<div>Kags, </div>
<div> </div>
<div>Comparing India and the US to Kenya would be rather disproportionate. However there is plenty of FDI going into the US from across the world, thanks to a weak dollar, but even when it does, its not a blank check as appears to be the case in Kenya. Richard Branson's Virgin Atlantic, Dubai Ports World, China National Offshore Oil Corp and mostly recently Airbus have all found out that attempts at major takeovers or entry into sovereign sectors of the US economy will be met with swift public, political and regulatory opposition.</div>
<div> </div>
<div>You may not be aware but a South African company that failed to make a breakthrough in Kenya paid $5.4 billion to purchase the 2nd largest brewer in the US 6 years ago, if we're on the same continent, its not unfathomable that 10-20 years down the road with the right investment environment and framework, that Kenyan companies could be on takeover sprees, maybe not on the same scale, just as the South Africans appear to be on a new takeover mission in Kenya. However for this to happen there need to be radical changes that must be implemented through policy, regulation and the legal framework.</div>
<div> </div>
<div><a href="http://money.cnn.com/2002/05/30/news/deals/miller_sab/index.htm">http://money.cnn.com/2002/05/30/news/deals/miller_sab/index.htm</a></div>
<div> </div>
<div>South African invasion <br><a href="http://www.bdafrica.com/index.php?option=com_content&task=view&id=8707&Itemid=5822">http://www.bdafrica.com/index.php?option=com_content&task=view&id=8707&Itemid=5822</a></div>
<div> </div>
<div>Lack of funding leads to change of strategy <br><a href="http://www.bdafrica.com/index.php?option=com_content&task=view&id=8751&Itemid=5812">http://www.bdafrica.com/index.php?option=com_content&task=view&id=8751&Itemid=5812</a></div>
<div> </div>
<div>India and China did not magically become economic power houses overnight. They did it by supporting and investing in indigenous enterprises. Through their protectionist policies, they are the same countries that are now keeping the US economy afloat through the purchase of US treasuries when 10-15 years ago they could have been dismissed as nobodys. Malaysia while in the midst of an economic depression, quickly realised that FDI was not the sole answer but government driven investment in local enterprises to promote private enterprise and ownership was key to regaining the country's economic prosperity. The key issue is ensuring that in the process of FDI coming into a country that the country is not loosing its economic independence and sovereignty. The country needs FDI but not at the cost of relinquishing the little indigenous economic independence that is left in Kenya, the truth is, investment by Kenyans (specifically law abiding citizens) will remain in Kenya, foreign investment is not done primarily with the core objective of developing Kenya, but for the benefit of the investors, when the investors are citizens of a foreign country, it is only logical that the returns will find their way back to those foreign lands. When the investors are Kenyans whether they got there by way of a stepping stone (ie government or other) or without one, the chances of investment returns being reinvested into the country or finding their way back into the country if invested regionally will ultimately find their way back to Kenya. Charity begins at home, only Kenyans can help make Kenya competitive in the global economy, if Kenyans sit back and expect foreign investors on their behalf to develop the country and promote local entrepreneurship then we will be a very disappointed lot.</div>
<div> </div>
<div>The Zimbabwe type protectionist policies are not the way to go about enhancing an economy. Mugabe wanted to hang onto power, so he figured he could gain political mileage and capital by engaging in radical and populist land grabbing. The motive there was not indigenous economic development but ultimate dictatorship. There are many examples across the world both in developing and developed countries where protectionist policies have played a role in promoting indigenous ownership of enterprises, Zimbabwe just happens not be a good example.</div>
<div><a href="http://en.wikipedia.org/wiki/Land_reform_in_Zimbabwe#Land_reform_elsewhere">http://en.wikipedia.org/wiki/Land_reform_in_Zimbabwe#Land_reform_elsewhere</a></div>
<div> </div>
<div class="gmail_quote">On Mon, Jul 14, 2008 at 11:57 AM, <<a href="mailto:alkags@alkags.com">alkags@alkags.com</a>> wrote:<br>
<blockquote class="gmail_quote" style="PADDING-LEFT: 1ex; MARGIN: 0px 0px 0px 0.8ex; BORDER-LEFT: #ccc 1px solid">My thoughts are yet to organise themselves adequately in my head to comment on this issue, however it occurs to me that the argument that you advance Mike may inadvertently be 'an eye for an eye' sort of argument.<br>
<br>India and the US for example can do perfectly well without investment from Kenya or Africa. in fact, i am led to wonder what the state of affairs is with regard to FDI inflows. How much of the FDI inflows in the US originate from Africa? And in Kenya, how much of the FDI inflows originate from Kenya?<br>
<br>The social argument you advance in general (while taking exception to the racial slurs) is generally sound but does it make sense to the extent that it will put Ugali in Wanjiku's mouth (the business argument)?<br>
<br>Zimbabwe tried to be protectionist. Outside of the external factors that have surely contributed to the hyper-inflation there, it occurs to me that the land he acquired was redistributed among his cronies and within a month (i was there), erstwhile lush fields of tobacco lay frigid. I wonder if protectionist policies would enhance our global competitiveness as a country in the larger scheme of things?<br>
<br>or is it the hard work that people are putting into the development of the industry.<br><br>Back to Marcel and Kevit, who have been unfortunately dragged into this. i have seen them putting in long, hard hours of work for the industry - on the ecommerce policy, for example. I wonder if it is fair to villify such efforts and what it says about ourselves?<br>
Sent from my BlackBerry® smartphone provided by Celtel Kenya<br>
<div class="Ih2E3d"><br>-----Original Message-----<br>From: "Joseph Manthi" <<a href="mailto:jmanthi@gmail.com">jmanthi@gmail.com</a>><br><br>Date: Mon, 14 Jul 2008 10:54:42<br>To: <<a href="mailto:alkags@alkags.com">alkags@alkags.com</a>><br>
Cc: kictanet-lists<<a href="mailto:kictanet@lists.kictanet.or.ke">kictanet@lists.kictanet.or.ke</a>><br>Subject: Re: [kictanet] Discipline & Ethics - Re: Legislation and Regulation<br> fore-Commerce in Ken<br>
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