Tuesday, April 26, 2016

Corruption; the Necessary evil.

I learnt of the term necessary evil way back in high school in a biology exam; in fact my biology teacher had to crack its meaning; I could not decipher its meaning even after series of  drilling by the biology teacher and numerous group  discussions ; till weeks later I understood what necessary evil is. To those who subscribe to the Christian mythology, I likened it to Judas Iscariot who sold Jesus to the Pontius army for a mere 30 bob; which such one evil act he ushered in the necessary Christian covenant with God. In one of our many sister schools, there was a sewage treatment plant that processes raw sewage to fertilizer. This essential product was given to the locals who made booming harvests from their corn and tuber fields. Instead of sugar factories in western Kenya of complaining of low quality cane from farmers, they can produce more ethanol.  I also learnt chicken droppings are a good supplement for dairy herd and fish.
To the Kenyan citizenry, I believe corruption is a necessary evil; I laud the national government on being keen to devolve this resource though not provided for in the 2010 constitution. It functions seamlessly in the context of a closed economy, where the only leakage from the circular flow of income is through inflated Government purchases and money laundering. Among the additional factors of production is an amorphous factor called corruption; its nebular nature allows it to disrupt the normal market demand-supply rules and inject the essential entrepreneurial impetus in a nascent economy.  To realize the full benefits there should be no capital flight inform of overseas bank account ; such proceeds of bleeding the government coffers should be invested loco and sustainably. The cost of capital is nil and as such to ensure the macroeconomic indicators such as inflation remain stable, the cost of capital will be some flashy lifestyles and hangers on; this has a larger multiplier effect than interest paid to the banks since in reaches a wider population.

The only check needed here is to ensure corruption doesn’t gnaw into capital inflows, FDI and Chinese neocolonialism. The proceeds of corruption needs to be reinvested back into the economy, in productive tested sectors like real estate, security/bonds markets. This will create employment of labor and capital.
Assuming the national government budget of KeS 1 trillion; 40% goes to administration. The balance 600billion is spent on supplies and development; 40% of this is sucked into corrupt pockets of dealers and tenderprenuers. If the kes240b is put into economically feasible and sustainable investments, the impact would be bravura. I have watched satellite towns grow out of this money; the purchasing power of the local grow multifold improving their lifestyles and life expectancy thus inching closer to Sustainable development goals. In laissez fairre economy, the government has no role in business; it’s the role is to provide enabling factors. In a highly taxed society, the violation of taxation principle of “no direct quid pro quo’ can only be achieved through bleeding the overbearing Caesar. It’s through corruption that the public funds with no accountability land into the hands of entrepreneurs eager to impact their lives and those of their communities. The impact is more direct and wide than the much hyped Kenyan Economics stimulus program during the 2008 global economic downturn. I have always believed, any sound mind being given an opportunity, the potential in them comes to fore. At the county level ordinary latrine masons and Mr. Fixit have matured to contractors doing office blocks and refurbishments; cyber café attendants have turned into IT consultants opening Facebook accounts for county bosses.; the Juakali artisans hatched by former President Moi can fabricate mkokotenis (hand drawn carts) and gates worth millions. This is must be the eighth wonder of the world. What do we need to see to believe we are global trendsetters?
The antidote we offer for corruption appreciates that the vice is here to stay; the so called independent institutions like EACC, Judiciary, Asset Recovery Agency, Prisons, parliamentary oversight committees et al ,  only serve the already corrupt but none seeks to address the mindset, the moral grounding and aspirations of the corrupt or aspiring. It’s inherent in the human nature to circumvent the rules, thus as in the Garden of Eden, we are evil. Then how can we turn this evil into a force to reckon with? The transpiration in kingdom plantae if prolonged it can kill the same plant it meant to serve. The stomata apertures serves as the control mechanism. With the assumption of a rational imp, is corruption bleeding the Caesar unsustainably?  I believe not.
Deciduous trees shed their leaves in periods of prolonged sunshine thus no loss of life sustaining sap substrate. What triggers this shedding of leaves and ultimately loss of the stomata? Are the stomata, the antidote ineffective? Does this lost water condition the environment? Well, if human beings, thus Kenyans, are intrinsically evil, then we only need to rope in the essential component of necessity and this corruption will serve us all well. Drawing further from the analogy of the plant, the trunk and the branches can shake off the leaves and the public coffers suffer no more hemorrhage; or the leaves, the Kenyan citizens must fall off the branches. But is this feasible in a free market economy? Is this pragmatic enough in face of inefficient government agencies? Can we trust the government to create wealth for all? We must embrace the necessary evil or perish.
ngubia emoji.