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In Praise of Idleness: Further Reflections on Knowledge, Capital and Growth

9 min read. Why is society, even those countries in which more capital could not possibly appreciably improve standards of living, still obsessed with hard work, thrift and accumulation of capital? Why are Africa’s leaders forever trooping to the West and East, fawning, groveling and whoring for capital? By DAVID NDII

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In Praise of Idleness: Further Reflections on Knowledge, Capital and Growth
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“Modern technic has made it possible to diminish enormously the amount of labor necessary to produce the necessaries of life for every one. Let us take an illustration. Suppose that at a given moment a certain number of people are engaged in the manufacture of pins. They make as many pins as the world needs, working (say) eight hours a day. Someone makes an invention by which the same number of men can make twice as many pins as before. But the world does not need twice as many pins: pins are already so cheap that hardly any more will be bought at a lower price. In a sensible world everybody concerned in the manufacture of pins would take to working four hours instead of eight, and everything else would go on as before. But in the actual world this would be thought demoralizing. The men still work eight hours, there are too many pins, some employers go bankrupt, and half the men previously concerned in making pins are thrown out of work. There is, in the end, just as much leisure as on the other plan, but half the men are totally idle while half are still overworked. In this way it is insured that the unavoidable leisure shall cause misery all round instead of being a universal source of happiness. Can anything more insane be imagined?”

Bertrand Russell In Praise of Idleness

 

In economics, we are concerned primarily with three things, productivity, efficiency and welfare. Productivity is simply output per unit of input. We measure productivity in terms of output per worker. Economic efficiency is a question of optimality, that is, whether the resources have been put to the best possible use. Economics is in fact known as the study of resource allocation. Welfare is a question of whether the way production and distribution are organized is good for society. We can summarize the three questions: are we good at it, are we doing it right, and what good does it do. In short, it boils down to purpose. What is it all in aid of? This is Russell’s beef with the industrious society. To what end?

In economics, we are concerned primarily with three things, productivity, efficiency and welfare.

Ms Agronomy and Mr. Capital are two young farmers. Both have inherited fifty acres of land on which their parents practice traditional farming, growing maize, beans, yams and livestock. Mr. Capital is an ambitious guy. He studied finance. He wants to modernize and mechanize.   Business plan, bank loan, buys tractors, harrows and ploughs and puts the whole 50 acres under maize. He is able to double his yield to 20 bags an acre. Next year he leases another 50 acres. Soon he is farming 500 acres. He has a fleet of tractors, sprayers, irrigation system, a combine harvester grain driers, silo—the works. He is producing 30 bags per acre.

Ms Agronomy went to agricultural college. She has small plots set aside on her farm where she experiments with different agronomic techniques such as zero-till farming, crop rotation, inter-cropping, organic farming, mulching and so on. She is still farming her fifty acres. For ease of analysis we translate all her different products into “maize equivalent.” Her production also works out to the equivalent of 30 bags of maize per acre.

Ms Agronomy and Mr. Capital’s economic accounts are summarized in the table below. Although both obtain the same yield, 30 bags per acre, Mr. Capital’s operation is evidently much more productive. Its total output translates to 750 bags per worker, two and a half times more than Ms Agronomy’s 300 bags per worker. It is not difficult to see how this difference has come about. Mr. Capital’s workers have more tools to work with, Sh. 3 million per worker against Ms Agronomy’s Sh. 600,000 per worker—five times as much. They are also working more land, 25 acres worker compared to 10 acres per worker in Ms Agronomy’s operation, obviously because they are mechanized.

But capital is not free. In economics we think of the cost of capital in terms of depreciation, wear and tear if you like, which is the rate of its consumption. Because Mr. Capital has all manner of equipment that need spare parts and replacement that Ms Agronomy does not have, his consumption of capital will be higher. Let us put it at 20 percent and Ms Agronomy’s at 15 percent. This translates to a capital costs of KSh. 600,000 and Sh. 90,000 per worker respectively.

To complete the accounts, we need cost of land and other inputs (fertilizers, diesel, electricity etc) which we call intermediate inputs in economic accounting jargon. The land rent is assumed at 500 per acre, Ms Agronomy has 10 acres per worker and Mr. Capital has 25, which works out to Sh. 6,000 and 24,000 per worker respectively. For intermediate inputs Mr. Capital uses more inputs including diesel, electricity fertilizer pesticides and so on. We assume that his input costs work out to Sh.80 per bag and Ms Agronomy’s are half as much, which adds up to Sh. 37,500 and Sh.6,000 per worker respectively. The price of maize is Sh. 1000 a bag.

