Comparing Japan To Kenya Is Illiteracy, Says Kenyan Economist

Comparing Japan To Kenya Is Illiteracy, Says Kenyan Economist
Kwame Owino is the chief executive Officer of the Institute of Economic Affairs (IEA-Kenya), a public policy think tank based in Nairobi, Kenya.

Right after the fiery exchange that took place during the Presidential interview on Friday, a video surfaced online of an economist explaining why it does not make sense to compare Kenya's and Japan's debt. During a session of Press Pass on NTV earlier this year, the panel dissected the public debt argument. Mr Kwame said the argument shows illiteracy in economics.

Many within the government argue that Japan has a higher debt to GDP ratio than Kenya. Furthermore, they say that debt is not bad so long as it is used well. However, due to the graft and corruption levels in Kenya, incurring more debt is not a good move.

'Anybody who makes that argument either does not know what they are saying, or they are lying. Japan is not Kenya.'
'So throwing that argument at us means you are either illiterate in Economics (I say that with due respect) or you are trying to throw us a red herring (lying).

He further adds that Japan borrow and repay in their own currency while Kenya repays loans in US dollars. Moreover, Japan's loans are repayable in 101 year terms while Kenyan loans are repayable in about 30 years or so. Japan also repays its loans at 3% while Kenya repays at twice the rate.

Mr. Kwame was speaking during an interview at Press Pass in February.

Here is the full video;

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