Uganda’s economy over seven times greater than it was in 1986
Jan 26, 2009
ON JANUARY 23 2009, the National Resistance Movement marked its 23rd anniversary since taking over power in 1986. The main celebrations were held at Kololo Airstrip. Below is the speech delivered by President Yoweri Museveni at the function.
ON JANUARY 23 2009, the National Resistance Movement marked its 23rd anniversary since taking over power in 1986. The main celebrations were held at Kololo Airstrip. Below is the speech delivered by President Yoweri Museveni at the function.
Fellow Ugandans, This occasion marks the twenty-third year since the National Resistance Movement (NRM) took over governance of the State of Uganda. It began with the restoration of peace and security as a basis for the establishing of a truly democratic State that would ensure good governance and prosperity for all the people of Uganda.
The NRM took over the leadership of this country in 1986 to address the historical anomalies that had crippled almost every system. The history of Uganda by that time had been characterised by, among other features, the weaknesses typical of a pre-industrial state in addition to two decades of extra-judicial killings, political, social and economic anarchy that followed independence.
It was a momentous landmark in the history of Uganda, indeed; and it was not a mere “change of guardâ€. To date, a fundamental change has been registered in all sectors as the NRM follows through its vision.
During the liberation struggle, the NRM, together with the High Command and Senior Officers of the National Resistance Army, worked out proposals for a political programme. This formed the basis for a nationwide coalition of political and social forces which could usher in a better future for the long-suffering people of Uganda – the Ten-Point programme. This programme has now been revised to become the 15-point programme.
The vision of the NRM is to transform Uganda into a peaceful, united, democratic, harmonious, industrialised and prosperous State within a strong, federated East Africa, the African Common Market and with an African Defence Pact.
Security
Even while we faced insurgencies from forces that were bent on re-imposing a rapacious state with support from external forces, the NRM has, over the years, ensured security of person and property in Uganda. In line with this, which was point No. 2 of the 10-Point programme, Government has professionalised the Army and Police forces.
There is no doubt that today, we are seeing the tail-end of senseless extra-judicial killing this time perpetrated by non-state actors such as Kony and Jamil Mukulu supported by external actors. This sets the basis for a true and sustainable nation building and social transformation throughout Uganda.
With new-found peace across the country, the people of Northern Uganda can now fully join and engage, like other Ugandans, in productive economic activity. The NRM Government will consolidate peace and security in Northern Uganda to enable the quick restoration of normal livelihoods to our fellow Ugandans who have suffered for long under the terrorism of backward forces. This is not to forget the great damage caused by cattle-rustling perpetrated by indisciplined elements in Karamoja.
Full-scale implementation of the Peace, Recovery and Development Plan (PRDP) for Northern Uganda, which was launched in 2007, will begin in full in 2009/10. Although, since the launch of PRDP, poor coordination has been identified, affecting the take off of the plan, we have now harmonised our positions.
Challenges in this regard are in the inadequacy of funding and the need for sharing of work plans at the central level in order to ensure proper monitoring and harmonisation. Among planned activities are a website and the capacitating of a Northern Uganda data centre. The Karamoja Integrated Disarmament Development Programme (KIDDP) has been effected. I directed that, in tandem with the Prosperity-for-All programme, Karamoja be zoned into agricultural areas for high-yielding crops. This is aimed at transforming the people into capable producers of enough food and cash products.
Democratic governance
The National Resistance Movement has fundamentally contributed to the democratisation of Uganda in three decisive ways.
The NRM immediately ushered in new democratic institutions, with the Resistance Councils (RC) system, to work from the village to the national level, with the expansion of the then National Resistance Council (NRC) which provided democratic governance while the NRM was in the bush. The NRM Government also empowered the Ugandan population by creating accountable local governments closer to the people, with the establishment of Resistance Council Governments at sub-county and district levels.
The Second contribution by the NRM to the democratisation of Uganda was to ensure that a fully inclusive and democratic process of formulating a new Constitution for the Republic of Uganda was undertaken, which culminated in promulgation of the 1995 Constitution.
The establishment of truly democratic legislative organs that even provided for special representation of women, people with disabilities, youth, workers, the army and other interest groups, was borne out of the NRM’s democratic governance for all.
The NRM also provided an opportunity for Ugandans to elect leaders of their choice at all levels of government. Thanks to the NRM democratic rule that saw the enfranchisement of Ugandans restored; they now control the destiny of Uganda through regular elections.
Today, any government leader can be held accountable for the delivery of government programmes through the legislative and other oversight centres that have been duly established by the Constitution of Uganda at all levels of Government. Ugandans can exercise their free will to vote a leader into or out of power.
Service delivery
All these developments in democratic governance must be used by the people of Uganda to demand full accountability and better service delivery by the political leadership and public servants.
Sub-county local governments must deliver services to the people commensurate with the level of resources availed to the sub-county local government. Sub-county, district councillors and Members of Parliament must ensure that locally generated resources and transfers from the Central Government are actually transformed into better health, education, agriculture, water and road services; to mention but a few. It is not enough for Members of Parliament to make good laws in Kampala; or for the Auditor General to investigate wastage and leakages in service delivery.
Sub-county and district councillors must put to task the sub-county and district local government leadership on generated resources and service delivery.
I am going to continue to institute ways and means to sensitise and empower people at local government levels to demand the services that are due to them from their respective sub-county and district local governments.
As a start, I am directing the Minister for the Presidency to institute publicly held half-yearly ‘Gombolola Barazas’ in each sub-county, chaired by the resident district commissioners. In these fora the sub-county local government leadership must explain what resources they have received; and what results have been achieved in each and every sector.
