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"content": "informal sector into the main economy without restructuring that economy, you go nowhere. Let me give you examples of economies that have succeeded in dealing with this structural crisis in developing economies in the third world. Brazil, for a long time, was going up and down trying to find a solution to this underdevelopment crisis until 1988, when the Brazilians passed a new Constitution that completely structured both the politics and the economy. They realized that the big industrial firms, like aeronautics was an important element of up-jacking the economy and creating downward trends in the economy that could create employment from below. It was at that same time that Brazil now started expanding its social welfare programme of giving these cash transfers and so on. There were major industries that could absorb labour generated by these families to which cash was transferred to feed the families, make them capable to seek employment, take children to education institutions and so on. I am giving these examples because as the Minister for Planning, National Development and Vision 2030 from 2003 to 2005, when we established the Economic Recovery Strategy (ERS), which actually breathed a sigh of relief in the economy; took this economy from intensive care unit. We started developing from two per cent, to five per cent, to seven per cent in a matter of five years. What we did was to say; look, let us, first, wake up agriculture industrially. That is when the dairy industry and KCC were revived. The price of milk, I remember, jumped from about Kshs5 per litre to about Kshs17 per litre in no time. Farmers were then able to employ youths to look after cows, grow napier grass and drive the gallons of milk to the Kenya Co-operative Creameries (KCC). If then at that point in time you get youths credit to buy bicycles or jericans to go and pick up milk from farmers and take it to KCC, it would make sense. Madam Temporary Speaker, yes, let us pass this Motion, but it will not go anywhere if we do not in this Senate also discuss the restructuring of our economy and see how this credit will be used by the youth to get employment in agriculture and industry and produce agricultural commodities that will go to the industry, which will link agriculture to industry and create jobs for the youth. In the example that I have just given, jobs could be created for the youth because farmers are producing milk and they want it to be taken to KCC. A young person with a bicycle and jerican could then find a job transporting milk from the farmer to the industry. If you give him credit to buy a bicycle and jerican to carry that milk, it makes sense. At the moment, we may speak of giving this money to the youth, but if we do not think of how they are going to use it, it will just rest on paper. In fact, what usually happens in our economies, especially the money given to the WEDF and the YEDF, is that it is a once and for all credit which cannot reproduce itself. This is because somebody gets credit and gets stuck on how to use it. They then go to the traditional way that people know. For example, with the WEDF, what will women do? She will say: “I want to rear chicken.” So, everybody begins rearing chicken. Then, disease comes and kills all the chicken and you cannot pay back your loan. This is because you are rearing chicken, but the veterinary department has not been revamped to ensure that there is some kind of support service for these chicken farmers. Chicken can be reared in an atmosphere where if they are sick, The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}