Salient features of federalism

The October 27, 2012 London conference on Uganda federalism inspired by the keynote Speaker’s address (available at the Uganda Citizen website) was very successful in terms of participation which was national in scope; demographics which embraced men, women and youth; substantive in content; open, frank and tolerant of one another’s views; agreement that federalism is a national issue and consensus on the way forward. A resolution was adopted at the end of the conference and is available at the Uganda Citizen website.

I summarized areas where consensus was reached and posted the report on Ugandans at Heart Forum, www.kashambuzi.com and www.udugandans.com. Subsequently, I prepared and posted a short note on the same above websites clarifying some issues upon request. As this is work in progress, we need to update and add to the information that we already have. I have received requests in this regard. I appeal for active participation of all Ugandans in this debate so that none is left behind and also remember that nobody has monopoly or all the answers on this important subject. Here we go.

The Application of western concept of stability in Uganda needs recasting

The people of Uganda have really suffered all sorts of injustices – economic, social and environmental – in large part because of western advice to Uganda governments on how to establish and maintain economic and political stability. Britain’s rejection of Obote’s “Move to the Left” and nationalization of industries resulted in his overthrow in 1971 and the installation of Amin. The suffering of the people of Uganda during this period is too well known to be repeated here. But this was considered a period of stability and Amin continued to enjoy support from some western countries until he was overthrown in 1979 apparently with British involvement (New African June 2007).

Since 1981 (except a three year period from 1984 to 1986) Uganda has implemented structural adjustment policies which call for macroeconomic stability. Although macroeconomic stability means many things including balanced budgets, in Uganda it has come to mean controlling inflation to 5 percent per annum. To maintain this economic stability, money supply in Uganda’s economy has been controlled including through raising interest rates. High and variable interest rates of up to 30 percent have discouraged borrowing by small and medium enterprises and investing in labor-intensive enterprises. Many entrepreneurs who ventured and borrowed were not able to repay. They either defaulted or sold their assets including land and/or livestock or married off their daughters at very tender ages to repay the loans that left them worse off.