Recent orders

Aggregate supply

Aggregate supply

Author

Institution

Aggregate supply is a measure of the volume of commodities and services that an economy has a capacity to produce at a certain price level. The short run aggregate supply curve depicts the amount of output that an economy is capable of producing in the short term at various price levels. The short run aggregate supply curve is upward sloping because input prices tend to adjust at a slower rate than that of the final goods; this leads to higher profit, which makes firms to increase production. Besides, the short run aggregate supply curve is upward sloping since some firms tend to adjust prices at a slower rate than others (Mankiw, 2008). This makes such firms think their sales are increasing and thus increase their production. On the other hand, the long run aggregate supply curve depicts the volume of commodities and services produced by an economy in the long term in relation to different price levels. Unlike the short run aggregate supply curve, the long run aggregate supply curve slopes vertically rather than sloping upwards. In this assignment, short run aggregate supply curve and long run aggregate supply curves together with variables that move them will be discussed. In addition, the macroeconomic equilibrium in the long run and short run will also be discussed.

The short run aggregate supply curve shows a relationship between the volume of commodities and services and price levels that an economy is capable of producing, in the short term. This curve is upward sloping; as the price level rises, firms increase the quantity of commodities and services supplied. Alternatively, as the level of price drops, firms tend to decrease the volume of commodities and services supplied (Mankiw & Taylor, 2006).

Reasons Why the Short Run Aggregate Supply Curve is Upward Sloping

One of the reasons why the short run aggregate supply curve is upward sloping is because of sticky wages. Some economists have a perspective that wages are inflexible, or sticky. This is based on the opinion that wages become locked in for some years because of the labor contracts entered into by employees and management. For instance, the management and labor may reach an agreement of locking in wages for the following one to three years because they may see this as being for their best interest. The management has an idea regarding the cost of labor during the period of the contract while; on the other hand, workers have a sense of security since they know that their wages will not become lowered during the contract period. Besides, wages may also become sticky because of perceived notions of fairness or certain social conventions. When there is a change in the economy, the wages paid to workers, do not adjust immediately because of the contract that exists (Mankiw, 2008). So, when price level increases, the nominal wage remains fixed while the real wage falls since the real wage is based on the purchasing power associated with the wage. A fall in the real wage implies that labor becomes relatively cheaper than before. Firms choose to hire more workers, when labor becomes cheaper which increases their level of production. Therefore, when there is an increase in the price level, output increases due to sticky wages.

Another reason for the upward sloping nature of the short run aggregate supply curve is because of worker mis-perception. The amount of work that a worker wills to supply is usually based on the real wage that is expected; the workers are always willing to supply more work at a higher real wage. So, when the price level increases, there is an assumption that firms have more information than workers, which will lead to firms increasing the nominal wage. However, because workers are not aware whether the price level increased, they believe that their real wage has also increased. Workers tend to work more, when they believe their real wage has increased, which leads to an increase in production. Therefore, an increase in price, increases the level of output because of worker mis-perception.

Imperfect information is another explanation for the upward sloping nature of the short run aggregate supply curve. When there is an increase in the level of price, producers take it for a relative price level increase (Mankiw, 2008). The real wage earned by the producers rises as relative price increases; this makes producers to supply more labor leading to an increase in the output produced.

Variables That Move The Short Run Aggregate Supply Curve

Expected Changes in the Future Price Level

The short run aggregate supply curve shifts in order to reflect firm and worker expectations of future prices. When workers and firms expect the price level to increase, they adjust their wages by the same amount that the price increases. Keeping all other variables that affect the aggregate supply, the short run aggregate supply curve shifts to the left when the future price levels are expected to rise. A graphical representation of this is as illustrated.

Price LevelSRAS2

SRAS1

P2

P1

Output

When the price level is expected to rise from P1 to P2, the short run aggregate supply curve shifts to the left from SRAS1 to SRAS2.

Capital Stock or Labor Force

An increase in the capital stock or labor force implies that firms are capable of producing more output at each price level (Mankiw & Taylor, 2006). Therefore, an increase in the capital stock or labor force will shift the short run aggregate supply to the right as illustrated; the short run aggregate supply curve will shift from SRAS1 to SRAS2.

Price level SRAS1

SRAS2

Output

Productivity

The quantity of output produced determines the cost utilized in producing an output; the lower the productivity, the higher the cost of producing the output and the converse is true. Therefore, an increase in productivity will shift the short run aggregate to the right since it will lower the cost of producing the output. The illustration is as shown; the short run aggregate supply curve will shift from SRAS1 to SRAS2.

Price level

SRAS1 SRAS2

Output

Expected Price of a Vital Natural Resources

The price of producing a certain output is based on the cost of the input. When the price of an input increases, the cost of producing an output also increases. Therefore, when the cost of a vital natural resource is projected to rise, firms are likely to increase the price level of the output; this will have an effect of shifting the short run aggregate supply curve to the left since the cost of producing an output is also expected to rise. Therefore, if the price of a vital natural resource is expected to rise, the short run aggregate supply curve will shift from SRAS1 to SRAS2 as depicted in the illustration.

SRAS2 SRAS2

Price level

Output

The Long Run Aggregate Supply Curve

The long run aggregate supply curve shows the level of real output at every possible price level. The long run aggregate supply curve is vertical in nature since, in the long run, prices of resources have already adjusted to the price changes, which implies that there is no room left for incentive for firms in the long run to change their output. Therefore, price is assumed to have fully adjusted in the long run and thus the price has no effect on the volume of output produced.

