A REPORT OF POST-WWII DEVELOPMENT OF KENYA
Executive Summary 3
1. Linear Stages of Growth 3
Stage 1: The traditional society: 3
• Stage 2. The pre-take-off society 5
• Stage 3. Take-off 5
• Stage 4. The road to maturity 7
• Stage 5. The mass consumption society 7
2. Structural Patterns of Development 9
3. International Dependence Revolution 10
4. Neoclassical Counterrevolution 12
5. Conclusion 14
Classified as a frontier market, Kenya is the largest and the most advanced economic entity in central and east Africa. However, it is also the least developed country in the world. This article will retrospect and analyze the development path of…show more content… It is reasonable for us to illustrate how Kenya fit/ not fit in every stage in the progress.
Stage 1: The traditional society:
Kenya is a still in a “traditional society” stage, which is characterized by a rural economy. Nulty (2012) also averred a pessimistic view of Kenyan current status. According to data from the World Bank, until 2005, the agriculture sector still trapped about 65 of its labour forces.
As learned in the class, driven by three major components in the Harrod-Domar model, the Kenya’s growth can be illustrated as following.
Firstly, theatrically speaking, investment is vital for the development. Internally, a country’s development can be driven by high domestic savings. Externally, it can be done by attracting foreign investment.
The saving rate of Kenya, however, owns a downward trend.
Historically, Kenyan government, in order to foster the development of domestic firms, expelled foreign investment, and those policies further worsen the situation. Although the exploitation from multinational corporations lessened, the economy, as a whole, suffers by, for example, lost job opportunities provided by foreign companies. Kinyua (2002) stated that the poor infrastructure condition in Kenya slowed the progress of developing in agricultural sector; it also caused an impediment of labours moving from rural- to urban-side. Istrate, Tsvetovat, and Acharya (2007) mentioned that the secondary