Microsoft Word - 5

On Sun, Nov 13, 2011 at 12:38 AM, <bitange@jambo.co.ke> wrote:

Jane,
There are possibly reasons why Korea is doing better than its 1960s peers.
Casual look on the road tells you that more than nine out of ten vehicles
on the road are Korean. You either see the Hyundai or a Kia and sometimes
a Samsung. There is practically no foreign car here even the Toyota which
originally gave the technology to Korea. I am told that 100% of the home
appliances are locally manufactured. This level of patriotism (royalty to
local outputs) is not by accident. South Korea is sandwiched by two
powerful economies, that is, Japan and China.

This is an export-orientated country, with a total trade volume exceeding
900 billion in 2010. This figure also makes them the 7th largest exporter
and 10th largest importer in the world. Since 2003, South Korea has
established its network of free trade agreements to boost trade and
economic ties with other countries.

Currently, South Korea has 5 FTAs in effect, 3 FTAs which has concluded
discussions, and 19 FTAs under negotiation and consideration. So far, the
biggest FTA of South Korea is the Korea-US Free Trade Agreement (KORUS
FTA) signed in 2007. This free trade agreement plans to liberate 95
percent of the trade tariffs between the 2 countries. It is also US
first free trade agreement with a major Asian economy and biggest deal
since the North America Free Trade Agreement (NAFTA) signed with Japan in
1993. Even with these FTAs some Koreans oppose especially FTA with the
US. At a neatly organized rally (looked like an AGM of some company)
people are gathered to protest FTA with the US. They argue it will hurt
their industry.

With a lack in natural resources, South Korea has a high dependence on
import of capital goods, raw materials and industrial supplies. The
country is also the 5th largest importer of oil in the world, with 3.074
million barrels imported per day.

This makes Korea a good case study for Kenya as we have almost a similar
background. At the height of structural adjustment program (SAP), Kenya
had practically developed local capacity to manufacture cars. Uhuru then
manufactured by General Motors had attained more than 60% local content.
The neighbouring countries had begun to import Uhuru from Kenya but we
were more focused on exports to Europe than exploiting the regional
market. The then Government which ironically introduced Nyayo car found
it easier to import used cars from Japan. We had lost track of going
through a learning curve and create local capacities. Similar tastes were
developing in the textile industry that led to the shutdown of Rivertex.
The change of policy from SAPs to liberalization gave rise to looting of
public enterprises (Read Kenatco, KNTC, ICDC, Kisumu Molasses, Kenya
National Assurance, AT&H etc.) Other countries notably Korea, Singapore
and Australia turned to corporatization of state enterprises and they
succeeded big. If there were to be any justice through TJRC, it is the
repossession of these assets to enable us create a youth venture capital
to help the youth set up enterprises. I am well aware that Kenya media
knows who looted and the state of those assets.

There is no need for us to be sorry about the past and keep on whining
about the future. We must identify the opportunities that are glaring at
us. It is not for nothing that God denied Middle East the land to grow
food and gave them oil. We have a comparative advantage in certain areas
that only after we exploit them that it becomes an opportunity. We must
move from the past where opportunity meant a job opportunity to an
environment where opportunity means you need to scratch your head and see
a window where others have not seen one then exploit the chance. Africa
and Middle East provides that window.

We also must be patient and willing to take collective sacrifices for us
to succeed as a nation. You visit India and see that they do not import
many vehicles too. In as much as the Mahindra is slow and ugly, Indian
buys it. The Tata truck may not be great but Indians buy it. We have
exported raw coffee far too long as we import instant coffee from our raw
materials. Building a value added industry of our resources for the
African market will make Kenya the largest economy in Africa. In two
years’ time consumption in Africa will top $3 trillion. I have not even
talked about AGOA which remains unexploited. Think.

Regards

Ndemo.

