In: Economics
Case Study Scenario
Climate change has caused a pressing burden on people. It is a
shared responsibility in which all countries should take their
effort. However, developing countries always face technological
hurdles and financial difficulties in their own country. Kenya is a
typical example. Kenya Government strives to formulate different
types of renewable energy technologies to safeguard its energy
security and protect the environment. However, the Kenya Government
faces a tremendous challenge in terms of talented professionals,
financial constraints, and state-to-the-art technologies. Hence,
Kenya requires humanitarian support from developed countries to
developing its renewable energy sector.
Based on the abovementioned scenario, there are TWO (2)
parties:
Party A: Represent Kenya Government which needs technological
transfer and financial help from the U.S. Government
Party B: Represent the USA Government which provides necessary
assistance to Kenya Government
If you choose to become Party A (i.e., Kenya Government): How are
you going to convince the U.S. Government to provide
technological/financial/expertise assistance for your country? To
what extent that the U.S. Government should help your country, and
how can you return the favours to the U.S. Government?
If you choose to become Party B (i.e., the U.S. Government): What are the benefits that you can request if you provide necessary assistance to Kenya Government? How you are going to maintain your international reputation, but at the same time to maximize your profit?
Your task is to choose ONE (1) party as your representative, then discuss your solutions based on the problem statement. Try to check any climate change international trading scheme that you can apply in this scenario.
PARTY 'A' - KENYA GOVERNMENT (THE ARGUMENTS) With the rise of democracy in Kenya ,the country is taking the path of development and has become the third developing nation of SUB-SAHARAN AFRICA following Nigeria and South Africa.The country has tried to improve itself in the fields of education,agriculture,export-import and obviously renewable energy.Kenya has developed tremendously in the sector of renewable energy.It is aiming to be powered cent percent (entirely) through renewable energy by the end of 2021.Currently, 70% of the nation’s installed electricity capacity comes from renewable energy sources, which is more than three times the global average.The success in their aim will reduce their domestic manufacturing costs to a good extent and will increase the income of the Kenya people.Improved governmental policy support for renewable energy is also making the way for continued growth in this sector.U.S. assistance in Kenya works across sectors to support this process with an underlying goal of sustainable development and strengthening peace, prosperity & security. These sectors include democracy, human rights and governance; elections in 2017; health: water and sanitation; agriculture; education ; biodiversity,accomodating the climate change. Also the climate change has affected Kenya badly.The unpredictable rainfall,the yearly drought and the increased temperatures these all have affected the agriculture sector and natural livelihood of people as well as wild animals which combines to create a environment.It means their livelihood has got affected crucially because of these climatic changes. Kenya heavily relies on the exports for its income purpose.In exports , its exports' 8-9 percent goes to U.S.A. Thus U.S can be seen as a major economic partner because of a good economic funding and sound trade relations.Also Kenya is said to be a pro U.S. nation in terms of economy and security both.Kenya can ask for the economic or financial help from U.S. through the routes of exports,imports and security.Also , in the current scenario U.S. is somewhere involved in the cold war like situations with China,Iran and some Asian countries as well so the Kenya government can make diplomacy and can easily win the depth of the faith in U.S's eye through several diplomatic steps. Some of the diplomatic steps can be taken like the welcoming of free trade and open investment in Kenya.Also less tariffs and custom duty charges could be a welcoming step for U.S. and Kenya both.In the return of the financial aid asked from U.S. , Kenya has a good sum of human capital available so it can provide cheap labour to U.S. and in return can ask for the technology , technical expertise and investment in technological advancement.With the inception of the U.S. entry into the human capital field in Kenya,the unemployment rate will also fall down.Also,the renewable energy sector will also get helped by the U.S. if Kenya opens its doors through mutually sharing the human capital.The developed countries like U.S. are always in need of cheap labour , land and the mineral essentials,so Kenya can mutually grow in this field with the U.S. The climate change is also one of the biggest concern for today's world especially for the developed nations.The carbon emissions are so high that they can't control it below a certain level otherwise the economy wil get affected adversely-"ECONOMY AND ENVIRONMENT CAN NOT GROW TOGETHER".So the nation like U.S.A which is a developed one always seek for the place where it can establish its industries and settle its services as well.In the country like Kenya where the renenewable energy sector is kept focused by the government can be a favorable destination to U.S. investment and trade purposes.The heavily reliant renewable energy sector can attract the economic growth with very less pollution and less adverse climatic change too.If the U.S. can come and trade through here then it will be a good example for other nations as well.Also,it will be a great step towards the welfare society where the developed and the developing could work together & could grow together using their best available potentials.