leapfrogging the banking system

I just came back from Kenya, where I was consulting with the transport ministry. It was an interesting time, especially because we can see in countries like Kenya (with a GDP per capita of around 600 Dollars) the nuances of globalization:

(a) even the kids of my taxi drivers were in school from very early on. The daughter of my driver in Nairobi was able to read and count to 50 at age three (and he was very casual about this).

(b) Robert Lawrence from the Kennedy School has argued for a while that global growth will come from South-South trade. However, it is also South-South consulting (India, South Africa), and South-South investments that will transform this continent.

(c) Not having a fiber-optic link to the global evernet is painful. The permanent secretary promised me that they are building one (with Lucent for 80 Million Dollars), but until that is ready do not count on too much.

(d) Safaricom, the local cellular carrier has an ingenious system called m-pesa (mobile money, pesa being slang for money) that allows anybody with a cellphone in Kenya to transfer money to any other cellphone in Kenya. It is widely used and people were really excited. In a country where most people in the cities still have parents in very small villages this is changing the political economy of rural Kenya.

About Philipp

Philipp Müller works in the IT industry and is academic dean of the SMBS. Author of "Machiavelli.net". Proud father of three amazing children. The views expressed in this blog are his own.

11. March 2008 by Philipp
Categories: Blog | 4 comments

Comments (4)

  1. Reva Doiss says March 11, 2008 at 10:57 pm

    Hey! We just have started something similar in Mexico, where you can make direct payments through the cell. Still on law-reforming process but it will make a difference for us.

    Interesting trip

  2. Reva Doiss says March 11, 2008 at 10:57 pm

    Hey! We just have started something similar in Mexico, where you can make direct payments through the cell. Still on law-reforming process but it will make a difference for us.

    Interesting trip

  3. reva_doiss@anonymous.disqus.net'
    Reva Doiss says March 11, 2008 at 10:57 pm

    Hey! We just have started something similar in Mexico, where you can make direct payments through the cell. Still on law-reforming process but it will make a difference for us.Interesting trip

  4. reva_doiss@anonymous.disqus.net'
    Reva Doiss says March 11, 2008 at 10:57 pm

    Hey! We just have started something similar in Mexico, where you can make direct payments through the cell. Still on law-reforming process but it will make a difference for us.Interesting trip