Variables That Move the Long Run Aggregate Supply Curve

Any change in the economy, which alters the natural rate of output is deemed to shift the long run aggregate supply curve. Shifts of the long run aggregate supply curve is deemed to be caused by the following variables; capital, labor, technological knowledge and natural resources.

Labor

An increase in labor implies that there is an increase in output. For instance, an increase in the number of workers leads to an increase in output since the workforce increases. An increase in output causes a shift in the long run aggregate supply curve to the right. Alternatively, a decrease in labor implies a decrease in the workforce which leads to a decrease in output. The decrease in output causes a shift in the long run aggregate supply curve to the left. The following illustrations show a graphical representation of increase and decrease of labor.

Increase of Labor

Price Level LRAS1 LRAS2

Output

An increase in labor leads to an increase in output, which forces the long run aggregate supply curve to shift from LRAS1 to LRAS2.

Decrease in Labor

A decrease in labor leads to a reduction in the volume of output, which shifts the long run aggregate supply from L1 to L2 as follows;

Price Level L2 L1

Output

Capital

An increase in capital stock in an economy increases productivity, and thus the volume of commodities and services supplied. As a result of the increase in the volume of output, the long run aggregate supply curve shifts to the right. On the other hand, a decrease in the capital stock, in an economy, leads to a reduction in productivity that causes a reduction in the volume of output. The reduction in output makes the long run aggregate supply curve to shift to the left. A graphical representation of the effect of capital is as depicted in the following illustrations.

Increase in Capital

As a result of an increase in capital, output increases leading to a shift in the long run aggregate supply curve from LRAS1 to LRAS2 as illustrated.

Price Level LRAS1 LRAS2

Output

Decrease in Capital

A decrease in capital causes a reduction in productivity, which implies that there is a decrease in output. The decrease in output makes the long run aggregate supply curve from LRAS1 to LRAS2 as shown.

Price Level LRAS2 LRAS1

Output

Natural Resources

The production of an economy usually depends on the available natural resources, which include minerals, weather and land. Discovery of new minerals shifts the long run aggregate supply curve to the right as a result of increase in output. Besides, a change in weather that favors farming practices increases output leading to a shift in the long run aggregate supply curve to the right. The following is a graphical representation of the effect of a new discovery of a vital natural resource.

Price Level LRAS1 LRAS2

Output

The discovery of a new vital resource in an economy increases productivity, which leads to an increase in the volume of output. An increase in output makes the long run aggregate supply curve shift from LRAS1 to LRAS2.

Technological Knowledge

Growth in technology is positively related to increase in production. For instance, the invention of the computer has aided in increasing the output. Therefore, the adoption of emerging technologies will lead to increased output, which shift the long run aggregate supply curve to the right. The following graphical illustration is a representation of the effect of technology on the long run aggregate supply curve; the long run aggregate supply curve shifts from LRAS1 to LRAS2.

Price Level LRAS1 LRAS2

Output

Macroeconomic Equilibrium in the Short Run and Long Run

An unanticipated decrease in aggregate demand, in the short run, will cause an excess supply of resources that will cause a decline in the price of resources. Unemployment is likely to increase as prices go down and output will decline. Over a long period, lower resource costs will lead to shifting of the aggregate supply to the right (Stonecash, 2011). The economy will produce a level of output consistent with the full employment, but at lower price levels. On the other hand, an unanticipated increase in the aggregate demand, in the short run, will lead to a level of output, which is greater than a level consistent with the full employment. This is because the price levels tend to be different from the levels anticipated by providers of resources. In this case, the unemployment will be less than the natural rate. Besides, there will be an upward pressure on interest rates and price of resources, which will lead to a decrease in the aggregate demand in the long run. Providers of resources are likely to make adjustments to new price levels and output will decline to match a level consistent with the full employment. A fresh market equilibrium will become established at a higher price level. Hence, in the long run, higher prices (inflation) will become the chief effect of the increase in the aggregate demand.

A decrease in the short run aggregate supply, in the short run, will decrease the availability of resources. This will cause an increase in the price of resources, which will lead to the shifting of the aggregate supply curve of commodities and services to the left. A decreased output level will be produced at soaring prices. In case the cause of the decrease in short run aggregate supply is temporal, then there will be no changes in output or prices in the long run (Stonecash, 2011). However, if the cause is more vital, then the long run supply curve is likely to shift to the left. In such a case, the economy will produce few commodities and services at higher prices. In the short run, an increase in the aggregate supply will lead to shifting to the right of the short run aggregate supply. Income and output will expand beyond a level consistent with the full employment at lower price levels. In case what produced an increase in aggregate supply is temporal, the short run aggregate supply curve will return to the normal levels while the output and prices will remain as before. In case what caused the change is permanent, both the long run aggregate supply curve and the short run aggregate supply curve will shift to the right. There will also be a greater volume of output at lower prices (Stonecash, 2011). Therefore, a decrease in the aggregate demand, in the short run, causes a recession while it causes a decrease in the price level, in the long run.

Conclusion

The short run aggregate supply curve shows the volume of output, which an economy is capable of producing in the short term at various price levels. The curve is upward sloping because input prices correct at a slower rate than that of the final goods; this leads to a higher profit, which makes firms to increase output. Besides, the short run aggregate supply curve is upward sloping because some firms tend to adjust prices at a slower rate than others. The long run aggregate supply curve shows a relation of output at specific price levels. This curve is vertical in nature since the prices have already adjusted. While price level has an effect on the short run aggregate supply curve, prices have no effect on the long run aggregate supply curve. Therefore, a shift in the long run is caused by other variables other than the price, which include, technology, capital stock, labor, and new discoveries of vital natural resources.

