Botswana: A Success Story of Practical Abstract

By Mwarang'ethe

In response to some of the ideas we have articulated on this blog, a certain anonymous ranted that, “While we appreciate your intellectual discourses, your abstract (NOT PRACTICAL) rants only succeeds in expanding your ego. ... What is a better robot than one possessed with quoting newspapers and dead men passing it along as knowledge?”

Having noted the above, we all know that, there are thousands of highly educated and qualified Kenyans who have worked and are still working in Botswana. We are told that, in this country, we find Kenyans manning very senior positions. But, has anyone dared tell Kenyans why this nation which has abundant diamonds, gold, nickel and copper has avoided the “resource curse” we see in Congo, Nigeria, Sudan and the tragedy and stagnation of Kenya, a nation with such immerse potential?

It is a well known that; Botswana which had income per capital of $100 at independence has performed very well when compared to other sub–Saharan neighbours. For instance, this land locked nation in 2006, had income per capital of $ 9, 945, Uganda had $ 1,478, and Zambia had $ 943 while Malawi had $ 646. When it came to top income tax rate, Botswana had 25%, Uganda had 30%, Zambia had 37.5% while Malawi had
40%.

Apart from these impressive economic figures, Botswana is also devoid of civil conflicts we see in Kenya, Uganda, Sudan, Congo, etc. More so, it is also ranked as one of the least corrupt nations in Africa, with high expenditure on schools and health. To understand this 'paradox,' the IMF posed the question, why did Botswana escape from resource curse which tend to bring both conflict and corruption?

Here is the reason. Since independence, Botswana has dedicated its resources rents (land values) to investment in public infrastructure under a fiscal discipline called the Sustainable Budget Index. In addition, the Botswana government channels these land rents into the Pula Fund which invests for long term interests of the nation. The question is why has Botswana leaders behaved so responsibly instead of
squandering this wealth in corruption and wealth as we see around Africa?

The answer is found in the history of Botswana. When British occupied this nation, it did not kill traditional practices or institutions such as land ownership. In this country, land was collectively owned but cattle were privately owned. This was exactly the position in Kenyan and all other African tribes. This is a clear and unmistakable distinction between common property and private property which we have
become ignorant of (such an idea is now abstract and impractical) because we now wear suits and ties and we can speak English.

When this nation gained its independence, it had only one abattoir, two secondary schools and few paved roads. Following independence, the founding fathers of Botswana enacted the Mines and Minerals Act (1967). This Act vested sub–soil mineral rights in the national government. Thereafter, diamonds, copper and nickel were discovered.

Using the rents from these minerals, the government built impressive infrastructure. But, why was this? Simply because, diamond rents were widely distributed this increased the opportunity cost of undermining the good institutional path. In other words, no group risked to expand its rent because that would have rocked the boat.

From this, we can see that, these developments were spurred by the traditional African practice of sharing land as a collective property right but not the cattle. How was this system organised before colonial times? All land was vested in the Chiefs of tribes who held them in trust for members of the tribe. Therefore, membership of a tribe ensured the individuals right of access to tribal land for USE.

After Independence

These tribal customs on land ownership were preserved after independence via the Tribal Land Act of 1968. Under this Act, the leaseholder is subject to a rent on the land payable to the land board subject to review every five years. In this tribal land tenure, speculation in land (remember Thika road we mentioned a few days ago)
is avoided while ensuring no one is landless. In this scheme of things, LAND IS NOT A CONTESTED ASSET as we see today in Kenya. And, when land becomes a contested asset violence and genocide is a matter of time.

Therefore, we can see that, Botswana has avoided conflict, corruption because rents have been preserved for the community benefit. This was so because; the founding fathers of this nation had wisdom to preserve the customary rights of the everyone to share in the riches of nature. This has ensured that, the land rents are used in the public sector while burdening least capital investments by the private sector. In
other words, Botswana has preserved the natural right to the use of land which some now see as abstract in Kenya.

In Kenya, we may not have the diamonds of Botswana, but this is no problem at all. It is not a problem because, people’s energy and creativity creates even more land rent and it the infinite value we can tap very easily. Again, a look at what is happening at Thika road tells us how much rent Kenyans create, but, which is now monopolised.

Was it smooth sailing for Botswana?

This you can read in Joseph Stiglitz book Globalisation and its Discontents. Since Botswana lacked technology to mine these diamonds, they called the de Beers from South Africa. Quoting Stiglitz: “Shortly after independence, the cartel paid Botswana $ 20 million for a diamond concession in 1969, which reportedly returned $ 60 m in profit a year. In other words, the payback period was four months!”

It was then Botswana enlisted the help of a lawyer from the World Bank who argued very forcefully for renegotiation of this contract. As one would expect, to lose such rental flows was an insult to this cartel. They went all to the World Bank to stop this lawyer from helping Botswana. At the end of the day, the World Bank issued a letter denouncing this lawyer as not speaking for Wold Bank. Botswana’s response was this. This is precisely why we are listening to him.

Eventually, the matter was resolved when the second mine was discovered. Therein, we see how close Botswana was close to the destitution we see in Congo, Nigeria, and Sudan. It was the intervention of a just one brilliant and a publicly minded lawyer that saved Botswana from resources curse we see around Africa, but, at the cost being denied by his employer.

Thus, by securing rents from its land, this has made the difference between poverty and prosperity we see today in Botswana. Therefore, when you hear a Kenyan is working in Botswana, know that, he is running away from a nation full of practical men/women with practical ideas, to a nation of men/women who use abstract and impractical ideas to govern that little island of prosperity in the ocean of poverty.

Given the clear example of our neighbour Botswana, we appear abstract and impractical only to Cheerful Robots which want to enjoy the luxury of holding opinions without the discomfort of thinking. Since their reference is ignorance, these Cheerful Robots believe all that they do not know, understand and dare not ask or investigate further is abstract and impractical.

Kenyans have had a golden chance to implement these abstract and impractical ideas from Botswana in the ongoing “constitutional reforms,” but, since we are practical men/women, we have chosen to entrench plunder. Having done so, we now see every Kenyan is now fighting tool and nail to ensure he/she is the plunderer and not the
plundered.

What a spectacle?

Sungura Mjanja Kanu's Poisoned Bag of Tricks

Gideon Moi: 60 million is not a problem

As I sit down to write this article the sun is streaming in through the curtains and I am listening to the mega-hit Les Wanyika number Sina Makosa. A very old song no doubt but I love it still. I also love to study legends and there is a story of a legend behind this particular song.

I watched with my own eyes as the late Prof Omari was completely destroyed by the windfall that came to him when this song hit beyond all expectations. I loved the good professor. He was a genius with the rhythm guitar. But too much money coming in too quickly killed him.

One thing I have always noticed is that the more I study legends the more I realize their shortfalls and am rudely brought back down to earth with the reminder that they were human after all.

For a long time now KANU diehards have been quick to remind all and sundry that Kanu is the oldest political party in Kenya. And many Kenyans respect that.

But actually it is all hogwash when you examine this legendary party more closely.

Kanu was formed amid squabbling and accommodated bigwigs from various other political parties and interests, just like FORD, Narc and ODM after it. The difference and what kept the party around for decades was the limited political space that Jomo Kenyatta quickly moved to narrow and limit even more. What followed were threats, political assassinations etc. Kanu was made the only political party anybody who wanted to go into politics would have to do business with. When the second president of Kenya, Daniel arap Moi took over, a one party system was entrenched into the constitution.

So the truth is that the only reason Kanu is such a long surviving party is that it did not operate alongside any competitors for decades. That was simply NOT allowed. In my view Kanu is well and truly dead and the next elections will prove my statement correct

But what I would like to draw your attention to, my dear friends are recent going-ons within the former mama na baba party. Gideon Moi (still taking very careful instruction from his dad) is making some very deliberate moves to rid the party of its’ de-jure chairman Uhuru Kenyatta. And some of the tactics being used are fascinating.

Gideon Moi is planning to go to court to force a KANU national delegates conference. The big issue with calling for a national delegates conference is that the younger Moi plans to mount a challenge for the chairmanship of the party. Interestingly Gidoen said very early (sometime last year) that Kanu would field a presidential candidate in 2012 (and it would NOT be somebody who has failed to get the presidency before) This of course was a thinly veiled reference to Uhuru who stood against Mwai Kibaki in 2002 and lost.

As I have said in this blog before, Gideon has been on campaign mode for a long time now and chances are high that he will be the Kanu candidate for the presidency. In any case he is one of the few Kenyans who can independently finance a presidential campaign without breaking into a sweat or losing any sleep over it.

But what is even more fascinating is the game plan that Baba Moi and his son have. The idea is to split the Kalenjin vote by having two presidential candidates (if Ruto survives the Hague and runs he will be the second candidate.) This will neutralize the power of the community or the possibility of violence breaking out again. And then at the very last minute Gideon will be running mate to the winning Candidate (whatever party they will come from, whether PNU or ODM).

