State should heed World Bank advice
It is good news that effects of the global financial meltdown that ravaged most economies and in some cases brought down some of the world’s biggest firms is slowly coming to an end. However, for Africa the reverse is true as the effects the crisis remain strong.
The World Bank has warned that unless remedial measures are taken to urgently mitigate the effects, the continent will sink further into poverty.
The Bank’s Global Economic Prospects 2010, released yesterday, warned that for Sub-Saharan Africa the recovery will be slower than other developing nations because of the region’s over-reliance on commodities, as opposed to finished goods. The region will not feel the impact of the global rebound due to the region’s low manufacturing capacity.
And the Bank, like most observers, says the Kenyan economy has potential to expand if key constraints, which reverse growth momentum, are addressed.
They include the need to accelerate economic, political and social reforms. The economy is projected to grow by a paltry 3.7 per cent this year, which is still far below the potential growth in line with the medium-term plan of Vision 2030.
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Political uncertainty
The report warns that for the country to attract more foreign investments, challenges that relate to infrastructure development, high energy costs, graft and political uncertainty must be addressed. Government should also remove barriers that could sabotage efforts to lure more investors and expand the economy. The country has already suffered enough damage and it is time Government took the advice from the World Bank seriously.
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