References

Stonecash, R. E. (2011). Principles of macroeconomics. South Melbourne, Vic: Cengage Learning.

Mankiw, N. G., & Taylor, M. P. (2006). Economics. London: Thomson.

Mankiw, N. G. (2008). Essentials of economics. Mason, OH: South-Western Cengage Learning.

EVALUATING THE PROTECTION OF CHILDREN IN CONFLICT WITH THE LAW A KENYAN CASE

CHAPTER ONE

EVALUATING THE PROTECTION OF CHILDREN IN CONFLICT WITH THE LAW: A KENYAN CASE

ABSTRACT.

This research paper centers on protecting and upholding the fundamental rights and freedoms of children who have been deprived of their liberty.The purpose of recognizing and protecting human rights and fundamental freedoms is actually to preserve the dignity of individuals, as it is clear that human rights and fundamental freedoms as provided for in the constitution of Kenya 2010 belong to each individual and are not granted by the state. It is the responsibility of every government to protect the rights of its citizens. However, children in conflict with the law are more susceptible to violations of their rights while in detention, either in police cells, prisons or authorized detention centers they mostly suffer from acts of state representatives especially when subjecting children to physical, psychological or other examinations for the purposes of gathering evidence, some of this assessment processes are highly demeaning and invasive forms of secondary systemic abuse. This violations often occur behind closed doors and thus difficult to notice despite the constitutional and the human rights law guaranteeing their rights.

The research therefore seeks to examine what rights do children in conflict with the law have under international law generally and also within the regional human rights law. It will also seek to find out whether these international human rights instruments are given effect domestically and if yes, it will go ahead to answer the question how? Of interest too will be to establish if there are challenges in realizing these rights and how our municipal laws have tried to grapple with the issue of protecting the rights of children in conflict with the law. Most importantly, I will also wish to suggest alternative ways of dealing with this group of children apart from the normal juvenile justice system which has proved to be traumatizing. These are the main issues I wish to tackle with a view of making recommendations for better protection of the rights of this group of children.

1.1 GENERAL INTRODUCTION

The paper seeks to address the problem of abuse of the rights of children in conflict with the law; historically children have had few constitutional rights of their own when pitted against the state or their parents because both of the latter are presumed to be more capable of deciding what is in the child’s best interest. From the constitutional concept of power donation to the state we deduce that it is the responsibility of every government to protect the fundamental rights and freedoms of its citizenry.The purpose of recognizing and protecting human rights and fundamental freedom is to preserve the dignity of individuals and communities, promote social justice and the realization of the potential of all human beings. Article 19(3)(a) of the supreme law of Kenya 2010 is an all inclusive article as far as human rights and fundamental freedoms are concerned. It seeks to cover every individual with the umbrella of rights and fundamental freedoms complying and having a direct link with article 27 (4) of the same document providing that the state shall not discriminate directly or indirectly against any person on any ground, including race, sex, pregnancy, marital status, health status, ethnic or social origin, colour, age, disability, religion, conscience, belief, culture, duress, language or birth. Furthermore, the government is under an obligation to see to it that the rule of law and justice prevails at all times, it is of essence and of great significance to note that children are the greatest resource of a country and thus need protection. Article 53 (1) d of the constitution adds its voice on this school of thought bringing out its importance. However, there are the unwanted children of the system when in conflict with the law they are more often than not direct victims of abuse by officials in the criminal justice system as well as the inmates, but more broadly they are neglected due to government failure to provide protection for them despite the fact that there are clear international standards setting out how they should be treated. These violations always happen (behind) closed doors and society being primarily concerned with keeping offenders locked up rather than about their conditions and human rights being respected, the cries of these children to be treated with dignity and worth go unnoticed. It is now clear that the officers in the juvenile trial system are failing to use the knowledge available to them in properly dealing with the children in conflict with the law and as a result, the fundamental human rights are contravened.

Furthermore, the paper seeks to explore ways and avenues on how possibly it can be ensured that children rights as human beings are not abused merely because they are in the class of the vulnerable. Every person has got inherent dignity and carries with him the right to get it respected and protected. It will also suggest possible reforms to the law regime to ensure its consistency with both regional and international human rights instruments to which Kenya is a signatory as well as the new constitution of Kenya 2010 .There is a need to review Kenyan laws dealing with children and specifically come up with detailed provisions that seek to address the issue of children in conflict with the law and how to help them when they find themselves on the wrong ends of the law. This is in an attempt to put them in line with the requirements of the new constitution of Kenya 2010 especially to safeguard against possible human rights violations. Chapter four of the constitution of Kenya 2010 provides for the bill of rights that should be enjoyed by all persons without discrimination. Going by the provisions of Article 21(1), it is obligatory for the state and every state organ to observe, respect, protect, promote and fulfill the rights and fundamental freedoms in the Bill of Rights. Under article 21(4), the state has the duty to enact and implement legislation to fulfill its international obligations in respect of human rights and fundamental freedoms. Article 25 of the constitution provides for the fundamental rights and freedoms that may not be limited, of interest is the freedom from inhuman or degrading treatment or punishment.

