ERIC KASHAMBUZI

Written by Eric Kashambuzi, on 28-11-2008 10:21

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When Europeans visited the areas that later became Uganda, they were amazed by the variety of cultivated and wild foodstuffs and a wide range of manufacturing activities. Surplus food and manufactured products were exchanged in local and regional markets. Thus, pre-colonial comparative advantage served Uganda’s needs very well.

The visitors were also struck by the vitality, eagerness and intelligence of Ugandans. Winston Churchill remarked that Ugandans were “different from anything elsewhere to be seen in the whole range of Africa”. He called Uganda “the Pearl of Africa”.

Economic developments since the start of the 20^th century have undermined Uganda’s development potential. Ugandans were compressed into producers of raw materials according to colonial comparative advantage and the manufacturing sector collapsed. Because foreign earnings from primary exports have not been enough, Uganda has become dependent on foreign aid and remittances.

Efforts by the National Resistance Movement (NRM) government since 1986 to build an independent, integrated and self-sustaining middle income economy and society have yet to produce tangible results. The ideology of mixed economy was replaced by the Washington Consensus which called on Uganda to increase and diversify agricultural exports, promote economic growth and private sector, control inflation and increase savings, privatize public enterprises and liberalize the economy. This model has bred inequality, food insecurity, de-industrialization, environmental degradation and unemployment with serious social and cultural outcomes.

Although irreplaceable, the market mechanism has neither brain nor heart. Accordingly, state intervention in strategic areas is unavoidable to correct free enterprise and free market imperfections. A balance is needed between inflation control and employment generation as well as economic growth, equity and environmental protection.

The publication, intended primarily for students, policy makers and development partners, is also appropriate for a wider readership. It is also a modest contribution to the debate about Uganda’s development agenda for the 21^st century including relevant regional issues.

Publisher: Jones Harvest Publishing; Pub. Date: 2008; Format: Paperback, 592pp
ISBN: 978-1-60388-220-0 ISBN: 1-60388-220-0