The record of the Gombolola Baraza will be sent to the Right Honourable Prime Minister for overall reporting and monitoring of results; while the resident district commissioners must ensure follow up on all outstanding issues at the sub-county level.
At Central Government level, I have time and again talked about holding permanent secretaries, heads of government agencies and chief administrative officers accountable for results. This is a matter that I need to continually emphasise. Implementation of government programmes should not be held back on account of accounting officers not carrying out their managerial responsibility.
Political leadership of all ministries, local governments and agencies must, henceforth, ensure that permanent secretaries, heads of agencies and chief administrative officers prepare work plans on annual and quarterly basis showing clearly what is going to be achieved with the resources that have been budgeted and allocated. This will be the basis on which reporting at the Gombolola Baraza will be.
As I have publicly announced before, I will not allow the renewal of contracts of permanent secretaries, heads of agencies, chief administrative officers, gombolola chiefs and town clerks who do not comply with this instruction and cannot, therefore, show the results for the resources they have received. Indeed, I will cause the dismissal of such an official.
This managerial constraint must be dealt with decisively as it is now clear that resources are not the problem; but how effective bureaucrats are in the implementation of Government programmes.
In the same spirit, I would like to charge the members of parliament to question relevant government ministers on the status of service delivery in their respective constituencies; and to demand remedial action if it is found lacking.
Ugandans need to see more of this kind of action from Members of Parliament; instead of having them engaging in endless politicking. Government ministries, agencies and departments must demonstrate that we actually deliver the results because resources have been provided. The problem remains poor implementation of government programmes and lack of the necessary supervision.
I am sure that with increased vigilance and scrutiny of action of public officials at all levels of government, we can begin to address slow implementation and get better results with the resources that we have. This will lead to economic growth and development higher than what we are currently witnessing.
Corruption
In line with service delivery, the fight against corruption is at the heart of the Movement’s struggle to rebuild Uganda from the shackles of tyranny. The anti-corruption institutions, instituted by Government, resulted in the exposure of a lot of graft that had been going on unabated in government departments. Notable among these institutions are the Inspectorate of Government, created by government in 1986 and established as a constitutional office by the 1995 Constitution; and the Ministry of Integrity and Ethics, established in the late 1990s.
Civil servants found to be corrupt have been disciplined and reprimanded. The Inspector General of Government (IGG) also monitors the actions of political leaders. Government continues to develop cadres to infiltrate corrupt government circles, in recognition of the fact that the war against corruption is not an overt one. It is the duty of every Ugandan to partner with Government in the fight against corruption.
Economic performance and structural change
Over the last 23 years, Uganda has made remarkable progress on the economic arena. Between 1986 and 1992, the Uganda economy grew at the pace of 5.7% annually, which increased to 8% between 1993 and 1997; and slowed marginally to 7.3% between 1997 and 2008.
The size of the Uganda economy, expressed as Gross Domestic Product (GDP) at market prices, was only sh3.4trillion when the NRM Government came to power in 1986.
Owing to the real growth rates I have mentioned above, by the end of the Financial Year 2007/08, Uganda’s economy was over seven times greater than it was in 1986, at sh24.1 trillion. Ugandans need to remember that this excellent performance of the Uganda economy was a fundamental reversal from one that had shrunk and collapsed to 40% of its size as of 1971, due to mismanagement of Idi Amin and Obote regimes. After the removal of political and economic mismanagement, the Uganda economy has grown by almost three times what it was in 1971, following the good economic management policy of the NRM Government since 1986.
From a historical perspective, the Uganda economy has transformed remarkably since the NRM came to power in 1986; given the structure of the composition of GDP today, compared to the period of relative stability before 1971. Agriculture in 1968, which can be considered the last relatively stable year before the one and a half decade of political and economic collapse, contributed 56% to GDP, as compared to 21% in 2008. Industry contributed 14% in 1968 while in 2008 it contributed 24% of GDP. Services in 1968 contributed 30% to GDP, but in 2008 contributed 49%. Therefore, in addition to re-generating productive capacity of the Ugandan economy that had virtually collapsed, there has been a major transformation to in the structure of the Uganda economy since the NRM took power in 1986.
By 1985, before the NRM took power, agriculture contributed 74% of GDP, while industry contributed 5% to GDP and Services contributed 21% to GDP.
In terms of merchandise exports, coffee, cotton, tea and tobacco were almost the only Uganda’s major exports in 1985, with a total value of $395m as compared to $1.8b in 2008. By comparison traditional exports of coffee, tea, cotton and tobacco in 2007/08 amounted to $863m, twice as much as was exported in 1985. The value of non-traditional exports, including flowers, fish, cattle hides and many other such types of commodities in Financial Year 2007/08 amounted to $937m, almost two and half times that of traditional exports in 1985, as a result of exchange rate liberalisation and the opening up of market restrictions that the NRM Government instituted.
The services sector brought in $540m in 2007/08. The remittances from Ugandans abroad brought in $476m.
I know there are many more non-traditional exports, such as livestock and livestock products, that are not being captured, especially relating to our trade with our neighbours in Southern Sudan, Democratic Republic of Congo and Rwanda.
Private sector development
Our success in managing the Uganda economy after years of economic mismanagement shows how the NRM Government has forged the necessary economic policy and management approach to stimulate the private sector to invest in and develop those areas of the economy that they can manage best. The NRM Government privatised inefficient parastatals that not only consumed Government resources through subsidies, but also stifled economic growth and development by not providing required services.
Full liberalisation of the telecommunications sector has attracted widespread investment in the sector leading to its massive growth in coverage and services.