Historically, children charged with crimes in Kenya were treated in the same way as adult offenders it was a common thing for children to be arrested and detained in prison for long periods of time waiting for trials. Kenya is a signatory to the international convention that seeks to protect the rights of children, however, the situation for children in conflict with the law, especially those in detention centres has not changed a lot for the better. They continue to suffer from cruel inhuman and degrading treatment and punishment at times due to the high incidence of police brutality and inadequate statute or procedure dealing with children charged with offences. However, a lot of effort is being made by the government by trying to foster the reform of the juvenile justice system and protecting both the rights of these children on one hand and that of the public on the other hand, to ensure compliance with both the constitutional and international obligations.

1.2 BACKGROUND TO THE STUDY

Historically, children have had few constitutional rights of their own when pitted against the state or their parents because both of the later are presumed to be more capable of deciding what is in the child’s best interest. A closer study of the repealed constitution of Kenya reveals that it lacked specific provisions relating to the protection of children in all spheres. Similarly, the new constitution has just an article which addresses the plight of children, generally, and those in conflict with the law. Not long ago children charged with crimes in Kenya were treated in the same manner and way as adult offenders. It was common for children to be arrested and detained in prison for long periods of time awaiting trial. In terms of statute, it is very evident that we have had legislations in the area of child protection; for instance, the Guardianship of Infants Act, the Adoption Act, the Children and Young Persons Act and most recently, the Children Act which has repealed all the above statutes. None of these legislations deals solely with the issue of protection of children in conflict with the law.

The Children Act brings together in one law all requirements of guardianship, fostering and adoption, custody and maintenance, care and protection, the role of parents and the government in promoting and protecting the rights of the child and juvenile justice.The act is a great improvement in the promotion and protection of the rights of the child. However, there are still several issues that it has not solved inter-alia corporal punishment and the minimum age for criminal responsibility.

As regards international human rights law, Kenya is party to the international and regional instruments protecting the rights of children including those in conflict with the law; for instance, the Convention on the Rights of a Child and the ACRWC.However, the situation for children in conflict with the law especially those in detention has not changed a lot for the better. They continue to suffer from cruel, inhumane and degrading treatment and punishment sometimes due to high incidence of police brutality and inadequate legislation to ensure their protection.

It is for this historical as well as the developments in this area that Kenya is chosen as a comparison to assess the level of compliance with international obligation as a country in democratic transition.

1.3 STATEMENT OF THE RESEARCH PROBLEM

It is the aspiration of all Kenyans for a government based on the essential values with an emphasis on human rights, equality, freedom, democracy, social justice and the rule of law. It thus goes without saying that the government has got an obligation to protect the national values as listed under article 10(2) b of the constitution. Of interest being the human rights and fundamental freedoms and to ensure that at all time the rule of law and justice prevails. However, bearing in mind that children are in the class of the vulnerable they are more susceptible to abuses and violations of their fundamental rights. They are mostly discriminated against on the basis of their genderand they face inhumane treatment from the agents of the state as well as the inmates. It becomes almost impossible to detect such contravention of their rights as they occur indoors. To add insult to the injury our legal framework focuses very much on locking up offenders rather than about their rights being protected and respected. Thus the cries of these children to be treated with dignity and worth goes unnoticed despite the international and constitutional obligations which requires them to be protected from abuse, neglect, harmful cultural practices, all forms of violence, inhuman treatment and punishment, and hazardous or exploitative labour. Article 53(1)f requires that children should not be detained except in circumstances where it’s the only option and even when detention is effected, it should be for the shortest appropriate period of time and separate from adults and in conditions that take into account the child’s sex and age.

The issue or rather the problem is first to examine what rights do children in conflict with the law have under international law, the municipal laws, and the African human rights system with special emphasis on the rights of children deprived of their liberty. Secondly, to suggest other options that are available in dealing with children in conflict with the law apart from the normal detention and the usual juvenile trial system, which is sometimes very intimidating and traumatizing to the children involved. Thirdly and lastly, to examine how these international instruments are granted effect domestically and whether there are challenges encountered in realizing these rights. These are the main issues that this work wishes to deal with using Kenya as a reference point with a view of doing recommendations for better protection of the rights of this particular group of children.

1.4 RESEARCH QUESTIONS

The study seeks to answer the following questions;

What rights do children in conflict with the law have under international law, generally, and also within the regional human rights law?

How are these international human rights instruments given effect domestically?

What are the challenges that we face in realizing these rights?

How do our municipal laws address the issue of protection of children in conflict with the law? Are they adequate?

What is the level of compliance with the international law standards as set out by the convention on the rights of a child (CRC) and the African charter on the rights and welfare of the child (ACRWC)?

1.5 HYPOTHESIS.

The research presumes that there have been efforts in Kenya to enact laws to realize the protection of rights of children in conflict with the law in line with our international obligations but they are not adequate

Where the law exists, the mechanisms for protection are not effective

Due to the inadequacies in the laws and the system generally, the rights of children in conflict with the law are overlooked with a touch of impunity.

1.6 RESEARCH OBJECTIVES

The objective of the research is to analyze the laws put in place in Kenya aiming at protection of children in conflict with the law in accordance with their international obligations secondly it wishes to look into the challenges of addressing the issue at hand, and as a way of recommendations and conclusion suggest ways to better protect the rights of these class of children.

1.7 RESEARCH METHODOLOGY

For viable conclusions and recommendations, the following methods will be employed to carry out the research. There will be secondary methods like data analysis of documented reports and discussion papers by various local and international commissions as well as human right scholars. There also will be a review of authoritative decisions in these areas both in Kenya and in other jurisdictions.

