Crisis, Adjustment and Growth in Uganda: A Study of by Arne Bigsten

By Arne Bigsten

Uganda within the Nineteen Seventies and early Nineteen Eighties was once certainly one of Africa's extra tragic fiscal tales. rising from civil warfare, it needed to embark on reform within the early to mid-1980s from a place of critical political weak point. within the learn, the consequences of monetary coverage on the combination point are mentioned intimately, yet 'snapshot' empirical analyses of responses on the family point, either city and rural, also are awarded. Uganda was once for a few years thought of to be Africa's 'worst case'; its fresh restoration hence offers desire for comparable nations within the region.

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Initiating Economic Reform In Uganda's adjustment debates, the Obote II period is often ignored for the more promising results of the NRM era, yet as the first real attempts at reform in Uganda, there are lessons to learn from the Obote II experience as well. 1 To achieve and maintain these goals, the economy needed market reforms. A Commonwealth team that visited Uganda in 1979 to survey its rehabilitation needs had made similar suggestions (Commonwealth Secretariat, 1979;Uganda, 1979b), as had IMP and World Bank missions of the early 1980s.

PnlPm -- -- - PJP n ------ .. _ _ i 150 100 50 --.............. -----t-----1 1985 1986 1983 1984 1982 1981 Year Note: P jP m is the ratio of exportable to importable goods prices in domestic currency; Pn/ Pm is the ratio of non-tradable to importable goods prices; PJPn is the ratio of exportable to non-tradable goods prices. Export prices are for products, while the remaining ones are GOP deflators and thus for value added, with relative prices in 1981 set equal to 1. P r: exportable prices. Robusta coffee producer prices are used as a proxy for exportable prices.

But the military regime was about to embark on 20 Crisis and Decline (1972-80) 21 policies that would drastically transform the structure of the economy and reduce the well-being of the people for decades. With its antisocialist rhetoric, the Amin regime frightened neighbouring Tanzania, with which Obote had enjoyed particularly good relations - Obote had patterned his Common Man's Charter, as well as the Nakivubo Pronouncements, on Nyerere's Arusha Declaration of 1967. Amin's relations with Kenya were not much improved, either, by his wild territorial claims on the western parts of that country.

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