Blast from the Past

They say if you do not look back,you might not see how far u’ve come. TBT ndio hii.
Today in 1993,
https://www.independent.co.uk/news/world/nairobi-halts-imf-and-world-bank-reforms-president-moi-says-it-is-impossible-for-kenya-to-meet-the-1499533.html

Nairobi halts IMF and World Bank reforms: President Moi says it is impossible for Kenya to meet the conditions for western aid
|
|
Click to follow
The Independent
MOUNTING the strongest challenge yet to recent Western policy on Africa, Kenya has abandoned its economic reform programme and rejected the International Monetary Fund and the World Bank, saying it wants to go it alone.
Once the closest ally of the West in Africa, Kenya is the first country to turn its back on Western aid since Zambia tried unsuccessfully to break out of the IMF straitjacket in 1986.
The West has found an unlikely ally in the Kenyan opposition parties whose members stormed out of the parliament yesterday at the reopening ceremony held by President Daniel arap Moi. Part of their protest was at the government’s decision to abandon the economic reform programme.
On Monday in separate statements President Moi and the Finance Minister, Musalia Mudavadi, announced that the Bank and the Fund had refused to honour their pledge to Kenya and resume aid. The economic reform programme was put into reverse with the reimposition of controls on foreign exchange and prices. The government says it is particularly concerned at the 40 per cent interest rates which it says will ruin agriculture in Kenya. Mr Mudavadi said that the Bank’s reform programme would lead to food shortages and mass unemployment. Last week President Moi declared the Fund and Bank policies ‘dictatorial and suicidal’.
The West stopped aid to Kenya in November 1991 insisting that Kenya liberalised its economy, curbed corruption and instituted political reform. Kenya held elections in December last year but a delegation from the IMF left Nairobi last month saying economic reform had not gone far enough to justify restoring aid. Kenyan officials, however, said the donors had ‘moved the goal posts’ and that Kenya had gone a long way towards meeting the donors’ demands. One Western diplomat said: ‘There never were goalposts in that sense. It is more like being a python. We will keep squeezing the government.’
The squeeze has snapped rather than bent Kenyan resolve. Mr Moi’s clearly announced decision to abandon the reform programme suggests more than a flash of ill temper. British officials appear to believe that the announcement was a tactical move to secure easier economic reform targets. London and Washington believe there is no alternative to working with the international financial institutions and the Kenyans will be forced to return to the fold. The official public line will continue to be: follow the Bank and the Fund or no aid. ‘I can’t believe the Kenyan government can see a future without the Bank, the Fund or Western aid,’ said one diplomat. But other Western donors appear less certain that the Kenyan government was indulging in brinkmanship. ‘I am not sure if this is a game play . . . I think Moi may be serious,’ said one senior official of the donor community.
The French believe that Mr Moi is sincere and the French ambassador to Kenya, Michel De Bonnecorse, said last week that the Kenyan economy was in mortal danger and that aid should be resumed. This may be the common French tactic in Anglophone Africa of taking a different line to Britain but the French view is backed by British businessmen. The East Africa Association which represents British business interests in Kenya has written to Baroness Chalker, Minister for Overseas Development, urging her to resume aid.
Although Kenya has a debt of dollars 7,014m ( pounds 4,707m) which represents nearly 90 per cent of its gross national product, it holds several important political cards. It is the base for the combined United States and United Nations operation in Somalia. A destabilised Kenya would put that operation in jeopardy. Kenya has also been a loyal pro-Western capitalist country since independence. It is ironic that Kenya, of all countries, should now be leading the charge against the West on economic policy.
On the other hand Mr Moi’s government is out of favour with the West because of corruption and tribalism. Once that would not have bothered the West but, with the Cold War over, London and Washington no longer need allies like that. The December election was won by Mr Moi’s party but the election was seriously flawed, and afterwards Mr Moi seemed to revert to autocratic rule.
If Mr Moi is serious in his escape attempt from the economic regime of the Bank and the Fund, there are other African countries who will want to follow Kenya - 27 countries in sub-Saharan Africa have now adopted agreements with the IMF and the Bank on economic policy. Others are shadowing those policies. The Western donors will therefore try to tough it out. They cannot allow Kenya to establish a precedent. On the other hand, if Mr Moi is serious, can the West allow Kenya to hit the buffers?

