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‘Guerilla approach’ to surviving economic squeeze
Many Ugandans are vulnerable to shocks in the economy because of the old monster called poverty, which still stands in their way to prosperity. As we wait for the results of the government’s renewed push to rescue everyone from the cycle of scarcity, individual prudence matters most in these hard times, writes Al-Haji Faruk Kirunda
Al-Haji Faruk Kirunda. (File)
By: Admin ., Journalist @New Vision
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OPINION
By Al-Haji Faruk Kirunda
Early last year, soon after resuming office, US President Donald Trump signed an executive order that led to the freezing and eventual winding up of USAID, an organisation through which the US had extended aid to the world for decades. The move was part of rationalising his government’s systems through the Department of Government Efficiency (DOGE), which was then under his right-hand man, Elon Musk (of Tesla, X, Starlink and SpaceX fame).
The world of the beneficiaries accustomed to “free-falling money” erupted with alarm and condemnation. But here in Uganda, for President Yoweri Museveni, there was nothing shocking or unexpected. He had always foreseen such scenarios and advised us to prepare.
In an article around the time of Trump’s order, I reminded the public how the President has always appealed to Africans to focus on production and fair trade and forget aid. Then I referenced the rationalisation of our own agencies such as UNRA and UCDA (to cut costs and duplication). Finally, I noted that the introduction of the Parish Development Model (PDM) initiative was visionary since it aimed to uplift the poorest of the poor and immunise them against relying on others for survival.
Just over a year later, we are talking about a major economic downturn resulting from shocks in the money market, chiefly originating in the foreign space of war and uncertainty. The Ugandan shilling has fallen sharply against the dollar, leading to a spike in fuel prices, resulting in the rise in costs of virtually everything. Fuel costs are choking everyone!
On Independence Day last Friday, President Museveni spoke out about the economic situation, the causes, proposed interventions and other matters incidental to it. He noted that the situation would benefit exporters, meaning that not everyone was affected. Anybody engaged in production and export business was set to gain from the disruptions. Given how much he has done in promoting import substitution through BUBU (Buy Uganda, Build Uganda) policy, you can clearly see where he is coming from. Ugandans who have heeded the call to be producers and processors can earn more for their goods when the dollar gains, while importers that flood our economy with foreign goods feel the pinch.
Nevertheless, aside from the macroeconomic indicators and the range of interventions, possibly, it all comes back to the basics — and that is survival of the ordinary Ugandan. Many Ugandans are vulnerable to shocks in the economy because of the old monster called poverty, which still stands in their way to prosperity. As we wait for the results of the government’s renewed push to rescue everyone from the cycle of scarcity, individual prudence matters most in these hard times. As long as we can’t predict when the situation will normalise and as government institutes measures to ease pressure, we have to resort to age-old cost-cutting practices. I would call these “guerrilla economic hacks”-simple means used to confront a major problem!
At this time, if never at any other, luxuries and costs that can be deferred must be deferred. We shouldn’t wait for the situation to escalate catastrophically. Expenditure should only be on essential household and personal needs. Anything that can be sourced or procured locally, and at a lower cost, should be the only option.
Just over a year later, we are talking about a major economic downturn resulting from shocks in the money market, chiefly originating in the foreign space of war and uncertainty. The Ugandan shilling has fallen sharply against the dollar, leading to a spike in fuel prices, resulting in the rise in costs of virtually everything. Fuel costs are choking everyone!
On Independence Day last Friday, President Museveni spoke out about the economic situation, the causes, proposed interventions and other matters incidental to it. He noted that the situation would benefit exporters, meaning that not everyone was affected. Anybody engaged in production and export business was set to gain from the disruptions. Given how much he has done in promoting import substitution through BUBU (Buy Uganda, Build Uganda) policy, you can clearly see where he is coming from. Ugandans who have heeded the call to be producers and processors can earn more for their goods when the dollar gains, while importers that flood our economy with foreign goods feel the pinch.
Nevertheless, aside from the macroeconomic indicators and the range of interventions, possibly, it all comes back to the basics — and that is survival of the ordinary Ugandan. Many Ugandans are vulnerable to shocks in the economy because of the old monster called poverty, which still stands in their way to prosperity. As we wait for the results of the government’s renewed push to rescue everyone from the cycle of scarcity, individual prudence matters most in these hard times. As long as we can’t predict when the situation will normalise and as government institutes measures to ease pressure, we have to resort to age-old cost-cutting practices. I would call these “guerrilla economic hacks”-simple means used to confront a major problem!
At this time, if never at any other, luxuries and costs that can be deferred must be deferred. We shouldn’t wait for the situation to escalate catastrophically. Expenditure should only be on essential household and personal needs. Anything that can be sourced or procured locally, and at a lower cost, should be the only option.
The COVID-19 lockdown introduced us to working remotely (from home). At every workplace, there are personnel who can perform their duties without having to commute daily to the workplace. Every institution should rationalise its staff to cope with transport and miscellaneous costs. For those who drive, using public transport once in a while makes all the difference. Schoolgoers can study online and only go to the campus to do exams, while the often discussed and ignored idea of enrolling kids in schools near home should be given greater attention, on top of seeking schools that fall within an affordable range. In such difficult times, the PDM person has reason to smile.
Previously, any squeeze in the market would automatically make life complicated. But now they produce their own food and have some for the market. When prices rise, the PDM person is not only insulated by their small enterprise, but they can sell to the rich at a good price.
The same goes for all those in gainful business, but trading in local produce and goods. It’s a highly profitable season. The President’s consistent counsel on building a self-sustaining economy is proving most handy in the contemporary world of so many uncertainties.
The wars in Ukraine-Russia and the Middle East are blamed for disrupting the oil supplies and for key inputs like fertiliser, which feed the agricultural economies of many countries, including Uganda. When will these conflicts end? Nobody knows. But the world isn’t doing enough to see an end to them more quickly.
Only a few leaders, like our own President Museveni and Trump, have lent an extra hand and voice to do something about it. The world needs to be more intentional about peace efforts, or else the situation may get worse. Without a clear end in sight, the ordinary citizen should adopt coping mechanisms anchored in work/investment, saving and a prudent spending culture.
The writer is special presidential assistant, press and mobilisation/deputy press secretary, State House
Previously, any squeeze in the market would automatically make life complicated. But now they produce their own food and have some for the market. When prices rise, the PDM person is not only insulated by their small enterprise, but they can sell to the rich at a good price.
The same goes for all those in gainful business, but trading in local produce and goods. It’s a highly profitable season. The President’s consistent counsel on building a self-sustaining economy is proving most handy in the contemporary world of so many uncertainties.
The wars in Ukraine-Russia and the Middle East are blamed for disrupting the oil supplies and for key inputs like fertiliser, which feed the agricultural economies of many countries, including Uganda. When will these conflicts end? Nobody knows. But the world isn’t doing enough to see an end to them more quickly.
Only a few leaders, like our own President Museveni and Trump, have lent an extra hand and voice to do something about it. The world needs to be more intentional about peace efforts, or else the situation may get worse. Without a clear end in sight, the ordinary citizen should adopt coping mechanisms anchored in work/investment, saving and a prudent spending culture.
The writer is special presidential assistant, press and mobilisation/deputy press secretary, State House