mwitaz
JF-Expert Member
- Feb 19, 2012
- 315
- 93
By MORRIS ARON and
TIMOTHY MACHI
He was once a carpenter.
Then he tried his hands at
the exacting masonry.
When all was not enough
to take care of the bills, he
even had a stint as a tout in the defunct Othaya African
Bus Union fleets.
From Mwai Kibakis early
experience in the tiny mud
hut they shared as a family
to the sore nights in an
uncomfortable wooden
bed only made a little comfy with hay in
boarding school, the
capitalist in him emerged
resolved and steeled.
In the early school of hard
knocks, Kibaki picked one
vital lesson that endures to
date that to make a
living, one must work
hard.
This thinking is the very
epitome of Adam Smiths
book The Wealth of
Nations that forms the
basis of modern economics.
Kibaki graduated from
Makerere University with a
First Class BA degree in
Economics, History and
Political Science.
He earned a scholarship to
the prestigious London
School of Economics where
he graduated top of the
class with in MSc in Public
Finance.
Those looking at
explaining Kibakis legacy
say with such credentials,
there was no denying he
was destined for great
stuff.
But now as Kibaki readies
to retire from politics as
Head of State, economists
will be posing the hard
questions. What exactly is
Kibakis economic legacy? Was it all worth the effort?
Boiling Kibakis economic
philosophy down to bare
essentials, James Shikwati,
Director of the Inter
Region Economic Network, described him as Adam
Smiths half-hearted
disciple. Wild consumerism
While they both placed a
premium on hard work,
Kibaki as President
presided over the growth
in wild consumerism, credit taking and huge deficits
contrary to Smiths school
of thought, says Shikwati. In his book, The Wealth of
Nations, Smith challenged
people and nations to
practice not just hard
work and enlightened self-
interest but also thrift.
Under Kibakis regime,
however, Kenyans have
witnessed more empty
grain stores at both
national and village level,
Shikwati, described by Wikipedia as a libertarian economist, says. The countrys surging appetite for luxury is
epitomised by the many
shopping malls dotting
streets in cities, increasing
number of fuel guzzlers on our roads and the craze for
palatial homes, he says,
adding that the fact that
Kenyans are rushing in for
credit cards point to
expenditures that outstrip income and dwindling
savings.
Aly Khan Satchu, a Nairobi-
based investment analyst,
shares in Shikwatis
sentiments, saying Kibakis
administration has failed to
take a knife to the recurrent expenditure.
In fact, this year for the
first time total projected
revenue (Sh956.9 billion) is
less than the recurrent
spend as captured in the 2012-2013 budget (Sh1.45
trillion), Satchu says.
Dr XN Iraki, economics
lecturer at the University of
Nairobi, says throughout
his tour of duty, Kibaki stayed on course in his
economic philosophy
following the Keynesian
model all through. That is,
save for the tidings of
politics. Keynesian economics
advocate active
government intervention
in the marketplace
including determining the
size and rate of growth of the money supply, interest
rates as the best method
of ensuring economic
growth and stability.
Source: The Standard
TIMOTHY MACHI
He was once a carpenter.
Then he tried his hands at
the exacting masonry.
When all was not enough
to take care of the bills, he
even had a stint as a tout in the defunct Othaya African
Bus Union fleets.
From Mwai Kibakis early
experience in the tiny mud
hut they shared as a family
to the sore nights in an
uncomfortable wooden
bed only made a little comfy with hay in
boarding school, the
capitalist in him emerged
resolved and steeled.
In the early school of hard
knocks, Kibaki picked one
vital lesson that endures to
date that to make a
living, one must work
hard.
This thinking is the very
epitome of Adam Smiths
book The Wealth of
Nations that forms the
basis of modern economics.
Kibaki graduated from
Makerere University with a
First Class BA degree in
Economics, History and
Political Science.
He earned a scholarship to
the prestigious London
School of Economics where
he graduated top of the
class with in MSc in Public
Finance.
Those looking at
explaining Kibakis legacy
say with such credentials,
there was no denying he
was destined for great
stuff.
But now as Kibaki readies
to retire from politics as
Head of State, economists
will be posing the hard
questions. What exactly is
Kibakis economic legacy? Was it all worth the effort?
Boiling Kibakis economic
philosophy down to bare
essentials, James Shikwati,
Director of the Inter
Region Economic Network, described him as Adam
Smiths half-hearted
disciple. Wild consumerism
While they both placed a
premium on hard work,
Kibaki as President
presided over the growth
in wild consumerism, credit taking and huge deficits
contrary to Smiths school
of thought, says Shikwati. In his book, The Wealth of
Nations, Smith challenged
people and nations to
practice not just hard
work and enlightened self-
interest but also thrift.
Under Kibakis regime,
however, Kenyans have
witnessed more empty
grain stores at both
national and village level,
Shikwati, described by Wikipedia as a libertarian economist, says. The countrys surging appetite for luxury is
epitomised by the many
shopping malls dotting
streets in cities, increasing
number of fuel guzzlers on our roads and the craze for
palatial homes, he says,
adding that the fact that
Kenyans are rushing in for
credit cards point to
expenditures that outstrip income and dwindling
savings.
Aly Khan Satchu, a Nairobi-
based investment analyst,
shares in Shikwatis
sentiments, saying Kibakis
administration has failed to
take a knife to the recurrent expenditure.
In fact, this year for the
first time total projected
revenue (Sh956.9 billion) is
less than the recurrent
spend as captured in the 2012-2013 budget (Sh1.45
trillion), Satchu says.
Dr XN Iraki, economics
lecturer at the University of
Nairobi, says throughout
his tour of duty, Kibaki stayed on course in his
economic philosophy
following the Keynesian
model all through. That is,
save for the tidings of
politics. Keynesian economics
advocate active
government intervention
in the marketplace
including determining the
size and rate of growth of the money supply, interest
rates as the best method
of ensuring economic
growth and stability.
Source: The Standard
