Government asked to invest in human capital

Without investing in human capital, Uganda might not attain its targeted economic growth, experts have said.  They stress that the neglected part of building human capital by the government remains a major hindrance to economic development in the country.

 

Dr Madina Guloba, a researcher and an economist with the Economic Policy Research Center (EPRC) Makerere University, said the budget needs to be people-centred, for everyone to benefit.

 

Guloba noted that human capital is a key driver of development in any growing state, a reason why the government should invest in the productivity of its people. 

 

She made the remarks during a post-national budget 2019/2020 dialogue under the theme: "Leaving no one behind." It was organized by the Forum for Women in Democracy (FOWODE) together with Uganda Gender Consortium on Sustainable Development Goals (SDGs).

 

"We need to analyse the budget, by ensuring that what has been allocated to different sectors is enough to help us realise equality and quality," she said, adding that involving people in the budget process is crucial, to understand their challenges and needs, something that is always ignored.

 

She highlighted education, health, and water and environment as key sectors that need more funding.

 

Guloba said the current budget shows an increase in other sectors with a decline of 13.7% in water and environment.

 

"There is no way sectors like health, agriculture and education can work without water and the environment. 

 

Even the increment in education and health is more towards the recurrent expenditure. This means the expenditure will remain low due to factors like population growth," Guloba added.

 

She wondered whether such a budget can provide the quality education needed to develop human capital.

 

Guloba said statistics show that Uganda achieved only 0.05% in the human capital development index, falling behind the international target of 50%, saying much needs to be done.

 

She stressed that all the challenges facing the country right from poor nutrition, health services and education is partly due to poor planning of policymakers.  

 

The executive director of Uganda Women's Network, Ritah Aciro, said the government has over the years focused on infrastructure development with working on human capital.

 

"There is a need to balance fairy infrastructure development and building human capital. We all appreciate the good roads, but how many make use of them productively?" she added.

 

She noted that government today taxes very few Ugandans to finance the budget, a reason why many Ugandans run out of business.

 

"They should promote quality education with skills, which will result in the creation of jobs increase in tax revenue. Government needs to strategically plan for their tax base through building productive human capital," she added.

 

Rosette Nabumba, from the finance ministry, said the ministry is to review the recommendations from the dialogue to inform budget execution and make it more effective and focused on inclusive growth.

 

However, she said the assessment results on compliance of the 2019/20 policy statements with gender and equity requirements, by the Equal Opportunities Commission, show gradual improvement from 40% in the previous financial year to 60% in 2019/20.

 

She also noted that the government has been working on the development of human capital over years with the aim of achieving inclusive growth and development through various programs.

 

The board chairperson FOWODE, Joyce Tamale said there is still a need to enhance the gender-responsive budget to leave no Ugandan behind.  

 

The Padyere County Member of Parliament in Nebbi, Joshua Anywarach said there is a need to invest in market access for agricultural products for Ugandans.

 

"A hand of help needs to be extended to people to help them improve their post harvesting, to easily compete at the global market," he added.

 

Emmanuel Mutaizibwa, a journalist from Nation Media Group, said the government needs to urgently address the issue of job creation, to stop exposing Ugandan girls to "slave labour market".