What more do they tell us?

Although Mr. Capital’s operation has higher output per worker, Miss Agronomy’s operation has a labour surplus of Sh.196,500 against Mr. Capital’s Sh. 88,500 per worker, that is Sh.108,500 more. The labour surplus is what is available for consumption. If Miss Agronomy were to farm Mr. Capital’s land, she would create 50 jobs, two and half times more than Mr. Capital, and generate afford the society Sh. 5.4 million more consumption. With the same financing her operation would employ five times more workers (100 compared to 20) and six times the labour surplus (Sh.10.8 million compared to Sh.1.77 million) OF Mr. Capital’s operation, but it would require twice as much land—and that would be a problem wouldn’t it. As this columnist has remonstrated for the better part of three decades, if society entrusts landlords with the allocation of its resources, it ought not be befuddled that they seek to maximize rents

Mr. Capital’s workers produce Sh. 450,000 more, but the capital stock consumes more than the additional output. In economics we say that Mr. Capital’s operation has over-accumulated capital or if you want to be esoteric, it is “dynamically inefficient.” The idea that economy can over-accumulate capital runs counter to conventional wisdom, which maintains that consumption is bad, and investment is good. A particularly irksome variant of this conventional wisdom maintains that the more government spends on “development” by which we mean brick and mortar stuff, and the less is spends on recurrent, especially the wage bill, the better.

Suppose an economy starts out with a GDP per capita of $1000 and no physical capital stock. You can think of this as a pastoralist economy where the GDP is simply the value of each pastoralist’s annual off-take— for example, that each family sells four steers per person at $250 each. GDP is also equal to consumption.

Now, this economy decides to develop by “adding value” —feedlots, abattoirs, meat processing plants the works. It also needs infrastructure— electricity for the cold rooms, water etc. To finance this, it needs to save and invest. The table shows how the economy would evolve under four different investment rates 10, 20, 30 and 40 percent, and the associated economic growth rate, output (GDP per capita), the capital stock (obtained by depreciating investment at 20 percent per year), and consumption per person. At a 10 percent investment rate, GDP per person grows by one percent per year.

Ten years on, the GDP is just about 10 percent higher – the economy has accumulated $460 of capital stock per person – but people are still consuming $6 less than before development started. The elderly who die during this period would have been better off without development. They will have to be satisfied with bequeathing their children a better future—hopefully. At an investment rate of 20 percent, the economy would be breaking even after ten years, with consumption $75 higher than in year zero. Thirty percent investment rate consumption rises by another $12. But at 40 percent investment, the per capita consumption in year ten is $62 less than at an investment rate of 30 percent. What’s driving this?

[An] economy decides to develop by “adding value”…At a 10 percent investment rate, GDP per person grows by one percent per year. Ten years on, the GDP is just about 10 percent higher…but people are still consuming $6 less than before development started. But at 40 percent investment, the per capita consumption in year ten is $62 less than at an investment rate of 30 percent. The elderly who die during this period would have been better off without development…What’s driving this?

Mathematically, it is the relationship between the investment rate and the growth rate. A 10 percent investment rate increases growth by 1 percent. From 10 to 20 percent it increases by two percentage points. The increase declines to 1.5 percentage points between 20 percent and 30 percent, and to one percentage point between 30 and 40 percent investment rate. This is not a sleight of hand. It reflects two things. First the returns to capital decreases with the amount of capital—the law of diminishing returns. Secondly the more capital an economy accumulates the more resources are consumed by maintaining and replacing it. In the 40 percent investment scenario the replacement cost of capital amounts to a good 30 percent of GDP— three quarters of the 40 percent investment rate is simply maintaining the level of capital stock.

This economy has violated the Golden Rule saving rate. The Golden Rule saving rate is the rate of capital accumulation required to maintain a stable rate of consumption growth. It is called the golden rule because it requires each generation to do what it would have other generations do. Save too little, the capital stock declines and the next generation’s consumption will fall. Saving too much deprives the current generation only to burden future ones with maintaining a bigger capital stock than they need. The Golden Rule saving rate for this economy is somewhere between 30 and 40 percent. The economy ought to shed some capital. The question is, what will it shut down? No capitalist will volunteer to close down their plant for the good of the country. Since none will, recessions come every so often and sorts them out.

