The Turning to a Market Economy

With time, more and more Global South Countries are turning to market policies so as to empower themselves economically (Roskin, & Berry, 2010). The following essay will discuss the market policies used in Kenya, an African country found in the Global South. The market policy used in Kenya is the Fiscal policy. This policy entails the Kenyan government using the government’s expenditure and collection of revenue to regulate the economy. However, this policy is used hand in hand with the monetary policy where by the Central Bank regulates the amount of cash flow in the economy.  With these two policies, the government is able to maintain a free market policy is the country, whereby the market is purely driven by market forces; that is demand and supply.

With the market policies indicated above, Kenya is moving towards success. Over the period of time which the country has used a market economy, the economy has grown tremendously. The good business environment which has come up as a result of this has led to an increased investment in the country, with many investors going for the rich tourism, hospitality, communications and consumer goods sectors. As a result of the increased trading activity in the country and other ripple effects of the market economy, the country’s GDP has continuously grown.

However, it is important to acknowledge that just as other Global South countries; the political state of the country has had an influence on the economy. This can be seen in the slowing of the economic growth after the 2007 post election violence.

The fiscal policy is a good market policy since it enables the economy to grow from within. The free market policies associated with market economies are also good. However, there is a need for some form of regulation in the economy so as to protect the domestic industries from cutthroat external competition.