The sources relied upon will be both primary and secondary. These will include relevant statutes, human rights textbooks, instruments on human rights and publications, case law(both Kenyan and foreign where applicable) and internet sources.

1.8 CHAPTER BREAKDOWN

I wish to have four substantive chapters for this research considering the time set by the university exam body for this particular research paper. The first chapter is basically an introduction. The chapter tries to give the basis and structure of the research which includes a general overview of the problem in Kenya.

The second chapter will seek to compare the rights of children deprived of their liberty as provided for in the municipal laws vis a vis the minimum standards set out in the CRC and the ACRWC. It will subsequently discuss the following issues; the application of international law in Kenya, the role of the courts in children proceedings, the constitutional protection of the rights of children in conflict with the law, state`s obligation and enforcement mechanisms in Kenya, other statutes that seek to protect the rights of children in conflict with the law, other methods available in dealing with children in conflict with the law other than the normal juvenile trial system and detention which is sometimes very traumatizing and intimidating. Definition of a child,minimum age of criminal responsibility, detention as a last resort, best interest of a child, role and responsibility of parents, special criminal procedures, challenges of implementing the laws, separate laws or statutes for children in conflict with the law, the sentencing provisions, lack of adequate facilities for children and lack of adequate trained personnel to deal with children in conflict with the law, resource allocation , poor coordination and implementation mechanisms.

The third chapter intends to explore the relevant international and African normative framework that protects the rights of children in conflict with the law and the obligations of states towards those children. However, the main focus will be the Convention on the Rights of the Child (CRC) and the African Charter on the Rights and Welfare of the Child (ACRWC).

The fourth chapter will conclude and make recommendations on how best to implement the laws and who should be the role players in ensuring that the rights of these children are well protected.

CHAPTER TWO

PROTECTION OF CHILDREN IN CONFLICT WITH THE LAW IN KENYA

2.1 The application and status of international law in Kenya

The relationship between international law and the Kenyan domestic law is provided for in articles 2(5) and 2(6) of the new constitution of Kenya 2010,Article 2(6) is rather conditional it expressly provides that any treaty or convention ratified by Kenya shall form part of the law of Kenya under the constitution .In simple terms, article 2(6) seeks to explain that international agreements can only be binding to the state after they have been approved by the national assembly and have been acceded to, in other words after ratification , we presume that the international instrument has been enacted (domesticated) into municipal law.

General rules which may have acquired the force of law include the principles of sovereign equality of states; territorial integrity; customary international law; puncta sun savanda Kenya is a party to a number of treaties, also qualifying as valid norms in the newly structured legal system.

The new constitution envisages these provisions as regards the application of international law in Kenya, however, what remains unclear is whether the new constitution provides for a dualist or monist dispensation, for most of common wealth Africa the concept of dualism thrives, under dualism treaties are not counted as part of municipal law until transformation or incorporation has occurred as illustrated by article 2(6), article 2(5) On the contrary is a general provision with no restrictions at all. The contradiction between the two articles 2(5) and 2(6) is what forms the basis of the unclarity that exists on the question of whether the Kenyan constitution provides for a monist or dualist dispensation.

The original rule for the principle of (dualism) was laid down in the case of Okunda v Republic (1970) EA 512. In this case, the high court limited the sources of law in the country to those listed in the judicature act,a similar decision was arrived at in the case of Pattni & Another v Republic (2001) EKLR 262, In this case, the court held that these instruments much as they could be of persuasive value, were not binding in Kenya save for where they could be incorporated into the constitution or other written laws, in reaching the decision the court made reference to the International covenant on civil and political rights(CCPR),the universal declaration of human rights(UDHR) and the African charter on human and people’s rights(African Charter)

M Kiwinda Mbondenyi and J Osogo Ambani in their book` The new constitutional law of Kenya –principles, governance and human rights’ do note that three verifying questions have been suggested to test the extent to which international human rights norms have been domesticated in African states; first whether international human rights norms are part of domestic law; second, where such norms feature in the hierarchy of the municipal national legal order, in case they are applicable and third, whether domestic courts apply them in their decisions, the two cases discussed above do suggest that before the new constitutional dispensation international instruments did not form part of Kenya’s legal order. Norms enacted outside Kenya first had to go through either the process of incorporation or transformation to have legal effect municipally. This could be illustrated by the transformation of the convention on the rights of the child (CRC) and the African charter on the rights and welfare of the child into Kenyan law In this regard, the Children Act is:

An Act of parliament to give effect to the principles of the convention on the rights of the child and the African charter on the rights and welfare of the child and for connected purpose

As much as evidence in form of case law in Kenya suggests that international law generally did not have legal influence, the Kenyan courts could not help it, but to refer to them in some selected cases for instance the court of appeal in Mary Rono v Jane Rono stated that` international law could be referred to even in the absence of an implementing legislation provided there arises no conflict with any other existing state law’ in another decision with a similar holding Re The Estate of Lerionka Ole Ntutu (Deceased) Justice Rawal took the trouble of explaining that the decision arrived at by his brother Justice Waki in Rono v Rono was inevitable owing to principle 7 of the Bangalore principles on the domestic application of international human rights Norms, in the same breath Nyamu and Ibrahim JJ in RM v AG stated that international law could be applied where there was no conflict with national laws.

