Uganda needs a Keynesian model of economic development
The end-of-year (2008) stories have removed any lingering doubt about the depth and extent of poverty in Uganda. Reports in Weekly Observer January 14, 2009 regarding an increase in child sacrifice have underscored absolute poverty as the single most important factor.
Since 1987 Uganda has pursued a development policy of neo-liberalism with a focus on inflation control through a combination of high interest rates and reduced quantity of money in the economy – a job that the central bank has executed pretty well.
However, high interest rates have made it very difficult for small and medium-scale enterprises to borrow and invest in labor-intensive enterprises.