Western economic and political models have failed in Uganda
The collapse and abandonment of structural adjustment in 2009 and the disastrous February 18, 2011 presidential and parliamentary elections have demonstrated beyond a shadow of doubt that the two western models have no place in Uganda’s political economy. How did it all begin?
In 1981 the revenue starved government of Obote was forced to sign a structural adjustment agreement with the IMF in order to open the door for other donors to enter and support Uganda’s development efforts. The agreement had stiff conditionality including a balanced budget and low inflation. A combination of drought and guerrilla war necessitated deficit financing slightly above the ceiling agreed with the IMF. The latter would not budge and withdrew support at such a critical moment. IMF action meant that the door was shut to other donors because agreement with IMF is a prerequisite for foreign aid. Therefore, other donors had to leave or reduce support to humanitarian activities. Under the pretext of excessive human rights violations, the World Bank pulled out as well.
Lack of resources to meet the needs of the public and armed forces and other aggravating factors led to a split in the armed forces and a discontented population. Consequently, Obote’s government was overthrown in July 1985 by a section of the national army.