> PS,
>
>
>
> I bring back the debate of your for presidency! I strongly feel you have a
> lot to offer and wish Kenyans would vote beyond political rhetoric! What
> do
> you think should be done to promote such change in this country? Am
> impressed by the Korea's experience beyond words and feel thoroughly
> challenged. However, at times I think we do not want real change because
> we
> benefit from the chaotic system in our country.
>
>
>
> Jane
>
>
>
> From: kictanet-bounces+info=amwik.org@lists.kictanet.or.ke
> [mailto:kictanet-bounces+info=amwik.org@lists.kictanet.or.ke] On Behalf Of
> James Mbugua
> Sent: Tuesday, November 08, 2011 5:35 PM
> To: info@amwik.org
> Cc: KICTAnet ICT Policy Discussions
> Subject: Re: [kictanet] Korea
>
>
>
> PS
>
>
>
> That is enlightening stuff. Please also check out the last mile solutions.
> As I have always told you, I think government should build the fiber to
> the
> home with an allocation from the national budget the same way we allocate
> money for roads. Private sector can't do it and where they do, they will
> charge an arm and a leg to "recoup investments."
>
>
>
> They key lesson to be learnt also from those observations is productivity
> per capita.
>
>
>
> Kenyans are hard workers but we have inefficient production systems.
>
>
>
> The amount a Chinese or Korean worker produces in an hour is probably what
> a
> Kenyan worker will take a day or two to produce.
>
>
>
> We must think of ways of improving productivity.
>
>
>
> Manual labourers must not be allowed to hold this economy hostage with
> their
> abysmal production levels and loud, unreasonable politics.
>
>
>
> If you haven't guessed by now which manual labourers I speak of, think
> Atwoli and his tea pickers who won't allow mechanization at the farms and
> the dock workers who won't allow efforts to make the Port of Mombasa more
> efficient.
>
>
>
> Economic development theories dictate that mechanization takes place to
> free
> up manual labourers to move into other economic sectors. We must look
> seriously at our level of productivity if we are to develop to Korea's
> level.
>
>
>
> James Mbugua
>
>
>
>
>
>
>
>
>
> On Tue, Nov 8, 2011 at 5:19 PM, <bitange@jambo.co.ke> wrote:
>
> I arrived in Korea yesterday for a Global e-Government conference. ITU
> ranks Korea as number one in ICT diffusion. From the airport you see
> people walk through with an e-passport using biometrics. The New Incheon
> airport is 70 Kms west of Seoul, the capital and largest city of South
> Korea with some 11 million inhabitants. It is one of the largest and
> busiest airports in the world actually the world's fourth busiest airport
> by cargo traffic, and the world's eighth busiest airport in terms of
> international passengers in 2010.
>
> Korea is about 99,000 sq Kms or one half of the Rift Valley Province of
> Kenya with a population of 50 million and a GDP of $1 trillion (Kenya's
> GDP is about $35 billion). In the 60's it was largely a donor recipient
> country with a GDP less than that of Kenya and more than 60% of its
> population below poverty. They have turned tables to be a member of the
> OECD and a donor country over a short period.
>
> For many years it mostly depended on the USA as its largest trade partner
> but over a time they focused their energies on the Asian Markets. Its
> trade with China, USA and Japan in 2010 figures stands at %190, $98 and
> $90 billion respectively. They import a great deal of food and the reason
> why we should not lease our land but use it to improve on our economic
> growth. A Kg of meat here is $100 imported from Canada and Brazil.
>
> I asked our Ambassador why we cannot sell our meat here. He says we do
> not meat their standards. This should not be a problem since we have
> broadband in most parts of the country that we can keep pace with the rest
> of the world in keeping the records especially those required by various
> standrds organization.
>
> Back to Korea. ICTs are also deployed along the highways making it easier
> to go through the toll stations and collecting all the revenues. You can
> get data from government at every hour. You can for example know the
> number of children born in a day throughtout the country. There is CCTV
> practically everywhere. Crime is approaching zero.
>
> There is an over supply of affordable public transport via the rail and
> bus system all clean and on time. If you choose to drive on your own, you
> are taxed at every new turn you make. The tax from the polluters who
> cannot use public transport is used to subsidize the energy efficient
> public tranportation.
>
> Every child after high school has to go through the Military thus
> instilling the discipline required in this competitive world. Because of
> such discipline, they do everything very fast. We were literaly running
> behind our hosts to catch up with them. In the Newspapers there is a Bank
> executive who has committed suicide because he gave questionable loans to
> friends. He killed himself for shaming his family and that he may not
> have any friends.
>
> My experience here confirms much of what we have been saying in this
> forum. The problem is how to inculcate such high levels of ethical
> standards as well as feeling of shame.
>
>
> Regards
>
>
> Ndemo.
>
>
>
>
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>
> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
> for people and institutions interested and involved in ICT policy and
> regulation. The network aims to act as a catalyst for reform in the ICT
> sector in support of the national aim of ICT enabled growth and
> development.
>
> KICTANetiquette : Adhere to the same standards of acceptable behaviors
> online that you follow in real life: respect people's times and bandwidth,
> share knowledge, don't flame or abuse or personalize, respect privacy, do
> not spam, do not market your wares or qualifications.

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KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.