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11. A Comparison of the Industrial Policies and Outcomes in Kenya and Malaysia

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Chapter Summary

This chapter presents a historical overview of industrial policies and their outcomes in Kenya and Malaysia. They both followed similar development strategies centred on the construction of national economies and industrialization. However, today Malaysia has become an export-driven economy spurred by high technology and knowledge-based and capital-intensive industries, while Kenya, experienced slow growth, and is still largely dependent on its traditional sectors. The remarkable success in industrial development in Malaysia in the last few decades has been accompanied by a dramatic reduction in poverty. The poverty incidence fell from 49.3% in 1970 to below 5% in 2007. In addition, per capita incomes increased by a factor of more than twenty in the period 1960-2009. This is in contrast to Kenya, where close to about 50% of the population remain poor and the per capita income increased marginally by a factor of approximately seven during the same period.

Keywords: industrial policies; Kenya; Malaysia; poverty reduction



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