Nipate
Forum => Kenya Discussion => Topic started by: RV Pundit on September 26, 2021, 03:00:57 PM
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Yes, this was very interesting to watch. Thanks.
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It appears from 1980 things went south when Kenya listened to IMF and adopted SAPS.
We need to think of going back to import substitution?
The Implementation of Structural Adjustment Programmes
SAPs are built on the fundamental condition that debtor countries have to repay their debt in hard currency. This leads to a policy of ‘exports at all costs’ because exports are the only way for ‘developing’ countries to obtain such currencies.
A first feature of SAPs is therefore a switch in production from what local people eat, wear or use towards goods that can be sold in the industrialised countries. Since the 1980s dozens of countries have followed these policies simultaneously. They often exported the same primary commodities, competed with each other and then suffered because of declining world market prices for their commodities. Between 1980 and 1992, ‘developing’ countries lost 52% of their export income due to deteriorating prices (see Touissant and Comanne 1995: 12; George 1995:22; Bournay 1995: 51).
4 fundamental objectives according to which they are shaped:
Liberalisation: promoting the free movement of capital; opening of national markets to international competition.
Privatisation of public services and companies.
De-regulations of labour relations and cutting social safety nets.
Improving competitiveness (see Toissant and Comanne 1995:14)
Definitely we have gone back on social safety nets - and brought it back.