Tag Archives: low

UDU is about social justice for all Ugandans

Uganda’s society since NRM came to power in 1986 has been dominated by a few rich families that continue to accumulate wealth at the expense of the majority. The rich have been using Social Darwin doctrine – the survival of the fittest – to explain why they are doing well while others are doing very poorly, adding that the poor should be blamed for their poverty and vulnerability. The fact that poverty and wealth have coexisted in time and space, one needs to understand whether or not there is causality. Given my experience in the areas I am familiar with there is a direct relationship. Those who become rich in a particular community exploit those that end up poor.

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Low inflation alone won’t develop Uganda’s economy

In 1987, NRM government launched a stabilization and structural adjustment program (SAP). The first three years under the stabilization component were devoted largely to cleaning up the house through reducing inflation from triple to single digits, achieving a realistic exchange rate and balanced budget and promoting exports. This was a period of belt-tightening which reduced budget allocations to social sectors of health and education as well as agriculture. After these goals had been reached within a short period, the government was expected to relax belt-tightening and begin the process of development and economic transformation and distribution of growth benefits including increased government revenue to increase funding for social sectors and agriculture. Inflation control as well as monetary and fiscal policies would be relaxed as well. But they have remained a priority area since then, limiting economic growth and job creation prospects.

In the budget speech on June 14, 2012 the minister of finance stated that “Tackling inflation remains government’s overriding macroeconomic objective in order to protect macroeconomic stability”. Therefore a tight monetary and fiscal policy will remain in place as well. This policy poses problems for economic growth and job creation. In the financial year 2011/12 characterized by tight fiscal and monetary policy, economic growth of 3.2 percent was the lowest since NRM came to power and for the first time less that the population growth of 3.5 percent. Although inflation was reduced significantly, economic growth slowed tremendously and poverty rose to the tune of 81 percent.

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How Uganda can escape from least developed status

As Uganda transitions from structural adjustment (SAPs) to national planning development based on public-private partnership, a fresh non-ideological assessment of Uganda’s economy, society and ecology needs to be undertaken in a transparent and participatory manner. Ugandans of all backgrounds need to be fully engaged because they have a lot to offer. They need to be heard, not lectured to. Ugandans have a wealth of undocumented information and experience. They have witnessed many economic, social, cultural and ecological changes in their communities. For these reasons they have developed definitions which differ in some cases from the classic cases.

The definition of poverty, for example, goes beyond the classic income poverty. To the income and material poverty they have added absence of social support systems that represent a feeling of isolation and exclusion, helplessness, insecurity and deprivation of basic human rights together with a feeling of voicelessness to influence conditions around them. Therefore pro-poor policies, strategies and programs need to go beyond standard definition based on income alone.

Conversations with farmers on the challenges they face have emphasized drought and increasingly floods, food losses and low purchasing power. These concerns are confirmed in official reports.

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