Bottom-up economics: Relax, we have been there before

The bottom-up economics despite all the misrepresentations has forced us to discuss issues; very rare in Kenyan politics. From State House to the streets, bottom-up economics has mesmerised and entertained us.

One would have expected other economic topics like climatic change, stagnation of South America despite 200 years of Uhuru or Covid-19 to spice up national debates. Why is bottom-up economics so sexy, as Americans would put it? Why is everyone in it? What’s the end game?

It affects the majority of the population and is laced with promises of economic emancipation. Its quasi-religious nature makes it attractive in a highly religious country.

An analysis of most religions and cults seem to suggest a dream of emancipation from drudgery, work and suffering. Bottom-up economics found such a fertile ground and has easily sprouted.

It’s for the same reason that Christianity did so well in Kenya. The idea of monotheism easily dovetailed into our traditional religious beliefs.

Two, about 173 years ago, Karl Marx and Friedrich Engels Engels, working from, all places in London, came up with a communist manifesto. Their idea was quickly snapped by Russian revolutionary leaders about 100 years ago.

And they were willing to experiment with it for 70 years.

The most famous quote from the manifesto reads, “workers of the world unite; you have nothing to lose but your chains.”

To the chaotic and declining Russian empire, that was very good news. The popularity of bottom-up economics is driven partly by the feeling by the masses that the economy has not grown fast enough and they have not directly benefited. The feeling was similar when communism gained traction. Covid-19 has made matters worse.

Maybe another well-packaged stimulus package would have doused the flames of bottom-up economics. The end of the Soviet Union in 1991 clearly exposed the shaky ground in which communism, a distant relative of bottom-up economics stood.

Today, Russia, the inheritor of the Soviet Union is a market economy, the echoes of communism long stopped reverberating.

China seems to have noted the economic hollowness of communism as originally charted by Marx. Deng Xiaoping unleashed the power of capitalism by opening up China from around 1978.

 The growth of China was partly driven by foreign investment and stable politics. Could we do the same by letting in a deluge of investors and their money? Where will the money to spur bottom-up economics come from? Let’s come closer home. The coming of uhuru promised a transformation, with the promise of the end of ignorance and poverty.

If that happened, no one would be talking of bottom-up economics. Kenya sprinted ahead of her neighbours economically because of dalliance with capitalism, but it lacked a human face. Our southern neighbour tried ujamaa, a variant of communism which after many years was retired.  But give credit, it unified the country and dividends could be coming soon.

It’s easier to solve an economic problem than a socio-political problem. Watch Tanzania. Bottom-up economics is popular because the current model has not solved our economic problems, from inequality to poverty.

If you plot Kenya’s population growth against economic growth, the latter is often higher, though very volatile. That is a clear indicator of inequality, growth shared by only a few.

Curiously, the opponents of bottom-up economics have not offered the Kenyan masses an alternative. My hunch tells me the alternative is the status quo, putting them in a rut. Why change a system that favours you?

You will easily notice that the Kenyan economic model before and after uhuru allows very little trickledown. Even philanthropy is rare or politicised. That has created a lottery system to get to the top and pick the goods yourself.

This is best espoused by the political system; the winner takes all. It is not very different in the economic arena going by the gap in pay between the highest and the lowest paid in both public and private sectors.

An education system tailored to let only a few reach the top has helped keep the status quo. Lately, we have learnt to use a shortcut, call it corruption, nepotism or rent-seeking in economic-speak. If you do not reach the top, you can blame exams, misfortunes and government among others.

Despite changes in the government, from the Queen of England to the presidents, our economic model has not changed. It’s simply a pyramid with less wealth as you shift to the bottom. Bottom-up economics seems to want to invert this pyramid and let it stand on the tip! Don’t we love quick solutions; remember the convoys to Loliondo?

Remember pyramid schemes? Noted the popularity of gambling? The inversion of the pyramid is why bottomers are facing so much opposition. Who wants to lose the wealth and prestige that goes with it?

The missing ingredient in bottom-up economics is reality. We shall never be equal like the horns of a cow. Just watch Olympics. Two, how do we make the pyramid stand on the tip without toppling? If we do not invert the pyramid, how do we shift more citizens to the top or better? Why can’t we have a flat-topped pyramid?

The flat-topped pyramid made the Building Bridges Initiative (BBI) popular and easier to invert. Opponents of bottom-up economics are angry that it has taken all the wind from BBI sail. One route to the top is a meritocracy which Kibaki regime tried and the results are there for all to see.

Hidden in the bottom-up debate is how to provide opportunities for all. The “bottomers” are cagey on specifics and their practicality. End game? The opponents of bottom-up economics are working overtime. They have even devolved their functions to counties.

We normally flock together when threatened. But if they do not address the issues raised by “bottomers” the debate will not end soon.

The embers of this narrative will smoulder long after the 2022 winner is declared. Covid-19 economic meltdown makes the address of the issues raised by bottomers more urgent.

Finally, some feel that “bottomers” are not sincere, they have benefited from the status quo and are using the new narrative to gain political power. That is not unusual. Some fear that once in power, they will leave their followers “kwa mataa.” Using economic ideas to win a political contest shows our country has finally come of age.