The new constitutional dispensation tends to tilt the balance from the dualist nature to the monist one, however, it does not define the place of international law within the hierarchy of norms that constitute the legal system but only expresses the supremacy of the constitution above all other laws in article 2(1) and 2(4) these means that the laws are harmonised, the theory of harmonization hence provides the best theoretical and practical explanation for the application of international law in Kenya.

As a concluding remark in this discussion the harmonization theory is an upgrade of the monist theory where we assume that international law is part of national law and ipso facto does not require transformation or incorporation for utilization in the domestic courts the theory is careful to clarify that neither international law nor municipal law has clear cut supremacy over the other this is where we are as a state, owing to the new constitution’s article 2(5) and 2(6).As discussed above before the enactment of the 2010 constitution, international law was applied restrictively,but with the new constitution in place we now have created an avenue to apply it without restrictions since international law now forms part of the national law by dint of articles 2(5) and 2(6), with the free application of international law in Kenya, we can now be able to make good use of the convention on the rights of a child(CRC) and the African charter on the rights and welfare of a child (ACRWC) in protecting children in conflict with the law.

It is therefore submitted that pursuant to article 2(5) and 2(6) of the Kenyan constitution, provisions of the CRC and the ACRWC can be relied on by the courts when interpreting the bill of rights therefore, where constitutional rights of children deprived of their liberty are violated, the courts can seek guidance from these international instruments to interpret those rights.

Therefore the CRC and the ACRWC binds Kenya, including other binding and non binding international law. Similarly when interpreting statutory legislation affecting rights of children deprived of their liberty, the courts must adopt interpretations that are consistent with the CRC, ACRWC and other relevant instruments.

The place of international law in the hierarchy of valid norms under the 2010 Constitution; the question of which takes precedence in case of a conflict

This part of the research has the modest object of addressing the issue of which law ought to take precedence when there is a conflict between the provisions of international law and municipal law, the theoretical issue is normally presented as a clash between dualism(or pluralism) and monism. Both these schools of thought assume that there is a common field in which the international and municipal legal orders can operate simultaneously in regard to the same subject-matter, and the problem then is, who is to be master?

The general rule as regards this issue is that international obligations not incorporated into municipal law have no legal force, in the case of Okunda v Republic a superior court of record held that international law is not a source of law in Kenya, which position is still being upheld by courts of law, as demonstrated in a fairly recent jurisprudence, Pattni & Another v Republic where the high court again established that international norms, much as they could be of persuasive value are not binding in Kenya save for where they are incorporated into the constitution or other written laws.

Consequently international law may not have been invoked directly before courts of law as they have yet to be transformed into internal laws or administrative regulation to have a binding effect. At best what the courts do is to make reference to these international instruments and standards,in Amanya Wafula, Ndungi Githuku & Another v Republicone of the few cases where the courts of law have made reference to the African Charter on Human and Peoples’ Rights (African Charter) and the International Covenant on Civil and Political Rights (ICCPR), the judicial tribunal still gave credence to the claw back clause in section 80 of the repealed Constitution which requires domestication of international human rights instruments and standards before their municipal application, similarly in referring to international law the court in Rono v Rono stated that international law would apply as long as there arose no conflict with domestic laws, a similar decision was rendered in Re Lerionka ole Ntutu where Rawal j stated that international law could be applied where it does not conflict with national laws.

In Re the matter of Ziporrah Wambui Mathara a bankruptcy cause no 19 of 2010 Koome J, stated that all international instruments ratified in Kenya are part of our municipal laws vide Article 2(6) of the Constitution on the other side of the coin the court was explaining that all other international instruments not ratified in Kenya are not part of our municipal laws thus cannot be applied, and for that reason the court found it to be proper and in order to apply Article 11 of the international convention of civil and political rights, similarly justice Nicholas Ombijo in the case of the international commission of jurists Kenya chapter v the Attorney General and another stated that since the Rome statute had been ratified by Kenya it was obvious that it now formed part of the Kenyan law vide Article 2(6) of the constitution and for that reason Kenya had an obligation to perform its international obligations under the said Rome statute which includes arresting the sitting president of the republic of Sudan Mohammed Al Bashir against whom arrest warrants had been issued by the international criminal court(ICC) in case he steps foot on Kenyan soil.

To that extent, I can then comfortably argue that the application of international law in Kenya does depend on the aspect of ratification, any international instrument not ratified by Kenya is just a persuasive kind of legislation and courts are not bound to apply it as it was held in Okunda v Republic (1970)EA 512. Ratification of international law Makes the international instrument to acquire domestic law status and thus can be applied by the Kenyan courts comfortably, in case of a conflict between the municipal law and the international law, the court will have to consider several factors in identifying the law which has to apply, among the factors to consider is, one whether the international instrument has been ratified in Kenya, a factor which has been considered intensively in all the case law discussed above, and secondly if the international instrument protects the human rights of any of the concerned party to an extent of which overlooking the international instrument will cause a breach of that parties rights as it was held in Wambui mathara’s case.

It is therefore submitted that for any international instrument to apply in Kenya ratification of that instrument into Kenyan law is a must, the implication of this particular condition or rather requirement is that municipal laws are superior to international laws and for us to apply them freely the way we do apply municipal laws then it is imperative that we domesticate the international instrument for it to be on the same standards with the municipal laws

It therefore means that in case of a conflict between municipal laws and international laws then municipal laws would take pre-eminence or rather will be master over the international law if it is not domesticated in Kenya, and even if it is acceded to it can only be used as reference but the general rule is that Kenyan courts are not bound to apply international laws we put more emphasis on our municipal laws than the international law.

