Occasional Paper No. 06 of 2006 on State-Private Sector Nexus in National Wealth Creation: A Framework for Analysis and its Application to Kenya
View/ Open
Publication Date
2006Author
Type
KIPPRA Publicationsviews
downloads
Metadata
Show full item recordBy
Khainga, Dickson
Abstract/ Overview
This study discusses a theoretical framework that is used to explore the interaction between the state and private sector. Three classes of businesses are identified, namely: makers or producers; traders/merchants or middlemen; and producers of financial services. Interactions between these three classes form a natural order in economics that can allow people to become wealthy without need for direction from the State. These three classes, together with the government, comprise a quartet that is key in national wealth creation. In terms of a national strategy for wealth creation, the businesses in the segments involved in 'production' are the strategic choice. However, there is no guarantee that government interventions or the institutional environment will favour this class of enterprises. Information on private sector and interactions with the Kenyan government is used to illustrate this framework. It is argued that despite market reforms some aspects of the institutional environment continue to favour those business classes in the distribution chain rather than the 'production' and is inimical to upgrading. Although the informal sector continues to receive wide policy attention, based on this framework, only about 30 percent would qualify for a strategic public policy; for the rest, the best the government can do is to concentrate on the fundamentals.
Publisher
The Kenya Institute for Public Policy Research and AnalysisSeries
Occasional Paper:2006Collections
Related items
Showing items related by title, author, creator and subject.
-
Nakuru County Annual Development Plan 2017-2018
County Government of Nakuru (County Government of Nakuru, 2016)The 2017/2018 Nakuru County Annual Development Plan (ADP) marks the last one-year development plan that will actualize the first Nakuru County Integrated Development Plan (CIDP 2013-2017). The plan contains the strategic ... -
Nyeri County Intergrated Development Plan 2013- 2017
County Government of Nyeri (County Government of Nyeri, 2013)This County Integrated Development Plan has been prepared in accordance with the policies stipulated in the Kenya Vision 2030, the Medium Term Plans and other national policy documents. It is also aligned to the Constitution ... -
Trans Nzoia County Investment Guide 2013
County Government of Trans Nzoia (County Government of Trans Nzoia, 2013)Transnzoia County is the undisputed destiny to investors. The cosmopolitan county is strategically positioned in the region and offers a welcoming investment climate including abundant natural resources and competitive ...