INFORMATION AS AN ECONOMIC RESOURCE HOW THE KENYAN ECONOMY COULD BENEFIT FROM EXPERIENCES OF THE EASTERN AND WESTERN WORLDS

There is no doubt that economic growth which leads to the creation of jobs and provision of essential social welfare services is linked to access to and prudent utilization of information. Examples abound from both the eastern and western worlds. Although access to information in Kenya has much improved in the last decade, many obstacles still inhibit full utilization of information for the country’s economic benefit. To overcome these obstacles and exploit information for economic development, greater democratisation and openness in the management of public affairs will need to be achieved first.

There are many examples in the modern world where information has been a key ingredient in the creation of wealth and jobs. The famous green revolution of Asia, which led to self-sufficiency in food production in many parts of the continent is perhaps one of the best examples. Using newly discovered scientific knowledge, these countries were able to achieve what had been regarded as impossible in the past. Similarly, Japan, and, later, the so-called Asian tigers, were able to make breakthroughs in industrial development using information gathered from western experiences. Although there is still much poverty in many parts of Asia, there has been quite a bit of progress towards its reduction.

Nearly all western countries have relied more on the use of information in the creation of wealth than on their natural resource endowments. Initially, increased wealth came about through world exploration, the industrial revolution, trade and colonialism. The use of information played a crucial role in all this. In Britain, for example, access to and marketing of information products has been a major ingredient of that country’s economy. In order to promote trade (in addition to spreading English culture) the BBC has correspondents and FM radio stations in virtually every country of the world. Then there are the valuable Economist intelligence reports which are sold at premium rates to whoever needs them. To this we may add the famous British Library Document Supply Centre, which has been selling information for close to half a century. Finally, the UK has excellent networks of libraries, archives, telecommunications, etc. All these feed information into the country’s economic hub.

The situation is not very different in most other western countries. Without heavy reliance on information, countries like the Netherlands, Belgium, Israel, to name only a few, would not be as prosperous as they are. However, these countries achieved remarkable prosperity only after democratisation of their social institutions.

In Africa, such examples are few. The British colonial authorities left behind excellent economic infrastructures in Zimbabwe and Kenya but these are now run down. Besides South Africa, Mauritius and Botswana have shown indisputably that proper use of information accompanied by democratisation can lead to sustainable economic development.
In Kenya we have seen some progress in the area of communication facilities. Modern information and communication channels are now widely available in the country, especially in towns. For instance, mobile telephones have revolutionized telecommunications. However, compared to other countries, Internet access costs are still prohibitively expensive. The situation could get better if the government stopped dragging its feet on the liberalization of fixed line telecommunications. Similarly, publicly-funded information resources could improve greatly if policies and resources were rationalized.

There are many other obstacles to beneficial exploitation of information. In the first two decades of independence, it was believed that governments could spearhead economic growth through public corporations (parastatals) or direct participation in economic activities (banking, manufacturing, trade, telecommunications, etc). This experiment failed almost without exception. In more recent times, structural adjustment as advocated by the World Bank and the International Monetary Fund is now the prescribed panacea. In the new scheme, it is generally agreed that the engine of economic growth is the private sector backed by individual initiatives. The government is only supposed to play a regulatory role and provide the infrastructure (transport facilities, power and telecommunications), guidance and security.

We now know that all efforts to spur economic growth through direct or indirect government participation have failed miserably due to corruption, unwieldy bureaucracies, and misallocation of resources. Even after the introduction of multiparty democracy a decade ago, government leaders still obstruct privatisation of public corporations, competitive bidding for contracts, competitive hiring of civil servants, and general openness in public affairs. These activities are seen as indispensable sources of patronage for the ruling elites.

Let us look at other obstacles that need to be overcome before information can play a greater role in development. The government has failed to protect local productivity and industries by encouraging the importation of second hand goods (mitumba). Instead of creating jobs through manufacturing and exporting goods, we have become sellers of other countries' goods. Our textile, leather, and local car assembly industries are on their knees and our people have lost jobs. With imagination from our leaders, all this could change for the better.
We also seem to assume that development is not possible without foreign aid. We have slavishly accepted the status quo whereby a small elite exploit the majority using public resources. The patronage system that has characterized our political economy for the past four decades has led to the lawlessness that discourages investment. Lack of planning in the use and control of public resources has resulted in wastage and increasing poverty.
How do we make a difference in the status quo? How do we improve our economic and social status? One sure way is to empower people with the knowledge to be gained from greater access to and therefore better use of information.