Quote:Can we transport goods cheaply without infrastructure? Can we attain that competitive edge on fear
Yes you can transport goods cheaply without expensive infrastructure. If you are manufacturing for export why not locate the industries at the coastal belt or it is re-export locate the industries in kisumu
Quote:what creates wealth
Simple wealth is the output of production. The interplay of the factors of production capital, labor, land and technology (human capital) is what turns idle resources into wealth. The road to wealth starts by providing goods and services that the population wants and is willing to pay for. The more goods and services produced the more the wealth and infrastructure to serve the economy grows.
The economy grows where there is an exchange of goods and knowledge. Urban expansion is the best way to promote the exchange of knowledge and promote the division and specialization of labor.
Government spending does not stimulate economic growth. It just redistributes the income it collects from taxes. It misallocates capital towards less productive uses. It is wasteful in expenditure e.g. 10 bob biro pen will cost the govt 150. Kenya economic history shows growth has come when govt has taken a back seat and allowed private sector generate wealth.