For instance, in 1993, before the privatisation of the Uganda Post and Telecommunications Corporation, there were only 62,000 telephone lines for a population of 18 million, with only 23,000 lines being active. 60% of these lines were in Kampala which had only 10% of the country’s population, with little service coverage elsewhere. There are currently 8 million telephone connections covering the whole country. We have moved from a 7% penetration (1 phone per 14 people) in 2006 to about 1 phone per 4 people today.
In order to maintain this pace of modernisation, the NRM Government has now positioned itself to develop a high speed, cheaper and more efficient fibre optic infrastructure across Uganda to ensure that telecommunication companies can use this cheaper mode of transmitting voice, data and even broadcast material to the whole country at a cheaper rate. This is how Government will use public investment to promote private sector growth and development, for the benefit of the people.
The private sector shall, therefore, continue to be the engine of growth in the economy, with the public sector intervening in those areas that are critical to unlocking the potential of the private sector to invest and manage their investments for the betterment of Ugandans.
This is why I have continually told public officials in all sectors to identify those areas where the private sector can do better and leave them while they concentrate on those that will unblock private sector participation, investment and management.
This must henceforth become the ‘modus operandi’ of Government in all spheres of public service delivery. I have previously directed the Minister of Finance to ensure that the necessary legal and institutional framework and capacity are in place to ensure that such types of public private partnerships flourish.
Infrastructure Development
Energy
In the energy sector, the 250 Mega Watt Bujagali Hydropower Project will be complete in 2011 with the support of Government but with private sector resources.
The NRM Government will also build a larger than initially envisaged Karuma Hydropower Project with a capacity of 700 Megawatts, because I can no longer allow electricity to be a constraint to economic growth and social development of the Ugandan people. Our commitment to this is absolute and the Government will raise all the required resources from the Budget to build this dam, if other sources, including those from institutional investors, such as the National Social Security Fund, are not forthcoming. The NRM Government is also encouraging the development by the private sector of smaller mini hydropower projects such as those at Mpanga, Kakira, Kisiizi, Kinyara, Bugoye, Nshungyezi, Kikagate, etc. that can alleviate short term energy constraints.
The NRM Government will also invest in the transmission system to evacuate the generated power from Hydropower projects and is also willing to invest in the distribution system if the private sector does not have sufficient resources to do so. The Rural Electrification programme is one that will ensure that there is productivity in non-farm activities and the backward practice of depleting biomass cover of Uganda will come to a halt, providing higher incomes and a more modern lifestyle for all Ugandans. By 2012, about 400,000 new rural households will have been connected, out of a total of 4 million rural households. While this may seem a small number, we must all remember that generation capacity is yet to rise sufficiently to cover all households in Uganda. With the completion of both Bujagali and Karuma Hydropower projects, Government will be in a position to increase the pace of rural electrification substantially.
Information and Communication Technology
The Government of Uganda is committed to an ICT-led socio-economic development strategy. ICT is crosscutting and enhances efficient and effective delivery of services in all sectors of the economy including education, finance, health, agriculture, commerce and trade through collapsing distance and time to almost negligent factors.
In addition to the fibre optic infrastructure, Government has embarked on the development of the Business Process Outsourcing (BPO) industry, which releases organisations to focus more on their core businesses. A BPO Model and Strategy for Uganda has been developed, aimed at providing employment opportunities to especially the skilled youth to firms outside the country. It also addresses the brain drain since, due to ability to provide remote access through ICT broadband, people can ‘work abroad’ and ‘earn abroad’ whilst they live here and spend here.
Transportation infrastructure
Transport infrastructure has been a major constraint to economic growth and development in the recent times because of two factors. First – the phenomenal increase in economic growth and incomes over the last few years which has placed a strain on existing transportation infrastructure. Secondly, inability to substantially increase investments in transportation infrastructure to catch up with the pace of economic growth and development we are witnessing today.
In 1986, when the NRM Government took over power, the total road network comprised: 7,900km of national roads and 22,000km of district roads
Out of the 7,900km of national roads (trunk roads), only 1,900km (24%) was tarmac and the rest (6000km) was gravel.
Most of the roads network was in poor condition with only 6% in fair to good conditions due to inadequate road maintenance and/or total neglect. Since 1986, the road network has increased from 30,000km (in 1986) to 77,870km (by 2008), consisting of 10,970km of national roads, 27,500km of district roads, 4,400km of urban roads and 35,000km of community roads.
The NRM Government has restored the state of road infrastructure by the rehabilitation of major national and district roads throughout the country. These include the rehabilitation of the entire Northern Transport Corridor from Malaba to Katuna, Kampala- Gulu; Mbale-Soroti; Kafu-Lira; Mbarara-Fort Portal to mention but a few. New road infrastructure has been developed with the bitumenisation of the following roads since 1986: Mubende-Fort Portal; Iganga-Tirinyi-Mbale; Mbarara-Ibanda; etc.
The next phase of development of road infrastructure that the NRM Government will embark on will be to increase the capacity of the Northern Transport Corridor by dualling the following roads in phases:- Kampala-Mukono-Jinja; Kampala-Busega-Mpigi-Masaka; Kampala-Entebbe. Eventually, the entire Northern Road Transport Corridor will be developed into a dual carriageway. As I intimated in the New Year statement, in Financial Year 2008/09 budget sh1.1 trillion was committed to the roads sector.
At the same time, the NRM Government will fast track the rehabilitation of the existing Malaba-Jinja-Kampala railway to ensure more freight cargo is carried on rail rather than road. Together with the Government of Kenya, a new standard gauge railway will be built to replace the existing one.