Not a bad strategy you will have to agree with me. But then I have said that the next presidential elections will upset every known form book and therefore even this well thought out strategy will be dead in the water.

Meanwhile the drama in KANU will be interesting to watch, especially when it starts boiling down to who will finance the national delegates conference that has to be called to elect new national party officials. The budget for that little circus is a whooping 60 million.

Extensive property listings are in the current Kumekucha classifieds.

Our MPs Playing Old Music to Bored Gallery

I burst out laughing in the wee hours of this morning (Kenyan time) over a very interesting news item.

Have you ever heard of the Bay of Bengal? Well there is a tiny rock island there called New Moore Island (kind of reminds me of of Migingo Island). India and Bangladesh have been fighting over the island for almost 30 years with no solution in site. Now suddenly the island has disappeared. Yep, vanished into thin air. The island has actually been swallowed by the sea. The water provoked by Global warming has just gradually risen and swallowed up the island.

Hon Najib Balala: Playing to the gallery.

In fact the associated press has quoted one scientist who put it very well. The man said: What these two countries could not achieve from years of talking, has been resolved by global warming. You can read the full article HERE.

My message to our parliamentarians still playing games with the new constitution is simple. Just continue with your side shows and very soon you may find that what you are fighting over has disappeared.

I have completely ignored what the MPs have been saying in the house. The whole lot of jokers are just playing to the gallery. So that when they finally get home at the end of the day, a youngster can say to them: “Daddy I saw you on TV, you gave a very nice speech in parliament.”

The real debate over the constitution is going on in secret meetings popping up all over the place. So serious is this phenomena that one may be forgiven for thinking that they will soon overshadow and swallow the real parliamentary proceedings. Even the final vote will be decided in secret meetings at this rate.

Let us look at the various factions.

There is the the Mombasa one, which incidentally has got no clear leader. Because Najib Balala has been shoved aside as de facto leader he is now busy “calling for an end to these secret meetings” and ensuring that the press is capturing his sentiments. Nice touch after the long-winded speech he gave again for the benefit of the cameras in parliament yesterday (I wonder who wrote it for him). Can you imagine parliamentarians are spending cash now on the wording of their contributions in parliament? Maybe this idea of cameras in the house was not such a good one after all.

Anyway, our Mombasa guys just want to ensure that a substantial fraction of the billions that Mombasa earns for the country from tourism and the port, remains at the Coast and somehow benefits Coastal folks. I don’t blame them. Except that their secret meetings worry me. Why not meet in the open like the women faction are?

Then we have the women faction representing the long-suffering women of Kenya. Taking expert legal advice they want to ensure that women are not short-changed once again. No harm in that. My heart goes out to them.

But then we come to the really nasty chaps. There are actually 3 factions. There is the Kibaki faction that usually meets the president or his representative, not to discuss but to receive instructions on the next move. Then there is the Raila faction which usually meets to discuss but at the end Raila instructs. Then there is the Ruto/Uhuru faction which I will call the Ocampo faction for obvious reasons. They usually meet to strategize and decide what to do mainly to frustrate the Raila camp. This has led some to believe that this faction is taking instructions from the Kibaki faction or at the very least is sympathetic to it.

But all the trouble stems from the Kibaki faction. The main worry of this faction is the president losing control. The argument for a two-tier government (national and counties) because it is “cheaper” than a three tier system is just a smoke screen. Their main issue is having a senate that can impeach the president. Taking legal advice this group of conservatives has found a way to keep a powerful president in the draft constitution who will protect their interests after Kibaki is gone. That means covering up their tracks as well. This legal advice has told them, quite rightly that the Senate could easily “deal with a president” and thus frustrate their plans. What really terrifies them is that despite their fight for more counties, it is clear that the most influential regions in the Senate will be the Rift Valley and Western Kenya, by sheer numbers. These are the guys who have thrown a spanner in the works when it looked like we were home and dry for a new constitution. The Daily Nation reported that the march to a new constitution is unstoppable and that parliament cannot stop it. However the Kibaki faction may stall the process indefinitely simply by ensuring that parliament keeps sending back the draft to the COE. The same parliament has the power to pass another law canceling or amending the act that is currently driving the process, or so the Kibaki faction believes.

The Raila faction wants a smooth transition to the new constitution with no major decisison being made without Raila’s nod. And all loopholes sealed for Raila to win the next general elections without any fiddling with votes. But there are other priorities that have suddenly taken centre stage. Like dealing with William Ruto and teaching him the political lesson of his life. As to whether they will be able to achieve this, we just have to wait and see. I think events will overtake things and Ruto will soon be on his way to Europe for an indefinite stay, although the Kibaki faction has assured him it will not happen.

Keep fighting folks, the ship called Kenya is already creaking and almost bursting at the seams over years of impunity and injustice. It will only take a very small spark and this thing will fall apart into the sea and what the kingpins have been fighting for will no longer exist. Just like that island in the Bay of Bengal. Very sad.

Meanwhile Kenyans are busy shouting themselves hoarse telling the MPs to leave the draft alone because it reflects the wishes of the Kenyan people. Methinks it is like shouting at a hungry lion feeding on a juicy antelope to leave the meat for a hungrier leopard.

P.S. I have not agreed with Phil for a very long time. But I can’t help but agree with him when he says that it is always ODM compromising and giving ground to PNU over the draft constitution. The PNU strategy thus far has always been to create “small fires” and then pretend to compromise over them in exchange for gaining advantage over a major issue they wanted to push forward. I don’t like people who think they are too smart.

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Ooops we forgot about the Central Kenya vote

2007 and early 2008 were really bad. Terrible is probably a better word.

I remember talking to a few distraught Kenyans based abroad wondering where their old parents would go if the violence spread into Nairobi. There was a real danger of that happening. One used to call me every night hoping to get inside information and would sometimes cry on the phone.

But the human mind has an amazing way of healing and forgetting old wounds. Especially if life goes back to normal, which it has for most Kenyans. And so for the vast majority of Kenyans the violence in that general election is long forgotten. For these fortunate Kenyans, when they hear that there is fresh voter registration countrywide and we should prepare for elections, it is not such a big deal.

But there are those for whom the word “elections” is the kind of thing that can easily send them to hospital for trauma treatment. I am talking about the poor Kenyans who are still in IDP camps. Those who survived the ordeal psychologically that is. I can assure you that being transformed from an employer to a beggar overnight will kill most people.

My point is that we have an election coming up in 2012 (at the very latest) and the real danger we are facing now is witnessing the most serious voter apathy in the history of the country. Some Kenyans will be too traumatized to actually approach a ballot box and the other half will be too angry (what difference did it make the last time?)

Whatever happens you can be sure that the Kikuyu vote is going to be affected in a big way in the next elections. For those who don’t know this was the community that was most affected and traumatized by the last general elections.

Traditionally the Kikuyu vote has decided general elections in Kenya. Even in 2007 when everybody was sure that the Kikuyu vote would be insignificant, it actually influenced things in the end because the community’s massive support for President Kibaki reduced his landslide defeat and made it possible for his handlers to attempt to manipulate the results which they did with disastrous effect.

Interestingly some presidential aspirants from central province have already seen what will become very obvious as the elections draw nearer. That the candidate who successfully positions themselves as the genuine defender of the traumatized Kenyans who passed through IDP camps or are still there will effortlessly carry the Central Kenya vote. Peter Kenneth is working very hard at that but more are bound to follow.

See the brand new Kumekucha classifieds for interesting offers for Kenyans worldwide

Press Release

Villagers now paying a heavy price for kindness to Jomo Kenyatta

Hello, this is the first time am sending an email to the media, though not sure of where or who to contact. I thought this being a source of media you will be interested to know stories that are happening in small village where maybe very few are aware of their rights and because of this the city council is taking advantage of poor people and doing whatever it takes to make their lives a nightmare. Today it is happening to them tomorrow it may happen to you or somebody else.

This is the story. I am a Kenyan lady born in a small village called Kabiria. Kabiria is located near Naivasha Road, Kawangware/Riruta Satellite road. I am sure most of you do not know that in this village used to live Margaret Kenyatta, daughter of our first President the late Mzee Jomo Kenyatta. One day it happened that Mzee was to visit his daughter but there was a problem to get to Margaret's house, he had to use roads that were larger, so some villagers decided to give a portion of their land to make it easier for the president to get to his daughter's place not knowing in what way their kindness and affection for their president was going to affect them in future. So from there the road become a public road called Kabiria road. I recall my dad complaining because the Kenya power had erected electricity poles in his shambaa (land) without any notice.

When the villagers complained they were told that the one in charge had been given money and all the notes to give to all the landowners before the project was carried out. Sadly enough no villagers got the note or the money. What happened? It was the time when you could not say anything about the leaders or directors carrying out projects, because if you did you would be in trouble. That brought a lot of problems because the electricity was put very near the road and the people's houses. Because per the law the houses had to be 3feet.away from the fence or poles, most innocent people almost lost they homes.

CURRENTLY.2009-2010
It was early one morning, when my brother went to pickup letters from the post office. He gave the letters to my dad. One of the letters was from the city council of Nairobi, demanding part of his land to enlarge the road. All the villagers received a similar letter. A week later the village was visited by city council workers putting marks on people's houses and businesses for demolition. As I said before very few people know their rights and are brave enough to go to the city council to ask what all that meant, unfortunately some people were afraid and they started bringing their houses and businesses down. Only one or two people were brave enough to file a case because whether a law was passed or not people should be compensated. The people built houses per the laws then, a responsible city should compensate residence who loses their property for public purposes. It is only fair and it is their right. That was not enough, the villages that were able to rebuild did it but the sad thing is a month after rebuilding the city council came again, marked the houses telling the villages to move their fences back a second time. The poor villagers did exactly that AND I ask myself what is this project that is changing day and night. I thought a project is well studied before implementation. You know what, last week the villagers received another letter telling them to move 30 feet back. The third demand in less than a year. I think its time to put this into the open and find OUT what THE SO CALLED MBURU a NEWLY PROMOTED ENGINEER AT THE CITY COUNCIL wants with the villagers although he is from the same village. He is not affected by what he is implementing. He is frustrating the villagers and being brutal partly because the road doesn't affect him. Here is a message for him from the villagers, "IT IS SO SAD FOR YOU TO THINK THAT YOU ARE DEVOLPING THE PLACE. YOU ARE NOT, INSTEAD YOU ARE KILLING AND DESTROYING THE PEOPLE. THE PEOPLE ARE TIRED. ENOUGH IS ENOUGH.THE VILLAGERS ARE GOING TO DEMAND FOR THEIR RIGHTS AS PER THE LAW OF THE LAND".

This is a historic village with a lot of Kenyan heritage. This is where the late Paramount Chief Kinyanjui, The late mother of late Edward Mathu lived and where Margaret Kenyatta lived and was visited by the late president Kenyatta on many occasions. The people in this village are asking what next, who will stand with them. The media people need to hold the city accountable for their actions. The human rights groups need to fight for the rights of the poor, and the government needs to uphold the law by being fair to its citizens. Please join me to help the villagers fight for their rights, because it is inhuman the way this man Mburu is treating them. Making them live in nightmare. When our people are affected we are also affected.

Thank you.

See the brand new Kumekucha classifieds for interesting offers for Kenyans worldwide.

Why free online advertising in Kumekucha?

Hate it or love it, the fact of the matter is that since May 2005 Kumekucha has proved to be a very engrossing and useful site for many Kenyans residing in the country and all over the world. In the early days Kumekucha was one of the very few places where Kenyans could find out what was really going on on the ground. Kumekucha has been a groundbreaking Kenyan blog in many ways.

Today competition has set in and there is a wide choice of sites for Kenyans to visit and enjoy interesting and insightful posts. But Kumekucha is still very much around and enjoys enormous readership.

And now in an effort to offer that extra something, I have introduced a classified ads section for all you wonderful readers out there to enjoy free effective online advertising.

It is my sincere hope that just like Kumekucha has had such a big impact on Kenyan politics, this new section will have a similar impact on small businesses and Kenyans everywhere trying to make ends meet. You will also see more business features in Kumekucha now.

Old readers of the site will know that I am known for telling it as it is and that is why I will admit that one of the reasons why the idea of kumekucha classifieds was so attractive to me was because it allows for more reader participation where you guys can create even more content at this site and thus reduce the pressure on yours truly to constantly generate fresh new content. Meaning that even if there is no new post at least my dear readers have an opportunity to look at some of the classified ads and maybe they will see something of interest.

Other blog owners will also be delighted to know that they can now advertise their sites here using the free classified ads (but only once a week. Please remember to read the house rules). Kumekucha has proved to be a very popular place for new Kenyan blogs and sites to advertise themselves usually in the comments section. Hopefully now they will have an even more prominent place to do it in this classified ads section.

Post your free ad now

Wednesday kumekucha classifieds ads includes this chilling prediction about Obama's future

Kumekucha classified ads (Brand new)

Free online advertising for East Africans

Here is a unique opportunity for you to advertise for FREE in the most popular political blog in the region. All you have to do is post your advertisement below in the comments area. It is that simple.

Kumekucha classifieds main posts will be posted on Mondays, Tuesdays and Wednesdays. And the most popular advertisements of the previous post will be repeated in the main post. However you can post your classified ad I the comments section below the main post on any day of the week and at any time 24/7.

But you have to be careful to observe the simple house rules listed below. Make sure you read them carefully.

I encourage all you good folks to make use of this unique opportunity to reach a huge audience for FREE. Hopefully there will be interesting and useful ads for kumekucha readers as well. Readers who want to ensure that they don’t miss any interesting classified ads should simply subscribe to the Kumekucha newsletter Kumekucha Confidential. I will reproduce all the advertisements for the week in Kumekucha Confidential. To subscribe send an email now to: kumekucha-subscribe@yahoogroups.com Make sure that you reply to the email you receive and follow the instructions carefully to confirm your subscription.

Rules for using Kumekucha classifieds

1. Hyper links are NOT allowed under any circumstances. If you want to direct people to a site shorten the address using http://tinyurl.com or http://is.gd.

2. One ad per week per person (for extra advertisements see rates below). Repeated ads will be deleted.

3. All ads advertising any service/product (even commercial) that is legal are welcomed. Note that Porn and X-rated sites are NOT legal in East Africa.

4. Comments in favour or against an advertisement are NOT allowed in Kumekucha classifieds. These comments can be placed in the usual Kumekucha posts.

5. Both advertisers and readers are advertised to approach any transactions with the usual caution and do not make any payments or send products until you have done your due diligence.

6. To appear in the main post in a prominent position there is a small reasonable fee to pay. See rates below.


Rates for paid ads:

Extra ads in the same week: pay $15 (or Kshs 1,000) will allow you to post 4 times consequtively. Can either be all on the same day or on consecutive days.

To appear in a prominent position in the main post: pay $30 (or Kshs 2,000) will enable your ads to appear twice ion the main post.

Start posting your free ad now and test how effective it is for you. To post click on "Post a comment" at the bottom of the page

New constitution: The evil that MPs are up to

All seemed to be well and just last month it looked like Kenyans were well and truly on their way to getting a new constitution, especially after the Naivasha retreat of the Parliamentary select committee handling the new constitution.


Then suddenly…. Drama. Now long suffering Kenyans are watching dumfounded as chances of a new constitution seem to be gradually but surely slipping away from their hands. It seems that every new day either side of the political divide is coming up with a brand new demand or position over issues previously agreed on.

But what is really going on? Why the sudden change of tact by MPs?

Just like in a murder investigation, the quickest way to figure out things when politicians start to behave in strange ways is to look for a motive or motives. If you instead try to listen to what they are saying and even attempt to analyze it, you will end up very very confused.

So what would the motive be for somebody to murder our new constitution?

Let us make it even simpler by asking two simple questions.

Who stands to gain the most with the passing of a new constitution? Answer: The long suffering people of the republic of Kenya.

Who stands to lose the most from the passing of a new constitution? Answer: The political class.

Many naïve Kenyans think that under the current constitution power is in the hands of parliament and the president. Hahahahahahahaha! If this were so then Kenyans would not be so upset with their leaders, don’t you think?

Real power is in the hands of the political class. They control land in Kenya, they control the economy, they control the courts, they control parliament etc. Now if the draft constitution were to be passed there are a couple of fellows who would not be able to sleep at night.

Daniel Moi and his vast tracts of land grabbed from the people, not to talk of billions stashed away in foreign accounts would have plenty to worry about. Moi seems to make comments about the new constitution almost daily. Now you know why. Add Moi men like Nicholas Biwott, Joshua Kulei, William Ruto etc. to that list. If power reverted to the people then you can be sure that the people will demand that this property be returned.

And it is not only Moi. Add every major family in the political class to that list. Names like Kenyatta, Kibakis etc. The Odinga’s are NOT clean but the truth is that when the most vicious part of the rape of the Kenyan people was happening, the Odingas were either in detention, organizing coups or under house arrest. So the truth (which many readers here hate to hear) is that in the political class, the Odingas have the least to lose with the advent of a new political dispensation.

So is it any wonder that there is so much dust around the passing of a new constitution?

