Monthly Archives: August 2008

The
economic record under Obote one and two regimes has been controversial. There
are those who report a very poor performance and those who disagree. In this
article, we present the contrasting views leaving the readers to draw their own
conclusions.

Justice
George Kanyeihamba writes that “At independence, the Ugandan economy was in
excellent form. It was one of the strongest in black Africa.
Comparative world economic data of the period excluded Uganda from the
poorest countries of the world. By the time of the first Obote government came
to be overthrown by the army in 1971, the economy was not in good shape and bad
economic performance was one of the reasons given by the Uganda soldiers for
overthrowing the UPC government from power. By the time Obote violated the
Independence Constitution, declared himself President, dismantled the
traditional infrastructure, suppressed the electoral process and established an
authoritarian presidency, the Uganda economy was weaker still…

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The International Community of
Banyakigezi (ICOB) held its 6^th Convention in New York from July 31
to August 4, 2008. It was attended by Members of Parliament, representatives from
the media and research institutions, Non-Governmental and Civil Society Organizations
and other stakeholders. The purpose of the Convention was to discuss the
enormous economic, social, cultural and environmental challenges the people of
Kigezi are grappling with and to recommend a way forward. In view of the
rampaging food crisis and the associated skyrocketing food prices, the keynote address
was appropriately about the paradox of hunger and abundance in Uganda.

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The
National Resistance Movement (NRM) government came to power in 1986 with a
mixed economy agenda of public and private partnership with a view to unifying and
transforming the country and her people. However, within a year, it became
clear that conditions on the ground did not permit the implementation of that
model. Since the 1980s, the world had shifted from a Keynesian model of demand
management in which the state was a key player to a neo-liberal one driven by
market mechanism and the private sector. With strong advice from the development
partners, major policy and institutional changes were introduced in 1987. The
state was relegated to the back burner. The new ministry of finance and
economic development together with the central bank assumed responsibility for
determining policy with a focus on controlling inflation and promoting exports.
Government spending was controlled in order to achieve balanced budgets. The
money in circulation was also curtailed through high interest rates. It was
hoped that financial stability would result in attracting private sector as an
engine of economic growth and create jobs for all who wished to work.

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