2.2 The protection of the rights in the Kenyan constitution

Constitutions in most cases will be judged on how effectively they secure fundamental human rights and liberties inter-alia the rights of children in conflict with the law. So crucial are the human rights that in Kenya’s context the problems of the bill of rights in the repealed constitution was a prominent reason why the people opted for a constitutional review in the first place, the chapter on the bill of rights was replete with limitations littered with `claw-back’ clauses that often defeated the whole essence of having the chapter on the bill of rights.

As regards the protection of children in conflict with the law, chapter five of the repealed constitution did not expressly encompass other fairly important genres of rights inter-alia children rights, and rights of persons with disabilities, social economic rights were conspicuously absent .However, the bill of rights under the 2010 constitution is envisioned to have an all round applicationencompassing all the genres of rights Including the rights childrengenerally and those in conflict with the law, persons with disabilities, youth, marginalized groups and older members of the society.

The rights of children under the 2010 constitution of Kenya can be divided into two major groups namely the general and specific rights , Article 53 deals specifically with the rights of children including those deprived of their liberty. The article can be said to be reflecting the whole essence of the CRC. It also states that the best interest of the child are of paramount importance in every matter concerning the child, this echoes one of the most important principles of the CRC and the ACRWC which must be the guiding principle of any decision in respect of children deprived of their liberty .In the Fitzpatrick case it was emphasized that the best interest rule should not be given exhaustive content, the standard should be flexible in order to cater for the needs of specific children circumstances.

The constitution provides that every child has the right to basic nutrition, shelter and health care to be protected from abuse neglect harmful cultural practices all forms of violence, inhuman treatment and punishment and hazardous or exploitative labour. The provision relating to basic nutrition prohibits poor nutrition of children at any period of time including when deprived of their liberty.

The constitution also provides that children in conflict with the law must not be detained except as a me

Evaluating the micro-economic implications of sanctions in Russia

Evaluating the micro-economic implications of sanctions in Russia

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Evaluating the Micro-Economic Implications of Sanctions in Russia

A sanction is an action taken by a country or countries against another country or other countries for political motives (Rourke, 2011). These reasons can be either multilateral or unilateral. There are several different forms of sanctions that can be imposed on the country, which include economic, diplomatic, sport and military sanctions. This paper looks economic sanctions, which include a ban on trade, limitation to sectors such as armaments, and there are exceptions provided on items such as medicine and food. This paper will delve into the micro-economic consequences of sanctions on Russia.

In the world today, many countries have shifted from planned to free market economies. The former economic system in Russia was based on communist ideology, and it has changed over time to the capitalist system of economy. The recent developments in economic sanctions imposed on Russia are considered a significant signal that America and its allies in Europe are acting. However, this is considered a risk even in their economies (Nicholson, 2010). The sanctions are to punish Moscow for instigating the current state of instability in Ukraine and arming the separatists.

According to Armendariz and Morduch (2010), an economic system that uses capitalism is characterized by a free market that does not experience interference from the government. In this case, the prices of goods and services in the market are guided by demand and supply to achieving equilibrium. Most economists prefer a free market because of the several benefits that is attached to such market such as there is free entry and exit of organizations that want to operate in such a market. In addition, some barriers such as trade tariffs are not present, therefore encouraging exports and import of goods, which in turn boosts the economy of the country.

However, Armendariz and Morduch (2010) argue that the change from one economy to another is very complex and most economies would get help from the government in order implement the changes. In the case of Russia, the transition to a free market economy from a planned economy began at the time when the Soviet Union had collapsed in the early 1991. During this time, most industries were privatized in order to make them more productive. With the change to a free market system in Russia, the sanctions have had various implications to the economy (Columbus, 2013).

The first implication is on trade barriers, which affects the trade between Russia with international communities. The sanctions have led to an economic slump of 3% compared to the previous years. The United States and its closest European allies have imposed sanctions on Russia and it is now having trouble trading with its neighbouring countries and the international community. This has affected its growth domestic product, which has dropped from the previous years, bringing the economy to a standstill. No growth has been registered in the economy as a result of the sanctions. The sanctions that have been established by the international community have restricted imports of goods into Russia and some businesses have been driven out of the market. For example, some sanctions include import quotas, which block the importation of goods. The quotas include subsidies, total ban, tariffs, and import duties (Rourke, 2011).

The next implication of micro-economic sanctions in Russia is that the quotas restrict particular type of goods from entering the Russia, which might result to dumping. As a precaution to this menace, the government can implement anti-dumping tariffs in order to prevent the market from unworthy goods. That is because the government would be working to fight cheap imported goods than those that have been manufactured locally. In addition, import quotas play a crucial role protecting the new and upcoming industries in Russia since imported goods and products are usually of high value and can sometimes be a threat to new and developing industries in the country.

Economic sanctions affect social variables, such as income distribution, poverty and -public health. The income distribution is one way through which the country’s economy can record a growth in GDP. However, with the sanctions in Russia, the country’s income distribution is greatly affected and the poor are continuing to suffer more as the rich grow. The gap between the rich and the poor is expanding by the day, which makes it hard for the nation’s GDP to grow. Income distribution is one factor that contributes to an increase in poverty levels in a country. Russia’s poverty index has been on the rise as a result of the imposed sanctions in the country. Most people have been rendered jobless because of the cut down on employees, which end up increasing the rate of poverty in the country. The two social factors affect the health care sector. When a country‘s development drops, the health care system is affected negatively. Since most people are below the poverty line, it affects their ability to access better health care.

