•  Kenyans living abroad remit money home to support consumption, and for investment purposes. Early indications show that Remittances may decline as disposable incomes decline in the countries experiencing the global recession. •  Tourism could be affected as tourists postpone or cancel visits abroad on account of difficult economic conditions and uncertain duration of the economic recession.
The Fund would concede on hindsight that: (i)  it lacked sufficient appreciation of the workings of international capital markets and as such underestimated the speed with which funds would flow in and out of open capital markets;  (ii)  with its excessive focus on fiscal policy, it paid inadequate attention to the importance of the soundness of financial systems and the propensity that these had for spreading crises;  (iii)  it showed excessive zeal in encouraging countries to open up to short term foreign capital, without recognizing that the volatility of these flows could have devastating economic effects;  (iv)  it could have put more emphasis on poverty alleviation and the need for social safety nets in periods of adjustment; and  (v)  it needed to improve its understanding of institutions and political dynamics in member countries.