Donors have no basis to continue praising Uganda as a success story
Since the 1990s, Uganda under the leadership of President Museveni has been described by donors, foreign media and the United Nations as a ‘success story’ and a Washington Consensus ‘star performer’. When the National Resistance Movement (NRM) government came to power in 1986, Uganda had suffered fifteen years of political instability and economic collapse. There was excess capacity of idle labor, land and industries. The latter were performing at twenty percent of installed capacity. What Uganda needed was political stability and some foreign currency with which to import spare parts and inputs like hoes to rehabilitate the economy.
The government restored security in the southern half of the country and development partners provided funds after an agreement was signed with the International Monetary Fund in May 1987 making Uganda a ‘shock therapist’. With the blessing of good weather, excess capacity, resilient and hardworking people, the economy recorded rapid growth reaching 10 percent in mid-1990s albeit from a low base, inflation was tamed by reducing money in circulation, raising interest rates, balancing the budget largely by dismissing civil servants, introducing fees, eliminating some schools or classes and reducing teachers, charging fees for health services and reducing or eliminating subsidies. Because of these reforms, Uganda became a star performer and a successful ‘adjusting’ country.