Agriculture and rural
development
The biggest potential private sector Uganda has are the Ugandans who are currently engaged in limited or even non-productive activity in the agricultural and rural sectors of the Uganda economy.
The NRM Government recognises the need to galvanise rural households to enable them produce more than just for subsistence but also for commercial purposes. Government continues to campaign, under the Prosperity-for-All programme, for correct enterprise selection to ensure high-value produce for optimum returns in accordance with the land owned by each homestead. Rural households will be assured of greater and more sustainable incomes as there would be solid linkages to the supply chain for national, regional and international markets.
The constraints that the NRM Government has addressed and will unlock are mainly three-fold. First, Ugandan rural households need to produce the right products in sufficiently large quantities to generate economies of scale for any agro-processing capacity to be built. Therefore, these households need to be provided with the tested varieties of planting materials and seeds and research livestock breeds to ensure good quality production. They also need to be provided with the means of generating produce in large quantities through tractorisation and provision of fertilisers, since our soils nutrients have degenerated over the years of farming. This approach will be enhanced through utilisation of lead and model farmers, while providing inputs in kind to all the other farmers.
The second measure the NRM Government will put in place is to ensure that the increased agricultural production is processed for value-addition. The NRM Government is committed to supporting agro-processors who add value to agricultural produce within the framework of the Agricultural Zoning Strategy. Once agricultural zones have been operationalised, agro processors will have the necessary supply needed to sustainably run their operations.
The third constraint to increasing production and incomes in agriculture relates to the provision of rural micro-finance. The process of developing Savings and Credit Organisations (SACCOs) is one of building financial infrastructure at lower levels below commercial banks and the larger micro-finance deposit taking institutions.
The critical constraint that the NRM Government is focused on is provision of rural finance to increase production and value addition to agricultural produce. Government micro-finance resources should be lent to model farmers or an agro-processor adding value to agricultural produce, as long as his or her project is feasible and has been appraised as able to pay back. This does not prevent in any way continuation of lending to eligible SACCOs that have the ability to manage their finances and savings and credit operations.
After careful evaluation, the NAADS, mandated to develop a demand-driven, farmer-led agricultural service system targeting poor subsistence farmers, remains a critical initiative in enhancing agricultural production and productivity.
Human resource development
Human resource Development through education and health for all is a major component in ensuring the prosperity of all Ugandans. Since 1997, the Universal Primary Education Programme has absorbed almost 7.7 million pupils annually from only 2.5 million before this programme began. This represents 113% of the primary school going age population, reflecting that there are over-aged pupils attending primary schools as well. The Universal Secondary Education programme that is being expanded on a yearly basis since 2006 has over 1 million pupils enrolled in secondary schools annually, representing 25% of the secondary school going population. This proportion of secondary school going age will increase substantially in the future as Universalisation of Secondary Education is fully implemented in 2010.
Committed to ensuring high-quality education, Government will ensure availability of teachers and instructional materials including those for improved science education at all schools. The role of the private sector in provision of secondary education is very important in this respect. The NRM Government will continue to support private secondary education that delivers quality education at a cheaper cost than public schools, while instituting measures to make public schools run more efficiently.
Government is systematically implementing the programme on community polytechnics to absorb UPE and USE graduates. There is continued upgrading and equipping of higher business, technical and vocational institutions.
I charge the Ministry of Education and Sports and Ministry of Finance to comply with my earlier directive to publish career guidance manuals for our children and parents to guide them in choosing courses relevant to the job market. Government continues to put emphasis on science education as a good foundation for development and for industrialisation.
Health
The NRM Government lays emphasis on preventive health measures such as immunisation, nutrition behaviour change and hygiene. Government has, among other things, worked to bring health services nearer to the people by construction of new health facilities and increasing the capacity of existing ones — with an operation theatre and a medical officer at every constituency and a health centre at each sub-county with maternity services and an out patient clinic at each parish.
HIV/AIDS continues to be a major challenge as well as an obstacle to Uganda’s development, with an annual loss to GDP estimated at 1.5%.
Economists have calculated that our GDP will shrink by 39% in 2025 if we do not aggressively scale-up our response. NRM has over the last 23 years mounted a heroic fight against AIDS and by 2001 the prevalence of HIV had been reduced to 6.1% from 18.6% in early 1992/93. We have saved many lives by currently providing treatment to over 156,000 AIDS patients compared to 15,000 just only three years ago.
We have now decided that more efforts be focussed on the “MOST AT RISK POPULATIONS†sub-groups to avert new infections. Today more than two-thirds of all money for HIV/AIDS is going on treatment. I strongly believe that the government has to ear-mark money for HIV prevention.
We must scale-up our prevention efforts and match them with appropriate resources. Let us get the message back on the radios, in mass media, at all political rallies. Let the church leaders play their role by talking to couples about the dangers of being unfaithful and let all those getting married test for their sero-status first. I implore all traditional and cultural leaders to come forward and join in this fight. The Uganda AIDS Commission, charged with the responsibility to co-ordinate the multiplicity of actors and strategies, must spearhead this new battle.
Regional Affairs
On the regional front, Uganda has been instrumental in several initiatives and helped restore peace. Our troops are part of the peace keeping mission in Somalia and some of our people are in Iraq.
Uganda will recall the very successful commonwealth Heads of Government Meeting (CHOGM) that was held in Uganda in 2007, which has continued to boost Uganda’s image abroad. Uganda continues to be active in the East African Community and on several regional and economic blocs.
Uganda is proud and honoured to be represented on the UN Security Council for the next two years, which is a demonstration of the confidence our system has built.
While every achievement in the last 23 years cannot be listed down, the NRM vision remains clear – to transform Uganda from a backward, pre-industrial society to a First World society.
