Japan scholars punch holes into Kenya economic growth model

July 25, 2016
African Development Bank
East Africa Regional Resource Centre (EARRC)


Japan scholars punch holes into Kenya economic growth model

A team of Japanese scholars has punched holes into Kenya’s economic growth model, saying it concentrates wealth in the hands of the elite and widens the gap between the rich and the poor, making it unsustainable.

The 10 scholars drawn from some of Japan’s top economic think tanks and universities say in a newly-published book that the Kenyan economy as currently constituted does not promote inclusive growth and has failed to redistribute wealth to the poor with corresponding growth.

“Growth-leading sectors have not been broadly based in terms of poverty-reduction through employment creation. In short, way of growth is not inclusive,” says Kyoto University Graduate School of Asian and African Studies professor Takahashi Motoki, one of the lead authors of the book.

The book, titled ‘‘Contemporary African Economies: A Changing Continent under Globalisation,’’ blames Kenya’s rising inequality on restrictive economic policies that are far from being pro-poor.

“The government should invest in human resource development including health and education equitably. Such fundamental resource allocation should be regarded as basic entitlement of individuals and not favours that are influenced by electoral results or political consideration,” Prof Motoki says.

The book also paints a gloomy picture of Kenya’s economic prospects, with manufacturing, touted as the future engine of the economy, showing dire signs of shrinking while agriculture, the backbone of Kenya’s economy, in a state of stunted static low productivity.

“Manufacturing growth sector is becoming thinner than before, productivity in the agriculture sector is static, and this is a very big concern,” Prof Motoki says.

Nairobi-based economist David Ndii shares the Japanese scholars’ grim view of Kenya, urging the country’s economic planners to pursue pro-poor polices.

Dr Ndii faulted the Jubilee government’s ongoing mega infrastructure projects, arguing that while there is need to upgrade infrastructure, the focus should be on initiatives that boost the productivity of the poor.

“Massive state projects like the standard gauge railway (SGR) only enhance efficiency and profits for the business elite and have no direct impact for the smallholder farmers whose main concern is access to markets, higher yields and incomes,” Dr Ndii said.

Former Central Bank Governor Njuguna Ndung’u said there is urgent need for a socio-economic re-organisation to ensure the benefits of growth trickle down to the poor.

African Development Bank (AfDB) regional director Gabriel Negatu described “the book as offering a comprehensive view to approaching Africa’s development”.

He said part of that bigger picture is fostering inclusive economic growth, which is one of the twin objectives of AfDB’s Ten-Year (2013-2022) strategy.

The publication was recently translated into English with the support of AfDB having been researched and published in Japanese.

The book’s authors include Kitagawa Katsuhiko (Professor, Faculty of Economics, Kansai University), Takeuchi Shinichi (Director-General, Area Studies Centre Institute Developing Economies), and Fukunishi Takahiro (Director, African Studies Group).

Others are Nishiura Akio (Professor, School for Excellence in Educational Development, Soka University), Sugimoto Kimiko (Hirao School of Management, Konan University), Masaki Toyomu (Professor, Faculty of Economics and Management, Institute of Institute of Human and Social Science, Kanazawa University).

Source: Japan scholars punch holes into Kenya economic growth model

I concure, some of this growth favours those who are already established, while there still exist plenty o fc opportunities for inovative entreprenuers to male a kill and cone from nothing to something, those who are not innovative dont stand a chance in the current set up in this country, getting regular jobs for people whi werent so lucky educationwise is difficult, even those who went to the best school dont find jobs at the right places to grow as individuals, yani in short this economy is not supporting the poor interms o fc liftinv them.... e.g. the youth fund which gives non interest loans to youth. poor youth can hadly compile a bussiness plan to present it to the govt to get the loan, compared to youth who went to the best schools

Trickle down economics has never worked in the economic history of the world. Whether it was European style feudalism in the past where a landed class "rented" out parcels to tenants to farm for a fee or any other -ism, it ignores the creative powers of humans, which is the main determinant in economic prosperity, and is evenly distributed in the populace. And it consolidates resources in the hands of an undeserving few. Like slavery, any system that systematically and systemically disenfranchises any sector of it's population, will ultimately fail.

That being said, i believe that the market oriented approach to building economies is always better than any other(for lack of a better, as yet undiscovered alternative ).BUT, and it's very important to state this, BUT a humane capitalism is always best, not the Anglo Saxon type of hostile takeovers,privatising of old peoples welfare, militarism, unequal access to health care etc prevalent in the English speaking west, but more like the one in Scandinavian countries, where there is a human face to it.

I would love to get my paws on that document by the Japanese academics

great news now let them all be employed in Kenya....

For the last like 3 decade Japan has had less than 4% economic growth, I wonder if this are the think tanks they use..... African problems are better understood by africans

sean marcus said:

For the last like 3 decade Japan has had less than 4% economic growth, I wonder if this are the think tanks they use..... African problems are better understood by africans

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Size matters! Take into account the size of Japan's economy or GDP even a growth of 1% makes a difference. In East Africa even if our economy growth rate reaches that of China say 12 % per annum wont make any difference to the man on the because of ''size'' i.e the size of our economies. But if we manage to keep that rate of economic growth say at 12% for a sustainable period of 20 years and take on board some of the Japanese Scholars theories then things might be different for the poor majority in two decades time.

Boss do you know how many acres is being put under irrigation? Do you know how many firms have set up shops in Kenya in the last few years? Do you know the number of industrial zone being set up in Kenya.... if you gonna believe everything thing your told by some pple from 10000km from your home your doomed. Africa is so dynamic bro. 15years ago they said Africa was a dark continent and they never believe we will be here today...

Yaani kitabu chetu kipendwa cha Kenya's Economic Growth Model kilichoandikwa na Wanjiku wakaki'punch' bure tu tena wakakitoboa mashimo?Ero nime'sirika' sana!Afu eti wanajiita Japanese Scholars aah,labda Japanese Kungu-Fu masters!