Experts urge Uganda to rethink development strategy
Dec 13, 2010
Uganda needs to rethink her development strategy to progress in a sustainable manner, experts observed last week. They noted that although Uganda has registered considerable economic achievements from 1990 to 2009, more needed to be done to move the youth out of unemployment.
By David Ssempijja
Uganda needs to rethink her development strategy to progress in a sustainable manner, experts observed last week. They noted that although Uganda has registered considerable economic achievements from 1990 to 2009, more needed to be done to move the youth out of unemployment.
Uganda has achieved a high gross domestic product (GDP) growth from 5 to 10% per annum; inflation has been contained in a single digit, while poverty has declined from 56% in 1992 to 24.5% during this year.
These economic development indicators are impressive, but paradoxical at the same time because of the skyrocketing unemployment levels standing at 29%, according to the Uganda Bureau of Statistics.
“Such a scenario suggests that growth and poverty reduction were not driven by productivity gains,†argued Lawrence Bategeka, a senior research fellow at the Makerere University Economic Policy Research Centre.
The centre organised a two-day national dialogue on “Rethinking Uganda’s Development Approach†at the Kampala Serena Hotel to review the performance in the realm of national development.
Bategeka told participants that politics was injuring economic development because management of public resources was entrusted to politicians not because of their competence, but because they attract more votes from public.
“The state should not choose political winners without considering competence. “We need to fight corruption and encourage merit based recruitment into public service if this country’s economy is to move forward,†he said.
Finance state minister, Prof. Ephraim Kamuntu, noted that the commendable economic performance faced challenges because the predominantly agricultural sector had not performed.
“Slower than desirable agricultural and industrial sector growth levels remain critical constraints to development.
“ In 2005 and 2009, agricultural sector grew by about 1.4% per annum,†the minister, said. “The sector’s contribution to GDP is rapidly diminishing and currently standing at 14.6. We need to rethink and consider injecting more funds into agriculture in our budgetary allocations,†he said.
The 2008/2009 World Bank report on Africa Development Indicators indicated that the rate of young unemployed people aged between 15 and 24 stood at 83% in Uganda. The report also reveals that 43% of sub-Saharan Africa’s population is between the ages of 0 and 14, with Uganda having the highest share at this age standing at 41%.
It also noted that out of Uganda’s estimated 34 million population, 60% fall under the youth age bracket. According to a recent report by the gender ministry, close to 390,000 people aged between 14 and 40 years are estimated to be entering the labour market every year, but only 130,000 were said to be getting employment opportunities.
Prof. Terry McKinley, the director of the School of Oriental and African Studies at the University of London, said Uganda needed to invest more in education and involve the youth in gainful employment.
“More unemployed people in the youth age bracket can cost the economy dearly because it constitutes the largest percentage of the countries’ population.
“They are most users of public resources. They must be assisted into being productive in return,†he said.
McKinley was also dismayed by the banking system, which he said was not encouraging more savings because of the higher lending rates, which he said were not development-oriented.
Dr. Abel Rwendeire, the deputy chairman of the National Planning Authority, which is overseeing the implementation of the National Development Plan, said the Government would move fast to work on the challenges constraining development.
The Government recently unveiled a sh54 trillion national development plan that is expected to transform Uganda from a peasant society to a middle-income one in 30 years.
However, Rwendeire, revealed that the Government was short of sh11 trillion for the plan.
Uganda needs to rethink her development strategy to progress in a sustainable manner, experts observed last week. They noted that although Uganda has registered considerable economic achievements from 1990 to 2009, more needed to be done to move the youth out of unemployment.
Uganda has achieved a high gross domestic product (GDP) growth from 5 to 10% per annum; inflation has been contained in a single digit, while poverty has declined from 56% in 1992 to 24.5% during this year.
These economic development indicators are impressive, but paradoxical at the same time because of the skyrocketing unemployment levels standing at 29%, according to the Uganda Bureau of Statistics.
“Such a scenario suggests that growth and poverty reduction were not driven by productivity gains,†argued Lawrence Bategeka, a senior research fellow at the Makerere University Economic Policy Research Centre.
The centre organised a two-day national dialogue on “Rethinking Uganda’s Development Approach†at the Kampala Serena Hotel to review the performance in the realm of national development.
Bategeka told participants that politics was injuring economic development because management of public resources was entrusted to politicians not because of their competence, but because they attract more votes from public.
“The state should not choose political winners without considering competence. “We need to fight corruption and encourage merit based recruitment into public service if this country’s economy is to move forward,†he said.
Finance state minister, Prof. Ephraim Kamuntu, noted that the commendable economic performance faced challenges because the predominantly agricultural sector had not performed.
“Slower than desirable agricultural and industrial sector growth levels remain critical constraints to development.
“ In 2005 and 2009, agricultural sector grew by about 1.4% per annum,†the minister, said. “The sector’s contribution to GDP is rapidly diminishing and currently standing at 14.6. We need to rethink and consider injecting more funds into agriculture in our budgetary allocations,†he said.
The 2008/2009 World Bank report on Africa Development Indicators indicated that the rate of young unemployed people aged between 15 and 24 stood at 83% in Uganda. The report also reveals that 43% of sub-Saharan Africa’s population is between the ages of 0 and 14, with Uganda having the highest share at this age standing at 41%.
It also noted that out of Uganda’s estimated 34 million population, 60% fall under the youth age bracket. According to a recent report by the gender ministry, close to 390,000 people aged between 14 and 40 years are estimated to be entering the labour market every year, but only 130,000 were said to be getting employment opportunities.
Prof. Terry McKinley, the director of the School of Oriental and African Studies at the University of London, said Uganda needed to invest more in education and involve the youth in gainful employment.
“More unemployed people in the youth age bracket can cost the economy dearly because it constitutes the largest percentage of the countries’ population.
“They are most users of public resources. They must be assisted into being productive in return,†he said.
McKinley was also dismayed by the banking system, which he said was not encouraging more savings because of the higher lending rates, which he said were not development-oriented.
Dr. Abel Rwendeire, the deputy chairman of the National Planning Authority, which is overseeing the implementation of the National Development Plan, said the Government would move fast to work on the challenges constraining development.
The Government recently unveiled a sh54 trillion national development plan that is expected to transform Uganda from a peasant society to a middle-income one in 30 years.
However, Rwendeire, revealed that the Government was short of sh11 trillion for the plan.