It should also be evident that capital on its own cannot deliver the kind of growth in prosperity that we observe in reality. I gather that my smartphone has millions of times more computing power than the Apollo Guidance Computer (AGC) aboard the spacecraft that took Man to the moon. The AGC was the first computer to use integrated circuits (ICs), the now ubiquitous microchips. It cost $150,000 (about US$ 1.1 million in today’s value). My smartphone cost $1000 dollars and you can get a good one for a quarter of that. One very big difference is that the AGC was crash-proof. That aside, fifty years down the road, the cost of AGC will buy you 5,000 infinitely more powerful handheld computers to do the most frivolous things.

Capital on its own cannot deliver the kind of growth in prosperity that we observe in reality.

It is science, not capital that enables us to waste computing power on selfies and fake news. The reason we can afford to consume knowledge, frivolously or otherwise, is first, not subject to diminishing returns. Secondly, knowledge can be used by many people over and over again at no additional cost.

Suppose Ms Agronomy were to acquire another 50 acres of land. She would with very little capital, simply replicate her knowhow and be producing at peak output in no time. And of course, Ms Agronomy would be continuing with her experiments. So by this time, she would be up to 35 bags per acre, or 40. In fact, every one of Ms Agronomy’s workers could go off and replicate her methods at no extra cost. Mr. Capital’s workers cannot walk into the bank and walk out with a tractor. Mr. Capital would be back to the bankers who would in turn deploy more of society’s savings to equip his operation. More of societies savings would have to be mobilized. New equipment would need to be manufactured. Producing more equipment needs more workers. So instead of producing food, Ms Agronomy’s workers will now be hired to produce the equipment to produce food.

It is science, not capital that enables us to waste computing power on selfies and fake news. The reason we can afford to consume knowledge, frivolously or otherwise, is first, not subject to diminishing returns.

Why then is society, even those countries in which more capital could not possibly appreciably improve standards of living —think Japan— still obsessed with hard work, thrift and accumulation of capital?

Why are Africa’s leaders forever trooping to the West and East, fawning, groveling and whoring for capital?

Bertrand Russell: ‘From the beginning of civilization until the industrial revolution a man could, as a rule, produce by hard work little more than was required for the subsistence of himself and his family, although his wife worked at least as hard and his children added their labour as soon as they were old enough to do so. The small surplus above bare necessaries was not left to those who produced it, but was appropriated by priests and warriors. In times of famine there was no surplus; the warriors and priests, however, still secured as much as at other times, with the result that many of the workers died of hunger. At first sheer force compelled them to produce and part with the surplus. Gradually, however, it was found possible to induce many of them to accept an ethic according to which it was their duty to work hard, although part of their work went to support others in idleness. [But] a system which lasted so long and ended so recently has naturally left a profound impression upon mens thoughts and opinions. Much that we take for granted about the desirability of work is derived from this system and, being pre-industrial, is not adapted to the modern world.

Says Bertrand Russell: “Gradually, however, it was found possible to induce many of them to accept an ethic according to which it was their duty to work hard, although part of their work went to support others in idleness.”

Warriors, priests, chiefs, bureaucrats. And bankers.

David Ndii
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David Ndii is serving on the Technical and Strategy Committee of the National Super Alliance (NASA).

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South Africa: Xenophobia Is in Fact Afrophobia, Call It What It Is

5 min read. Anti-African violence in South Africa is fuelled by exclusion, poverty and rampant unemployment. This isn’t black-on-black violence. This is poor-on-poor violence.

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South Africa: Xenophobia Is in Fact Afrophobia, Call It What It Is
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Written in May 2008, as African bodies burned on the streets of South Africa, Ingrid De Kok’s throbbing poem Today I Do Not Love My Country poignantly captures the mood of an Afrophobic nation fluent in the language of violence and name-calling.  (I say Afrophobic because South Africa does not have a xenophobia problem. We don’t rage against all foreigners—just the poor, black ones from Africa.)

The irony of South Africa’s most recent attacks on African immigrants is that they happened in the wake of the African Continental Free Trade Agreement which positions the country as an economic gateway to the continent. As the debris is cleared off the streets of Johannesburg after a week of violent looting and attacks against African migrant-owned businesses that saw eleven people killed and almost 500 arrested, Pretoria now faces calls to boycott South African-owned businesses on the continent.

