Application of Economic Development Theories to Kenya's Economy

This essay provides an in-depth analysis of economic development in Kenya, examining the country's high unemployment rate and its contributing factors, such as rapid population growth and an inadequate education system. The paper then explores the application of Rostow's theory of economic growth and the dependency theory to the Kenyan context, highlighting how these theories explain Kenya's economic challenges. Furthermore, the essay delves into the perspectives of Amartya Sen and Denis Goulet on development, comparing and contrasting their approaches and evaluating their strengths and weaknesses. The analysis emphasizes the importance of freedom, capabilities, and ethical considerations in achieving sustainable economic development. The essay concludes by suggesting alternative dimensions of development that consider political, legal, and ecological aspects, providing a comprehensive understanding of the complexities of economic development in Kenya.

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Economic Development
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Question one
Unemployment wallows in the minds and families of many people in developing countries. In
Kenya, for instance, idleness is the new norm in society because of the lack of jobs. The
unemployment rate in Kenya stands at 9.31% as indicated in fig 1. Below (Cahn et al 2017
p.89).
Figure 1. The unemployment rate in Kenya
A recent study by the Kenya Economic Survey indicates that nine million people are expected to
enter the labour force between 2015 and 2025. This has pushed the unemployment rate in Kenya
to 9.3%. Even though there has been a significant increase in job creation in the country, most of
these jobs are of low quality (Coccia, 2018 p.65). The considerable high rate of unemployment in
the country has been attributed to the various reason including the high population growth rate,
capacity underutilization, inappropriate education system and lack of co-operant factors.

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The rapid population growth in the country is generating an increase in labour. Most of the
people often tend to migrate to urban areas in search of employment opportunities which are not
usually readily available (Modlesky et al 2015 p.100). As such, the rate of unemployment in the
country increases. Apart from the rapid population growth in Kenya, inappropriate education
systems have also contributed to the unemployment rate in the country. The previous 8-4-4
system that was recently replaced by the Competency-based-curriculum was not good enough
(Mittelman and Pasha, 2016 p.32). Most of the graduates in the country are unemployed because
of the poor education system and the high population growth rate (Mittermayer et al 2015 p.123).
Question two
Rostow theory
According to this theory, economic growth and development inludes five universal stages.
Schmidt and Tally (2018 p.87) outlines some of these stages such as traditional society, take off,
drive to maturity, age of mass consumption and the pre conditions of take-off. The authors cite
that agricultural economy that is mainly subsistence farming where some of the produce is traded
locally or at times internationally is part of traditional stage. In most cases, the size of capital
stock is limited and of a low quality which often results in relatively low labour productivity.
However, there is usually little surplus left to sell in both domestic and oversea markets (Schmidt
and Tally 2018 p.87).
Pre-conditions take off is a stage where agricultural production becomes more merchandised,
and a high percentage of the produce is traded. A growth in savings and investments often
characterizes this. The Gross domestic product is usually lower, and as such external funding in
terms of remittance income and overseas aid is required.

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Take-off stage is where the manufacturing sector in the country assumes greater responsibility
even though there are fewer industries in the country. There is often a dual economy, the
growing manufacturing sector and the declining agriculture, which becomes less important even
though most of the people are employed in the farming sector. External aid may also be required
in this stage (Adah, and Abasilim, 2015 p.65).
Drive to maturity is the fourth stage; here, the industry becomes more diverse. As technology
increases, growth is uniformly spread to different parts of the country. Innovation and creativity
increase and this is usually depicted in the rise in real per capita income (Omonijo et al 2015
p.43). Age of mass consumption is the last stage in the Rostow theory. Here, output levels grow
significantly, thus boosting consumer expenditure.
Dependency theory
The theory indicated that underdevelopment is caused by the peripheral position of affected
countries in the overall world economy. The argument here is that most underdeveloped
countries offer raw materials as well as cheap labour to the market (Smith, 2015 p.34). When
these resources are sold to developed economies, they are transformed into finished products and
sold back to undeveloped countries at a much higher price. As such, the result is usually an
endless cycle that that divides the world economy into two, the rich and the poor.
How theories apply to a developing country
The dependency theory applies to Kenya, a developing country in East Africa. This is so because
the state majorly depends on agricultural exports as a source of income. Kenya is a world
producer of the coffer; it produces high-quality coffee and sells it to more developed countries
like the United Kingdom and the United States at a considerably lower price (Smith, 2015