As we maintain security of person and property, enhance good governance, develop infrastructure, support production and improve technologies, work towards industrialisation and source markets; and, most importantly, develop the human resource, the National Resistance Government is right on course.
I wish you all a happy 23rd NRM anniversary.
Thank you.
Fellow Ugandans, This occasion marks the twenty-third year since the National Resistance Movement (NRM) took over governance of the State of Uganda. It began with the restoration of peace and security as a basis for the establishing of a truly democratic State that would ensure good governance and prosperity for all the people of Uganda.
The NRM took over the leadership of this country in 1986 to address the historical anomalies that had crippled almost every system. The history of Uganda by that time had been characterised by, among other features, the weaknesses typical of a pre-industrial state in addition to two decades of extra-judicial killings, political, social and economic anarchy that followed independence.
It was a momentous landmark in the history of Uganda, indeed; and it was not a mere “change of guardâ€. To date, a fundamental change has been registered in all sectors as the NRM follows through its vision.
During the liberation struggle, the NRM, together with the High Command and Senior Officers of the National Resistance Army, worked out proposals for a political programme. This formed the basis for a nationwide coalition of political and social forces which could usher in a better future for the long-suffering people of Uganda – the Ten-Point programme. This programme has now been revised to become the 15-point programme.
The vision of the NRM is to transform Uganda into a peaceful, united, democratic, harmonious, industrialised and prosperous State within a strong, federated East Africa, the African Common Market and with an African Defence Pact.
Security
Even while we faced insurgencies from forces that were bent on re-imposing a rapacious state with support from external forces, the NRM has, over the years, ensured security of person and property in Uganda. In line with this, which was point No. 2 of the 10-Point programme, Government has professionalised the Army and Police forces.
There is no doubt that today, we are seeing the tail-end of senseless extra-judicial killing this time perpetrated by non-state actors such as Kony and Jamil Mukulu supported by external actors. This sets the basis for a true and sustainable nation building and social transformation throughout Uganda.
With new-found peace across the country, the people of Northern Uganda can now fully join and engage, like other Ugandans, in productive economic activity. The NRM Government will consolidate peace and security in Northern Uganda to enable the quick restoration of normal livelihoods to our fellow Ugandans who have suffered for long under the terrorism of backward forces. This is not to forget the great damage caused by cattle-rustling perpetrated by indisciplined elements in Karamoja.
Full-scale implementation of the Peace, Recovery and Development Plan (PRDP) for Northern Uganda, which was launched in 2007, will begin in full in 2009/10. Although, since the launch of PRDP, poor coordination has been identified, affecting the take off of the plan, we have now harmonised our positions.
Challenges in this regard are in the inadequacy of funding and the need for sharing of work plans at the central level in order to ensure proper monitoring and harmonisation. Among planned activities are a website and the capacitating of a Northern Uganda data centre. The Karamoja Integrated Disarmament Development Programme (KIDDP) has been effected. I directed that, in tandem with the Prosperity-for-All programme, Karamoja be zoned into agricultural areas for high-yielding crops. This is aimed at transforming the people into capable producers of enough food and cash products.
Democratic governance
The National Resistance Movement has fundamentally contributed to the democratisation of Uganda in three decisive ways.
The NRM immediately ushered in new democratic institutions, with the Resistance Councils (RC) system, to work from the village to the national level, with the expansion of the then National Resistance Council (NRC) which provided democratic governance while the NRM was in the bush. The NRM Government also empowered the Ugandan population by creating accountable local governments closer to the people, with the establishment of Resistance Council Governments at sub-county and district levels.
The Second contribution by the NRM to the democratisation of Uganda was to ensure that a fully inclusive and democratic process of formulating a new Constitution for the Republic of Uganda was undertaken, which culminated in promulgation of the 1995 Constitution.
The establishment of truly democratic legislative organs that even provided for special representation of women, people with disabilities, youth, workers, the army and other interest groups, was borne out of the NRM’s democratic governance for all.
The NRM also provided an opportunity for Ugandans to elect leaders of their choice at all levels of government. Thanks to the NRM democratic rule that saw the enfranchisement of Ugandans restored; they now control the destiny of Uganda through regular elections.
Today, any government leader can be held accountable for the delivery of government programmes through the legislative and other oversight centres that have been duly established by the Constitution of Uganda at all levels of Government. Ugandans can exercise their free will to vote a leader into or out of power.
Service delivery
All these developments in democratic governance must be used by the people of Uganda to demand full accountability and better service delivery by the political leadership and public servants.
Sub-county local governments must deliver services to the people commensurate with the level of resources availed to the sub-county local government. Sub-county, district councillors and Members of Parliament must ensure that locally generated resources and transfers from the Central Government are actually transformed into better health, education, agriculture, water and road services; to mention but a few. It is not enough for Members of Parliament to make good laws in Kampala; or for the Auditor General to investigate wastage and leakages in service delivery.
Sub-county and district councillors must put to task the sub-county and district local government leadership on generated resources and service delivery.
I am going to continue to institute ways and means to sensitise and empower people at local government levels to demand the services that are due to them from their respective sub-county and district local governments.
As a start, I am directing the Minister for the Presidency to institute publicly held half-yearly ‘Gombolola Barazas’ in each sub-county, chaired by the resident district commissioners. In these fora the sub-county local government leadership must explain what resources they have received; and what results have been achieved in each and every sector.
The record of the Gombolola Baraza will be sent to the Right Honourable Prime Minister for overall reporting and monitoring of results; while the resident district commissioners must ensure follow up on all outstanding issues at the sub-county level.
