Uganda needs a new development path for security and prosperity
Ugandans need to take stock of what has gone wrong in the economic area since NRM came to power in 1986 and to decide what development path they need to take since the Washington Consensus (WC) which the NRM government adopted lock, stock and barrel in 1987 has failed to deliver as expected and was abandoned in 2009. No credible alternative model has been developed by NRM regime.
To craft an appropriate alternative to WC we need to understand its major characteristics. Washington Consensus replaced Uganda’s mixed economy model with laissez-faire capitalism and the invisible hand of market forces that served as the engine of economic growth. The role of the state in the economy was reduced significantly.
Trade and financial liberalization, privatization of public enterprises, export diversification, macroeconomic stability and balanced budgets formed the new development paradigm. The equitable distribution of economic growth benefits was to be effected through a trickle down mechanism. The state was primarily concerned with maintenance of law and order, enforcement of contracts and protection of property rights. Uganda pursued economic activities in which it has the so-called comparative advantage namely production and export of agricultural raw materials. By 2009 it was concluded that the model had not worked as expected as shown below: