First
and foremost I would like to apologize for taking such a long break from
writing. Hoping that am forgiven, I will take this opportunity to proceed from
where I stopped. Before I do so I have to respond to some complains. Some have
accused me of being too skeptical or pessimistic in my articles, my response is
that these words are my opinion and are a reflection of issues from my point of
view. I however try as much as possible to always shed light on matters of
public concern giving an alternative view especially which most people may not
be familiar with. So I may be a skeptic, pessimist, harsh critic or
whatever, but I only adopt these traits
depending on the topic I am pointing out and do so where I deem most
appropriate and necessary. Moving on, it’s good to be back!
This
time round I want to briefly discuss and examine capitalism, its features,
rewards and failures hypothetically then relate it to a low-income economy such
as Kenya’s. We all know Kenya adopted the free-market capitalism model after
independence mostly because of our colonial masters the British, who are one of
the main proponents of the model or idea alongside their ally the United
States. Looking at industrial powers, such as Britain and the United States
among others, it is possible to argue that free-market capitalism has worked as
a result of their large economies, well established and numerous industries,
technological capacity and maybe top notch infrastructure as well. While not
everyone is a beneficiary even in such developed states, at least the situation
is much better than in poorer countries.
Some
of the key features of free-market capitalism include little government
involvement in the economy and free movement of goods and services in a
competitive market. In the adoption of such practices, many companies have been
formed with some starting small and ending up becoming giants or
Multinationals. The disadvantage arises where some companies become too powerful
in their related area to an extent that they become monopoly. An example is Microsoft
which no doubt dominates the computer operating system market and is enjoying a
lion’s share in the market since other companies are too small. Due to the
discouragement of government involvement, Microsoft has become very dominant.
Another disadvantage would be promotion of the culture of individualism. People
become too obsessed with personal gain and achievement and in turn the under
privileged in society are neglected. It is astonishing actually that attempts
to assist such people through social initiatives is strongly condemned. In the
US Barrack Obama’s plan to ensure provision of quality healthcare to all, which
came to be known as ‘Obamacare” was criticized and rejected mainly by
individuals who earn a higher income as they were to pay more in the scheme.
Some even accused the US president for promoting socialism in America. One may
wonder why people may be against socialism yet it only seeks to bridge the gap
between the few extremely rich and people in middle and lower classes who are
the majority. In addition, capitalism passes blame to some extent to the poor.
They are blamed for being responsible for their own fate as a result of their
own laziness. Free-market capitalists further argue that due to the competitive
nature of the market such a situation should not be permanent as long as one
works hard and becomes innovative hence have something better to offer the
market.
On
the other hand, capitalism has been praised even by critics such as Karl Marx
for promoting innovativeness and creativity. The model is also praised for
giving people a drive of competitiveness thus they will focus more on making
their product or service up to standard in order to beat other players in the
market. Free-market capitalism also facilitates the free movement of goods and
labor thus expanding opportunities and creating a broader environment for
advancement and growth.
When
comparing the success (though not entirely) of capitalism in most western
countries with the struggling of the model in developing countries, I
identified that the main ingredient necessary and very vital for free-market
capitalism to work, is consumption. Since the market is competitive and filled
with firms doing all they can to provide quality goods and services, the
consumers have to be ready and willing to purchase these goods and services. In
the US, consumer culture is by far greater than here in Kenya. Here is a case
study; whenever a device such as an iphone or ipad is launched people go crazy,
literally. The desire for one to own such a device is unstoppable and in the
end millions of devices are sold thus encouraging further innovation for the
next type of device. The same happens in the event where a popular musician
releases an album. We have heard of artists sell a million CDs in one week!
This is amazing! Even in sports, people fill stadiums and buy original regalia
to show loyalty and support to their team or athletes. By the way the tickets
for a football match in England are not really cheap and amount to thousands of
Kenyan shillings when converted but you will still see fans crowding the stadiums
every weekend. In Kenya things are a little bit different. Actually things are
very different! Consumer culture lacks amongst us to an extent that discourages
innovativeness and creativity. Our music industry for instance presents the sad
reality. Here people just don’t support artistes. Whenever an artist releases
an album, nobody really cares yet the same people really enjoy their music when
they listen to it on radio or watch it on TV.
I am therefore forced to ask, what happens? It is only realistic for one
to want more, which is usually available in the album as the radio and TV only
give a glimpse of what an artist has in store. This has made our artists rely
on concerts since they only release singles not albums, and some even come into
the industry not intending to ever release an album. Looking at sports it is
only our most popular teams, Gor Mahia & AFC Leopards who have a major
following in football. Rugby is doing well but that is only because it attracts
ladies and is usually an avenue for ending the day celebrating (with alcohol)
which is probably irresistible to most Kenyans. Back to football, I do not
understand how the league champions Tusker have few or no fans. I am saying
this because their victory ceremony seemed to have been done in front of an
empty stadium. People don’t buy jerseys except for the two teams I earlier
mentioned. When comparing a Kenyan athlete or musician and that based in the US
or England, the conclusion one may make is that those from Kenya are not
serious. A footballer playing in Europe may afford to purchase a Ferrari even
after tax, but in Kenya you will be lining with them at the matatu stage! It’s not funny it’s
actually sad!
But
whose fault is it? I would immediately blame myself and other Kenyans who just
refuse to adopt a consumer culture, unless alcohol or nyamachoma is involved! I’m not saying it’s not okay to celebrate,
but we should support our own. We can also fill stadiums, especially since our
ticket prices are usually much lower. In some cases 500 shillings is enough to
get you a VIP spot in a football match. Elsewhere, we demand so much from our
artists and sometimes criticize them for not investing in quality videos or
sound etc. They can only do so if they get returns from their hard work. Going
deeper into the issue I’d say income is a major or the main factor influencing
consumption. Taking into consideration the huge disparity between the average
level of income in our country and that of our counterparts in the developed
world, it is impossible for people here to have the same purchasing power hence
in the long run we may consider buying a music album as a luxury not a
necessity. So income in my view also determines consumption. Lastly and perhaps
the main problem, our institutions and structures just do not work. Existing
laws on copyright and innovation are not strong at all. This means our artists
and emerging technology experts are not protected by the government. Their hard
work therefore goes unnoticed and is not worth much. This ends up discouraging
those who have something unique to offer the market.
In
summary, I’d point out that free-market capitalism was adopted too soon in a
country like ours due to the reasons mentioned above. I say this because the
people who benefit are very few given that a huge number is still living in
poverty. But since we already got ourselves into the mess it’s up to relevant
stakeholders to make relevant adjustments to ensure consumer culture and in
this case, directed towards our local products and services is improved and
strengthened. I think this is one area the next regime needs to tackle and it
starts with creating meaningful employment that will elevate more people out of
poverty, develop our industries and infrastructure to ensure efficiency in
movement of goods and services, and formulate relevant and strong policies that
will promote and protect innovation. I believe once such areas are rectified Kenyans
can adopt a consumer culture and thus promote local industries suiting demands
such as entertainment, technology and fashion among others.