Zambia and Madagascar cancelled football matches. Air Tanzania has suspended flights to South Africa. African artists are boycotting South Africa. Should an Afrophobic South Africa lead the African Union next year?

The irony of South Africa’s most recent attacks on African immigrants is that they happened in the wake of the African Continental Free Trade Agreement which positions the country as an economic gateway to the continent

The South African government has remained steadfast in its denial of Afrophobia, opting instead to condemn “violent attacks” and highlight the criminal elements involved in looting African-owned businesses. The police attributed the attacks to “opportunistic criminality”. By denying that these are Afrophobic attacks, everyone can deny the role of South Africa’s political leadership in fomenting the hatred.

The Afrophobic attacks are not spontaneous criminal mobs preying on foreigners. They are the result of an orchestrated, planned campaign that has been fuelled by the ongoing anti-immigrant rhetoric of South African politicians.

The All Truck Drivers Forum (ATDF), Sisonke People’s Forum and Respect SA stand accused of orchestrating last week’s violence. ATDF spokesperson, Sipho Zungu, denied that his group had instigated the violent looting, saying that “the nation is being misled here.” Zungu did stress, however, that South African truck drivers “no longer have jobs” and the government “must get rid of foreign truck drivers.”

Zungu echoes the sentiments of many poor South Africans, and their views are the end result of a drip-feed of anti-immigrant messages from South African politicians, particularly in the run-up to this year’s elections.

Anti-African violence in South Africa is fuelled by exclusion, poverty and rampant unemployment. This isn’t black-on-black violence. This is poor-on-poor violence.

One-third of South Africans are unemployed. Thirteen per cent of South Africans live in informal settlements, and a third of South Africans don’t have access to running water. The problems are a combination of the country’s apartheid past and rampant corruption and mismanagement within the ANC-led government. Crime is climbing, mainly due to corrupt and dysfunctional policing services, high unemployment and systemic poverty.

By denying that these are Afrophobic attacks, everyone can deny the role of South Africa’s political leadership in fomenting the hatred.

South African politicians from across the spectrum have blamed immigrants for the hardships experienced by poor South Africans. Political parties tell voters that foreigners are criminals flooding South Africa, stealing their jobs, homes and social services, undermining their security and prosperity.

Even the government sees poor and unskilled African migrants and asylum seekers as a threat to the country’s security and prosperity. Approved in March 2017, its White Paper on International Migration, separates immigrants into “worthy” and “unworthy” individuals. Poor and unskilled immigrants, predominantly from Africa, will be prevented from staying in South Africa by any means, “even if this is labelled anti-African behaviour” as the former Minister of Home Affairs, Hlengiwe Mkhize, pointed out in June 2017. The message is simple: there is no place for black Africans in South Africa’s Rainbow Nation.

In November 2018, Health Minister Aaron Motsoaledi claimed in a speech at a nurses summit that undocumented immigrants were flooding South Africa and overburdening clinics and hospitals. When immigrants “get admitted in large numbers, they cause overcrowding, infection control starts failing”, he said.

Johannesburg—the epicentre of the anti-African violence—is run by the Democratic Alliance (DA), the second-largest political party in South Africa after the ruling African National Congress (ANC). DA mayor, Herman Mashaba, has been leading the war against African immigrants.

In a bid to attract more support, Mashaba and the DA have adopted an immigrant-baiting approach straight out of Donald Trump and Jair Bolsonaro’s playbooks.

Mashaba has described black African migrants as criminals and has spoken of the need for a “shock-and-awe” campaign to drive them out.

In February 2019, Mashaba diverted attention away from protests against his administration’s poor service delivery in Johannesburg’s Alexandra township by tweeting that foreigners had made it difficult to provide basic services.

On August 1, police operations in Johannesburg to find counterfeit goods were thwarted by traders who pelted law-enforcement authorities with rocks, forcing the police to retreat. Social media went into overdrive, with many accusing the police of being cowards running away from illegal immigrants. Mashaba was “devastated” by the police’s restraint. A week later over 500 African immigrants were arrested after a humiliating raid, even though many said they showed police valid papers.

