H/T The Guardian.
H/T The Guardian.
I have made the case before here, here and here.
For more here’s Blattman, commenting on Industrial policy:
“You can’t pick winners” is the knee-jerk retort to the mention of anything that even rhymes with industrial policy. I would call it the triumph of ideology over evidence, except that even “ideology” feels like a generous term. Lazy thinking might be a more accurate description. Some have given the question a great deal of thought, but most have not.
I’m not suggesting that the paper above has the right answer (odds are, like most papers, it does not). I’m also not suggesting that governments can pick winners (probably they can’t). Nor am I forgetting that industrial policy is easily politicized and distorted (as surely it is). So what am I talking about?
President Kibaki will probably not win the Mo Ibrahim Prize because of his questionable reelection but he sure will leave office a happy man.
According to the Star:
“When President Kibaki walks out of State House after the next elections, he will go home with a hefty gratuity—Sh50 million. The gratuity, the highest to be paid in the history of the country, has already been factored into the 2012/2013 budget by newly appointed Finance minister Njeru Githae.
Apart from the one-off payment of the gratuity, Githae also proposes to increase the annual allocation for retired presidents from the current Sh17.7 million to Sh30.2 million. The increase is meant to cater for the monthly pension which is due to Kibaki plus what taxpayers have been paying Moi since he left office in early 2003. The two will continue to draw the pension for the rest of their lives.”
“……Kibaki will also be entitled to get a monthly pension equal to eighty per cent of his current monthly salary. Kibaki is currently paid a basic monthly salary of Sh2 million (about $26,000) and earns an average of Sh24million ($200,000) a year under the current exchange rate.”
The figures are actually a bit off. Under current exchange ranges 2 million Shillings a month amounts to about US$300,000 annually. Not a bad deal at all.
These figures, however, raise questions about compensation packages for politicians in Kenya. Recently the treasury bribed MPs to pass the new budget and to be nice to the banks with a “gratuity” amounting to almost US$50,000. This on top of their already obscene annual salaries which stand at US$ 161,000, excluding other shady allowances that are never included under official pay. The last time I checked, all things considered, these MPigs (as they are derisively called locally) make upwards of US$174,000.
Per capita income in Kenya (in current dollars) stands at around US$800, with about 40% living below the poverty line.
I have argued before that paying MPs a decent salary may make them less amenable to executive manipulation (For supporting evidence see Barkan and Co. on legislative strength in Africa). But this just takes it too far.
Evidence seems to suggest it is:
Trade between the EAC countries almost doubled from $2.2 billion in 2005 to $4.1 billion in 2010, although regional trade with the rest of the world expanded faster, meaning that the relative share of intra-EAC trade has stayed around 21 per cent since 2005 [The African Average is 11 %]. “Europe enjoys 64 per cent internal trade; our 21 per cent is better than we thought, but we have to make efforts to do better,” said Betty Maina, chairperson of the Kenya Association of Manufacturers.
Kenya still remains the biggest economy in the region, although some convergence is definitely likely to happen in the next decade or so given the large hydrocarbon discoveries in Uganda and off the Tanzanian coast.
The region’s oil consumption rose from 96,000 barrels per day in 2003 to 144,000 barrels per day in 2010, with Kenya consuming more than all the other EAC countries put together. East Africa now accounts for 10 per cent of all mobile subscribers in Africa, with the number of mobile subscribers surging from just three million in 2002 to a staggering 64 million in 2010.
The Daily Nation reports the passing away of Malawian President Bingu wa Mutharika (May he rest in peace).
Vice President Joyce Banda is next in line to run the country, according to the constitution.
But her succession to power could create new political tensions, because Mutharika kicked her out of the ruling party in 2010 as he chose to groom his brother as heir apparent instead of her.
The official silence has heightened anxieties in Malawi, which has seen growing discontent with Mutharika’s government over the last year. Rights groups have accused Mutharika of mismanaging the economy and trampling on democracy.
Mutharika’s death is a trend that will continue in the next couple of years; of Africa independence-era leaders passing on due to natural causes.
The last time I counted about six current African presidents were born after 1959. This number will only go up in the next couple of years. Hopefully, this will mean a new crop of competent leaders without the baggage of the anti-colonial movement and with enough confidence to chart a new course for their respective countries rather than merely trying to recreate what their dad’s bosses had back home.
This is not to say that younger leaders will automatically be better. Gambia’s Jammeh and the DRC’s Kabila are constantly redefining the possibilities of youthful mediocrity in important leadership positions.
The looming generational change of guard will mostly benefit the few African states (like Malawi, Kenya, Senegal, Tanzania, Zambia, etc) that avoided the scourge of the junior officers in their political history.
President Macky Sall of Senegal could prove to be the first of this new generation of leaders.
On Somalia’s (non) recovery.
For his troubles with the Wade government Youssou Ndour gets appointed to the new Cabinet of President Sall.
The unintended consequences of the Malian coup continue to mushroom. AQIM seems to be taking advantage of the power vacuum left in the north of the country. Lots of people scared out of their wits over the latest developments.
Scientists in Kenya are working on a male contraception pill. May be this time the product will be good enough to overcome cultural barriers and the gender politics of contraception?
I just finished reading Daniel Branch’s Defeating Mau Mau, Creating Kenya. It is an excellent blend of an academic take on theories of violence and counterinsurgency and a historical narrative of Kenya’s war of independence (as I was taught in primary school) or the “Kikuyu civil war” (which is a lot closer to the truth). The book sheds light on the foundations and dynamics of the Mau Mau rebellion and dispels previous accounts which argue that the cleavages that defined the war (Mau Mau vs. loyalist) was primarily class-based and existed before the onset of the rebellion in 1952. I highly recommend the book for the readers interested in Kenyan history or COIN, or violence and civil war.