But let me end this post by saying that there is still a glimmer of hope. And just like in the first liberation (Independence of Kenya in 1963), this last and true liberation is being pushed for from outside Kenya. It is no accident that Kofi Annan is expected into the country today. I have already said in this blog many times before that the president of the United States is right at the forefront of pushing for change in Kenya. (The first time I said this I was mocked here by many of my nice readers).

So the big question now is; will international pressure prevail and save Kenya?

For those who will be watching the proceedings in parliament today, don’t attach too much to what you hear those jokers saying, instead focus on the body language. Body language never lies.


My ground-breaking post on Biwott and Moi's hidden wealth

Of Ellusive Vision 2030 and Executive Robbery

By Mwarang'ethe

A great man in the name of Frederic Bastiat, wrote words that shall echo for eternity. He noted this.

“The law perverted! And the police powers of the state perverted along with it! The law, I say, not only turned from its proper purpose but made to follow an entirely contrary purpose! The law become the weapon of every kind of greed! Instead of checking crime, the law itself guilty of the evils it is supposed to punish! If this is true, it is a serious fact, and moral duty requires me to call the attention of my fellow-citizens to it.”

Like Bastiat, we feel we have a moral duty to warn Kenyans of the greatest robbery which is a foot in the name of the so called Vision 2030. Now, under the “Vision” 2030, one of the key planks is infrastructure like roads, railways and ports. There is nothing wrong with this at first glance for we need them. However, let the reader first appreciate the origins of this “vision” by visiting this site: (Visited on 20/3/2010).

Having seen the origin of this “vision,” let us now turn our attention to some obscure “business news” which did not and cannot compete with more “serious issues” like the “women affirmative” action, counties and regions and such kind of jazz. (DN informs us that: “Thika Road land soars OVER highway.”

Then, we are informed by Mr Ibrahim Mwathane, the director of Landscape Surveyors, that:

“The value of land in Ruiru and Juja areas is appreciating fast as a result of the ongoing re-engineering of Thika Road into a modern highway. real estate experts, the prospects of new structures and amenities have pushed up the cost of land along the vital artery as Chinese contractors build the country’s first eight-lane highway. ... “New infrastructure will play a big role in increasing the value of land. Prices have also risen due to speculative activities since building work started last year,”

Meaning of the above statement

The above facts, do confirm what we have stated many times here. Land values do not result from any labour or capital expenditure of landowners, but, from:

(a) from good governance funded by Wanjiku, and
(b) population increment.

Thus, courtesy of Wanjiku taxes (Remember, she walks to work hungry) the new infrastructures in tune with “vision” 2030 are being put into place. If we take Thika road as an example, we are told this:

1. “Kasarani, Githurai, Ruiru, and Juja are burgeoning industrial and commercial centres. For example the cost of 80 metres by 100 metres plot in Ruiru has risen to about Sh1 million.”
2. Land from Globe Cinema, Muthaiga and Ruaraka area is currently valued at between Sh20 million to Sh40 million an acre.
3. The cost of land from Ruaraka to Githurai ranges from Sh3 million to Sh6 million. From Githurai and Thika, the value ranges from between Sh500, 000 to Sh1 million an acre in the rural setting while the value rises to between Sh1.5 and Sh3 million in urban centres.
   

In a nutshell, we are now witnessing the unprecedented transfer of EARNED INCOME from Wanjiku to few landowners in terms of the WINDFALL GAINS in the name of “vision” 2030. What did Adam Smith say about these windfall gains? He was clear, but, no one seems to remember these words, not even “eminent economists” like Kibaki (remember education is ignorance):

“Ground rents, so far as they exceed the ordinary rent of land, are altogether owing to the good government of the sovereign,...Nothing can be more reasonable than that a fund which owes its existence to the good government of the state should be taxed peculiarly, or should contribute something more than the greater part of other funds, towards the support of that government."

In simple words, increased land values are a social/common product and no one has right in front of God and man and in justice and, or equity to monopolise it. Thus, in a free enterprise society, such monopoly ought to be extinguished. So, by refusing to extinguish this monopoly, what kind of economy do we have then? We answer socialism.

This is so because; socialism is denoted by DIVORCE BETWEEN LABOUR AND REWARDS. To the extent that, a few stand to make billions for doing nothing, for we suspect that, having known where these infrastructure will lie, these few, have moved to purchase these lands, we are practicing not free markets as we are told, but, socialism for the few. What is interesting is that, those few who believe in socialism are the first to accuse others of being socialists so as to confuse and frighten the ignorant masses who are being robbed.

Some have argued that, our views about land are motivated by Karl Marx views. Firstly, we ask, was also Adam Smith motivated by Karl Marx? Secondly, for anyone to link Karl Marx to land question betrays monumental ignorance on land question. For instance, during the English civil war, in 1659 (note the centuries before Karl Marx) Harrington warned that, Parliament was not to be trusted to reach a settlement that was good for the people, for it was likely to introduce the monarchy (sounds familiar?).

Although they did not love the monarchy, the gentry wanted a political formula that would protect its estates, i.e. land. Harrington’s advice for diffusion of land to those who had been dispossessed was at odds with the gentry. What did Harrington ask for? He had asked for compulsory education, election by ballot of the executive, executive drawn from all classes in rotation. They rejected such wise advice and brought the monarchy back on one condition. On MONEY MATTERS (remember what we have been saying about banks?), the landed class would determine public policy. It took centuries and rivers of human blood for even ballot to be accepted.

He also noted one truth that, popular government entailed the diffusion of land rights. This will take may be another 1000 years, for, it seems, just as Harrington was shouted at in 1659, we hear same echo, you are too utopians bwana Mwarang’ethe in the 21st Century. So, from this, we can see that, the idea of Karl Marx and land is a red herring adopted by those who dispossess Wanjiku to hide their crimes against humanity which has been going in modern times since 1235. Thus, let no one tell us about Karl Marx for we shall wonder how ignorant one can be in the 21st Century. Now, we ask, is there an alternative to this robbery in the name of “vision” 2030? We answer in the affirmative and give an example.

Hong Kong – A sterile Outcrop Transformed

The terms, on which Hong Kong was to be administered as revealed by Lord Aberdeen in 1843, the then UK’s Foreign Secretary is all we need state to silence would be detractors. He noted that:

"The principal source from which revenue is to be looked for is the Land; and if by the liberality of the Commercial regulations enforced in the Island, foreigners as well as British Subjects are tempted to establish themselves on it, and thus to make it a great mercantile Entrepôt, with very limited dimensions, Her Majesty’s Government conceived that they would be fully justified in securing to the Crown all the benefits to be expected from the increased value which such a state of things would confer upon Land. Her Majesty’s Government would therefore caution you against the permanent alienation of any portion of the land, and they would prefer that Parties should hold land under Leases from the Crown, the terms of which might be sufficiently long to warrant the holders in building upon their allotments . . . It would probably be advantageous also that the portions of land should be let by auction."

This was a clear case of Adam Smith's way of levying tax or communism if you are brainwashed by the modern “education.” And, it is self evident to all today, the integration of the public finance with private property rights has transformed what was a sterile outcrop on the edge of China into one of the most dynamic capitalistic economy. In fact, if Hong Kong had the natural resources we have in Africa, its economy would be more advanced than even of the USA by far. That is what awaits Kenya/Africa when it wakes up to the reality we preach here.

The facts of the Hong Kong economy were captured by Heritage Foundation (2003). When it came to income tax rates, the top rate was 17% in Hong Kong, in Singapore was 22%, in the UK, was 40%, and in the USA was 39.1%. As concerns marginal (average payer), it was 17% in Hong Kong, 8% in Singapore, 22% in the UK and 27.5% in the USA. As to corporation tax, in Hong Kong, it was 16%, 22% in Singapore, 30% in the UK and 35% in the USA.

The most interesting figures were in the government expenditure per cent of the GDP. In Hong Kong, the expenditure was 21.6%, Singapore was 18.1%, in the UK, it was 38.3% and in the USA was 30.4%. What is clear from the last figures is that, due to the tax structures in the UK and in the USA, which rob those who labour because land was monopolized under the guise of capitalism/free markets, these governments, are now forced to intervene in the name of so called welfare state. Unfortunately, such intervention is a dangerous delusion as is evident in mounting public debts which are will eventually bankrupt the UK and the USA. Also, this will be self evident in Kenya within the next 10 years (remember the “infrastructure bonds” we are issuing for these “vision” 2030 roads?)

Through the Hong Kong scheme, those who made/make money did/do not own land for windfall gains were/are captured by the colonial/current government through auctions. The result of this was/is low taxation as we show above, which thereby, enabled/s capitalists or the investors to make huge profits and high wages for workers. This philosophy remains the best kept secret of Hong Kong. While World Bank continues to pile infrastructure debts such as on Thika road on Wanjiku, we can see how Hong Kong uses its land values to fund its infrastructure while relieving those who labour from inquisition in the name of tax.