In 2017, South Africa’s deputy police minister claimed that the city of Johannesburg had been taken over by foreigners, with 80% of the city controlled by them. If this is not urgently stopped, he added, the entire country “could be 80% dominated by foreign nationals and the future president of South Africa could be a foreign national.”

None of this anti-immigrant rhetoric is based on fact. Constituting just 3% of the South African population, statistics show that immigrants are not “flooding” South Africa. They aren’t stealing jobs from South Africans and nor are they responsible for the high crime rate. South Africa’s crime problem has little to do with migration, and everything to do with the country’s dysfunctional policing services, unemployment and poverty.

Johannesburg—the epicentre of the anti-African violence—is run by the Democratic Alliance (DA), the second-largest political party in South Africa after the ruling African National Congress (ANC). DA mayor, Herman Mashaba, has been leading the war against African immigrants.

But South African politicians don’t let facts get in the way.  After all, it’s easier to blame African immigrants rather than face your own citizens and admit that you’ve chosen to line your own pockets instead of doing your job. If you can get others to shoulder the blame for the hopeless situation that many South Africans find themselves in, then why not?

South Africans are rightfully angry at the high levels of unemployment, poverty, lack of services and opportunities. But rather than blame African immigrants, frustration must be directed at the source of the crisis: a South African political leadership steeped in corruption that has largely failed its people.

The African Diaspora Forum, the representative body of the largest group of migrant traders, claimed that the police failed to act on intelligence that it had provided warning of the impending attacks. It took almost three days before Cyril Ramaphosa finally issued weak words of condemnation and for his security cluster to meet and strategise.  All of this points to a government refusing to own its complicity and deal with the consequences of its words.

South Africa has fallen far and hard from the lofty Mandela era and Thabo Mbeki’s soaring “I am an African” declaration.

Senior political leaders in South Africa are blaming vulnerable Africans for their failure to adequately provide a dignified life for all South Africans. Until this scapegoating stops, violent anti-African sentiment will continue to thrive, and South Africa will entrench its growing pariah status on the continent.

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A New Despotism in the Era of Surveillance Capitalism: A Reflection on Census 2019

6 min read. In the creeping securocratisation of every sphere of the State, the incessant threats and arbitrary orders, the renewed quest for that elusive all-encompassing kipande, and even the arbitrary assignment of identity on citizens, Montesquieu would see a marked deficiency of love for virtue, the requisite principle for a democratic republic.

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A New Despotism in the Era of Surveillance Capitalism: A Reflection on Census 2019
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The just concluded census 2019 brought with it many strange occurrences including the official classification of my good friend Rasna Warah as a Mtaita, a community to which she is only very remotely connected by virtue of being married to a husband whose mother is a Mtaveta. The Taita and Taveta, who give their home county Taita-Taveta its name, are two related but distinct ethnic groups. Rasna’s ethnicity is unambiguous, she is a Kenyan Asian, which should be one of the ethnicities available on the census questionnaire.

In standard statistical practice, people’s racial and ethnic identity are self-declared and the identity questions usually have options such as “other” and “mixed” as well as the choice not to disclose. But Rasna was not given a choice, as she recounts here. While this may seem like a trivial matter, the undercurrents of racism and patriarchy in this action are disturbing. It is, I think, even more alarming that the enumerators, given a little authority, felt that they had the power to exercise discretion on the matter.

Past censuses have been rather uneventful statistical exercises. This one had the aura of a security operation. In the run-up, we were treated to all manner of threats and arbitrary orders from the Internal Security Cabinet Secretary, the Jubilee administration’s energetic and increasingly facile enforcer. On the eve of the census, the government spokesman added to the melodrama by issuing a statement informing the public that census enumerators would be asking for personal identification details, including national ID and passport numbers and, ominously, huduma namba registration status. There are few issues as controversial right now as huduma namba and to introduce that question was a sure way of heightening suspicion and undermining the credibility of the census.

More fundamentally, anonymity is a canon of statistical survey work. In fact, the law prohibits dissemination of any information which can be identified with a particular respondent without the respondent’s consent. For this reason, censuses and statistical surveys are usually designed and the data maintained in such a way as to ensure that the respondents remain anonymous.

In October last year, the Government gazetted the census regulations that include a schedule of the information that would be collected. Identity information is not listed in the schedule. In January this year, the Keya National Bureau of Statistics (KNBS) issued a media briefing, still on their website, that also listed the information that would be collected. It too does not mention identity information. That it was the Government spokesman—and not the KNBS—who appraised the public, and only on the eve of the census, is telling.