Fuck IMF.

True.

When the west literary ruled Kenya. They promise you they will finance your budget shortfalls I.e 20-30% and sign MOU’s on the same. You pay your recurrent expenses and loan repayments as you await this World Bank meeting or another to approve finances for your development projects. Several months later nothing but lip service. Meanwhile your infrastructure continues to deteriorate as they await the long promised funding. Soon more development needs crop up. Finally they pass the funding but with a long list of conditions. Apart from the usual favoured west companies, they want you to run the country as per their expectations, do this, allow that, don’t say no to this etc. You grudgingly agree since you can’t go a year without fixing this road, power plant or this is desperately needed at the port. The funding comes slowly, it trickles as quarterly meeting need to verify compliance of conditions. In five year the country is poorer and you spent all on bills and eating. That’s how Nyayo wasted decades of Kenyans time and the west was a big part of it. We are paying those structural budgetary supplements up to today plus interest but they don’t call it debt trap like they shout about China, their loans were perfectly in order even if it had little impact economically. Lastly madvd needs to retire with Moi as well, his era was 90’s. Has zero impact or ideas at this era.

kikiki. then China came along. These Western institutions and diplomats pretend to be our friends but they are just vicious vultures.

One thing that IMF & WB always insisted on was privatization of state corporations and mass retrenchment of civil servants. Privatization was to allow wazungu to come buy national assets cheaply. Retrenchment was to slow down development that would lead to self reliance.
Uhuru had returned Kenya into the bosom of the devil. Tough times ahead people. Consider yourself warned

Yours truly remembers that like it was yesterday. If I told you that I was one of the 4 Kenyans who lobbied the crap out of the IMF to stop funding grand theft in Kenya, you’d say I’m lying…

Nonsense.

Nothing but pure gold

I don’t think some of you were born yet. You know little of what was going on. Study the murder of Ouko and follow that train of thought.

Ok

This article provided by @Useless Spectator says as much. It clicks with the contents of the book Confessions Of An Economic Hitman.

It’s one thing for journalists to piece together a story after the fact and quite another to live through it. Like I said, why was Robert Ouko killed? Start there…

I’m supposed to read all this horse crap! Get a grip!!!

People have no idea what was happening in 1993! Kenya was a mess…but again some will introduce baseless anti West rants without bothering to contextualize the situation…ati when west ruled kenya but you can’t explain how kenyan looters got us there in the first place…And unsurprisingly you can’t use the same words “rule” to explain the current Sino-kenya association.

I came of age in the 90s. I witnessed first-hand some otherwise very wealthy people go bankrupt within a year due to extremely high interest rates. It was a bad time for all

I read somewhere you are Mexican, what were you doing in kenya,then you are supposed to be in your 60’s or late fifties, damn.

The first multiparty election had moi shook,allowed thieves to run amok as long as he won the election. But don’t take my word for it,I was just shy of turning 3 yrs then.
The current Sino Kenya relationship is not a parallel analogy. Back then we did not have a domestic debt market, all debt was foreign,either bilateral or multilateral, we also needed the money,this is not the case this time,we want China money because its easy but we can do without it.
One of the things I noticed from the article is that even though we are suffering through similar effects of pre election excesses, we have more tools in our bags to handle it,you have been able to suffer an additional tax without taking to the streets, we have a domestic debt market that can refinance most of the debt etc. Best of all,western diplomats have zipped it,you don’t hear them running their mouths like this is their small wife’s house.
@Amused you will be called to answer for your role in SAP’s that followed ,as soon as I gather a lynching mob.

The bretton woods solutions are not wrong, how they are implemented is the problem. Too much too soon leads to economic hardships .
Privatization lead to more efficient companies and improved services, were it not for IMF,KP&TC would be like Kenya power, shafting us bila lube. You know at a certain point it employed over 20000 workers with no discernible skills ? majority from a certain part of the country I won’t name, IMF said they must go to reduce government wage bill,most became entrepreneurs who contribute more to the economy.

When your blood is young and hot, you can do amazing things. Late 50s or 60s is for late bloomers but I can’t wait to get there.

And your lynching mob will be a change of pace. They should be very scared :slight_smile: