NRM has nowhere else to go but negotiate reforms

The National Resistance Movement (NRM) thought that it had created a favorable permanent situation and developed immunity against challenge after 1987 when it signed a stabilization and structural adjustment program (SAP) with the IMF, started to enjoy rapid economic growth (in large part because of excess capacity inherited in 1986 now almost exhausted) and established macroeconomic stability by keeping inflation in single digits through raising interest rates, balanced the budget by removing subsidies and dismissing public servants, accumulated foreign currency reserves in the central bank to guarantee continued imports for the rich and received massive external support.

NRM speeches were full of confidence and vibrancy stressing that market forces, laissez faire and trickledown would solve all problems. All NRM needed to do was to make sure that opposition was not allowed to say anything negative. The military, police, intelligence and prisons were expanded to deal with dissent. Lack of demonstrations was interpreted by the outside world as a sign of stability. Invitations to make speeches about Uganda’s success story at UN and G8 summits blinded NRM government to creeping signs of exhaustion and possible failure. Museveni even declared that there was no problem he could not solve.