Why has NRM rejected Keynesian economics when Uganda needs it badly?
What John Maynard Keynes wrote is that when a country is experiencing serious economic difficulties including unemployment the state should step in and increase spending to stimulate the economy, reduce unemployment which in turn create effective demand for goods and services and ultimately pull the economy out of the recession. Keynes advice was well received by politicians because it helped them deal with economic and social challenges that would have created political problems for them at the next elections. Governments have used Keynesian advice and it contributed significantly in tackling the economic depression of the 1930s and after WWII. Since the recession that began in 2007, governments around the world have intervened in national economies with stimulus packages.
In view of the deteriorating economic, social and ecological conditions in Uganda one would have expected the NRM government to fully embrace the Keynesian model and actively intervene in the economy especially as the country is preparing for multi-party elections early in 2011. As noted in a separate article the introduction of the five year development plan in April 2010 did not signal government determination to intervene in the economy. It appears this was a political game to hoodwink voters after which the plan will gather dust in the ministry of finance, planning and economic development.