The making of Kibakinomics

mwitaz · 2012-06-26T04:49:32+00:00

By MORRIS ARON and TIMOTHY MACHI He was once a carpenter. Then he tried his hands at the exacting masonry. When all was not enough to take care of the bills, he even had a stint as a tout in the defunct Othaya African Bus Union fleets. From Mwai Kibakis early experience in the tiny mud hut they shared as a family to the sore nights in an uncomfortable wooden bed only made a little comfy with hay in boarding school, the capitalist in him emerged resolved and steeled. In the early school of hard knocks, Kibaki picked one vital lesson that endures to date that to make a living, one must work hard. This thinking is the very epitome of Adam Smiths book The Wealth of Nations that forms the basis of modern economics. Kibaki graduated from Makerere University with a First Class BA degree in Economics, History and Political Science. He earned a scholarship to the prestigious London School of Economics where he graduated top of the class with in MSc in Public Finance. Those looking at explaining Kibakis legacy say with such credentials, there was no denying he was destined for great stuff. But now as Kibaki readies to retire from politics as Head of State, economists will be posing the hard questions. What exactly is Kibakis economic legacy? Was it all worth the effort? Boiling Kibakis economic philosophy down to bare essentials, James Shikwati, Director of the Inter Region Economic Network, described him as Adam Smiths half-hearted disciple. Wild consumerism While they both placed a premium on hard work, Kibaki as President presided over the growth in wild consumerism, credit taking and huge deficits contrary to Smiths school of thought, says Shikwati. In his book, The Wealth of Nations, Smith challenged people and nations to practice not just hard work and enlightened self- interest but also thrift. Under Kibakis regime, however, Kenyans have witnessed more empty grain stores at both national and village level, Shikwati, described by Wikipedia as a libertarian economist, says. The countrys surging appetite for luxury is epitomised by the many shopping malls dotting streets in cities, increasing number of fuel guzzlers on our roads and the craze for palatial homes, he says, adding that the fact that Kenyans are rushing in for credit cards point to expenditures that outstrip income and dwindling savings. Aly Khan Satchu, a Nairobi- based investment analyst, shares in Shikwatis sentiments, saying Kibakis administration has failed to take a knife to the recurrent expenditure. In fact, this year for the first time total projected revenue (Sh956.9 billion) is less than the recurrent spend as captured in the 2012-2013 budget (Sh1.45 trillion), Satchu says. Dr XN Iraki, economics lecturer at the University of Nairobi, says throughout his tour of duty, Kibaki stayed on course in his economic philosophy following the Keynesian model all through. That is, save for the tidings of politics. Keynesian economics advocate active government intervention in the marketplace including determining the size and rate of growth of the money supply, interest rates as the best method of ensuring economic growth and stability. Source: The Standard

Thread starter mwitaz
Start date Jun 26, 2012

mwitaz

JF-Expert Member

Jun 26, 2012

mwitaz

JF-Expert Member

Jun 29, 2012

Thread starter
#2

You must log in or register to reply here.

Facebook X Bluesky LinkedIn Reddit WhatsApp Email Link

East African Forums
Kenyan News and Politics

Our Community

JamiiCheck
JamiiVoices
JamiiStories
JamiiData
JamiiCourses
JamiiShop
JamiiSocial
Premium Content
Start Discussion

Regional Communities

Tanzania
Uganda
Kenya

JamiiForums uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.

Accept Learn more…

Back

Top Bottom

Forums

New posts

The making of Kibakinomics

mwitaz

JF-Expert Member

mwitaz

JF-Expert Member

Our Community

Regional Communities

The making of Kibakinomics