Blog author: cromens
by on Thursday, March 24, 2011

Three days ago I arrived in Nairobi, Kenya, for Acton’s conference at Strathmore University. Driving about the city the last few days, I have been amazed by the number of small-medium businesses located in the kiosks along streets. These simple, tin/wood structures are bustling with enterprising and entrepreneurial souls working hard to better their lives and those of others.

In a Nairobi bread kiosk


With such diligent and enthusiastic people, why is Kenya such a poor country?

In discussions with students and staff at Strathmore, I have heard many stories outlining the significant problems with law, property, and inter-tribal (low non-kin) trust. You wonder:

• How can a country thrive when officials do not equally distribute justice? Where bribes and connections determine legal decisions?
• How can an entrepreneur access the necessary start-up capital for his business when he is considered a squatter in the home he built because he cannot access a title to the land?
• How can local or foreign investors expand their businesses when they are not members of a certain tribe and so are not well trusted?

These are the struggles, not only of Kenya, but of the developing world. These are the problems that need to be addressed in order to have a strong market economy that has the power to reduce poverty world-wide. These are some of the many questions asked and discussed at today’s conference titled Economic and Cultural Transformation: Breaking the Shackles of Poverty.

More than 170 people attended this conference, co-sponsored by Strathmore’s Governance Centre. We heard the speakers discuss both the theory and the practice of moving out of poverty through enterprise. By building up the institutions of rule of law, private property, and a culture of trust, the creative power of individuals is able to be unleashed and drive innovation and business. A new mindset is needed – not to rely on big government or foreign aid, but upon the many entrepreneurs who create wealth and help countries rise out of poverty.

Also see the article “Involve People in the Poverty Fight” by Antoinette Kankindi and Tom Odhiambo of the Strathmore Centre which appeared in yesterday’s Nairobi Star.

Update (3/25): The Standard reports on the conference. Read “Top economists urge African States to support enterprises.”

  • KAS

    I think that the teaching of the Church on the right to private property being essential to the welfare of the poor is spot on! If they cannot own their place and have their right to it protected, then they are banned from all sorts of opportunities that ought to be theirs by basic human rights.

  • Bill G

    John Stossel recently did a thoughtful piece for Fox News on he plight of the American Indian. Tribes that have been denied private property rights, and have been forced to depend on Government assistance, live in squalor, whereas tribes that have been denied Government funding have progressed through the private sectorn to build productive lives and accumulated substantial wealth while taking part in the American dream of developing and improving privately owned property.