The
purpose of economic growth is to improve human quality of all individuals in a
country through adequate nutrition, functional education, adequate healthcare
including hygiene, safe water and sanitation, shelter and clothing. Economic
growth should also take place in such a manner that the environment is sustainable.
The
reports we receive are about rosy statistics on economic growth, not on income
distribution between classes and regions; export earnings, not on how they have
undermined domestic food consumption; tax collection, not on how the revenue
has impacted human condition; inflation control, not on how it has undermined
investment and job creation through high interest rates; on poverty reduction
without elaborating on the methodology used (S. Mallaby, 2004).
Although
economic growth averaging 6% annually has been hailed as a success story, this
rate is still below the 7% required as a minimum to meet the Millennium Development
Goals by 2015.
Income
distribution is highly skewed with 20 percent in the top income bracket earning
over 50% of total income whereas 40% in the lowest income bracket earn a mere
15%. Twenty percent of the population is believed not to have benefited from
economic growth which is heavily concentrated in urban areas especially the
capital city of
Current
nutrition levels leave a lot to be desired. Thirty percent of all Ugandans go
to bed hungry, 12% of infants are born underweight because their mothers are
undernourished. A child born underweight develops permanent disabilities and
faces early death, over 30% of children under-five are under-nourished meaning
that they cannot develop fully physically and mentally and up to 80% of
children are dropping out of primary school for lack of school lunches which
the NEPAD has endorsed. Insufficient nutrition is seriously undermining
capital formation.
Small-scale
enterprises are the backbone of national economies and create jobs and
small-scale farmers are more efficient than larger ones and yet these
categories have not received the attention they deserve.
An
economy that does not create jobs and good incomes for its citizens should be
recast. Under-employment and unemployment are serious challenges that cannot be
ignored for too long.
Economic
growth cannot be sustained in circumstances characterized by massive
environmental degradation as is happening in
Urban
housing also needs urgent attention as well as clothing – used imported
clothing has undermined the textile industry and our dignity.
Export-led
growth based on commodities however diversified in markets and variety has
neither a chance of earning enough foreign exchange nor of contributing to
economic transformation. Manufacturing enterprises offer better opportunities.
Developed countries are considering reindustrializing their economies having
realized that the services sector is not enough.
The
assessment of
performance needs to combine macroeconomic and social variables to have a balanced
picture. Right now that balance is missing.