Christine Lagarde’s “3 Cs” For Kenya

Instead of live tweeting, I took notes of Christine Lagarde’s speech at Mindspeak this afternoon at The Intercontinental. It was such an honour to hear her speak, I am a big fan.

I blogged the highlight of her speech both for you my readers but for my record.

1. Complete fiscal devolution. This will bolster social cohesion and increase accountability over public funds.
But must be done right. Controlled, audited, and people in charge be held accountable.
Spending must be transparent and within the available funds.
Avoid duplication of functions between the central and devolved governments
Technology platforms can aid in transparency and this is where the private sector must come in. Technology will aid identification of service providers, reporting on spending, monitoring projects implementation and benefits.

2. Closing infrastructure gaps. For growth to be realized, we have to create access to power, create predictability in transport of goods and improve warehousing and process at the ports.
Fiscal policy for protection of wealth generated by natural resources must be put in place.
Foreign investment must be encouraged provided it remains within the levels of sustainable debt. Consessional Vs non concessional lending must be arbitrated in the interest of sustainability of the company.

2. Continued regional integration. Kenya has led the way in pushing for the East African integration, and it must be done in a way that’s beneficial to all the countries.
The monetary union is an ambitious project. We should “hasten slowly” ( quoting Aristotle). Ensure all the boxes are checked. Learn from the mistakes others have made (Europe etc). Let East Africa teach Europe how it is done.

She closed by speaking about Education of All
Education for young people (both boys and girls), and those that have gone through life without accessing education. It’s one thing to find oil and gas, but it’s even better to unleash the potential people have to exploit those opportunities.
Secondary and university education for all must complement free primary education.

Read the entire speech here —–> http://www.imf.org/external/np/speeches/2014/010614.htm