Some questions to ponder about

1. Have some people with insider information about “vision” 2030 bought land along the infrastructural routes? If so, how many billions do they stand to make? If so, do these people believe in free markets or socialism?
2. Instead of allowing a few idlers to pocket these billions, what if we took these values, and relieved our teachers, doctors, nurses, etc of taxes to the value generated by the infrastructures they have funded? More so, what would this do to our economy and wealth gap?
3. If Hong Kong which has no natural resources is outperforming USA, can you imagine what Africa would look like if we adopted this system with all the natural resources we have?
4. In the last few months, we have been screaming about a few millions that have been stolen. Of course, the World Bank joins in that cry. Why are these people silent about what Hong Kong does?
5. To Phil, we ask, why is the ODM so hopelessly unable to sell such a wonderful idea to the masses who are confused to think land reforms means eviction of Kikuyu’s from RV?
6. To PDM guys like Vikii, Deroo, we know you guys have gone to heaven and hell in search of “progressiveness” ideology. But, we ask, does this “ideology” of yours include what Hong Kong has done? And, if not, why?
7. Finally, let the reader read the DN article, together with two articles we have posted here before, i.e. The First Principle in Drafting a Constitution and Why the New Constitution is Void Ab Initio. Once you do that, is the futility of the current “new constitution” which does not come even close to respecting the NATURAL RIGHT TO PROPERTY become self evident because, as we noted, it seeks to entrench ARTIFICIAL RIGHT TO PROPERTY, i.e. rent seeking?
   

Finally, as you watch the “new constitution” drama, remember these words by Bastiat which summarizes the ongoing constitutional “reforms.”

“As long as it is admitted that the law may be diverted from its true purpose — that it may violate property instead of protecting it — then everyone will want to participate in making the law, either to protect himself against plunder or to use it for plunder. Political questions will always be prejudicial, dominant, and all-absorbing. There will be fighting at the door of the Legislative Palace, and the struggle within will be no less furious. To know this, it is hardly necessary to examine what transpires in the [Kenyan] French and English legislatures; merely to understand the issue is to know the answer.”

One man guitar terror

Probably every family has a dark secret, but the truth is that some secrets are much darker than others. And I guess it is true that to understand a country well, one has to look more closely at the family unit. If you see corrupt governments, you can be sure that the families are worse.

There is actually so much rot in Kenyan families and this reflects in the kind of leaders we elect again and again and then turn round to complain later.

I guess I will start with the less emotionally draining stories in this post and then move on to the heavier stuff in the next.

There is this deadly thug who harasses residents of a well known suburb not too far from Nairobi. He has earned the nickname “one man guitar” because he always operates alone. This is unusual because most muggers anywhere in the world almost always operate in groups.

“One man guitar” usually waits for people in the dark and stands at a safe distance with a powerful torch. The only other thing the torch shifts to is the glimmering revolver he is usually carrying with him. There was a time that residents started suspecting that the gun he threatened his victims with was actually a toy. That was until this unfortunate lady fell victim to the thug. It is said that she had recently opened a shop in town selling the latest cell phones. The cell phones were pretty expensive and so every night when she locked up she would carry her small stock with her in her large handbag. So on this particular evening she got off the matatu at around 8 pm and started on the short walk to her house. The next thing she knew was that a powerful torch was focused on her face. The man behind the light asked her to surrender her handbag, all her cash and her cell phone. She froze. She then handed over her cell phone which she was holding in her hand but held tightly to her handbag. There was suddenly a very loud bang. Louder than she had ever heard before in her life. It took her a moment to realize that the thugs’ gun had gone off. Actually he fired into the ground. She promptly threw her handbag on the ground and ran for her dear life.

Now I have information that the family of “one man guitar” is very much aware of his criminal activities and yet have done nothing about it. Apparently the thug still lives with his parents and siblings. I mean this thug has been operating for a very long time, almost 10 years. And yet this well-to-do family has done nothing. They probably join other Kenyans in decrying the high crime rate in the country knowing very well that they have hidden a dangerous criminal in their midst. Some residents claim that a few years ago “one man guitar” actually killed somebody. If this is true, this family is also hiding a murderer in their home.

There is this other dark family secret that is now widely known in that family but is probably rampant in our country. Even as Kenyans scream at the top of their voices about being fed up with corruption, many of those Kenyans screaming loudest are working in a job that they obtained through corruption. Meaning they bribed somebody to get it.

Take this well known Nairobi couple. The wife has a reputation for being extremely bossy and the meek husband usually has to do what his wife wants or else… Now what everybody knows except the husband is that his wife who hails from a very poor family got her first big job in an interesting way. There was this rich man in an expensive car who paid a visit one evening (when her husband was still at work) and unfortunately was seen by a curious witness who noticed that the lights went off in the house shortly after they entered and he drew nearer and heard the unmistakable squeaking of a bed making noise, the kind of noise that would come from only one kind of activity.

Now this bossy woman has got an even bigger job than that initial one. Only God and the devil know if she repeated the same procedure to land this second job. I am certain many women (and even men, I know of at least one gay man who did the same several times) do this kind of thing all the time. It is very normal in Kenya and even elsewhere in the world. But in my humble view such people should shut up when discussion about corruption in government is going on.

P.S. The very latest is that “one man guitar” struck in the wee hours of the morning about 4 days ago. Seems that he is getting bolder now.

More dark family secrets that wiped out an entire family

Kiplagat impunity

One thing I can tell you about the Moi era is that there were no dull moments. What I miss most about it was the occasional dark humour.

Sample the following.

President Moi had gotten very unpopular and miserable Kenyans were completely fed up with his rule. At around that time Moi decided to use Special Branch (the intelligence service at that time) to spread a rumour that the president was suffering from throat cancer and would die at any moment. To add credibility to this explosive rumour the president left for an extended trip overseas, it was whispered that he was desperately seeking some kind of treatment, but there was none.

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Don’t miss Kumekucha’s weekend special starting tomorrow. Is is a weekend special like no other I have written before. I felt emotionally drained just writing it, I have no idea what you will feel reading it. If you thought you knew Kenyans and the rot that is in many family units, then think again. I didn't pull any punches here. I reveal secrets hidden for a long time. If you have a weak heart, please don’t try to read this weekend special… I am dead serious.
How do Kenyans expect clean accountable politicians when the stench in our very own homes smells to high heaven?
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Those were the days when Kenyans were afraid of their own shadows and would not dare say anything against the president in public. Still it was obvious that many Kenyans received news of the president’s alleged illness with a lot of joy. Many saw this as an answer to their many years of prayers for Moi to somehow leave the presidency.

It is not clear what the whole intention of starting this rumour was. Some say Moi and his close aides wanted to carefully monitor the predictable succession jostling that would ensue. Whatever the intention shortly after these rumours started doing the rounds in Nairobi, Moi returned to the country in a jovial mood. As usual he ran down the stairs of the plane at high speed as soon as it touched down. On the tarmac, he enthusiastically slapped the hand of Prof George Saitoti in greeting and joined traditional dancers in a jig or two… same old, same old. You could almost sense the whole nations’ sigh of despair at how healthy the president looked. No signs of a terminal illness there.

Moi went on to give a speech where he solemnly re-dedicated himself to serving the very Kenyans who did not want him to serve them. That was Moi and impunity at its’ best. Mupende musipende.

This man called Bethuel Kiplagat reminds me very much of that Moi incident. He insists on serving Kenyans as the chair of the Truth Justice and Reconciliation commission and is determined to serve the Kenyans who do not want to be served by him. Mr Kiplagat should remember that this is the old impunity rearing its’ ugly head again in his actions. How the hell will this thing work when there is NO public confidence in Kiplagat? To make matters worse the man is playing the old sick politics of appealing to several groups to publicly declare confidence in his ability to lead the TJRC. The latest group to do this is the Kalenjin council of elders. I mean the man just doesn’t get it does he?

Forget the fact that Kiplagat has been bending the law to its’ very limit for personal gain. Specifically I am talking about the Banking laws which do not allow a major share holder to be part of the management. The truth is that Kiplagat is a major shareholder of the bank called K-Rep but has used lawyers to register a complex web of holding companies to own the bank shares so that he remains at the helm managing it. Banking experts insist that his management has been retrogressive to the progress of the bank. K-Rep was the first community-based micro banking organization and a lot of their pioneering work was taken up by others like Equity Bank who are now many million miles ahead of K-Rep. Using the complex web of holding companies Mr Kiplagat may not have broken the law but he has certainly defeated and frustrated the spirit of that law. And this is the man who wants to lead the TJRC mupende musipende. Who will benefit from this forced leadership? The Kenyan people? Or Mr Kiplagat?

