Bob Wanjala
12 January 2009
opinion
Kampala — With the rising costs of living at the centre of public debate, the question is: Has life improved or worsened for Ugandans since the 1996 election of President Yoweri Museveni
To come up with an answer one has to look at the state of the economy from a historical point of view, Uganda had pursued IMF/World Bank policies with an emphasis on micro-economic indices such as the rate of inflation, interest rates and strengthening the exchange rate of the local shilling to major international currencies.
The structure of the economy was distracted partly due to the external factors such as depression in the prices of the countries major exports cotton and coffee.
In the end, the Museveni administration inherited an 'economical and financial crisis of serious dimensions' when they presented their first budget to the Parliament. It was therefore, not surprising that the Government came up with mechanisms to relieve the country of its heavy debts .
The foundation of economic growth with the private sector driving the economy was aimed at wealth creation. This was captured in the slogan Bona Bagaggawale.
In the early 70s, most Ugandans were farmers and 80% of the total population worked on farms. Today more businesses have been started, people have left farms to work in businesses.
Technology, the application of scientific knowledge in business, was a major development made by the National Resistance Movement. More goods and services have been produced at the same time technology has benefited the farmers. New machinery and equipment have been developed and farmers can grow more crops and feed more people today. Less than 10% of Ugandans work on farms, so fewer farmers produce enough food for Ugandans. Sole proprietorship has been another factor that has made food production sustainable.
Sole proprietorship has enabled people manage their business and working hours and the Government has got a larger base for taxation as a result. Generally because of the good Government policies Ugandans have been able to grow rich.
Finally, Ugandans have a good reason to trust that President Museveni will lead them to future development.
The writer is a member of the Sharing Youth Centre
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