At Central Government level, I have time and again talked about holding permanent secretaries, heads of government agencies and chief administrative officers accountable for results. This is a matter that I need to continually emphasise. Implementation of government programmes should not be held back on account of accounting officers not carrying out their managerial responsibility.
Political leadership of all ministries, local governments and agencies must, henceforth, ensure that permanent secretaries, heads of agencies and chief administrative officers prepare work plans on annual and quarterly basis showing clearly what is going to be achieved with the resources that have been budgeted and allocated. This will be the basis on which reporting at the Gombolola Baraza will be.
As I have publicly announced before, I will not allow the renewal of contracts of permanent secretaries, heads of agencies, chief administrative officers, gombolola chiefs and town clerks who do not comply with this instruction and cannot, therefore, show the results for the resources they have received. Indeed, I will cause the dismissal of such an official.
This managerial constraint must be dealt with decisively as it is now clear that resources are not the problem; but how effective bureaucrats are in the implementation of Government programmes.
In the same spirit, I would like to charge the members of parliament to question relevant government ministers on the status of service delivery in their respective constituencies; and to demand remedial action if it is found lacking.
Ugandans need to see more of this kind of action from Members of Parliament; instead of having them engaging in endless politicking. Government ministries, agencies and departments must demonstrate that we actually deliver the results because resources have been provided. The problem remains poor implementation of government programmes and lack of the necessary supervision.
I am sure that with increased vigilance and scrutiny of action of public officials at all levels of government, we can begin to address slow implementation and get better results with the resources that we have. This will lead to economic growth and development higher than what we are currently witnessing.
Corruption
In line with service delivery, the fight against corruption is at the heart of the Movement’s struggle to rebuild Uganda from the shackles of tyranny. The anti-corruption institutions, instituted by Government, resulted in the exposure of a lot of graft that had been going on unabated in government departments. Notable among these institutions are the Inspectorate of Government, created by government in 1986 and established as a constitutional office by the 1995 Constitution; and the Ministry of Integrity and Ethics, established in the late 1990s.
Civil servants found to be corrupt have been disciplined and reprimanded. The Inspector General of Government (IGG) also monitors the actions of political leaders. Government continues to develop cadres to infiltrate corrupt government circles, in recognition of the fact that the war against corruption is not an overt one. It is the duty of every Ugandan to partner with Government in the fight against corruption.
Economic performance and structural change
Over the last 23 years, Uganda has made remarkable progress on the economic arena. Between 1986 and 1992, the Uganda economy grew at the pace of 5.7% annually, which increased to 8% between 1993 and 1997; and slowed marginally to 7.3% between 1997 and 2008.
The size of the Uganda economy, expressed as Gross Domestic Product (GDP) at market prices, was only sh3.4trillion when the NRM Government came to power in 1986.
Owing to the real growth rates I have mentioned above, by the end of the Financial Year 2007/08, Uganda’s economy was over seven times greater than it was in 1986, at sh24.1 trillion. Ugandans need to remember that this excellent performance of the Uganda economy was a fundamental reversal from one that had shrunk and collapsed to 40% of its size as of 1971, due to mismanagement of Idi Amin and Obote regimes. After the removal of political and economic mismanagement, the Uganda economy has grown by almost three times what it was in 1971, following the good economic management policy of the NRM Government since 1986.
From a historical perspective, the Uganda economy has transformed remarkably since the NRM came to power in 1986; given the structure of the composition of GDP today, compared to the period of relative stability before 1971. Agriculture in 1968, which can be considered the last relatively stable year before the one and a half decade of political and economic collapse, contributed 56% to GDP, as compared to 21% in 2008. Industry contributed 14% in 1968 while in 2008 it contributed 24% of GDP. Services in 1968 contributed 30% to GDP, but in 2008 contributed 49%. Therefore, in addition to re-generating productive capacity of the Ugandan economy that had virtually collapsed, there has been a major transformation to in the structure of the Uganda economy since the NRM took power in 1986.
By 1985, before the NRM took power, agriculture contributed 74% of GDP, while industry contributed 5% to GDP and Services contributed 21% to GDP.
In terms of merchandise exports, coffee, cotton, tea and tobacco were almost the only Uganda’s major exports in 1985, with a total value of $395m as compared to $1.8b in 2008. By comparison traditional exports of coffee, tea, cotton and tobacco in 2007/08 amounted to $863m, twice as much as was exported in 1985. The value of non-traditional exports, including flowers, fish, cattle hides and many other such types of commodities in Financial Year 2007/08 amounted to $937m, almost two and half times that of traditional exports in 1985, as a result of exchange rate liberalisation and the opening up of market restrictions that the NRM Government instituted.
The services sector brought in $540m in 2007/08. The remittances from Ugandans abroad brought in $476m.
I know there are many more non-traditional exports, such as livestock and livestock products, that are not being captured, especially relating to our trade with our neighbours in Southern Sudan, Democratic Republic of Congo and Rwanda.
Private sector development
Our success in managing the Uganda economy after years of economic mismanagement shows how the NRM Government has forged the necessary economic policy and management approach to stimulate the private sector to invest in and develop those areas of the economy that they can manage best. The NRM Government privatised inefficient parastatals that not only consumed Government resources through subsidies, but also stifled economic growth and development by not providing required services.
Full liberalisation of the telecommunications sector has attracted widespread investment in the sector leading to its massive growth in coverage and services.
For instance, in 1993, before the privatisation of the Uganda Post and Telecommunications Corporation, there were only 62,000 telephone lines for a population of 18 million, with only 23,000 lines being active. 60% of these lines were in Kampala which had only 10% of the country’s population, with little service coverage elsewhere. There are currently 8 million telephone connections covering the whole country. We have moved from a 7% penetration (1 phone per 14 people) in 2006 to about 1 phone per 4 people today.
In order to maintain this pace of modernisation, the NRM Government has now positioned itself to develop a high speed, cheaper and more efficient fibre optic infrastructure across Uganda to ensure that telecommunication companies can use this cheaper mode of transmitting voice, data and even broadcast material to the whole country at a cheaper rate. This is how Government will use public investment to promote private sector growth and development, for the benefit of the people.
The private sector shall, therefore, continue to be the engine of growth in the economy, with the public sector intervening in those areas that are critical to unlocking the potential of the private sector to invest and manage their investments for the betterment of Ugandans.
This is why I have continually told public officials in all sectors to identify those areas where the private sector can do better and leave them while they concentrate on those that will unblock private sector participation, investment and management.
This must henceforth become the ‘modus operandi’ of Government in all spheres of public service delivery. I have previously directed the Minister of Finance to ensure that the necessary legal and institutional framework and capacity are in place to ensure that such types of public private partnerships flourish.
Infrastructure Development
Energy
In the energy sector, the 250 Mega Watt Bujagali Hydropower Project will be complete in 2011 with the support of Government but with private sector resources.
The NRM Government will also build a larger than initially envisaged Karuma Hydropower Project with a capacity of 700 Megawatts, because I can no longer allow electricity to be a constraint to economic growth and social development of the Ugandan people. Our commitment to this is absolute and the Government will raise all the required resources from the Budget to build this dam, if other sources, including those from institutional investors, such as the National Social Security Fund, are not forthcoming. The NRM Government is also encouraging the development by the private sector of smaller mini hydropower projects such as those at Mpanga, Kakira, Kisiizi, Kinyara, Bugoye, Nshungyezi, Kikagate, etc. that can alleviate short term energy constraints.
The NRM Government will also invest in the transmission system to evacuate the generated power from Hydropower projects and is also willing to invest in the distribution system if the private sector does not have sufficient resources to do so. The Rural Electrification programme is one that will ensure that there is productivity in non-farm activities and the backward practice of depleting biomass cover of Uganda will come to a halt, providing higher incomes and a more modern lifestyle for all Ugandans. By 2012, about 400,000 new rural households will have been connected, out of a total of 4 million rural households. While this may seem a small number, we must all remember that generation capacity is yet to rise sufficiently to cover all households in Uganda. With the completion of both Bujagali and Karuma Hydropower projects, Government will be in a position to increase the pace of rural electrification substantially.
Information and Communication Technology
The Government of Uganda is committed to an ICT-led socio-economic development strategy. ICT is crosscutting and enhances efficient and effective delivery of services in all sectors of the economy including education, finance, health, agriculture, commerce and trade through collapsing distance and time to almost negligent factors.
In addition to the fibre optic infrastructure, Government has embarked on the development of the Business Process Outsourcing (BPO) industry, which releases organisations to focus more on their core businesses. A BPO Model and Strategy for Uganda has been developed, aimed at providing employment opportunities to especially the skilled youth to firms outside the country. It also addresses the brain drain since, due to ability to provide remote access through ICT broadband, people can ‘work abroad’ and ‘earn abroad’ whilst they live here and spend here.
Transportation infrastructure
Transport infrastructure has been a major constraint to economic growth and development in the recent times because of two factors. First – the phenomenal increase in economic growth and incomes over the last few years which has placed a strain on existing transportation infrastructure. Secondly, inability to substantially increase investments in transportation infrastructure to catch up with the pace of economic growth and development we are witnessing today.
In 1986, when the NRM Government took over power, the total road network comprised: 7,900km of national roads and 22,000km of district roads
Out of the 7,900km of national roads (trunk roads), only 1,900km (24%) was tarmac and the rest (6000km) was gravel.
Most of the roads network was in poor condition with only 6% in fair to good conditions due to inadequate road maintenance and/or total neglect. Since 1986, the road network has increased from 30,000km (in 1986) to 77,870km (by 2008), consisting of 10,970km of national roads, 27,500km of district roads, 4,400km of urban roads and 35,000km of community roads.
The NRM Government has restored the state of road infrastructure by the rehabilitation of major national and district roads throughout the country. These include the rehabilitation of the entire Northern Transport Corridor from Malaba to Katuna, Kampala- Gulu; Mbale-Soroti; Kafu-Lira; Mbarara-Fort Portal to mention but a few. New road infrastructure has been developed with the bitumenisation of the following roads since 1986: Mubende-Fort Portal; Iganga-Tirinyi-Mbale; Mbarara-Ibanda; etc.
The next phase of development of road infrastructure that the NRM Government will embark on will be to increase the capacity of the Northern Transport Corridor by dualling the following roads in phases:- Kampala-Mukono-Jinja; Kampala-Busega-Mpigi-Masaka; Kampala-Entebbe. Eventually, the entire Northern Road Transport Corridor will be developed into a dual carriageway. As I intimated in the New Year statement, in Financial Year 2008/09 budget sh1.1 trillion was committed to the roads sector.
At the same time, the NRM Government will fast track the rehabilitation of the existing Malaba-Jinja-Kampala railway to ensure more freight cargo is carried on rail rather than road. Together with the Government of Kenya, a new standard gauge railway will be built to replace the existing one.
Agriculture and rural
development
The biggest potential private sector Uganda has are the Ugandans who are currently engaged in limited or even non-productive activity in the agricultural and rural sectors of the Uganda economy.