Is it not obvious to Kiplagat that the fact that he was Robert Ouko’s PS when the former foreign affairs minister was murdered is enough for him to disqualify himself from heading the TJRC without any pressure from Kenyans? Whether he is guilty or innocent is irrelevant. The man just needs to step aside and let the truth come out. Or what is he really scared of?

The fear that the truth is that Kiplagat’s appointment by Kibaki was NOT an accident. There are plenty of skeletons in all these politician’s closet. President Kibaki has got vast tracts of land at the Coast and some Kenyans at the Coast want to talk about this land and are not comfortable telling all to Kiplagat. After all this is Kenya. People still disappear without trace under unexplained circumstances.

If Mr Kiplagat was as clean as he claims to be, we wouldn’t even be discussing this issue, the man would not have accepted the appointment in the first place.

What Africa Confidential says about Kiplagat skeletons in the closet

Kumekucha classic posts;

What was Kenyatta really like?

Why this Kenyan habit of naming kids after presidents, past and future?

Kenya Contaminated by Diseased Politicians

They say that people often take their good health for granted, that is until they lose it.

Drama of the high wire kind has been unfolding in a country that is proving to be one of the most influential in Africa (because it has the largest movie industry on the continent reportedly currently churning out more movies than Hollywood itself. I am of course talking about Nigeria. In the same way America became so influential from churning out and distributing movies to the world, Nigeria seems to be following suite. Too many Kenyans these days are already talking like Nigerians. I warned you oooo!! I told you not to be reading Kumekucha ooooo!!!!)
What mystery ailment is William Ruto suffering from?

The country’s president Umaru Yar'Adua has been ailing since last November and to date no official word has been released about his condition. Early this year the authoritative Telegraph in London quoted sources as saying the president had been in a coma for two weeks and could even be “clinically dead”. Older readers of this blog will remember that when president Laurent Kabila (father of the current president) was shot dead inside his own palace by one of his own guards his aides denied the story for two days. Claiming that he was well and being treated. Obviously the idea was to finalize carefully laid plans to take over power.

Anyway the latest in the Nigerian presidential saga is that acting President Goodluck Jonathan (these Nigerian names!!! Wow!!!) dissolved the cabinet a few hours ago setting the stage for him to appoint a brand new cabinet. This could suggest that president Yar’dua may not be coming back. Besides fresh presidential elections are due in about a year.

This current scenario in Nigeria is very relevant to Kenyans, whose first president Mzee Jomo Kenyatta slipped in out of a coma in his last years in office. Who aws ruling the country? The current president has been in poor health since taking over office shortly after a near-fatal accident on the Nairobi Mombasa road just weeks to the polls in 2002.

As we prepare to hopefully pass a new constitution full disclosure on the health of our future presidents needs to be entrenched in the new constitution. Can you imagine that in this day and age majority in the political class believe that the health of the president should not be discussed in public.

What most folks fail to realize is that your health impacts directly on the quality of decisions that you make.

President Jomo Kenyatta is said to have suffered from gout (apart from his heart condition). Gout can get pretty painful and obviously affects the mood of the person suffering from it. Usually it causes ill temper. Imagine what would happen when advisors come in with news of a political nuisance getting in the way yet again. How easy would it be for a president to give the order for that person’s life to be snuffed out?

In the same way I hate to think about it but President Kibaki’s poor health may have been the main reason why so many Kenyans lost their lives in the post election violence of the 2007 general elections. Realistically speaking Kibaki should not have stood for re-election in the first place considering his health then and even now. Many of his firm supporters have told me that that they firmly believe that the poor quality decisions made in the run up to the violence was caused by his poor health. They point out to the Kibaki before the accident, a sharp astute quick thinker on his feet. This is a far cry from the limping, slow walking, slow talking, easily-confused President Kibaki of today.

To make matters worse possible presidential candidates like William Ruto are already said to be suffering from some very serious mystery ailments but is said to always brush aside queries about his health by saying that it is “just diabetes.”

As our Nigerian brothers struggle with their constitutionally-related problems Kenyans need to firmly focus on the health of our future leaders and especially the president and Vice president.

Kumekucha received insider information on President Kibaki’s health.

Comical Wednesday:Unseating Corruption One Furniture At A Time

And now for a look on the lighter side of life...


This is PNU/PDM's master plan in tackling corruption.Is it progressivism in taking the bull by the horn head on and with a head butt or just plain thoughtlessness?

On the one hand consider how the wide range of managerial,executive desk suits and funky glass walls present a rather combatant way of ending shady going ons in government corridors of power

Assorted glass desks may just create a difficult to breathe atmosphere for graft as corrupt officials shy away from sliding bulging envelopes stuffed with wads of cash to greedy beady eyed salivating civil servants seated on the other end of the glass house

There would be no need to stop at government offices if this policy works; let it be adapted in all our homes-contemporary bedroom furniture and modern lounge coffee tables should spell certain doom for husband/wife battery,infidelity not to mention rampant theft/armed
robberies

Kenya to Export Rice to Japan in 2011

By Mwarang'ethe

It is year 2011. Kenya has had a bumper rice harvest due to the generous assistance of our dear friends from Japan, the land of the rising sun (remember rice comments in the article “Industrializing a Nation is an art of War”). Since our friends are believers in the free trade, we will encourage our rice farmers to export our surplus rice to Japan since they had a bad harvest last year. After all, don’t they freely export Toyota Land Cruisers cars for our police? With that in mind, let us examine the facts and see how they would treat our rice.

In 1993 - 94, the Japanese government had a problem in its hands. In the summer of 1993, because of poor weather, Japan experienced poor rice harvests. So, in 1994, it had to import rice. However, they also knew that, from 1994 onwards, good harvests will resume. So, the challenge was how to ensure continued iron grip control of its rice market in the future when good harvests resumed. They wanted to ensure that, the imports will not undermine domestic price regulation, and that Japanese consumers will keep buying subsidized, expensive Japanese rice rather than the equally tasty and cheaper (as free trade teaches us) Californian variety once good harvests were back.

Things were a bit complicated because the new rice accord under the General Agreement of Tariffs and Trade (GATT) ruled out reestablishing imports quotas or other barriers. So the ingenious Ministry of Agriculture had to design a more subtle means of maintaining control of the market in the face of a completely confused situation. There are many different kinds of rice, some of which work nicely for steamed rice (such as the short-grained Californian variety) and some of which don't (such as the long-grained Thai rice). For sushi, you need Japanese or Californian rice, while for other dishes, such as Chinese food, Thai or Chinese rice is much better.

This is how they solved this dilemma. Hiding behind a superficial argument of "national equality," the government announced that all Japanese citizens had to bear the same burden of eating foreign rice.

On March 7, 1994, the Ministry issued a directive that no rice could be sold separately, but all rice--domestic-- and imported--had to be mixed, so that the resulting rice does not have a "nationality." The directive prescribed a mix formula of 30% Japanese, 50% Californian, Chinese, and Australian combined, and 20% Thai rice.

Mixing rice has two effects. First, the mixed result is appalling: You simply cannot steam a California/Thai mix, and neither can you prepare it otherwise. Second, based on a rumour campaign it was alleged there were dead rodents and the like in the Thai imports, so, the Japanese clearly dislike the Thai rice. Thus, by combining it with the other imports, the Ministry severely diminished the value of the mixed result.

What may have been the idea behind the "mix directive"? Given the intolerable result, every Japanese in his/her right mind decided to buy the HOME-GROWN, non-mixed produce as soon as it hit the market again. There was no need for import quotas or other non- tariff activities. Japanese consumers happily reverted to buying Japanese rice and pay up to ten times more for it, as long it was available.

And indeed, the first reaction to this policy was a national panic that led to large-scale hoarding of DOMESTIC (unmixed) rice, as well as to a sharp increase in national concern over self-sufficiency, and a pronounced aversion to imported rice. By the end of April, 1994, the mass media had further elevated the national concern. At the same time, there was also a growing public outrage over the Ministry's restricting policies, and the Hata government needed some positive
publicity.

To stay abreast of the development and in control of the situation, the Ministry of Agriculture did not intervene when rice retailers, who are regulated and licensed under the Rice Control Law (which has its roots in the 1930s), set out to reinterpret the "mix directive." While still literally mixed and sold in one bag, rice also began to be sold in "sets" of four smaller packages with rice from different countries, bundled together according to the same formula. To give the consumer a "choice," the old blend as well as a completely "foreign" blend of U.S. (40%), Chinese (40%), and Thai (20%) rice was also offered.

