September 1 2009

THE FACT THAT THE RECENTLY launched Economic Stimulus Programme (ESP) has received fairly muted response is not really surprising. Most Kenyans feel so overwhelmed by problems that they just want to get through the hassles of the day.

Also, over the years, many Kenyans have become used to viewing government-sponsored proposals with jaundiced eyes since what is promised and actually delivered are often far apart.

But that said, it is important to accept that some considerable thought has gone into putting this proposal together, and so it should be examined on that basis.

As the global economic mayhem has hit country after country, many governments have embarked on a variety of economic stimulus packages. These are often tailored to revive or rescue certain areas such as the banking sector, consumer spending or house mortgage defaulting.

The ESP’s key dual objectives appear to be to boost economic and social activity. Kenya has been hit by the global recession in no small way, but this is only one of several economic hammer blows the economy has suffered in the past 18 months or so

Some of the other main ones are the post-election mayhem, a succession of deficient rains, rampant inflation, coupled with high food prices and rising hunger. So when looking at what is proposed, one should not only ask about how it is going to work but also how or whether it dovetails into existing emergency and other projects.

The ESP is strictly a short-term project with a six-month timeline largely aimed at giving the economy a vitamin injection as well as identifying key areas that are under-performing. Food self-sufficiency is one. Infrastructure is another.

HOWEVER, WHEN ONE LOOKS AT THE actual activities proposed, one sees that they are largely public policy projects to do with education, public health and gainful activity creation such as constructing Jua Kali sheds and fish ponds. The main bias is towards the rural areas where the majority lives.

There is no real problem with either the objectives or the proposed activities. Its rural bias thrust is also commendable. But for it to truly work, some key questions and issues have to be addressed.

First, do any of these proposals and activities duplicate what is already being done? It is fair to ask the question as to whether some or much of what is proposed is just a repackaging of existing projects.

A second question is, bearing in mind the very tight budgetary straightjacket the government is in, will the money actually get to these far-flung places? How much of it has been disbursed?

Third, and most crucial, who will oversee and implement the projects ? Overall the government gives fairly poor value for the money it spends.

nation.co.ke