It is imprudent of Uhuru to claim that Kenya is not dependent on aid

[Edzeame]

It is imprudent of Uhuru to claim that Kenya is not dependent on aid

By RASNA WARAH

Posted Sunday, February 10 2013 at 20:00

In Summary

• Kenya’s sovereign debt stands at an astounding Sh1.4 trillion (about half the country’s GDP), which means that if the country is not able to pay back this debt, it could face a situation similar to Greece’s, where international financial institutions and regional bodies had to force it to adopt stiff austerity measures
• Kenya relies heavily on international markets to export key commodities such as tea and coffee. It is also dependent on imports that are not manufactured or available locally
• I have never heard of a single country that has been lifted out of poverty because of aid. Uhuru’s ambitions for Kenya to become donor-independent should be lauded. Making a country less dependent on aid is a wise policy
• However, the truth is that Kenya’s economy is, unfortunately, inextricably tied to and dependent on donors, international capital and global trade systems

In various interviews, presidential aspirant Uhuru Kenyatta has repeatedly stated that 95 per cent of Kenya’s national budget is funded by taxpayers, thereby implying that if donors pull out, the country is capable of going it alone, unlike many African countries, whose national budgets are heavily dependent on donor aid.

What he doesn’t mention is that the bulk of the national budget goes towards recurrent expenditure and that much of the aid Kenya receives bypasses the government, so it is not reflected in the budget.

While the government has the capacity to pay for essential functions, it is not completely donor-free as some functions are funded from other sources.

These are in the form of bilateral technical assistance – for instance, providing military training, as the United States government is doing, or providing free anti-retrovirals to the health sector, as the Global Fund is doing.

The government also takes loans to fund its projects. (When he was Finance Minister, Uhuru negotiated most of these loans.)

Loans from financial institutions such as the World Bank may not be considered aid – as they have to be repaid – but because they are made available under special conditions, they fall under the realm of aid.

Kenya’s sovereign debt stands at an astounding Sh1.4 trillion (about half the country’s GDP), which means that if the country is not able to pay back this debt, it could face a situation similar to Greece’s, where international financial institutions and regional bodies had to force it to adopt stiff austerity measures.

Kenya’s economy is also intimately linked to the donor community. Nairobi serves as the global headquarters of two UN agencies. Many international NGOs also have regional bases in the city.

Kenyan firms provide goods and services to these organisations, which also employ a significant number of Kenyans to run their operations. Nairobi is also the preferred regional base for various multinational corporations.

Kenya relies heavily on international markets to export key commodities such as tea and coffee. It is also dependent on imports that are not manufactured or available locally.

Currently the country is a net importer, not a net exporter, of goods. Hence, much of its foreign exchange reserves go towards consumption rather than production.

It is, therefore, very disingenuous of Uhuru to claim that the country will not feel the pinch if donors pull out or if there is a trade embargo against Kenya.

We may have enough money to pay for healthcare, education and civil servants’ salaries, but many projects are still funded by loans or donors. Moreover, if the donor community pulls out or if there is a trade embargo, tax revenues will decrease as the economy plummets.

We must also remember that the oil and natural gas that are expected to change the fortunes of this country in the future will be subjected to the vagaries of international markets.

Moreover, because we do not have the funds and the technology to do it ourselves, the exploitation of these natural resources will be carried out by foreign firms, which will recover their investments through these resources.

Uhuru’s own own vast business empire is linked to foreign capital and much as he likes to deride the West, the fact is that he has employed Westerners to manage his public relations campaign and has hired a British lawyers to defend him at the Hague.

Those who have read my writings know that I am not in favour of aid. Aid is a form of neo-colonialism and has shown to have a corrupting influence on recipient countries. Many donor countries use aid to impose policies on poor countries.

I have never heard of a single country that has been lifted out of poverty because of aid. Uhuru’s ambitions for Kenya to become donor-independent should be lauded. Making a country less dependent on aid is a wise policy.

However, the truth is that Kenya’s economy is, unfortunately, inextricably tied to and dependent on donors, international capital and global trade systems. The country’s so-called sovereignty is in name only. Uhuru’s claims are thus not supported by the reality.

