Ndii when he relax like this can be eloguent

[RV Pundit]

• Tweet

It's an eye opener for me to understand the difference btw economy and development. Maendeleo na Uchumi.

I think we have had this debate with HK for long - but I have never quite understood why gov should re-invest the money it collect for development back to economy?

So look like they are agreed he will run treasury? to have 1/3 of the development vote - being injected back as farm input subidies/cheap development loans for the poor - and 2/3 will remain to build roads & basic infrastructure.

[hk]

Economic growth mainly driven by government expenditure always ends up with rosy gdp growth but little increase in productivity gains. The most important thing is to make sure there's robust private sector growth, this results into "pesa mfukoni". David ndii wants to reallocate government spending but still maintain the huge budgets. The supply side solution would be to slash government spending and borrowing. This would reduce crowding out of private sector, the biggest economic problem,

Thank you Turkana. #BottomUpEconomicsKe pic.twitter.com/M2pcb4iVrg

— David Ndii (@DavidNdii) January 28, 2022

. Narc economic recovery wasn't driven by government expenditure into SMEs and the poor but unleashing of funds that were previously being gobbled up by government. A healthy fiscally responsible country budget should be 15% of GDP, currently we are at more than 30%.

[RV Pundit]

But problem is will private sector as much they as they create wealth redistribute the money to the poor bottom up? we are already near south africa in income inequality?

Secondly how do you bridge the huge infrastructure deficit or gap without spending a lot - public investment - in building roads, dams, etc.

The way I see - development is long term - not impact not immediate - delayed but long term more profitable- economy is short term - people having money on their pockets - like dude who never build a house or get mortgage - but drinks and eats daily - long term he will suffer.

I think at our level of undevelopment - I am not convinced about reducing public investment. Once we have bridged the infrastructure deficit - meaning everyone has clean piped water, electricity, paved roads and such basic infrastructure - we can now reduce public investment - and let private sector grow.

I am okay with gov subsidizing inputs in some revolving fund - but never outputs. I see fuel subsidy now has been bottomless pit.

Economic growth mainly driven by government expenditure always ends up with rosy gdp growth but little increase in productivity gains. The most important thing is to make sure there's robust private sector growth, this results into "pesa mfukoni". David ndii wants to reallocate government spending but still maintain the huge budgets. The supply side solution would be to slash government spending and borrowing. This would reduce crowding out of private sector, the biggest economic problem,

Thank you Turkana. #BottomUpEconomicsKe pic.twitter.com/M2pcb4iVrg

— David Ndii (@DavidNdii) January 28, 2022

. Narc economic recovery wasn't driven by government expenditure into SMEs and the poor but unleashing of funds that were previously being gobbled up by government. A healthy fiscally responsible country budget should be 15% of GDP, currently we are at more than 30%.

[hk]

But problem is will private sector as much they as they create wealth redistribute the money to the poor bottom up? we are already near south africa in income inequality?

Secondly how do you bridge the huge infrastructure deficit or gap without spending a lot - public investment - in building roads, dams, etc.

The way I see - development is long term - not impact not immediate - delayed but long term more profitable- economy is short term - people having money on their pockets - like dude who never build a house or get mortgage - but drinks and eats daily - long term he will suffer.

I think at our level of undevelopment - I am not convinced about reducing public investment. Once we have bridged the infrastructure deficit - meaning everyone has clean piped water, electricity, paved roads and such basic infrastructure - we can now reduce public investment - and let private sector grow.

I am okay with gov subsidizing inputs in some revolving fund - but never outputs. I see fuel subsidy now has been bottomless pit.

Inequality in Kenya is driven mainly by crony capitalism. Crony capitalism is bred by bureaucracy and heavy government involvement in the economy. There's a direct correlation between corruption and inequality. That's why the freer the economy the less inequality.
The more pressing problem in kenya isn't infrastructure deficit but production deficit. Its almost naive to look at western world as benchmark for the infrastructure needed without comparing production standards in western world also. Fix production and infrastructure will follow but not the other way around(build and they'll come").

[GeeMail]

But problem is will private sector as much they as they create wealth redistribute the money to the poor bottom up? we are already near south africa in income inequality?

Secondly how do you bridge the huge infrastructure deficit or gap without spending a lot - public investment - in building roads, dams, etc.

The way I see - development is long term - not impact not immediate - delayed but long term more profitable- economy is short term - people having money on their pockets - like dude who never build a house or get mortgage - but drinks and eats daily - long term he will suffer.

I think at our level of undevelopment - I am not convinced about reducing public investment. Once we have bridged the infrastructure deficit - meaning everyone has clean piped water, electricity, paved roads and such basic infrastructure - we can now reduce public investment - and let private sector grow.

