Political environment The political model under which Kenya operates is a presidential representative democratic republic. This means that power is shared by multiple parties which either function separately or form coalitions, and that the president of the country acts as both head of state and head of government, the current president, elected in 2013, being Uhurru Kenyatta. (Uhurru Kenyatta) The political environment is mainly characterized by severe instability and widespread corruption. Politicians in power systematically override the country’s laws, to misuse their power for personal profit, without ever being held accountable despite continuously facing corruption allegations. Electoral violence is very prevalent, and usually escalates …show more content…
According to the World Bank, it achieved lower middle income status in 2012, its GDP reaching $55.2 billion in 2014. (Kenya Overview, 2014). Furthermore, the GDP is projected to grow to $89 billion at the current prices by 2018. Manufacturing accounts for 14% of the GDP. The leading industries in the country are based on agriculture, and more specifically grain milling, beer production, and sugarcane crushing, and the fabrication of consumer goods, with the service sector being the main driver of economic growth. However, Foreign Direct Investment in the Kenyan economy is a relatively low share compared to neighboring countries. According to S. M. Omanwa (2015), “in 2010 only $185 million of foreign direct investments were placed in Kenya, compared to $433 million and $817 million in Tanzania and Uganda respectively.” This is despite the abolition of strong protectionist tendencies followed by the government since 2002, in an effort to increase the investment inflows. Kenya is a member of the EAC (East African Community) which is a regional intergovernmental organization whose other members are the Republic of Burundi, Rwanda, and the United Republic of Tanzania. Since 2010, within this organization the countries have established a common market, an area where the removal of all barriers (such as tariffs), a common external policy and free capital movement allow for trade to flow …show more content…
The availability also contributes to fairly low wage levels. Flexible employment regulations make workforce management comparatively easy for companies in Kenya. The country also enjoys economic growth, which is increased thanks to its membership in the Common Market for Eastern and Southern Africa (COMESA), and the EAC (East African Community). The freedom of movement for all the factors of production between the member countries, along with coordinated policies, allow for the factors to become more efficiently allocated, which helps increase productivity. It also helps the economy become more competitive by eliminating uncompetitive companies and preventing monopolies and encouraging innovation. (Sawkut,
The competition pressures the workers to work harder and create something new to reach a higher status in life. And these hard works of people, no matter if they are working to reach the high status or for better of society, help the nation as a whole. For example, the companies like Apple, Microsoft, Samsung are all having competition to have higher sale of their products. The workers of the company work hard to create better products then the other companies. Their motives are for the profit issues, but their outcomes from those competition help the nation.
1. The competition Act is a Federal Statue that stimulate the competition in the market. It is of interest to business, because it gives opportunities to new businesses and entrepreneurs to enter the marketplace. Also, it helps to eliminate the monopoly companies by bringing new ideas and diversity of products. In addition, it helps small businesses against the big companies who goes against them.
The corrupt and unjust have held power for so long, and while they may
Thus, many types of power are corruptible, the power of the people does not abstain from such corruption. However, it
In addition, the department takes steps to boost competition in the economy. As Herbert Hoover once said, “Competition is not only the basis of protection to the consumer, but is the incentive to progress.” To boost competition, the department works directly with businesses and universities to aid in development. Without competition in the market, if one company controlled everything, they could set prices at whatever they choose, which would greatly hinder the economy. As a result of better spending tax dollars and improving economic competition, the entire country
As a result of this ruling, it promotes competition and reduces
Not simply a violation of democracy, but of human rights and ethical code itself. This abuse
Competition is good for consumers. For example, if a company has to compete with another company, they will be forced to try to create a better and cheaper product than the other. If a company is a trust, and doesn’t have to compete, they will have no reason to keep their prices low, or improve the quality of their merchandise. This is because a consumer that needs a product will be forced to buy it from the monopoly even if they aren’t happy with the value or cost of it because they have no other choice. Big corporation leaders wanted to eliminate competition.
Voting is perhaps the biggest political participation and the key indicator for democratic health of a political institution. However, because of political corruption there is a negative relation to democratic electoral participations, so as the corruption increases the percentages of people who go to the polls decrease (Stockemer, 2009). As the public corruption rises it diminishes the public’s trust and may cultivate generations that will hold low levels of trust for government officials. Therefore, there should be an act for governmental transparency to the public, as transparency is the fundament to democracy, because it would be able to reveal corruptions.
Corruption can be a very surreptitious and overwhelming thing, but unfortunately it’s everywhere. Power can corrupt by putting fear
Big powerful special interest groups have interfered with politicians’ decision to do what’s right; it appears that the political system has become corrupted and money plays a big role in their decision and money is very influential in getting the legislators to pass bills. One would believe that our politicians are making the battles between the political parties personally; it appear that if the parties don’t agree with another, they resort to drastic measures such as shutting down the government causing more hardship on
This is a vitally important power source used in politics and is fundamental in order to succeed. This power was even referred to by Lukes (1974) as “insidious” in nature, as it is seen as almost an abuse of power from those in higher positions especially the political elite on those more vulnerable or open to manipulation of working class background in
The reasoning stands that regulation of a monopoly obstructs competitiveness, stunting the industry’s growth. It is a competitive market that creates innovative solutions and furthers human progress. Friedman’s main example is the US railway, where the 19th century had great need for the railway system, yet with the emergence of cars and planes, railroads nearly became obsolete. Thus not only do monopolies hinder the freedom of choice they also hinder the industry by depriving it of innovation. Notably, Friedman clarifies that each case of a monopoly needs to be studied independently.
Throughout the twentieth century, countries were creating treaties, trade blocs and global governance institutes to promote open market and free trade. Europe’s golden age of trade with very low tariff and high economic development began mid-19th century and collapsed
China and South Africa), or one country and a trading bloc (e.g. the European Union and Morocco) or 2 trading blocs (e.g. EFTA and SCU). ADVANTAGES OF REGIONAL AND BILATERAL APPROACH FOR BOTH POOR AND RICH COUNTRIES Most of developing countries are enjoying some sort of trade preferences in the form of very low or up to zero tariffs on their exports to developed countries.