Final Part: Kenyan Economist - BRICS Currency, Dedollarization, IWOSS, Subsidizing Production

In this final part of Episode 2, I continued the conversation with Dr. Alex Kamau, Ph.D., a Kenyan Academic & Economics Commentator & Business Consultant.
Themes covered include:
- Subsidizing Production vs Consumption Argument,
- BRICS Expansion & possibility of a BRICS currency
- De-dollarization Debates: Hot Air or a real threat?
- De-industrialization in Africa
- Industries Without Smokestacks (IWOSS): An alternative path to industrialization in Africa?
#kenya #dollar #Africa
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[@malkiaa9070]

Great discussion!

[@AdamMark-us9yo]

This is a good discussion. It’s interesting that Russia is doing just fine without SWIFT, isn’t it? Thanks to their trading partners. Considering the dictatorship claims of leaders whose countries are still buying Russian oil in large quantities, it’s probably more than just the price of oil.

[@The_Nubianommetry_Podcast]

It sure is. The war economy is certainly helping, war is big business, ever since WW2. Besides , eventhough the oil and natgas are being bought by China and India as two big partners, they are still trading indirectly with many western countries thru re-exporting. Germn car exports to Kazakhstan surged by over 1000% in 2023 compared to pre-Ukraine War period. Everyone knows once they reach Kazakhstan, they are then re-exported from there straight into Russia.
British heavy machinery have also grown by over 1000% to Krygistan. as is with most other western exports to the other Central Asian nations - Tajikistan, Turkmenistan and Uzbekistan. Same script basically.

[@AnnaKelly-zg8qz]

A very informative discussion! Dedollarization has a long way to go because the use of the dollar in international markets is based on trust. United States has been relatively stable economically and politically over the years and that fuels the trust of the US dollar in the international markets. There are other currencies that are as valuable as the dollar or even more valuable in terms of exchange rates but the economic and/or political stability in the corresponding countries might be questionable thus these currencies might not command the level of trust that the dollar has.

[@The_Nubianommetry_Podcast]

That's certainly one of the main reasons. Though wiring the dollar thru the entire global financial system/building, e.g. thru the Bretton Woods institutions seems to be another reason, with reserves and loans in both instituions usually disbursed in USD. And if these institutions and Central Banks around the world put such a high premium on the USD over decades, then international traders just have to follow the cue....
And as recent as 2012 i think, only 4 currencies were used to denominate IMF reserves - USD, Euro, Yen, and the British pound. Only around then did China push so that the Renminbi got accepted as one of the reserves.

[@yankingtv8710]

Right however at this moment we realize and can see that the dollar is not a security the trust that was established is broken seen by many countries once you used it as a weapon and stealing other countries reserves by using term like ceased it’s very bad to do that

[@lucientjinasjoe1578]

And i seriously doubt you as an economist because trust is money and money is trust and most important trade is the lifeblood of the economy it's stated by Alexander the great once said

[@MulinganyaM-uf6cx]

Kenya should have done more to the Agricultural sector, especially in Tea and Coffee production. Kenyan tea and coffee is recognized worldwide and i remember about 18 years ago i could buy Kenyan tea and coffee in most cities in Canada. For example, 7-11 had Kenyan coffee, Superstore had Kenyan tea, among others. Nowadays, Kenyan tea is mostly mixed with other teas from other parts of the world and sold as a different brand as in the case of Lipton. We allowed ourselves to be diluted in the market.
The problem is that everytime the government gets involved in Agriculture there is always a huge scandal tied to corrupt individuals.

[@The_Nubianommetry_Podcast]

Quite true. There are so many vested interests in the Kenyan agriculture sector. And what u r describing, blended products, have ensured that the value chain has left Kenya and gone abroad to Europe, North America and even Asia. With the value chain leaving, so are jobs, as well as higher to average returns for local farmers. The corruption and agri-cartels certainly don't help at all.