The NRM Government recognises the need to galvanise rural households to enable them produce more than just for subsistence but also for commercial purposes. Government continues to campaign, under the Prosperity-for-All programme, for correct enterprise selection to ensure high-value produce for optimum returns in accordance with the land owned by each homestead. Rural households will be assured of greater and more sustainable incomes as there would be solid linkages to the supply chain for national, regional and international markets.
The constraints that the NRM Government has addressed and will unlock are mainly three-fold. First, Ugandan rural households need to produce the right products in sufficiently large quantities to generate economies of scale for any agro-processing capacity to be built. Therefore, these households need to be provided with the tested varieties of planting materials and seeds and research livestock breeds to ensure good quality production. They also need to be provided with the means of generating produce in large quantities through tractorisation and provision of fertilisers, since our soils nutrients have degenerated over the years of farming. This approach will be enhanced through utilisation of lead and model farmers, while providing inputs in kind to all the other farmers.
The second measure the NRM Government will put in place is to ensure that the increased agricultural production is processed for value-addition. The NRM Government is committed to supporting agro-processors who add value to agricultural produce within the framework of the Agricultural Zoning Strategy. Once agricultural zones have been operationalised, agro processors will have the necessary supply needed to sustainably run their operations.
The third constraint to increasing production and incomes in agriculture relates to the provision of rural micro-finance. The process of developing Savings and Credit Organisations (SACCOs) is one of building financial infrastructure at lower levels below commercial banks and the larger micro-finance deposit taking institutions.
The critical constraint that the NRM Government is focused on is provision of rural finance to increase production and value addition to agricultural produce. Government micro-finance resources should be lent to model farmers or an agro-processor adding value to agricultural produce, as long as his or her project is feasible and has been appraised as able to pay back. This does not prevent in any way continuation of lending to eligible SACCOs that have the ability to manage their finances and savings and credit operations.
After careful evaluation, the NAADS, mandated to develop a demand-driven, farmer-led agricultural service system targeting poor subsistence farmers, remains a critical initiative in enhancing agricultural production and productivity.
Human resource development
Human resource Development through education and health for all is a major component in ensuring the prosperity of all Ugandans. Since 1997, the Universal Primary Education Programme has absorbed almost 7.7 million pupils annually from only 2.5 million before this programme began. This represents 113% of the primary school going age population, reflecting that there are over-aged pupils attending primary schools as well. The Universal Secondary Education programme that is being expanded on a yearly basis since 2006 has over 1 million pupils enrolled in secondary schools annually, representing 25% of the secondary school going population. This proportion of secondary school going age will increase substantially in the future as Universalisation of Secondary Education is fully implemented in 2010.
Committed to ensuring high-quality education, Government will ensure availability of teachers and instructional materials including those for improved science education at all schools. The role of the private sector in provision of secondary education is very important in this respect. The NRM Government will continue to support private secondary education that delivers quality education at a cheaper cost than public schools, while instituting measures to make public schools run more efficiently.
Government is systematically implementing the programme on community polytechnics to absorb UPE and USE graduates. There is continued upgrading and equipping of higher business, technical and vocational institutions.
I charge the Ministry of Education and Sports and Ministry of Finance to comply with my earlier directive to publish career guidance manuals for our children and parents to guide them in choosing courses relevant to the job market. Government continues to put emphasis on science education as a good foundation for development and for industrialisation.
Health
The NRM Government lays emphasis on preventive health measures such as immunisation, nutrition behaviour change and hygiene. Government has, among other things, worked to bring health services nearer to the people by construction of new health facilities and increasing the capacity of existing ones — with an operation theatre and a medical officer at every constituency and a health centre at each sub-county with maternity services and an out patient clinic at each parish.
HIV/AIDS continues to be a major challenge as well as an obstacle to Uganda’s development, with an annual loss to GDP estimated at 1.5%.
Economists have calculated that our GDP will shrink by 39% in 2025 if we do not aggressively scale-up our response. NRM has over the last 23 years mounted a heroic fight against AIDS and by 2001 the prevalence of HIV had been reduced to 6.1% from 18.6% in early 1992/93. We have saved many lives by currently providing treatment to over 156,000 AIDS patients compared to 15,000 just only three years ago.
We have now decided that more efforts be focussed on the “MOST AT RISK POPULATIONS†sub-groups to avert new infections. Today more than two-thirds of all money for HIV/AIDS is going on treatment. I strongly believe that the government has to ear-mark money for HIV prevention.
We must scale-up our prevention efforts and match them with appropriate resources. Let us get the message back on the radios, in mass media, at all political rallies. Let the church leaders play their role by talking to couples about the dangers of being unfaithful and let all those getting married test for their sero-status first. I implore all traditional and cultural leaders to come forward and join in this fight. The Uganda AIDS Commission, charged with the responsibility to co-ordinate the multiplicity of actors and strategies, must spearhead this new battle.
Regional Affairs
On the regional front, Uganda has been instrumental in several initiatives and helped restore peace. Our troops are part of the peace keeping mission in Somalia and some of our people are in Iraq.
Uganda will recall the very successful commonwealth Heads of Government Meeting (CHOGM) that was held in Uganda in 2007, which has continued to boost Uganda’s image abroad. Uganda continues to be active in the East African Community and on several regional and economic blocs.
Uganda is proud and honoured to be represented on the UN Security Council for the next two years, which is a demonstration of the confidence our system has built.
While every achievement in the last 23 years cannot be listed down, the NRM vision remains clear – to transform Uganda from a backward, pre-industrial society to a First World society.
As we maintain security of person and property, enhance good governance, develop infrastructure, support production and improve technologies, work towards industrialisation and source markets; and, most importantly, develop the human resource, the National Resistance Government is right on course.
I wish you all a happy 23rd NRM anniversary.
Thank you.