Kenya must learn from Venezuela's oil-induced turmoil

What you need to know:

  • The situation in Venezuela challenges the view that Kenya, and indeed the African continent, is automatically primed for prosperity owing to natural resource endowments.
  • In addition to price controls, the government subsidised products including petroleum, food, telecommunications and electricity.
  • A country that deserved much better overdosed on oil spending and came crashing back down like a drug addict suffering from withdrawal.

Thirty years ago, people out shopping in Eastern Europe would walk in the streets and join any queue, before asking what supplies the shops had in stock.  

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