It is imprudent of Uhuru to claim that Kenya is not dependent on aid - Blogs - elections.nation.co.ke

 

[Edzeame]

Rasnah is also forgetting that in the past Anglo leasing and goldernberg graft environments
have have been engineered from these "special conditions loans", where the donors
never seek for accountability of where these loans go and how they get used in the end,
In other words what you are trying to say indirectly is by donors withdrawing aid because
of uhuruto's ICC case, impunity and corruption that has been the practices in the past will
be reduced to its minimal.

..These loans have been like freebies in the past, so it won't be suprising to hear
their beneficiaries squeal the loudest when they realize their sponsors will withdraw aid

 

[Ab-Titchaz]

Rasnah is also forgetting that in the past Anglo leasing and goldernberg graft environments
have have been engineered from these "special conditions loans", where the donors
never seek for accountability of where these loans go and how they get used in the end,
In other words what you are trying to say indirectly is by donors withdrawing aid because
of uhuruto's ICC case, impunity and corruption that has been the practices in the past will
be reduced to its minimal.

..These loans have been like freebies in the past, so I won't be shocking to hear
their beneficiaries squeal the loudest when they realize their sponsors will withdraw aid

Thanks for posting this article. I was reading it and just about to do the same when you posted.

To answer your query, I dont think Rasnah is trying to say that 'by donors withdrawing aid because
of uhuruto's ICC case, impunity and corruption that has been the practices in the past will
be reduced to its minimal.' All she is doing is calling out Uhuru on this statement he keeps
preaching that Kenya doesn't need the foreign assistance to make it.

That is some excess bravado tinged with lies which have been articulated by Rasnah in her article.

 

[Edzeame]

Thanks for posting this article. I was reading it and just about to do the same when you posted.

To answer your query, I dont think Rasnah is trying to say that 'by donors withdrawing aid because
of uhuruto's ICC case, impunity and corruption that has been the practices in the past will
be reduced to its minimal.' All she is doing is calling out Uhuru on this statement he keeps
preaching that Kenya doesn't need the foreign assistance to make it.

I have merged my earlier thread to this one by you which shows them in Nandi harping about KE
doesnt need foreigners' help. That is some excess bravado tinged with lies which have been
articulated by Rasnah in her article.

There are what we call conflicts of interests from those donors and the lone beneficiaries of the loan
schemes some of whom are private sector companies, and because there is normally very little
infomation or report that finds its way to the public on expenditure of these loans. So the lynch-mob base is
is getting wider and wider to prevent anything that will step in the way of getting these grant money.
Despite ICC charges facing ruto and uhuru, I think they might be practical by saying if kenyas budget is
completely funded from the GDP, then if donors pull out it might make no difference. You can see that
even Rasnah is testifying that no poor country has ever developed out of special condition loans.

The argument here is bilateral agreements, trade agreements, technical assistance.
By US thinking it can issue warnings, it may backfire big time. In East and Central Africa, kenya
is the only nation that has developed and reformed its institutions, and other developments except
for infrustructure using its own resources which did not originate from the US or its EU counterparts.
unless my simple information is serving me wrong, you can tell us what institutions or structure we
have developed using western donor money.

The biggest thing I hear the donors are striving to promote is health sector by providing is
free Anti-retrovirals and drugs, I have not heard of anything major

 

[Geza Ulole]

Holly shit....:becky: what a piece of intellectually writing....!

 

[Kabaridi]

yaonekana hii mijaluo wanawezwa tu na GSU , wazuri kwenye forumming zenye latent tempratures

 

[Bantugbro]

Election times are always the fine moments to hear/read the deeply guided secrets....The chicken are coming home to roost...:A S 100:

 

[Ab-Titchaz]

yaonekana hii mijaluo wanawezwa tu na GSU , wazuri kwenye forumming zenye latent tempratures

Kabaridi,

this is beneath you and uncalled for. Please lets be civil during this electioneering period.

Regards.

 

[Bantugbro]

yaonekana hii mijaluo wanawezwa tu na GSU , wazuri kwenye forumming zenye latent tempratures

Ustaarab kitu cha bure mkuu...