Restructure, the Way to Go

In the series of what needs to be done in capacity building, i shared on the five R's of capacity building. First, we had to reform our mindset and accept that our common destiny can only be achieved by our sense of individual responsibility. Reform the mindset from corruption, dependency and employment to become vessels of utility creation with focus on resource mobilization build on a pedestal of innovation and creativity. http://thecountyperspective.blogspot.com/2013/08/think-local-act-global.html We then sailed away from the individual point of view and put it in a societal perspective. This defined our second R, the need to re fabricate the social fabric to ensure a self sufficient mini economy (county). http://thecountyperspective.blogspot.com/2013/08/think-local-act-global_22.html
This morning, I was engaging my high school classmate and friend Bradley Imbwaka on why i am afraid devolution is in jeopardy. This does not indicate that am a wet blanket, but within the brackets of rationality, i am of the view the jubilee government's commitment to devolution lacks the zeal and the synergy. Politics aside, today in the third R, i will share on the need to restructure the legal framework especially with regard to our public financial management policies.
You must remember that we not only devolved 47 governments but also 47 mini economies, most of which have got unique characteristics with regard to economic activities, social fabric and political affiliations. This counties each have got different and exclusive business cycles. For instance, Bungoma county and Trans nzioa county where majority of the community are maize farmers, investment activities and business is booming in late September and early October when harvesting is intensive. February to July is characterised by low activities and starved businesses due to lack of money in the pockets of residents.
Come to Meru county, the story is different. Unlike Trans nzioa county, the Miraa farmers enjoy their harvest in a different season especially in April & May season, defining a different business cycle. Come to think of other counties like Kericho, Nandi and Kiambu where they practice tea farming, you will find a different timeline. What about Narok, Uasin Gishu and Nakuru for those planting barley and wheat?
This explains the uniqueness of each county. If for example the amount and period of harvest has got a positive relationship with the level of economic and investment activities, then each county has got a unique business cycle. For the county governments to regulate business activities within their jurisdictions and ensure a perpetual healthy and vibrant  economic environment then prudent public financial management practices are necessary.
Come to think of it, fiscal and monetary policies need to be devolved, mark my words, fiscal and monetary policies, not the central bank. However, if it is possible that mechanisms can be put up to devolve the CBK, well and good that would be a greater achievement. In the counties, while harvest time, all sectors be it transport, banking, construction and building, retail are booming, thanks to a community with pockets full of money; proceeds from sell of agricultural harvest. But for a purely agricultural society, what will be the situation away from harvest time? People with empty pockets, businesses will be denied revenues, and investments will shrink.
Can the county government provide the remedy? oooh yes, in low season, this is the time for the county government to commission its projects and initiate public expenditures. this will pumb money into the pockets of the broke residents, eventually business will come back to its knees and the cycle continues. But unless the available legal framework is restructured to allow prudent public expenditure policies unique with every county this will not happen in the near future. Besides, debt management and budgeting processes need to be restructured too.
Enough for today, but remember devolution is the means, build up capacity is the end, do not loose your zeal, do not relent in the building of the nation, just keep it here for more, share your views with me and i will appreciate.