Is Uganda’s new development plan dead on arrival?
Before we examine the emerging fear that Uganda’s new development plan may be dead on arrival, let us outline the background to, and major players in the death on arrival of NRM’s mixed economy ten-point program launched in 1986.
The serious development challenges of the 1970s marked by slow economic growth, rising inflation, unemployment and external debts undermined the Keynesian economic model based on state demand management with a focus on full employment and welfare benefits. The model was replaced by the neo-liberal economic model with inflation control as its principal goal. (It was feared that inflation rather than unemployment constituted a more serious challenge to governments).
The 1980s witnessed elections of conservative governments in developed countries including in the United States and United Kingdom. The leaders in USA and UK believed that governments were the problem and not the solution to development challenges. Consequently, they favored a return to the invisible hand of market forces and laissez faire capitalism. There was no room for mixed economy models because they contained elements of socialism and central planning.