Friday, September 18, 2015

Back plan with strategy for implementation

 
In Summary
The Industrialisation Ministry’s grand plan to scale up manufacturing and value-addition to inspire growth makes good reading at this time of economic hardship.
At the core of the growth agenda is promoting the processing of raw materials, especially agricultural products, to give them value and prime them for the international market.
It also involves enhanced infrastructure development and offering incentives to small-scale enterprises to enhance their productivity.
Ultimately, it is envisaged that the strategies will create some 400,000 jobs in the next decade, upscale the country’s manufacturing, create wealth, and place Kenya in good stead to compete with industrialised nations.
POOR IMPLEMENTATION
On paper, the thinking looks impressive. However, in reality, it sounds like other past pronouncements that created high expectations but never moved beyond that.
Although there is no shortage of lofty proposals on economic growth, industrialisation and social development, implementation is poor.
Part of the problem is a non-conducive environment for doing business which is characterised by poor infrastructure, a rigid and restrictive legal regime, resource wastage, corruption, and poor governance. Added to this is high taxation.
IMPLEMENTATION STRATEGY
Appreciably, efforts have been made in recent years to create a conducive business environment through improved transport systems, energy supply, and a favourable legal regime.
However, a lot still needs to be done to reach the threshold for economic take-off.
While we commend the ministry for the initiative, we caution that unless backed by a sound implementation strategy, the whole plan may end up coming a cropper.

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