Will TV debates bring Kenya peace?

Election debates in Kenya may help prevent the horrors of the last election.

It’s easy to be blasé about election debates in the UK. Our experience of them is limited to the short-lived, incongruous Clegg-mania of 2010. There is always excitement about American presidential debates – but when they start, boredom soon takes over. It can be hard to argue there’s much point to it all.

Kenyans may disagree.

On Monday night, Kenya hosted its first ever presidential debate. On a stage reminiscent of that seen in American debates – the joke was that it had been borrowed from the last Kenyan to win a presidential election, Barack Obama – eight candidates sparred over three and a half hours.

The hope is that political candidates debating each other will help prevent a repeat of the 2007 election’s violence, when 1500 people were killed and arguably only the intervention of Kofi Annan prevented a full-blown civil war. 

The notion might seem a ridiculous one, considering the webs of violence involved in 2007. Yet, helped by a strong and independent moderator, the debate forced the candidates to address some pertinent issues that they would have rather neglected – like the alleged role of several of them as puppet-masters orchestrating the violence for their own gain. Most memorably, Uhuru Kenyatta, deputy Prime Minister and leading Presidential candidate, was asked how he could govern "and at the same time attend trial as a crimes against humanity suspect" at the International Criminal Court. Kenyatta's trial for his alleged role in the 2007/08 violence is scheduled to begin in April, a month after the election. 

And Kenyans were certainly watching Kenyatta's response: an estimated 300,000 tweets were sent about the debate. What did it all mean? Charles Onyango-Obbo, the Executive Editor of Nation Media Group in Kenya, said it “promoted the notion that debate and public defence of ones’ positions and record are a basis on which election outcomes are decided - not just money and ethnic herding.” He also argued that the civil attitudes of candidates to one another, especially between the two front-runners, “might have gone a small way to reduce the possibility of violence” in the election.

Ultimately, focusing the electorate’s minds on policy issues may encourage people to cast their votes based on stronger reasons than simple ethnic divides. According to one poll, 34 per cent of the electorate said they had changed their mind after watching the debate: an encouraging sign that it could contribute to undermining ethnic polarisation in Kenyan politics.

The experiences of Ghana shows how emerging democracies can benefit from holding debates. Its last two elections were extremely tense – in 2008, the winning margin was only 40,000 votes – yet mercifully free of violence. The presidential debates held “were useful in promoting an issues-based politicking and electioneering campaign and minimising the unnecessary whipping up of ethnic sentiments”, according to Dr Ransford Gyampo, a Political Science lecturer at the University of Ghana. Just as debates have helped Ghana’s democracy to mature, so they could have a similar effect in Kenya and elsewhere.

There remains much for Kenyans to be fearful about ahead of polling day on March 4th. Over 400 people have already been killed in politically related violence since the start of 2012. And Ivory Coast’s first presidential debate in 2010 didn't prevent over 1000 people being killed after the disputed election.

Yet the introduction of a presidential debate this year may be a tentative sign that Kenya is moving towards a less destructive form of politics. David Cameron is certainly not alone in his dislike for election debates. But, for all their flaws, they can be powerful tools for democratic empowerment. The world needs more TV debates.

The eight candidates in Kenya's first presidential debate. Photo: Getty

Tim Wigmore is a contributing writer to the New Statesman and the author of Second XI: Cricket In Its Outposts.

Ralph Orlowski / Getty
Show Hide image

Labour's investment bank plan could help fix our damaging financial system

The UK should learn from the success of a similar project in Germany.

Labour’s election manifesto has proved controversial, with the Tories and the right-wing media claiming it would take us back to the 1970s. But it contains at least one excellent idea which is certainly not out-dated and which would in fact help to address a key problem in our post-financial-crisis world.

Even setting aside the damage wrought by the 2008 crash, it’s clear the UK’s financial sector is not serving the real economy. The New Economics Foundation recently revealed that fewer than 10% of the total stock of UK bank loans are to non-financial and non-real estate businesses. The majority of their lending goes to other financial sector firms, insurance and pension funds, consumer finance, and commercial real estate.

Labour’s proposed UK Investment Bank would be a welcome antidote to a financial system that is too often damaging or simply useless. There are many successful examples of public development banks in the world’s fastest-growing economies, such as China and Korea. However, the UK can look closer to home for a suitable model: the KfW in Germany (not exactly a country known for ‘disastrous socialist policies’). With assets of over 500bn, the KfW is the world’s largest state-owned development bank when its size is measured as a percentage of GDP, and it is an institution from which the UK can draw much-needed lessons if it wishes to create a financial system more beneficial to the real economy.

Where does the money come from? Although KfW’s initial paid-up capital stems purely from public sources, it currently funds itself mainly through borrowing cheaply on the international capital markets with a federal government guarantee,  AA+ rating, and safe haven status for its public securities. With its own high ratings, the UK could easily follow this model, allowing its bank to borrow very cheaply. These activities would not add to the long-run public debt either: by definition an investment bank would invest in projects that would stimulate growth.

Aside from the obviously countercyclical role KfW played during the financial crisis, ramping up total business volume by over 40 per cent between 2007 and 2011 while UK banks became risk averse and caused a credit crunch, it also plays an important part in financing key sectors of the real economy that would otherwise have trouble accessing funds. This includes investment in research and innovation, and special programs for SMEs. Thanks to KfW, as well as an extensive network of regional and savings banks, fewer German SMEs report access to finance as a major problem than in comparator Euro area countries.

The Conservatives have talked a great deal about the need to rebalance the UK economy towards manufacturing. However, a real industrial policy needs more than just empty rhetoric: it needs finance. The KfW has historically played an important role in promoting German manufacturing, both at home and abroad, and to this day continues to provide finance to encourage the export of high-value-added German products

KfW works by on-lending most of its funds through the private banking system. This means that far from being the equivalent of a nationalisation, a public development bank can coexist without competing with the rest of the financial system. Like the UK, Germany has its share of large investment banks, some of which have caused massive instabilities. It is important to note that the establishment of a public bank would not have a negative effect on existing private banks, because in the short term, the UK will remain heavily dependent on financial services.

The main problem with Labour’s proposal is therefore not that too much of the financial sector will be publicly owned, but too little. Its proposed lending volume of £250bn over 10 years is small compared to the KfW’s total financing commitments of  750 billion over the past 10 years. Although the proposal is better than nothing, in order to be effective a public development bank will need to have sufficient scale.

Finally, although Brexit might make it marginally easier to establish the UK Investment Bank, because the country would no longer be constrained by EU State Aid Rules or the Maastricht criteria, it is worth remembering that KfW’s sizeable range of activities is perfectly legal under current EU rules.

So Europe cannot be blamed for holding back UK financial sector reform to date - the problem is simply a lack of political will in the current government. And with even key architects of 1980s financial liberalisation, such as the IMF and the economist Jeffrey Sachs, rethinking the role of the financial sector, isn’t it time Britain did the same?

Dr Natalya Naqvi is a research fellow at University College and the Blavatnik School of Government, University of Oxford, where she focuses on the role of the state and the financial sector in economic development

0800 7318496