I also currently reading William Reno’s Warfare in Independent Africa, an account of the evolution of the nature of civil wars in Africa and the type of leaders that led them. Reno groups Africa’s rebel groups into anti-colonial rebels (e.g. FRELIMO), majority-rule rebels (a southern African animal, e.g. SWAPO), reform rebels (who fight against oppressive regimes, e.g. RPF, EPLF, etc) parochial rebels (who fight for circumscribed community rights e.g. OPC in Nigeria) and warlord rebels (e.g. LURD, NPLF, etc).
The book gives an account of how the socioeconomic origins of rebel leaders and the wider political context in which they operated influenced the trajectories of conflict in African states over time. It also attempts to tackle the question of why most African rebels (even those from Ruritania) have tended to fight for the capital instead of secession, even in states with limited capacity like the DRC (this is however changing, Sudan, Somalia, and Mali are good examples). If you had lingering questions after reading Jeremy Weinstein’s Inside Rebellion (on the industrial organization of rebel movements) then this is a good book for you to read.
Lastly, I finally took Debt, The First 5000 Years by David Graeber off the shelf. Graeber is an anarchist anthropologist who was one of the brains behind the Occupy movement. I took his last Intro to Cultural Anthropology class at Yale before he got fired. Graeber sometimes goes into the deep end, but his ideas are refreshingly provocative. I look forward to reading it and availing my comments soon.
Also need to get my hands on this book when it comes out.
Former Defense Minister and GEMA leader Njenga Karume is dead at 83. Mr. Karume succumbed after a long battle with cancer.
The late Karume, who made most of his money from the beer distribution business, was one of the most influential and richest politicians among the “independence generation.” Njenga Karume was mostly a self-made man (His autobiography is titled “Beyond Expectations – From Charcoal to Gold”). With little formal education (many Kenyans know of his “wananinji” pronouncements), he managed to create a business empire that catapulted him to the boards of many a Kenyan company. Being the leader of the powerful GEMA cultural bloc and a close ally of President Kenyatta certainly also helped.
May he rest in peace.
The passing of Njenga Karume comes just four days after another veteran politician and also close friend to President Kibaki, John Michuki, passed away. It is hard not to think that time is beginning to catch up with the political elites who led Kenya’s independence generation. Indeed this year’s general election will be the first without a leading independence leader in contention for the presidency (Theirs sons and political scions will duke it out).
The natural generational change is certainly a cause for excitement; peaceful elite rotation mostly leads to positive outcomes. But at the same time I have the nagging feeling that the 50 and 60 year old “young turks” who are about to take over may lack the encompassing interest that the “wazees” shared (Notice how nice Kibaki has been to former President Moi). Yes, they were not always good people - the deaths J. M. Kariuki and Tom Mboya forever remains a blotch on their record – but you have to give it to them for holding it together even when things were falling apart all around the neighborhood.
John Michuki, MP for Kangema is dead at 80. The late Michuki was a Kenyan politician that many learned to love (and sometimes love and hate). As Transport Minister he brought sanity to the rowdy matatu sector with the much-loved “Michuki Rules”. As Minister for the environment he cleaned up Nairobi River.
His less illustrious contribution was in the security ministry. It is under his watch that the Standard Media group was raided by masked thugs under the pretext that they were about to publish information that would have “impinged on the person of the president.” It later emerged that the media house had information about alleged illegal dealings by a woman rumored to be an illegitimate daughter of president Kibaki. The war on the Mungiki sect was also carried out under his watch – with numerous allegations of extrajudicial killings of hundreds of young men.
The son of a paramount chief, Michuki was among the group of super-wealthy conservative elites who at independence took over power and managed to quiet the more radical elements of the independence movement. Under their watch Kenya emerged as a capitalist enclave even as its many neighbors flirted with communism and African Socialism, with disastrous consequences. For better or worse, Kenya benefited from this “home guard generation” (see Bates 1989, for instance; for a different view see AfriCommons).
The Kenyan political scene will sorely miss Mr. Michuki’s straight talk and ability to deliver. He was among a handful of government officials that actually stood for what they believed, and he had results to back up all his talk. As the Nation reports:
Michuki gained the reputation of being a “ruthless” and efficient manager, who is widely acknowledged as being among the best performing ministers in President Kibaki’s government.
May he rest in peace.
The ICG has an excellent new report on the state of the the Kenyan military intervention in Somalia.
The pressing issues raised in the report include economic, political and social concerns:
The slow pace of the military operation and the high cost of keeping troops in the field are the main reasons behind Nairobi’s desire to operate under AMISOM command. The treasury would then not have to pay the full cost of the campaign. It is estimated that Linda Nchi is costing the government at least KSh 210 million ($2.8 million) per month in personnel costs alone in a year of a record KSh 236 billion ($3.1 billion) budget deficit. If the interven- tion’s cost is not contained, already high inflation will spiral, and local discontent could become more serious…..
The intervention in Somalia is likely to have a complex impact on Kenyan Somalis’ political positions, because their attitude toward it is not straightforward. The government’s desire to establish a buffer zone between the border and the rest of Somalia privileges the Ogaden, the majority Kenyan-Somali clan. The possibility of a semi-autonomous state in the south of Somalia politically dominated by Ogaden may not be favoured by the minority, marginalised clans of north-eastern Kenya, such as the Ajuran and Degodia…..
Views within the ethnic Somali and wider Muslim community regarding the war are mixed but predominantly critical. Even those now mildly supportive could easily become hostile, especially if things go badly wrong, and civilian deaths mount. The notion that the war is popular within the Muslim community is wishful thinking, and the potential to exacerbate already worrying radicalisation in the country is very real. The police and other security services have shown some restraint in bigger cities, but there have been numerous reports of abuses in North Eastern Province.