Retailers, knowing the Ministry was under pressure, then moved on to ignore the mix directive altogether. But make no mistake; the Ministry was still in control of the market. Because it had become clear that the citizens sufficiently disliked Thai rice and had not developed a craze for Chinese rice either, foreign rice can now be sold just by itself-- with one exception. The most popular of all imported produce, the sticky California rice, still did not sell in its pure form. It was mixed with rice from other states (which remains unlabeled, but was most likely long-grained) and sold under the name "American." The official reason for this mixing was that there was not enough Californian rice for everyone. Some retailers openly admitted that the rice was mixed in order to lower its quality, so that they could also sell the less popular Chinese and Thai grains.

In addition to this deliberate policy of reducing quality, the "American" mix was subjected to a 580% tariff, which made it exactly as expensive as medium-quality Japanese rice ($7 per kilo), thereby removing all the price advantage. The Japanese government was expected to make a profit of $2.7 billion out of its rice imports. This revenue was to be used to subsidize Japanese rice farmers and improve their irrigation systems (the more water, the less the influence of weather on the harvest). The idea was that as the new GATT "minimum access rule" kicked in 1995, the Japanese farmers would have become price competitive.

In the meantime, Californian rice farmers were bending over backwards to ship highest- quality rice to Japan in the hope of gaining market share. The California short grain is by all measures comparable in quality with Japanese rice; and it is better than all other rice imports to Japan. Unfortunately, Japanese consumers were unable to buy pure Californian rice and appreciate its quality. There is probably no better example of Japanese managed trade (free trade to the foolish). Not surprisingly, the minister under whose auspices the mix plan was designed and implemented was the head of the Ministry of International Trade and Industry in Prime Minister Tsutomu Hata's cabinet).

Look at this genius:

(a) The quality of the foreign product is disguised by a mix directive.

(b) Second, as the panic reaches its peak, the mix directive is "diluted" to avoid domestic and foreign criticism, but prohibitive tariffs ensure that high-quality foreign products don't have a price advantage.

(c) Subsidies help Japanese farmers increase their output.

(d) All of this rests on a strategy of misinformation to the Japanese consumer. Although the Japanese papers cover the story, the rest of the world doesn't hear about it.

So, that’s how your good friends would treat your rice should you think that, you can export your rice to them.

Stuff to ponder about

(a) How do we treat our imported stuff?

(b) Do you see any free trade which we have embraced so much?

(c) If they treat Americans this way, what about Kenyans?

As we noted, industrialising a nation is an art of war, and those who think/believe that, it is just a matter of been “development conscious,” “fighting” corruption and AIDS etc, we say, woe unto you.

More Stuff to ponder about

(a) Bob Marley sung that, “these are the words of my master, no weak heart shall prosper.” Are we weak or strong hearted people?

(b) Dr. Carter G. Woodson, the author of The Mis-Education of the Negro, in 1933, made some great observations:

(i) The Negro of his time was being culturally indoctrinated, rather than being taught, in the American schools. This conditioning, he claimed, caused the African-Americans to become dependent and to seek out inferior places in the greater society of which they were a part.
He challenged his readers to become autodidacts and to "do for themselves", regardless of what they were taught.

(ii) History shows that it does not matter who is in power... those who have not learned to do for themselves and have to depend solely on others never obtain any more rights or privileges in the end than they did in the beginning.

(iii) When you control a man's thinking you do not have to worry about his actions. You do not have to tell him not to stand here or go yonder. He will find his 'proper place' and will stay in it. You do not need to send him to the back door. He will go without being told. In fact, if there is no back door, he will cut one for his special benefit. His education makes it necessary.

Could he have been describing Kenyans/Africans in 2010?

This man, Ruto

Footnote/checkmate: .......Gideon Moi, Kanu vice chair, observed and wondered recently "In 2007, Ruto fiercely criticised Kanu for supporting Kibaki yet he is now a frequent guest at State House. I urge Ruto to use his newly found friendship with the President to have innocent youth languishing in jails and police cells released following their arrest for alleged role in post-election violence. Please Bw Ruto when you take tea and githeri with the President at State House remember to address the issue of the suffering Kalenjin youth"..............

In typical Kenyan style, a vicious political war is currently going on behind the scenes that is fascinating but also worrying because most analysts doubt if it will end well. The battle is between Agriculture minister William Ruto and Prime Minister Raila Odinga.

What is even more fascinating about this mostly silent war are the tactics being used some of which are fairly new and yet are proving to be pretty effective.

But let us start at the beginning.
What many people don't know is that Ruto is also an excellent natural actor, well able to work up emotions in himself and produce real tears as he did in this photo.

The first big mistake Raila Odinga made with William Ruto was to concede to pressure and adjust the ODM constitution to make room for two deputy leaders. At the time Musalia Mudavadi was already second in command but the extra slot was created specifically for Willliam Ruto. As leader of a large political party like ODM this was a very amateurish mistake to make. Too amateurish. It confirmed what many already suspected. That Ruto had ODM by the balls and without Ruto there would be no ODM.

What Raila should have done would have been to put his foot down early on. As it is he not only postponed a problem but revealed his vulnerability to the immensely ambitious, ruthless and calculating Ruto. As recently as 1990 William Ruto used to hang around at the seats outside Hilton Hilton with other jobless Kenyans hungry and broke. The man did not rise form the jobless corner to such a powerful politician by accident. Anybody who underestimates him does so at their own peril.

Ruto got his start from the massive amounts of cash that Moi printed in 2002 and which was mainly distributed by the notorious YK92 (Youth for Kanu 92) of which Ruto was an official. To his credit he followed this up with other bigger deals like getting land allocations from Kanu for free and re-selling the land at exorbitant prices, mostly to government agencies. In a few short months it became difficult to link Ruto to the man with blood-shot eyes yawning from pangs of hunger at the Hilton jobless corner.

Admittedly one of the reasons why Ruto had ODM and Raila by the balls was because Ruto played a crucial role in getting Raila to where he is today. Never forget that the troubles that forced Mwai Kibaki and PNU to the negotiating table were not the ones in Kibera and Kisumu but the mayhem and bloodbath in the vast Rift Valley. This is the reason why the Kalenjin community strongly felt that they were shortchanged in the coalition government that was formed after Kofi Anan’s peace deal. Logically-speaking such a government should have had over 50% of its’ members hailing from the Rift Valley.

Thus Ruto’s fallout from ODM was only a matter of time and indeed the local press started speculations of the inevitable pretty early.

The following are highlights of the ongoing Ruto/Raila war.

- The high point was when the Prime Minister suspended Ruto (along with Sam Ongeri) pending investigations into scandals in their respective ministries. The usually slow-to-act Mwai Kibaki moved at such lighting speed (that I am still dazed several weeks later) to re-instate Ruto and Ongeri and make it crystal clear that the toothless Prime Minister did not even have power to “suspend” his own DM ministers, let alone sack them.

- Next Raila and his allies dropped Ruto as an ODM representative in the powerful house business committee. This was long overdue because it has been known for a long time now that Ruto is a frequent visitor to Mwai Kibaki’s State House and it did not need Ruto ally, Cherangany MP Joshua Kuttuny to spill the beans to the rest of the world (which he did last month.

- Ruto hit back in what he saw as a smart political move but which more serious analysts see as mere Kindergarten power games mainly designed to rub egos. He visited Kisumu but not before organizing a rousing welcome in advance and ensuring that the press would be there to capture it. Hi PNU supporters also ensured that they gave ODM trouble in their bid to get thgeir changed list passed in parliament.

- The PM planned a “revenge visit” in Ruto’s constituency that should have taken place last week but was cancelled at the eleventh hour, mainly because of the President’s visit in the area when he opened the Eldoret show last week. The highlight of that function was Ruto riding in the presidential ceremonial Landrover standing on his right side and waving to the crowds.

- Allegations have been made that Ruto is receiving financial and political support from PNU to destabilize ODM from within by ensuring that his Kalenjin community is out of ODM. There is plenty to suggest that this is true the most obvious is how PNU has handled Ruto over the last year or so. Then it is also pretty obvious that Ruto has done an excellent job in dismantling ODM from the once dreaded behemoth that forced through the nomination of Kenneth Marende as the new speaker to the crumbling walking skeleton it is today.

- The PM’s allies have been working very hard behind the scenes to prop up opponents of the current seating Rift Valley MPs. The idea is to have these individual’s stand in the 2012 elections on an ODM ticket and hopefully unseat the incumbents and thus duplicate the power and popularity the party had in the Rift Valley in 2007. There is a lot of money that is being spent on the ground and it makes many people wonder where all the ODM cash is coming from. To be fare PNU are also spending a lot of cash and the same mystery lingers. About the ODM master plan for the Rift Valley for 2012; it all looks very neat on paper but as any experienced political operative will tell you neat theoretical political plans hardly ever work out when implemented in the real world (ask President Mwai Kibaki).

And the war continues. The recently “leaked” reports that have helped kick up storms over certain allegedly corrupt cabinet ministers from the ODM side of government are the latest PNU move to completely dismantle ODM and ensure that Raila Odinga comes nowhere near the presidency in 2012.

