Tag Archives: post

Post-London conference philosophy should be fundamentally different from NRM’s

NRM came to power at the height of the Washington Consensus ideology based on market forces, laissez-faire capitalism, economic deregulation, macroeconomic stability and trickle down mechanism, etc. Government was seen as part of the development problem and not the solution.

The Washington Consensus was declared over at the G20 Summit in London. Since then the economically troubled world with high unemployment and slow economic growth has been influenced largely by a return of Keynesian model of demand management. Governments have returned to stimulate the economy working strategically in partnership with the private sector and civil societies and addressing imperfections of the market mechanism including deregulation.

Although NRM government abandoned the Washington Consensus or Structural Adjustment in late 1997 and replaced it with a five-year development plan, implying an active but strategic role of the government in the economy, in practice the government has continued to implement many of the Washington Consensus elements.

Read the full post
Posted on by

Post-NRM government will give greater weight to social protection

Sooner or later the NRM government will fall under the heavy weight of its incompetence, corruption, sectarianism and marginalization of capable citizens. NRM has no capacity for adjustment to the unfolding challenges.

NRM started off well with a mixed economy model combining aspects of neo-liberalism (laissez-faire capitalism) and neo-Keynesianism (demand management). This was a popular and pragmatic program that had been crafted by many Uganda stakeholders with different perspectives and ideologies.

Then in mid-1987 – suddenly and without public warning – came the Washington Consensus (WC) or structural adjustment program (SAP) that was imposed by the Bank and the Fund on a bankrupt government. WC stressed small state, private ownership of public enterprises, deregulation and liberalization, export diversification, balanced budget and primacy of the invisible hand of market forces – all to be implemented simultaneously. Sequencing was ruled out and NRM absorbed WC lock, stock and barrel. It was hoped that market forces would distribute equitably the benefits of rapid economic growth – itself a function of foreign direct investments – to all classes and regions and everyone would live happily thereafter.

Read the full post
Posted on by

First UDU post-Boston conference board teleconference

The teleconference took place on October 24, 2011

The primary purpose was to take stock of the decisions and recommendations at the Boston conference of October 8, 2011 and agree on the next steps.

The meeting also adopted the report of the teleconference of October 2, 2011 as presented.

The Boston conference was well attended by participants who travelled from many places and our hosts in Massachusetts. FDC was officially represented and made a statement.

1. The main item for the Boston conference was the National Recovery Plan (NRP). Participants praised the plan for its clarity, substance and recommendations. After extensive interactive discussion the report was adopted as an alternative development model to NRM’s failed policies. At the request of some participants who endorsed the plan but needed more time to submit written comments, the deadline was extended to December 31, 2011.

2. Delegations commended the committee (now board) for excellent work and timely completion of what it was mandated to do and more in a short time of three months during summer vacation season. Extra work included creation of the website, email addresses of board members, the letterhead and diplomatic outreach.

Read the full post
Posted on by

Post-London conference philosophy should be fundamentally different from NRM’s

NRM came to power at the height of the Washington Consensus ideology based on market forces, laissez-faire capitalism, economic deregulation, macroeconomic stability and trickle down mechanism, etc. Government was seen as part of the development problem and not the solution.

In 1997 the Washington Consensus was declared over at the G20 Summit in London. Since then the economically troubled world with high unemployment and slow economic growth has been influenced largely by a return of Keynesian model of demand management. Governments have returned to stimulate the economy working strategically in partnership with the private sector and civil societies and addressing imperfections of the market mechanism including deregulation.

Although NRM government abandoned the Washington Consensus or Structural Adjustment in late 1997 and replaced it with a five-year development plan, implying an active but strategic role of the government in the economy, in practice the government has continued to implement many of the Washington Consensus elements.

Read the full post
Posted on by

Post-NRM government will give greater weight to social protection

Sooner or later the NRM government will fall under the heavy weight of its incompetence, corruption, sectarianism and marginalization of capable citizens. NRM has no capacity for adjustment to the unfolding challenges.

NRM started off well with a mixed economy model combining aspects of neo-liberalism (laissez-faire capitalism) and neo-Keynesianism (demand management). This was a popular and pragmatic program that had been crafted by many Uganda stakeholders with different perspectives and ideologies.

Then in mid-1987 – suddenly and without public warning – came the Washington Consensus (WC) or structural adjustment program (SAP) that was imposed by the Bank and the Fund on a bankrupt government. WC stressed small state, private ownership of public enterprises, deregulation and liberalization, export diversification, balanced budget and primacy of the invisible hand of market forces – all to be implemented simultaneously. Sequencing was ruled out and NRM absorbed WC lock, stock and barrel. It was hoped that market forces would distribute equitably the benefits of rapid economic growth – itself a function of foreign direct investments – to all classes and regions and everyone would live happily thereafter.

Read the full post
Posted on by

The second African star has fallen

On April 19, 2010, President Museveni launched a five-year development plan in Uganda with a focus, inter alia, on full employment and state intervention, reminiscent of Keynesian economic model which drove the post world war economic boom until the second half of the 1970s when a combination of stagnant economic growth, rising unemployment and inflation (stagflation) rendered the model irrelevant. It was replaced by the Washington Consensus or stabilization and structural adjustment programs (SAPs). Unlike the Keynesian model which focused on creating jobs and promoting state participation in the economy, the Washington Consensus focused, inter alia, on macroeconomic stability through inflation control and private sector participation in the economy as the engine of growth under the guidance of the invisible hand of the market forces and a trickle down mechanism.

In Africa Ghana was among the first countries to embrace the Washington Consensus. A combination of factors which included excess capacity, the return of Ghanaians from Nigeria that boosted the numbers of cheap labor, generous donations, good weather including adequate rainfall, favorable trade conditions, guidance from the IMF, the World Bank and prominent international development economists as well as a committed government under the leadership of Jerry Rawlings, Ghana registered rapid economic growth and per capita GDP. It became a “star performer and success story” to be emulated by other developing countries.

Read the full post
Posted on by