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p.314). These countries blend the coffee and make it more appealing them resale it back in the
country as drinking chocolate and other forms at a relatively higher price. Just like the
dependency theory, puts it, the process ends up in cycles of sale and resale with the developing
country having much to lose.
The dependency theory will correctly work in Kenya. The country can take an optional step to
alder the issue of dependency in the country. This may be achieved through investing the
country's wealth in national development projects and literacy programs instead of spending so
much in importing luxurious items from abroad. In the case of coffee, for instance, the country
may decide to blend its coffee instead of exporting it and selling the final product abroad at a
much higher price.
Question three
Amaryat Sen had a different outlook on development. He likened the development of freedom.
To him human development is geared by various capabilities possessed by individuals.
According to Sen, freedom is the aspect of accessing what has value in appropriate manner.
Besides, he strongly believed that there are factors that limit people's freedom, including poverty,
poor economic opportunities and social deprivation (Hirai, 2017 p.43). Elimination of these
factors will be very significant towards increasing people's freedom. He indicated that a world of
interdependence could not be safer. As such, people must be freed so that they can live in
dignity. The focus, should, therefore, be on what people lack. According to Sen, basic
instrumental freedoms comprised of political independence, economic opportunities, social
facilities, transparency guarantees and protective security. When these aspects are
interconnected, people will find ultimate freedom and the overall well-being of the people would
thus increase.

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Denis Goulet was a human development theorist and a founder of development ethics. He played
a very crucial role in broadening the aspect of development. He included identified three core
values that are very instrumental as far as development is concerned. These core values of
development are; life sustenance, self-esteem and freedom. Goulet's work is considered as an
extension of Sen's work.
Development by Amaryat Sen
Strengths
The approach has some benefits. First of all, Sen tries to support how citizens have to be granted
freedom to access all that has value to them. To some extent, Sen has elaborated how an increase
in poor people income can result in the expansion of the aspect of freedom in a nation (Drydyk,
2016 p.32).
On the other hand, Sen has revealed how society has to take serious approaches that will reduce
barriers to freedom. He says that it is good for the poor to benefit fully on the issue of growth
without discrimination. Also, the definition has focused on flourishing social matters. Through
this analogy, the definition has created a sense of how people should be treated equally, thus
enjoying the life they value.
Weaknesses
Most of the developmental practitioners have viewed Sens definition as invaluable. The idea is
that the Sens stance seems to deviate from the philosophical foundation. To some extent, Sen
definition of development appears to fail to articulate the power of capitalist. According to, Boda
(2017 p.80) description of development by Sen views the capitalist market as myopic of which in
business it is articulated as institutionalized unfreedom.

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On the other hand, the definition reveals market as an area of choice. Still, it fails to outline how
it does not propose some aspects such as how it is radical, how it is distributive, and how it lacks
developmental practices. On matters of the market, the definition has not recognized the aspect
of the status quo that is how the market is exploiting the disadvantaged groups. Sens support
inequality in the market, thus bringing a lot of contradictions.
Development by Denis Goulet
Strengths
Goulet supported issues pertaining the developmental ethics. Through his view, we all tend to
support how development is a beneficial aspect that is necessary for any social change. Besides,
the definition illuminates more on the other developmental theories such as the communicable
theory.
On the other hand, most of the authors have supported arguments revealed by Goulet. Through
his definition, the world has tried to eradicate the issue of inequality. To him, developmental
ethics can take various views so long as they follow social integration. Lastly, the definition
supports descriptive and explanatory ethics.
Weaknesses
Goulet has not indicated the theoretical structures and systematic aspects that we can use to hold
and sustain developmental ethics. To some extent, Goulet seems to have a deficiency of patience
since he looked more on the earlier insights all through. Also, Goulet failed to work more on the

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conceptual refinement of the term freedom when acquiring ethics. The definition seems to have
mistrust since it lacks the analytical support on the privilege as outlined by the Sen.
Therefore, from my point of view, I think there are other dimensions of development that have
not been mentioned. The two philosophers are definite on economic, social and ecological
aspects. I believe these cannot be only the dimensions of development. We have other elements
that have technical support on the issue of development. We have political and legal dimensions;
all of them are fundamental when describing the aspect of growth in any country. In these
dimensions, it will be easy for the people in any country to acknowledge the rule of law all the
time.

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