The most worrying thing about the current Raila/Ruto war is that there are signs that both sides are getting more and more desperate by the day. Desperate people do desperate things and therein lies the grave danger in Kenya’s already tricky political landscape.

Previous Kumekucha article on Ruto

Another recent post by Chris: Letter to Esther Arunga

Kumekucha writes to Esther Arunga and especially her “closest” advisors

Hi Esther,

Hope that this brief note finds you okay and in high spirits despite the storm you are riding through at the moment.

What has really prompted me to write this letter is the self-righteous attitude those who are eager to give you unsolicited advice seem to have.
They KNOW that you are wrong.

They KNOW that you should not get involved with the people you are involved with.

They KNOW that you are a spoilt brat.

Hell, reading the c*** they are writing I am convinced that they have all the answers. Only that I have lots of information in my possession that says different. Some of them have been involved in very questionable relationships, the only difference is that they never came out in the open and confessed their love/gold-digging activities.

The difference, Esther is that you came out and answered your critics by telling it as it is. You spoke the truth from your heart. You never bothered to get some smart PR people to advice you on how to spin your situation so that you would come out looking good in the eyes of the public.

Of course there is a possibility that others may be out to use you… it happens all the time (and who doesn’t get used now and then?) but that is beside the point here. Doesn’t everybody have a right to make their own decisions and mistakes/smart moves and learn from them without the whole world and especially people full of themselves trying to advice them. Really what these self-appointed advisors should do is remove the log from their own eyes before touching the spec in yours.

I offer no advice Esther because that is not what you need right now. I have my own thoughts on this whole saga and opinions but what I am sure of is that they are Not as prejudiced and self-serving righteous as those of others.

I offer encouragement. You are a very brave person. You have the right to be here like everybody else. You have the right to love who you want to love and to be with whom you want to be with. If those who know it all think different then in my humble view they should shove their opinions… you know where.

Have a nice day, girl.

Earlier Esther Arunga post by Chris

Industrializing a Nation is an Art of War

By Mwarang'ethe

Kenyans have agonised over many years why we are unable to develop with all the manpower and resources in our hands. With a religious conviction, we have convinced ourselves that, if only we were less corrupt, we would have ended our poverty and attendant social miseries. We are also convinced that, all will be well if we utilise “donors” funds well, have free primary education, and “fight” diseases like AIDS and malaria.

These are myths and delusions fostered by the propaganda from the media, donors, NGOs and our schools. As thus, this common wisdom is totally baseless. The other side of the story that is left deliberately untold is this. Nations do not develop or industrialize and maintaining their prosperity, by fighting corruption, diseases and such mumbo jumbo.

In truth, these are lullabies given to Africans to ensure their continued deep sleep as others f#%£% them. Excuse that French please. So, how do nations develop? Well developing a nation IS AN ART OF WAR.

Industrialising a nation is an art of what, is what the Japanese Prince cannot tell Raila. (See Japanese Prince Dinner with Kenyan PM Here: http://www.youtube.com/watch?v=3ITzlWOqYc4&feature=channel.

Among other lullabies, the Japanese Prince did mention how Japan has helped us grow more rice (yes, a Malthusian activity we have mentioned many times). In his remarks, the Kenyan Prime Minister said there are a number of Japanese companies in Kenya. He seemed very pleased with that.

In this article, we wish to dispel these delusions and myths, not with mere speculations, but with factual evidence of what Japan has been doing since 1945. Armed with these facts, you will decide whether we know what we are doing or not.

After the 2WW, the remaining imperial centre of capital, i.e. USA was desperate to stop the spread of socialism. To do so, it had to assist countries like Japan that had lost that war. So, USA provided Japan with:

 Industrial technology.
 Finance capital.
 Dropped import barriers while permitting Japan and Germany to protect their industries and markets. This was the same formula USA had used in building its industry and wealth.

Question

(a) Did Kenya/Africa get access to technology, finance, markets and more crucially, are we able to protect our industry and market?
(b) If no, it means that, we believe we will develop under free trade regime. We will be very happy to get any example of a nation that has ever developed under free trade regime as we have embraced it.

As Japan rebuilt under the above conditions, it developed long term strategies for entering existing high tech markets (Schumpeterian activities, the opposite of Malthusian activities like rice growing the lullaby the Japanese Prince sung to us). These strategies were composed in detailed plans spanning 20 – 50 years for getting a share of existing markets. At first, it started by introducing new and highly refined versions of existing products and then slowly upgraded these products.

It begun with CRUDE copies of advanced German cameras like Leica and Rolliflex. They then honed their skills by continually upgrading their entries into these markets until their level of quality and technology began to equal that of Germans and then surpassed them. In a span of less than 20 years, using such long range managerial approach, the Japanese were able to gain by far the largest share of the worldwide camera and optical goods market and thereby, edging Germans to the sidelines.

Having taken this market, they now took aim of other existing markets which they could use their advanced optical skills. These were small copying machines, professional video devices, computerised silicon chip etching equipment. They now dominate this market as well and have edged the Americans who plan 24 months ahead.

As Japanese chanted free trade and laissez faire lullabies to Africa, the Japanese Ministry of Finance (MOF) and the International Trade and Industry (MITI) controlled the government’s budget, set monetary policy, collected taxes, supervised banks, brokers, and insurers and established parameters for credit, asset values, capitalization and lending.

More so, through cross shareholding, they ensured no outsider takeover (remember how Raila is happy about presence of Japanese companies in Kenya?). To further these mercantile schemes under the banner of laissez faire for the foolish, they ensured Japanese corporations are primarily owned by each other.

Questions for you

(a) Does Kenya have any long term plans for entering any high technology market? Please do not tell us about tea branding and tourism marketing in Germany.
(b) How coordinated is ownership of Kenyan companies like Kenya Railway, Safaricom, Telkom, Ken Gen etc?

To further protect its markets, Japan came up with very complicated high product prices which were protected from imports by arbitrary health, safety and quality standards. These “standards” permitted charging Japanese consumers 3 times the price for consumer products as that paid by the rest of the world. Through these "standards" which are never met, instead of TARIFF, the Japanese prevented others from selling on its home front. See the irony, in Kenya/Africa; a Minister proudly launches a new foreign product as you can see here. http://www.youtube.com/watch?v=EVC4OcWFf9U&feature=player_embedded#.

These high prices were nothing but hidden taxes along with other dictated policies and creative accounting which gave Japanese industry the same finance capital as it has received 100 years earlier. In other words, government financed industry and protected home market created a comparative advantage which permitted the Japanese industry to sell, for a period of time, at what would be a loss for a free enterprise corporation. Having built the world’s most modern industry and captured markets around the world, so long as trade surpluses are maintained, losses can be absorbed up to a point by those high domestic prices taxing back a part of the economic multiplier gains.

When Japanese government tried to deflate cautiously the land and stock bubbles by raising interest rates, the Wall Street bankers went on the attack using their new weapons of mass destruction, i.e. derivatives to sell the market short and bring it crashing down.

In other words, Japanese formula is this. Buy RAW RESOURCES cheap (from Kenya/Africa), build and maintain the most efficient industry in the world, educate its citizens, pay Japanese labour well (remember SAPS from IMF telling us to pay badly?) charge Japanese consumers above export prices, price exports just under the products of other nations and sell enough on the world market to pay for it all with a substantial cushion to spare. It may appear that, these policies contravene the Most Favoured Nation clause in free trade treaties. Well, that’s a small deal. As long as all nations face same arbitrary standards, the problem is “solved.”

So, why don’t the rich nations force Japanese to comply with the laws Kenya/Africa must comply with? Very simple. In 1987 when Japanese sold its bonds, the global liquidity was lowered such that, America experienced the worst one day stock collapse. So, if they are forced to, they will liquidate these investments, properties and dollar will crush. This is jiu jitsu economics at its best because USA and Japan, China etc, are now locked in debt – equity embrace that no knows how to get out of it. Remember that, these nations have very old art of art of war skills.

When the Western capital withdrew finance capital from Asian Tigers (this is a story for another day) they shattered (deliberately) these economies and then bought the best industries for pennies on the dollar. When they turned these derivatives as we noted above on Japan, they met their match. Japanese never permitted outside finance capital to gain TITLE to their industrial wealth. How so? They simply kept all bankrupt banks and industries running by ABANDONING capitalism’s bankruptcy rules. This enabled Japan to maintain trade surplus, expand savings, and thereby avoid DROP IN LIVING STANDARDS. We see the entire world now trying these formulae’s. We will see the end of this soon.

We have cut short a very long story, but, we hope short as it is, we are able to show that, developing a nation is more than fighting corruption, inviting foreign investors, “bringing development,” new constitutions etc as we are told. It requires leaders who understand the art of war.