Tag Archives: higher

The NRM government succeeded abroad, failed at home

When the National Resistance Movement (NRM) government came to power in 1986, it inherited an empty treasury and many problems that needed vast amount of foreign currency. The export sector and tax base had collapsed. The government tried to raise money through bilateral engagement with western governments to no avail. It was advised to reach an agreement with the International Monetary Fund (IMF) first (New African 1987-88). The IMF and World Bank were looking for another African country to experiment stabilization and structural adjustment programs (SAPS) model which had failed in Ghana. Paul Nugent (2004) observed that “…Ghana quietly dropped off the World Bank/IMF list of high performers, to be replaced by other countries like Uganda”.

The signing of a structural adjustment agreement between the IMF and the government in 1987 was of mutual benefit to both parties. It gave the IMF and World Bank the opportunity to introduce a rapid and comprehensive (shock therapy) form of structural adjustment which included inflation control to single digits, balanced budget, economic liberalization and privatization of public enterprises, export diversification and labor flexibility. Donor funds would be released contingent on adherence to the terms of the agreement.

Read the full post
Posted on by

The President’s address to the nation omitted vital information

President Museveni should be congratulated for observing Article 101 (1) of Uganda’s Constitution that requires the head of state to address Ugandans through Parliament on the state of the nation. I have had the opportunity to read the president’s annual addresses and other policy statements and have made critical comments on them.

To understand fully the state of the nation, one needs to read the president’s address very carefully to find out what was omitted. The president has mustered the art of summarizing selectively macroeconomic developments such as economic growth, per capita income and inflation control without saying much about their impact on the welfare of Ugandans.

On economic growth, the president has generally given figures higher than other reporters raising questions about his source of information. With an economy growing at the reported average of 8.4 per cent over the last five years, one would have expected the president to also report its positive impact on poverty level and jobs created. The diseases of poverty that cannot be hidden anymore have made it difficult to report on the level of poverty which is omitted. It must be stressed that economic growth is not an end in itself but a means to bring about qualitative improvements in the lives of Ugandans. Regarding mobile phones, questions have been raised about their contribution to investment, capital accumulation and improvement in the quality of life of the majority of users.

Read the full post
Posted on by