Tag Archives: rural

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.

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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:

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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.

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Rural electrification in Rukungiri raises questions

Ronald Kalyango reported in New Vision on June 17, 2010 that government plans to provide rural electricity to Bushenyi and Rukungiri districts to boost agriculture and eradicate poverty. The reporter added that the electricity will cost money and users will be trained on how to use it efficiently. He added that installation will destroy land, crops and trees. The announcement was made by candidates running for re-election in Rukungiri district. The areas to be covered include Kyatoko, Kagunga and Kyaruyenje. These are areas that parliament voted to include in Rukungiri municipality two or so weeks ago.

In conversation with a senior official in Rukungiri Town Council a year or so ago, I was informed very clearly that once the area is incorporated into the municipality, the authority will divide it up into plots for sale to the highest bidder to generate resources with which to develop the area, meaning that peasants will have to be dispossessed.

The decision by Rukungiri district council to upgrade Rukungiri town into a municipality was taken in an emergency session without consulting the people involved. The entire Kagunga sub-county where some of the poorest people in Rukungiri district live has been incorporated into the municipality. The moment the municipality comes into force land will automatically be owned by the Municipal Council and former owners will become tenants on terms and conditions set by the municipality.

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