Saturday, March 27, 2010

Kenya’s pernicious inequality: The underpinnings of an economic revolution


There is a simmering disquiet pervading the economically tyrannized of this once promising nation. This indefatigable class of citizens encompasses all tribes and both genders: the single mother in the informal business sector, the day laborer who treks many miles to earn a less than adequate wage, the many graduates from our universities and high schools who have no promising prospects of finding fitting employment, the youth-our brothers and sisters-who for want of a better life are drawn into nefarious and salacious activities and the rural peasants whose struggles to eke out a living are compounded by an unresponsive, predator government.
The economic oppressors are: the corruption laden government and its wily civil servants, the burgeoning middle class who are shielding themselves from the impoverished, employers who do not pay employees an adequate living wage and the primary oppressors, the politicians.
Background
According to a report (Pulling Apart: Facts and Figures on Inequality in Kenya) by the Nairobi-based Society for International Development (SID), Kenya is the 10th most unequal country in the world in terms of wealth disparities. Of Africa’s 54 states, it is the fifth most unequal
The 2004 report, using UN Development Program figures, states that Kenya’s richest earn 56 times more than its poorest: the top 10 percent of the population controls 42% of the country’s wealth, while the bottom 10% own 0.76%.
Inequality pervades every aspect of Kenyans’ lives, according to the report, citing enormous disparities - both in the capital and at national level - in almost every sphere of life: income; access to education, water and health; life expectancy; and prevalence of HIV/AIDS.
Kibaki’s role
Critics of Kibaki, who came to power in 2002, accuse his government of failing to address this inequality and of focusing instead on the economic growth seen over the past five years. Before he came to power on a wave of euphoria and hope after 24 years of rule under the autocratic Daniel arap Moi, Kenya’s growth stood at minus 1.6 percent. In 2007, it reached 5.5 percent and before the elections was predicted to hit 7% in 2008.
This growth has been concentrated in the service sector, with banks, tourism and communications companies making big profits. Prices of shares and property have also soared. But rather than trickling down to the worst off, this boom appears to have been very selective in its beneficiaries while the poor have seen the purchasing power of their Shilling shrink.
Critics argue that economic policies have not been pro-poor. This growth has been biased in favor of profits as opposed to being translated into jobs. Only a few have assets and property to participate in economic production.
With no collateral to obtain loans to engage in entrepreneurial activities, and with the unemployment rate at an estimated 40%, the restlessness and despair is an ominous precursor to an economic revolution that will pit the under-privileged against the landed if drastic interventions are not implemented.
Possible solutions
There is an urgent need to inculcate a new culture of living well as opposed to living better. Living well means having all basic needs met while existing in harmony with the natural world; living better seeks to constantly amass material goods at the expense of the environment.
We don’t need to compete for the necessities of life. We don't need to fight each other for them. We were bamboozled by the political elite at the last general election into violently engaging our neighbors while the instigators were not participants. Meanwhile the victors are those politicians that had positions created for them with accompanying motorcades.
We seriously need to ask ourselves how much is enough? A study was done by University of Illinois professor Ed Diener, and others, comparing the life-satisfaction scores of groups of people of radically different financial means. Scores were on a seven-point scale, with the happiest people scoring higher. Those on Forbes magazine’s list of richest Americans had an average score of 5.8. They were in a statistical tie, however, with three groups known for their modest lifestyles and strength of community: the Pennsylvania Amish (5.8) who favor horses over cars and tractors; the Inuit of Northern Greenland (5.9), an indigenous hunting and fishing people; and the Masai (5.7), a traditional herding people in East Africa.
Since the majority Kenyans will not be multi millionaires, we need to make do with less want of material items and settle for the necessities (to begin with) and a vibrant social life.
Here are some ideas we are working on:
• The formation of vibrant neighborhood organizations to address social issues. (This topic was addressed previously on this blog).
• More workplace democracy where people at the top are answerable to employees
• Worker owned cooperatives rooted in the community, producing for local consumption, hiring locally and reinvesting profits locally with some proceeds benefiting public projects.
• A localized barter system that would include a local currency and a system of swapping services provided for credits to access other services.
• A revolving informal loans program among member participants. This is widely practiced in Africa and has firmly taken root among Kenyans in the Diaspora.
• An overhaul of our education system to lean more towards technical training and entrepreneurship as opposed to passing exams and seeking employment without having any skills to start a business.( To be covered as a follow up article to an education one we did previously).
• Others including those that readers may deem workable.
In the next article, we will cover the topic of Cooperative Economics as a community based, worker driven vehicle to deliver a sustainable equitable economy to our localities.
Conclusion
With the General Elections round the corner, we need to prepare to send our agents of regression to permanent retirement. Their next public appearance should be at a trail facing high treason for crimes against the state (the people of Kenya). The rulers of this nation either do not follow the mood on the ground and the web or are insusceptible to the groans of a nation that has given and given (taxes, labor, and even blood) so a few political elite may ride around in SUVs and bulk up while a nation starves. Let them heed this warning; our day to day struggles will only strengthen our resolve to grow stronger together regardless of tribe or political affiliation!
The ideas housed in this blog and others we are working on will form the basis of a new political economic movement whose manifesto will be geared towards implementing the strategies discussed here. We are tentatively set to register middle of next year. We are now able to state that one of our members will be vying for a civic seat in a ward outside Nairobi.
Reader responses welcome.

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