Every country in the world is striving to improve the economy of its country, as a country’s success is measured by the status of its economy, and the subsequent improvements of the economy every financial year (Sernau, pg 200). In order to cater for its budget the various governments has to increase tax on some group of people or items (Baker, pg 220).
In a country such as Kenya there was a slight improvement in the country’s economy for the first quarter of the new government coming to power (Were, pg 220). This was very unusual especially after coming out from an election period, in the previous year Kenya’s economy especially after elections has usually been hurt (IMF, pg 240). This is because of fears from investors who tend to pull out temporarily or withhold their finance due to the uncertain security during or after elections (Cheng, pg 250). In order to achieve that the Kenyan government had to put some measures in place, some products had to be zero rated (that is no tax charge). The items that were not taxed were the ones the investors had to use but were not available in Kenya, in doing that the cost of running a business was reduced thus attracting more investors (Garmendia, pg 240). Business investors were assured of their security and that of their business as the government heightened security (Beckert, pg 220). The UK also posted an impressive improvement even though some people were not happy with some policies that were put in place to improve the lives of the poor in the community (Giudice, pg 230). Thailand also did reasonablt well as more funds were availed to help the poor (Wittman, pg 210).
In order for a country’s economy to be considered as successful, all the citizens should be able to afford the basic needs. The gap between the rich and the poor should not be too wide; this can be done by the pure commitment of the government in providing grants to the poor.
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Cheng, Kevin C.. A VAR analysis of Kenya’s monetary policy transmission mechanism how does the central bank’s REPO rate affect the economy?. Washington, D.C.: International Monetary Fund, 2006. Print.
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