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IS HISTORY ABOUT TO SERVE US AGAIN?
In 1963, after more than a decade’s episode of violent struggle for freedom, Kenya attained her independence.
Then in 1991, roughly 28 years later, Kenya momentarily lost her independence.
Technically, somewhat.
The circumstances in 1991 and those of today are similar. The one thing Kenya didn’t suffer from in the 1990s was the effects of a worldwide pandemic. Otherwise, history is repeating itself.
Interestingly, 2020 is 29 years after 1991. And Kenya, the growing cacophony of “BBI” and “referendum” notwithstanding, is again about to lose her independence.
Technically, somewhat.
As is the case today, back then corruption and governance issues reigned, the government had borrowed heavily, and struggled to meet external debt obligations owing to an unfavorable balance of payments situation.
Economists tell us that the balance of international payments is the difference between the amount of money flowing into a country within a particular period of time, and the outflow of money to the rest of the world at that time. When the amount of money flowing out is more than that flowing in, then a country has unfavorable balance of payments.
Nations would rather that inflows are more than its outflows. The opposite scenario means that their economies will struggle to meet payment obligations towards other countries.
Such as in servicing debt.
In order to wriggle itself out of a tough situation, the cash-strapped administration of President Moi turned to the Bretton Woods Institutions - the World Bank and IMF - for assistance. Engagements begun in the early 1980s.
But nearer 1991, Bretton Woods institutions imposed a raft of tough fiscal and expenditure conditions.
The institutions became President Moi’s pet punching...
Then in 1991, roughly 28 years later, Kenya momentarily lost her independence.
Technically, somewhat.
The circumstances in 1991 and those of today are similar. The one thing Kenya didn’t suffer from in the 1990s was the effects of a worldwide pandemic. Otherwise, history is repeating itself.
Interestingly, 2020 is 29 years after 1991. And Kenya, the growing cacophony of “BBI” and “referendum” notwithstanding, is again about to lose her independence.
Technically, somewhat.
As is the case today, back then corruption and governance issues reigned, the government had borrowed heavily, and struggled to meet external debt obligations owing to an unfavorable balance of payments situation.
Economists tell us that the balance of international payments is the difference between the amount of money flowing into a country within a particular period of time, and the outflow of money to the rest of the world at that time. When the amount of money flowing out is more than that flowing in, then a country has unfavorable balance of payments.
Nations would rather that inflows are more than its outflows. The opposite scenario means that their economies will struggle to meet payment obligations towards other countries.
Such as in servicing debt.
In order to wriggle itself out of a tough situation, the cash-strapped administration of President Moi turned to the Bretton Woods Institutions - the World Bank and IMF - for assistance. Engagements begun in the early 1980s.
But nearer 1991, Bretton Woods institutions imposed a raft of tough fiscal and expenditure conditions.
The institutions became President Moi’s pet punching...
