Discuss capitalism and industrialization in Kenya

      

Discuss capitalism and industrialization in Kenya

Answers


Sharon
Sender and Smith (development of capitalism in Africa) Defined capitalism as a form of organization of production in which the direct producers sell them labour power since alternative means of survival are increasingly constrained. It is a mode of economic system where production is done for profit. Producers are separated or have little control of their means or subsistence. The production process is dynamic and there is a free market leading to accumulation of profits and more capital (main objective). Competition occurs between producing units, there’s improved production techniques due to competition (p. 35-37).
The spread of machinery, the socialization of labour and the elimination of handicraft industries led to the success of capitalism system of production.
Throughout Africa (Kenya included) free market (capitalism) have led to the rapid accumulation of massive and shocking wealth by members of an outsider or non indigenous ethnic group (minority).
Today’s capitalism did not appear overnight but represents the triumph of 5 decades of American foreign policy. After WWII (1945) in order to promote capitalism and contain communism, USA promoted the creation of World Bank, the IMF and the organization for Economic Cooperation and Development (OECD). They exported capitalism to Africa through these institutions including USAID and Ford Foundations.
After 1945 there began a phase of concentration and centralisation of capital on a world scale. The post war period in Kenya colony witnessed a rapid expansion of agricultural and industrial production. In 1954 for instance, the GNP from manufacturing industry was greater than that of European agriculture. Official grants (loans) and new private capital increased rapidly after 1945. Official grants rose from £0.4 million in 1946 to £9.5 million in 1956 and private capital imports rose from £6.2 million to £12.2 m in 1953 - and this increased industrialization in Kenya. A larger population of investment was directed to secondary and tertiary industries which gave higher profits (Nicola Swainson).
More finance into Kenya was raised on the London stock assisted by Barclays Overseas Development Corporation and between 1950-1952 East Africa received loans averaging £17 million per annum.
Agricultural development was also enhanced in 1950s through the Swynnerton plan of 1954. Under Swynnerton plan the following measures were taken
Individual land title
New marketing boards provided finance for coffee, pineapple, tea and pyrethrum growing in the African reserves. This stimulated the production of cash crops and accelerated capital accumulation in Kenya.
Labour regulations established
Land consolidation programmes
Loans provided to farmers in Kisii, Kiambu, Nandi farmers.
In 1953 the British government provided £7 million to assist African agriculture
NB: All these measures succeeded in enhancing the development of capitalist agriculture and the revenue earned from the newly established cash crops rose from nothing to £4 million at independence.
In 1960-61 settlement schemes were established in Kenya through the assistance of the World Bank and Commonwealth Development Corporation (CDC), aim was to bring about an intensification of high grade agriculture in the Kenya highlands and thereby increase the production of commodities for the world market.
jerop5614 answered the question on January 9, 2019 at 08:38


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