The end of WW II has witnessed rapid population growth in the developing world – over-breeding the population in the developed countries – thanks to improved conditions including better nutrition, hygiene and healthcare. However, rapid population growth raised the fear that these Third World countries would soon face food shortages, famines and instability because population was growing faster than food production and development in general. Land shortage would constrain shifting cultivation and contribute to reduced soil fertility which together with inadequate rainfall would reduce food production further.
The end-of-year (2008) stories have removed any lingering doubt about the depth and extent of poverty in Uganda. Reports in Weekly Observer January 14, 2009 regarding an increase in child sacrifice have underscored absolute poverty as the single most important factor.
Since 1987 Uganda has pursued a development policy of neo-liberalism with a focus on inflation control through a combination of high interest rates and reduced quantity of money in the economy – a job that the central bank has executed pretty well.
However, high interest rates have made it very difficult for small and medium-scale enterprises to borrow and invest in labor-intensive enterprises.