The response to the protestations that met the disclosure was vintage Jubilee—dishonest and inept. The spokesman explained that the personal identity information would be removed to restore the anonymity of the data. If indeed the purpose was to establish registration coverage, the professional statisticians would have asked respondents to state their registration status. Moreover, for planning purposes, professional statisticians would have designed a comprehensive module that would have included other critical information such as birth registration status.

The draconian zeal with which huduma namba is being pursued—including the proposed legislation—is all the more perplexing because, since all the functions listed are those that are currently served by the national ID, the sensible thing to do would be to upgrade the national ID. Seeing as we have already had three national ID upgrades since independence, it seems to me unlikely that a fourth upgrade would have generated the heat that the huduma namba has.

In The Spirit of the Laws, Montesquieu classified political systems into three categories, namely republican, monarchical and despotic. He defined a republican system as characterised by citizenship rights. A republican system is democratic if political equality is universal, and aristocratic if the rights are a privilege that is denied to some members (e.g. slaves). In monarchical systems, the rulers have absolute authority governed by established rules. In a despotic system, the ruler is the law.

Montesquieu postulated for each system a driving principle, ethos if you like, on which its survival depends. The driving principle of a democratic republic is love of virtue— a willingness to put the public good ahead of private interests. He opined that a republican government failed to take root in England after the Civil War (1642-1651) because English society lacked the required principle, namely the love of virtue. The short-lived English republic, known as the Commonwealth of England, lasted a decade, from the beheading of Charles I in 1649 to shortly after the death Oliver Cromwell in 1659. The driving principle of monarchical systems is love of honour and the quest for higher social rank and privilege. For despotism it is fear of the ruler. The rulers are the law, and they rule by fear.

In The Spirit of the Laws, Montesquieu classified political systems into three categories, namely republican, monarchical and despotic. He defined a republican system as characterised by citizenship rights.

Identity documents are a key element of the apparatus of despotism. Our own identity card has its origins in the colonial kipande (passbook). As Juliet Atellah narrates in Toa Kitambulisho! Evolution of Registration of Persons in Kenya,

“The Kipande was worn around the neck like a dog collar. The Kipande contained the wearer’s tribe, their strengths and weaknesses and comments from his employer on his competence, therefore, determining his pay or whether or not he would be employed. The government used the Kipande to curtail freedom of Africans and monitor labour supply. It also empowered the police to stop a native anywhere and demand to be shown the document. For Africans, the Kipande was like a badge of slavery and sparked bitter protests.”

In essence, the kipande was a surveillance tool for an indentured labour system which enabled the settler economy to suppress wages. But it was not perfect. Keren Weitzberg, a migration scholar and author of We Do Not Have Borders: Greater Somalia and the Predicaments of Belonging in Kenya, makes an interesting and insightful contextual link between huduma namba and the colonial quest to better the kipande revealed in a recommendation that appears in a 1956 government document:

“Consideration should be given to the provision of a comprehensive document for Africans, as is done in the Union of South Africa and the Belgian Congo. This should incorporate Registration particulars, payment of Poll Tax, and such other papers as the African is required to carry or are envisaged for him, e.g. Domestic Service record and permit to reside in urban areas. Eligibility under the Coutts proposals for voting might also be included in the document. The document would then become of value to the holder and there would be less likelihood of its becoming lost or transferred, as is the case with the present Identity document.” 

The purpose of the huduma namba is the same as that of the “comprehensive document for Africans”—to instill in people the sense that Big Brother is watching. But despotism is not an end in itself. The raison d’être of the colonial enterprise was economic exploitation. This has not changed.

The 2001 Nobel Prize for Economics was shared by George Akerlof, Michael Spence and Joseph Stiglitz for their analysis of markets with asymmetric information. A market with asymmetric information is one where material attributes of a good or service are private information known only to the seller and not observable by the buyer; the seller has an incentive to conceal the attributes. In essence, it is a market where the buyer cannot be sure that they will get what they pay for. Asymmetric information problems are pervasive in labour and credit markets.

