In Kenya, campaigns often come with grand promises free housing, Kshs 6000.0 monthly, free calls, job creation, okoa payslip,…. free tickets to heaven! Name them. These pledges always appealing to voters, but more often than not, are disconnected from reality at least in the economic sense. This is the danger of populism, leaders chasing applause with promises that the economy cannot sustain.
Populism, is not just about popular appeal. It’s about politicians claiming to speak for “the people” whether in politics or economic policy. Usually taking the form of politicians undermining institutions like the Central Bank or ignoring the advice of technocrats in order to win votes.
Economic populism, however, is not always a bad thing, there are moments where bold, economic reforms were necessary to save both the economy and democracy. But for economic populism to work, it must be grounded in reality, not reckless spending and short-term thinking.
Unfortunately for us, populism is often used to gain power rather than solve problems. politicians may promise debt cancellation without explaining who will pay the lenders. They may vow to lower fuel prices while ignoring the global factors affecting those prices. Some propose tax cuts while increasing spending something that’s impossible unless they increase debt.
What’s more concerning is how these promises are often made while weakening the institutions that are supposed to protect public finances. When leaders dismiss budget experts, they remove the very safeguards that ensure money is spent wisely resulting to ballooning repayments, delayed salaries, and stalled projects.
Yet, it would be wrong to say all populist ideas are bad. Some demands such as job creation, affordable housing, and reducing inequality are legitimate. The problem therefore is not the goals, but the methods. Sound economic policy takes time and has tough trade-offs. On the other hand, Populist shortcuts rarely lead to lasting solutions.
I am not saying that we need fewer economic promises, no! we need better ones backed by evidence and realistic budgets. It needs leaders willing to say not just what people want to hear, but what they need to know. Because populism if used carelessly, risks crashing the economy and the hopes of the very people it promises to help.
