New IMF chief sets agenda
ABEBE Aemro Selassie (left) is the new International Monetary Fund (IMF) resident representative in Uganda. He has worked with the global monetary agency since 1994. <b>Sylvia Juuko</b>spoke to him.
QUESTION: Briefly, what is your educational and career background?
ANSWER: I am Ethiopian by nationality and completed my university education in the UK and postgraduate studies at the London School of Economics.
I worked at the Economist Intelligence Unit in London and returned to Ethiopia in 1992 to work for the government as an economic advisor.
I joined the IMF in 1994 to work in the European and Policy Development and Review Departments.This is my first assignment as a resident representative.
What will be your priority for Uganda?
Sustaining Uganda’s record of strong economic management requires prompt attention to emerging policy issues.
I will work closely with the finance ministry and the central bank to identify and address these issues as they emerge.
Secondly, managing higher levels of aid inflows poses challenges to the calibration of monetary and fiscal policies.
Again, I will work closely with the above institutions to address the challenges that this poses.
Thirdly, I hope to contribute on the work to increase government tax revenues.
This has been identified as an important priority by the government to reduce aid dependence and generate funds to finance increased social and infrastructure spending.
What do you think is Uganda’s growth potential?
Uganda’s economic growth record since the late 1980s is striking. First, is its longevity. The Ugandan economy has been expanding at an annual rate of 5 - 6% for close to 20 years, making it one of the longest such periods of sustained high growth in Africa. Second is its robustness.
Growth has been sustained despite a number of shocks, including a sharp deterioration in the terms of trade, the conflict in the north and the energy shortage.
This strong record bodes well for the future. Subject to interventions in a few areas, the Government’s objective of 7-8% annual growth should be well within reach.
What intervention policies are needed to sustain the growth rates or achieve higher rates?
We should not lose sight of the fact that the economy is already growing at between 5 and 6%. As such, the policy adjustments would seem to be modest.
Broadly speaking, sustained high economic growth requires incentives, institutions and infrastructure.
My sense is that the current framework of incentives is right, with few price distortions present and the macroeconomic environment generally stable.
But more attention is certainly required in terms of greater infrastructure provision as exemplified by the current energy shortages.
Upgrading the country’s road infrastructure also seems to be a priority.
There also seems to be a need to strengthen institutions.
The establishment of a credit rating agency to facilitate the availability of information to banks to allow good borrowers access to cheaper credit is one good example.
How would you rate Uganda’s performance on the Policy Support Instrument (PSI) programme?
It is too early for me to make a pronouncement.
An IMF team will soon visit Kampala to review the PSI progress. I should be able to give a clearer picture on the programme implementation after this work is completed.
One thing is that macroeconomic indicators continue to exhibit their customary stability which is good for the review.
ANSWER: I am Ethiopian by nationality and completed my university education in the UK and postgraduate studies at the London School of Economics.
I worked at the Economist Intelligence Unit in London and returned to Ethiopia in 1992 to work for the government as an economic advisor.
I joined the IMF in 1994 to work in the European and Policy Development and Review Departments.This is my first assignment as a resident representative.
What will be your priority for Uganda?
Sustaining Uganda’s record of strong economic management requires prompt attention to emerging policy issues.
I will work closely with the finance ministry and the central bank to identify and address these issues as they emerge.
Secondly, managing higher levels of aid inflows poses challenges to the calibration of monetary and fiscal policies.
Again, I will work closely with the above institutions to address the challenges that this poses.
Thirdly, I hope to contribute on the work to increase government tax revenues.
This has been identified as an important priority by the government to reduce aid dependence and generate funds to finance increased social and infrastructure spending.
What do you think is Uganda’s growth potential?
Uganda’s economic growth record since the late 1980s is striking. First, is its longevity. The Ugandan economy has been expanding at an annual rate of 5 - 6% for close to 20 years, making it one of the longest such periods of sustained high growth in Africa. Second is its robustness.
Growth has been sustained despite a number of shocks, including a sharp deterioration in the terms of trade, the conflict in the north and the energy shortage.
This strong record bodes well for the future. Subject to interventions in a few areas, the Government’s objective of 7-8% annual growth should be well within reach.
What intervention policies are needed to sustain the growth rates or achieve higher rates?
We should not lose sight of the fact that the economy is already growing at between 5 and 6%. As such, the policy adjustments would seem to be modest.
Broadly speaking, sustained high economic growth requires incentives, institutions and infrastructure.
My sense is that the current framework of incentives is right, with few price distortions present and the macroeconomic environment generally stable.
But more attention is certainly required in terms of greater infrastructure provision as exemplified by the current energy shortages.
Upgrading the country’s road infrastructure also seems to be a priority.
There also seems to be a need to strengthen institutions.
The establishment of a credit rating agency to facilitate the availability of information to banks to allow good borrowers access to cheaper credit is one good example.
How would you rate Uganda’s performance on the Policy Support Instrument (PSI) programme?
It is too early for me to make a pronouncement.
An IMF team will soon visit Kampala to review the PSI progress. I should be able to give a clearer picture on the programme implementation after this work is completed.
One thing is that macroeconomic indicators continue to exhibit their customary stability which is good for the review.