I am okay with gov subsidizing inputs in some revolving fund - but never outputs. I see fuel subsidy now has been bottomless pit.

Economic growth mainly driven by government expenditure always ends up with rosy gdp growth but little increase in productivity gains. The most important thing is to make sure there's robust private sector growth, this results into "pesa mfukoni". David ndii wants to reallocate government spending but still maintain the huge budgets. The supply side solution would be to slash government spending and borrowing. This would reduce crowding out of private sector, the biggest economic problem,

Thank you Turkana. #BottomUpEconomicsKe pic.twitter.com/M2pcb4iVrg

— David Ndii (@DavidNdii) January 28, 2022

. Narc economic recovery wasn't driven by government expenditure into SMEs and the poor but unleashing of funds that were previously being gobbled up by government. A healthy fiscally responsible country budget should be 15% of GDP, currently we are at more than 30%.

Big academic argument although he make sense. He use campaign language, not say where money will come from. Development and economy are linked. Separation is academic. You cannot grow "economy" without roads hospitals housing. enabling environment has to balance with growth at grassroot. Government giving grassroot money is like bribe for votes. Tell Ndii to strike balance.

[RV Pundit]

I dont think any production can happen without roads or electricity or water - basic infrastructure is a must - what we can do without is fancy airports like Isiolo or Eldoret - or other secondary infrastructure.

Looking at Ethiopia model - 10 percent growth for decades - and China - we need huge investment in infrastructure - yes corruption will introduce inefficiency - but I believe if we get chinese contractor model - we can make it work.

Inequality in Kenya is driven mainly by crony capitalism. Crony capitalism is bred by bureaucracy and heavy government involvement in the economy. There's a direct correlation between corruption and inequality. That's why the freer the economy the less inequality.
The more pressing problem in kenya isn't infrastructure deficit but production deficit. Its almost naive to look at western world as benchmark for the infrastructure needed without comparing production standards in western world also. Fix production and infrastructure will follow but not the other way around(build and they'll come").

[gout]

Ndii's approach addresses crony capitalism. Take dairy- more microprocessors, money goes round the village and no Brookside on the shelves. Same for bread.

Where the money comes from? The milk and bread produced in the villages is also taxed directly - VAT; cess and indirectly as people consume more electronics- TVs, motor cycles, transportation fuel.  This is where money comes to pay for the mega infrastructure debts; the wadosi salaries.

It is the economy stupid!

[KenyanPlato]

Ndii is too micro. He focuses on small stuff not the big picture. HK approach is the best solution. Trim govt spending and deal with cronyism. Cronyism in kenya is usually in middle level management with gok bureaucracy. That why the wanjigis of this world have more leverage than most politicians. They are connected to this core group. According to kenyan leading economists the most corrupt civil servants are about 20k. You deal with this 20k you can shut down cronyism

[RV Pundit]

With low taxes - our tax base is already low (now less than 20 percent gdp) - how do you propose we will run the gov, employ teachers and build road?

Corruption is not gong to be easy to deal with - it systemic and need systemic approach - I believe ARA type - is better approach.

Ndii is too micro. He focuses on small stuff not the big picture. HK approach is the best solution. Trim govt spending and deal with cronyism. Cronyism in kenya is usually in middle level management with gok bureaucracy. That why the wanjigis of this world have more leverage than most politicians. They are connected to this core group. According to kenyan leading economists the most corrupt civil servants are about 20k. You deal with this 20k you can shut down cronyism

[KenyanPlato]

Lower taxes. Pick projects based on priority and ability to fund them. Civil service reform. A radical reform could lower corruption. The key is be very deliberate on what is being done. Not engage on speculative projects. Fiscal discipline is what we need to wean the economy off the debt trap we are in

[RV Pundit]

I would still go for targetted tax cuts. If someone is bringing a company that can employ 1,000 people - I would give him 5yrs tax free. So we need special economic zones like China did. These zones we can establish micro-enviroment as competitive as anywhere in the world and focus in export. If we establish huge economic zones in Lamu and Mombasa - bringing in 1,000 companies employing 1,000 people each - that is already a million manufucturing jobs. They need to be at the sea port - Dongo Kundu and Lamu - we can quickly ramp up to 10,000 companies hiring 10 million kenya. We will give them all special tarrif - they need - as long as they employ 10million people without any minimum wage -

If there is something we have - it's plentiful of cheap labour - and now we should focus one export led manufacturing - like EPZ athi river but this time in LAMU - build huge EPZ there - that would operate like different country. No KRa, No police, no unions, no labour laws, just employ 10 million kenyans.

Lower taxes. Pick projects based on priority and ability to fund them. Civil service reform. A radical reform could lower corruption. The key is be very deliberate on what is being done. Not engage on speculative projects. Fiscal discipline is what we need to wean the economy off the debt trap we are in