Identity documents are a key element of the apparatus of despotism. Our own identity card has its origins in the colonial kipande (passbook). As Juliet Atellah narrates in Toa Kitambulisho! Evolution of Registration of Persons in Kenya

A potential employer cannot tell in advance whether a worker is a performer or not, or even whether he or she is dishonest—they only get to know that after hiring the worker, and at considerable cost if they get it wrong. We know that job seekers go out of their way to misrepresent themselves, including faking qualifications and references, and concealing adverse information such as previous dismissals and criminal records. To mitigate the problem, employers go out of their way to obtain and check out references including certificates of good conduct from the police.

The original kipande, as Atellah notes, included information on the bearers “strengths and weaknesses and comments from his employer on his competence.” It does not require too much imagination to see how errant natives would have made for a severe labour market information asymmetry problem, motivating the settler economy to invent this seemingly innocuous but probably effective labour market information system.

Similarly, a potential borrower’s creditworthiness is not observable to lenders. Lenders only get to sort out good and bad borrowers from experience. A customer’s credit history is a lender’s most valuable asset. A public credit reference system, such as the Credit Reference Bureaus, is a device for mitigating credit market information asymmetry. The parallel with the kipande character reference is readily apparent.

In essence, the kipande was a surveillance tool for an indentured labour system which enabled the settler economy to suppress wages.

As a credit information system, the digital panopticon envisaged by huduma namba is priceless, and as one of the country’s leading mobile lenders, the Kenyatta family-owned Commercial Bank of Africa (CBA) is the primary beneficiary. Indeed, well before the public was informed about it, huduma namba featured prominently in a CBA-led mobile lending platform project called Wezeshafeatured in this column—that was subsequently rebranded and launched as Stawi.

Nine years ago this week, we promulgated a new constitution. Since its enactment the political and bureaucratic establishment has spared no effort to restore the unfettered discretion and apparatus of rule by fear that the new constitutional dispensation is meant to dismantle. Early in its term, the Jubilee administration sought to pass a raft of security-related legislation that would have clawed back most of the civil liberties enshrined in the Bill of Rights. Uhuru Kenyatta is on record, in one of the pre-election TV interviews, attributing his underwhelming performance to the constraints on his authority by the 2010 Constitution. He went on to express nostalgia for the old one.

In the creeping securocratisation of every sphere of the State, the incessant threats and arbitrary orders, the renewed quest for that elusive all-encompassing kipande, and even the arbitrary assignment of identity on citizens, Montesquieu would see a marked deficiency of love for virtue, the requisite principle for a democratic republic.

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Africa and Palestine: A Noble Legacy That Must Never Be Forgotten

4 min read. Today’s generation of African leaders should not deviate from that the solidarity between Africa and Palestine. Indeed, writes RAMZY BAROUD If they betray it, they betray themselves, along with the righteous struggles of their own peoples.

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Africa and Palestine: A Noble Legacy That Must Never Be Forgotten
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Europe’s “Scramble for Africa” began in earnest in 1881 but never ended. The attempt at dominating the continent using old and new strategies continues to define the Western relationship with this rich continent. This reality was very apparent when I arrived in Nairobi on June 23. Although I had come to address various Kenyan audiences at universities, public forums and the media, I had also to learn. Kenya, like the rest of Africa, is a source of inspiration for all anti-colonial liberation movements around the world. We Palestinians can learn a great deal from the Kenyan struggle.

Although African countries have fought valiant battles for their freedom against their Western colonisers, neocolonialism now defines the relationship between many independent African countries and their former occupiers. Political meddling, economic control and, at times, military interventions – as in the recent cases of Libya and Mali – point to the unfortunate reality that Africa remains, in myriad ways, hostage to Western priorities, interests and dictates.

In the infamous Berlin Conference of 1884, Western colonial regimes attempted to mediate between the various powers that were competing over Africa’s riches. It apportioned to each a share of the African continent, as if Africa were the property of the West and its white colonists. Millions of Africans died in that protracted, bloody episode unleashed by the West, which shamelessly promoted its genocidal oppression as a civilisational project.

Like most colonised peoples in the southern hemisphere, Africans fought disproportionate battles to gain their precious freedom. Here in Kenya, which became an official British colony in the 1920s, Kenya’s freedom fighters rose in rebellion against the brutality of their oppressors. Most notable among the various resistance campaigns, the Mau Mau rebellion of the 1950s remains a stark example of the courage of Kenyans and the cruelty of colonial Britain. Thousands of people were killed, wounded, disappeared or were imprisoned under the harshest of conditions.

