Tag Archives: impact

Background to and impact of structural adjustment programs

This article has been written in response to popular demand. The mid-1970s marked the end of the global economic golden age since the end of World War II which was dominated by state intervention primarily to reduce unemployment and maintain a reasonable level of inflation. The government raised enough revenue to cover welfare expenses.

From the mid-1970s the global economy experienced slow growth, high unemployment and rising inflation (stagflation). The oil crises of 1973/4 and 1979 made matters worse leading to a recession in the early 1980s. Instead of applying fiscal and monetary policies such as raising taxes or cutting expenditure which are politically sensitive, governments resorted to borrowing made easy by abundant petro-dollars at low but flexible interest rates or simply printed more money causing high inflation and external debts.

By early 1980s many countries had accumulated so much debt that they could not service. Private lenders pulled back and demanded repayment of the debts. In order to control inflation, interest rates were raised making it even more difficult to borrow on the international markets. Third World countries resorted to borrowing from the International Monetary Fund (IMF) and the World Bank to repay the debts. IMF and the Bank would provide assistance with conditions attached designed to address domestic economic distortions considered to be the main cause of the problem.

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The impact of ideological conflicts on Uganda’s stunted development

Discussions of Uganda’s slow development have centered on challenges like rapid population growth, hostile ecological environment and poor governance. While these have had an impact, attention needs also to be directed at ideological conflicts as well. These ideological conflicts have diverted development resources – time, financial and human – to non-developmental activities or led to failure to utilize fully Uganda’s human talent.

Conflicts between Catholics and Protestants denied Catholics to form an independence government in 1962 because Protestants in the UK and those in Uganda were not prepared to relinquish power the chiefs and their relatives had enjoyed since 1894. Qualified Catholics were either sidelined or under-utilized with all implications in loss of morale or reduced incentive to produce to the optimum level. The situation changed with the NRM government since 1986, putting Catholics ahead of some Protestants and repeating the same ideological problem. Many good Protestants are languishing in the ‘dark’. Anti-sectarian law has ensured that little is said about this problem.

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Is it a crime for Uganda citizens to request background information of their leaders?

     
       
           

Things that citizens of other countries take for granted such as the right to know the background including birth place of their leaders have become taboo in Uganda. Uganda sits at the center of Africa and has acted as a magnet attracting many people particularly from the Horn and Great Lakes regions of Africa. Because of colonial history whose impact is still felt, Uganda has in its midst people from other countries and continents. Demanding to know who they are, how they got into the country, what they are doing and what future plans they have is a normal thing without sectarian content. Simple questions have been turned into a political matter with potential for instability. Refusing to answer these questions will only lead to more suspicions.

People have come into Uganda for different reasons. The Nubians entered what later became Uganda in search of temporary shelter when they were cut off during a rebellion in Sudan in the 19th century. They stayed and were later hired by Frederick Lugard to break colonial resistance with brutal force.

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Impact of refugees on Uganda’s population and political explosion

The job of researchers and reporters is to collect and present facts as background information for policy makers. Right now Uganda is experiencing tremendous demographic and political tremors whose causes need analysis, sorting and appropriate action before the tremors develop into full-blown earthquakes.

It would be naïve and unwise to ignore emerging emotional and controversial debates on the role of refugees and illegal immigrants in Uganda’s politics and demography, hoping time alone will solve them. The case of Cote d’Ivore where natives have had a devastating civil war with foreign-born immigrants for control of the country should serve as a useful lesson for Uganda since Uganda’s economic and political troubles have involved foreigners for about one hundred years.

Since colonial days Uganda has pursued, developed and maintained a liberal labor immigration and refugee policy which has complicated its political economy and demography. The role of refugees, foreign workers and illegal immigrants should not be underestimated in Uganda’s population and political dynamics.

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