Rank: Elder Joined: 3/19/2013 Posts: 2,552
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hisah wrote:mwekez@ji wrote:symbols wrote:hisah wrote:
@mweke - Why doesn't gok formulate the blueprint for nurturing of SMEs, expansion of manufacturing as well as agri econ support via subsidies as well as incubation funding via special econ zones plus bank of manufacturers? Also not forgetting infra as well as cheap power distribution. Then once we have the platform up and running, KES can be devalued since KE will have a lot more to export in terms of finished goods. But devaluing now without the basic structures up and running is a zero sum game since to achieve the above importation will sustain until the platform is formed. So I disagree that debasing KES as reco'd by WB is the best prescription for the deficit issue. Sound fiscal policies are the only way out.
 Opportunities are like buses...we need to get the bus fare. mates, of all those things you mention, only bank of manufacturers is not in the pipeline. so, why not implement the debasing of KES concurrently with the said mix of monetary & fiscal policies for more rapid econ growth? Debase the ccy and the import bill for the platform increases yet you don't have the sufficient USD reserves to foot that bill. I don't see any value in that. The two events are mutually exclusive. Besides it takes a while to stem off the consumerism habit that has taken a while to form. What has led to this consumerism for external imports? Lack of local suitable alternatives. Fix that and the imports get fixed. Form trade ties with your import nations e.g. encouraging them to invest in your country (build manufacturing units for local consumption) which also boosts the local econ, retains earnings (tax revenues) and boosts job creation. Using the same principle we should also foster a better relationship with our E.A counterparts as we're in it together.
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