Why Hasn't Kenya, Africa, Benefited from Globalisation?

There are a few reasons why Kenya has not benefited from globalisation, while countries who have been equally as poor have flourished with it. Countries like Taiwan were in equal peril 50 years ago but have since embraced globalisation and democracy. One in three Kenyans are in poverty and 50% work on land as labourers as the European Union has seemed to have almost completely shut out African exports. No property rights exist for farmers and other labourers and therefore they have no right to expand and build on their land. If they cannot gain ownership of the land they work on then it is very hard for them to retrieve any reek any of the rewards. If Kenya were to allow the same laws that are in effect within already globalised countries and lower the restrictions, then farmers could expand and the Kenyan economy could grow.

An example of somewhere that has been held back by the restrictions that exist within Kenya is Kibera, a shanty town located on the outskirts of Nairobi. There is a population of around one million with many entrepreneurs who have been starved of success. With no government help like loans and the need to purchase expensive trade licenses it is no wonder that 50% of Kenyans trade on the black market. A regular trade license can cost a Kenyan half a year's wages, 11 procedures and 68 days to process.

All problems that exist in Kenyan life can be seen to be symptoms of the lack of growth and reform. Famine, lack of food and gangsterism are all linked to this. it is argued that Africa(Kenya) has become too marginalised with too much socialism, gangsterism and protectionism. Marginalisation is where countries or regions are deprived of materials and power; in this case Africa has been deprived of the benefits being distributed within the European Union.

In September 2002, a new government was installed in Kenya which brought about new hope to the population. The government was then soon to relax some rules that existed. Although most of the restrictions still apply, the new government relaxed mobile phone import duties which have lead to the wide availability of cheap mobiles. This has revolutionised Kenyan's lives as it has improved communication greatly around the country. Also, the second hand clothes market has been exposed to globalisation and has also enjoyed massive success. Unfortunately, the government has now began to increase taxes on these, which has worried locals as the second hand clothes are some families only source of clothing. The import duties in effect from African government are keeping globalisation at bay by threatening the few successful businesses that exist.

The possible benefits that could be gained by Kenya can be seen by their hugely successful and ever growing flower industry. Extremely high tariffs exist on almost all Kenyan agricultural products except flowers and some vegetables. The European Union has lowered export tariffs on flowers and Africa is now the largest flower exporter in the world. However, there are worries that if these export tariffs increase, then this thriving industry would be destroyed.

The European Union protects their own farmers and subsidise our food exports to Kenya. This is not helping local as it is causing them to lose business and money. Where food is coming in, the population is buying the higher quality food exports from the EU instead. Then also later on down the line, more food is exported to Africa in the form of food aid. Therefore, this shows that the Kenyan population does not need aid but it needs the chance to compete on a global scale. If these restrictions were lifted then Kenya could benefit from exporting agricultural goods and textiles much more as these are the two main exports being blocked.

In conclusion, it is clear that Africa (Kenya) has not benefited from globalisation because of the heavy restrictions that exist within the continent and the high export tariffs put on African exports from the European Union. Too much globalisation therefore does not exist in the world as its benefits on poor countries can be seen worldwide, in such countries like Taiwan and regions like northern South America. However, when looking at Africa it shows that the world is too marginalised because materials and power is not distributed evenly. It is calculated that if Africa would open its doors to globalisation then it would earn £450 million a year in exports, this being roughly around fourteen times what it gains in the form of aid.