Palestine fell under British occupation, the so-called British Mandate, around the same period that Kenya also became a British colony. Palestinians, too, fought and fell in their thousands as they employed various methods of collective resistance, including the legendary strike and rebellion of 1936. The same British killing machine that operated in Palestine and Kenya around that time, also operated, with the same degree of senseless violence, against numerous other nations around the world.

While Palestine was handed over to the Zionist movement to establish the state of Israel in May 1948, Kenya achieved its independence in December 1963.

At one of my recent talks in Nairobi, I was asked by a young participant about “Palestinian terrorism”. I told her that Palestinian fighters of today are Kenya’s Mau Mau rebels of yesteryear. That if we allow Western and Israeli propaganda to define Paestine’s national liberation discourse, then we condemn all national liberation movements throughout the southern hemisphere, including Kenya’s own freedom fighters.

We Palestinians must however shoulder part of the blame that our narrative as an oppressed, colonised and resisting nation is now misunderstood in parts of Africa.

When the Palestine Liberation Organisation committed its historical blunder by signing off Palestinian rights in Oslo in 1993, it abandoned a decades-long Palestinian discourse of resistance and liberation. Instead, it subscribed to a whole new discourse, riddled with carefully-worded language sanctioned by Washington and its European allies. Whenever Palestinians dared to deviate from their assigned role, the West would decree that they must return to the negotiating table, as the latter became a metaphor of obedience and submission.

Throughout these years, Palestinians mostly abandoned their far more meaningful alliances in Africa. Instead, they endlessly appealed to the goodwill of the West, hoping that the very colonial powers that have primarily created, sustained and armed Israel, would miraculously become more balanced and humane.

When the Palestine Liberation Organisation committed its historical blunder by signing off Palestinian rights in Oslo in 1993, it abandoned a decades-long Palestinian discourse of resistance and liberation.

However, Washington, London, Paris, Berlin, etc., remained committed to Israel and, despite occasional polite criticism of the Israeli government, continued to channel their weapons, warplanes and submarines to every Israeli government that has ruled over Palestinians for the last seven decades. Alas, while Palestinians were learning their painful lesson, betrayed repeatedly by those who had vowed to respect democracy and human rights, many African nations began seeing in Israel a possible ally. Kenya is, sadly, one of those countries.

Understanding the significance of Africa in terms of its economic and political potential, and its support for Israel at the UN General Assembly, right-wing Israeli Prime Minister Benjamin Netanyahu has launched his own “Scramble for Africa”. Netanyahu’s diplomatic conquests on the continent have been celebrated by Israeli media as “historic”, while the Palestinian leadership remains oblivious to the rapidly changing political landscape.

Kenya is one of Israel’s success stories. In November 2017, Netanyahu attended the inauguration of President Uhuru Kenyatta. Netanyahu was seen embracing Kenyatta as a dear friend and ally even as Kenyans rose in rebellion against their corrupt ruling classes. Tel Aviv had hoped that the first-ever Israel-Africa summit in Togo would usher in a complete paradigm shift in Israeli-African relations. However, the October 2017 conference never took place due to pressure by various African countries, including South Africa. There is still enough support for Palestine on the continent to defeat the Israeli stratagem. But that could change soon in favour of Israel if Palestinians and their allies do not wake up to the alarming reality.

The Palestinian leadership, intellectuals, artists and civil society ambassadors must shift their attention back to the southern hemisphere, to Africa in particular, rediscovering the untapped wealth of true, unconditional human solidarity offered by the peoples of this ever-generous continent.

Kenya is one of Israel’s success stories. In November 2017, Netanyahu attended the inauguration of President Uhuru Kenyatta. Netanyahu was seen embracing Kenyatta as a dear friend and ally even as Kenyans rose in rebellion against their corrupt ruling classes

The legendary Tanzanian freedom fighter, Mwalimu Julius Nyerere, who is also celebrated in Kenya, knew very well where his solidarity lay. “We have never hesitated in our support for the right of the people of Palestine to have their own land,” he once said, a sentiment that was repeated by the iconic South African leader Nelson Mandela, and by many other African liberation leaders. Today’s generation of African leaders should not deviate from that noble legacy. If they betray it, they betray themselves, along with the righteous struggles of their own peoples.

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