Amongst the affected sectors by the sanctions in Russia is the banking and finance sector. The sanctions have dealt a big blow to the banking industry in Russia, where VTB bank was the most affected. VTB bank is the nation’s gateway for international investments in the banking business. The bank was set up in the in the wake of the 2008 financial crisis after the exit of the Western investment bank of the country. The sanctions make it hard for the VTB bank to operate in the international markets since countries or organizations are willing to do businesses with the bank. These sanctions are used to push Russia into economic hardship and to make change its position about the Ukrainian civil unrest. The sanction has created a 1.1% slump in the growth rate of the banking sector while the value of the Russian Rubble has depreciated steadily against the US Dollar, thus affecting Russian companies that pay their debt with the dollar as the main currency. According to forecasts by the Central Bank of Russia, it was revealed that the performance of the banking sector would be slow for at least 6 months before it stabilizes after the sanctions are withdrawn. This is a long duration that will affect the performance of the overall economy of the country (Columbus, 2013).

The economic sanctions have a great implication on entrepreneurship, business, and Small and Medium Entrepreneurships in the country. Doing business in Russia has become very difficult and most investors are shifting base and moving to other nations. Entrepreneurs are failing to invest in the country as they are afraid of what could happen to their investments in case the economic sanctions continue. The sanctions have created a very negative investment environment that has left the country relying on local entrepreneurs. Small and Medium Entrepreneurships are also affected by the imposed sanctions and business is not as usual.

The economic sanctions affect the whole population in a very diverse manner. For instance, a great number of people will lose their jobs. The unemployment rate will rise drastically as most companies would retrench their members in order cut down the cost of labour. Since the companies are already hit by the dollar rate when making their payments and it is for that reason that the companies are trying to cut down on the wage pay given to the workers. The amount saved is used to run the companies so that they do not become bankrupt.

Unemployment is one of the main causes of insecurity in most countries and this is what has affected the Russia economy. Crime rate has increased since the sanctions were imposed. The exchange between input and output leads to a natural interest rate. Because the interest rates are natural, it is easier for different stakeholders to operate in openness and trust. To attain macro-economic stability, the prices of commodities must be stable. Employment opportunities must be available and growth must be rapid. However, experts agree that monetary policy has the capacity to “produce real effects on output and employment only if some prices are rigid.” The economy runs on a multiplier effect that incorporates many monetary outputs and inputs (Columbus, 2013).

The pulp and paper production is a great part of the economy of Russia. The country’s capacity to produce and manufacture paper products is considered one of the key pillars of the economy. However, with the sanctions that have been imposed on the country, the paper industry is collapsing and the country’s GDP is falling steadily. Bardhan and Udry (2013) ascertain that America ought to intervene in the crisis that Russia has put itself in order to salvage the production of consumable products. The main aim in doing this is to ensure that Russia learns a lesson and it promotes democracy and transforms into a world economy.

There are negative impacts of sanctions on companies and organizations. Russian companies and organizations have not been left behind. These parties have been affected by the inflation and interest rates that have been increasing since the slapping of sanctions on Russia. Inflation affects the performance of businesses as a budget is made at the beginning of a financial year. In fact, companies end up spending more than they had planned due to inflation (Rourke, 2011). The increased interest rates also affect the performance of these companies and organizations. As a result, the overall performance is also affected as well as the country’s economy.

Despite the sanctions imposed by the international community, Russia is still on the verge of getting the country back on track. In the past years, the Russian economy has undergone an economic transformation, which led to a significant growth in its GDP, especially in 2009. In order to maintain this growth, Russia is trying to play an important role to ensure that the industries are developed. This is because these industries act as the backbone of the country, especially in terms of employment opportunities and without them the economic performance will be affected (Nicholson, 2010). The government has also tried its best to attract foreign direct investment (FDI) into the country, especially in the oil and gas sector, which is the industry that is considered to provide the largest exports in Russia.

In the move to improve the economy, Russia has introduced trade barriers that are aimed at safeguarding the economy and promoting development and growth of different sectors within the country. These measures are aimed at improving the role the country plays in the world economy. This improvement of the economy is hoped to have an impact on alleviating poverty. Poverty mitigation is among the key factors that Russia has considered in the new economic plan it has drawn for its development (Bardhan and Udry, 2013). When poverty is eradicated, there would be affordable products in the market and the production levels would also increase, which will ultimately have a positive effect on the country’s GDP.

In conclusion, with the imposition of economic sanctions on Russia, there are certain factors that are affected in the country that are essential to run a progressing nation, including international partners, investors, and trade barriers among others. However, the government of Russian needs to put in places a central governing bank for it to gain independence and stability in the financial sector, which is one of the most important sectors in a country. In addition, the government should be cautious when implementing its foreign relations policy vis-à-vis its economic policies in order to avoid situations that would attract economic sanctions from the international community.

References

Armendariz, B., & Morduch, J. (2010). The economics of microfinance. Cambridge, Mass, MIT Press.

Rourke, J. T. (2011). International politics on the world stage: John T. Rourke. Guilford, McGraw-Hill/Dushkin.

Columbus, F. H. (2003). Russia in transition: The Economic Challengees. New York, Nova Science Pub.

Nicholson, W. (2010). Intermediate microeconomics and its application. (New Edition). Fort Worth, Tex, Dryden.

Bardhan, P., & Udry, C. (2013). Micro-theory. The Concept of Economics and Sanctions. Cambridge, Mass. [u.a.], MIT Press.