By XN Iraki

The recent economic survey indicates our economy grew at 4.4 per cent. That is far below the Vision 2030 target of 10 per cent.

IMF data indicate by 2015 Africa, will have seven of the top 10 fastest growing economies in the world.

None will reach 10 per cent and Kenya is not among them. Our neighbour Ethiopia is on the merit list. By casting with Ethiopia, Kenya can better her position. Ethiopia’s fast growing economy will demand lots of goods and services.

With a population of almost 90 million, Ethiopia should be our biggest trading partner.

Building strong economic ties with neighbours is a sure way of accelerated growth rate. This is why Somalia too presents many opportunities. Investing in Somalia after Operation Linda Nchi should help decrease instability in the long run. 

Cultural ties

Globally, the most strategic trading partners are usually neighbours. For Somalia, our cultural similarity makes it even easier to establish ties. But there is more we can do to achieve the magic 10 per cent growth rate.

Beyond the neighbours, we need to reach the rest of the world. We should see the world as our market. All the recently developed countries like Asian Tigers have a global reach, building economic ties that amplify their size and influence. Would you think that South Korea has about the same population as Kenya?

These countries amplify their influence through trade that rides on globalisation. The expansion of Kenyan firms to neighbouring countries is a step in the right direction.  But we are yet to boast of a global firm that can rival IBM, Samsung or SABMiller.

Some boldly argue such firms would be common if our policy makers were global thinkers. Instead they are preoccupied with local issues, which though important consume too much energy.

Can you imagine if we put as much energy on globalisation as we are putting on devolution? While devolution might solve the political problem, by giving different communities a semblance of self-determination, we shall soon realise it is all economics.

Kenyans are not excited about devolution because they will vote for governors and senators, they hope such a new system will usher in greater economic prosperity leading to creation of more jobs and higher standards of living.

Achieving a 10 per cent growth will call for not just global orientation, but self-searching. We must rethink our schooling in terms of the contents and attitudes we transmit to the next generation.

Warped philosophy

Currently, too many Kenyans go to school to ‘avoid work. They acquire certain qualifications to enable them work less and earn more.

Employers are looking for people who can work. Yet, we all want to “work smart,” a euphemism for avoiding work or letting others work for you. Corruption or rent seeking as economists prefer to call is driven by our dislike for work.

To achieve the 10 per cent rate, we must see work as honourable, part of life and godly. It is possible that our incentive systems discourage working. Some of the most moneyed people in this country are brokers, middlemen or such characters.

For example, it makes more sense to buy and sell potatoes than grow them. You are better off buying and selling mitumba than growing cotton. Such an incentive system breeds parasitic relationships that gnaw on national motivation, innovation and ingenuity.

Exploit science

It breeds inequality and subsequent social instability that threaten 10 per cent growth rate.

Devolution is trying to address inequality and equity. But what incentives are we giving to counties and individuals that will work hard, beyond sharing the revenues they generate?

We must also focus more on increasing productivity, use of science and technology.

While this will destroy jobs initially, it will create more in future. Our fear of computers was misplaced; we created a whole industry and lots of job and multiplied productivity seven fold.

Both 10 per cent growth rate and Vision 2030 are achievable in our lifetime, and may be more parsimoniously than we thought.