| dc.description.abstract | Economic development IS not a phenomenon. The policies of governments and the international economic environment are decisive influences. It is worth identifying the factors that can create a climate conducive to economic takeoff. The challenges facing developing nations and the factors that are critical to overcoming these challenges must be addressed by both the governments of the developing countries and other international stakeholders.
Although Kenya has made some economic and social progress, this has not been sufficient to eradicate corruption and bad governance. To fight corruption, the government must invest in people particularly in education, health and infrastructure. Second, regional integration is imperative if large markets are to be created that can attract investment. It is important that the private sector as an engine of growth is enhanced to avoid the dependency syndrome that makes IMF impose donor conditionalities.
The policies enacted by the Government of Kenya immediately after independence largely emphasized the role of the public sector. In the process, the private sector was marginalized. As a result of these policies, private sectors were poorly developed and do not have the capacity to produce wealth that is needed to meet rising obligations. Public sector led growth, has been disappointing for Kenya. It is now well accepted that durable economic growth requires a well-established private sector. The role of the private sector in economic development provides an enabling environment in the development of the private sector.
Kenya should undertake deliberate efforts to ensu~that it has a viable private sector.
Economic growth requires a productive labour force. While Kenya is endowed with immense natural resources, its ability to convert these resources to valuable commodities is limited. The primary reason for this outcome is low productivity of the labour force. The low productivity can be explained by the fact that Kenya has extremely low levels of human capital. For Kenya to meet the challenges of the 2151 century, it must invest heavily in her people. The key is for Kenya to strive to have an educated and healthy labour force, which naturally requires deliberate population control policies and higher public investment in health, education and infrastructure | en |
