oil, are higher than ever before.”
Laura Jones – “Is Calgary a Sustainable City”, Fraser Forum, July 2002
"What is needed to stop the trend toward socialism and despotism is common sense and moral courage"
Margaret Turnbull
The great virtue of free enterprise is that it forces existing businesses to meet the test of the market continuously, to produce products that meet consumer demands at lowest cost, or else be driven from the market. It is a profit-and-loss system. Naturally, existing businesses generally prefer to keep out competitors in other ways. That is why the business community, despite its rhetoric, has so often been a major enemy of truly free enterprise
Milton Friedman
An honest politician is one who when he is bought will stay bought.
Simon Cameron
Be thankful we're not getting all the government we're paying for.
Will Rogers
The proliferation of bureaucrats and its invariable accompaniment, much heavier tax levies on the productive part of the population, are the recognizable signs, not of a great, but of a decaying society. Historians know that both phenomena were especially marked in the declining eras of the Roman Empire in the West and of its successor state, the Eastern or Byzantine Empire.
William Henry Chamberlin
If a nation values anything more than freedom, it will lose its freedom; and the irony of it is that, if it is comfort or money it values more, it will lose that too.
William Somerset Maugham, 1941
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