By Arne Bigsten
Uganda within the Seventies and early Eighties was once considered one of Africa's extra tragic financial tales. rising from civil warfare, it needed to embark on reform within the early to mid-1980s from a place of serious political weak spot. within the learn, the results of financial coverage on the mixture 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 contemporary restoration therefore presents wish for comparable nations within the region.
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Extra resources for Crisis, Adjustment and Growth in Uganda: A Study of Adaptation in an African Economy
Sample text
Thus initially the rapid currency depreciation was not necessarily accompanied by trade liberalisation. The situation was reversed in 1983, with falling international terms of trade but a rising domestic price ratio between Obote II to the NRM (1981-86) 35 exportables and importables, as traditional exports were moved from Window 1 to Window 2. 2: Relative Prices 1981-86 350 300
It was officially stated (Uganda, 1994: 4) that 'foreign exchange had become a matter which will not be of concern and frustration to the people of Uganda', but there was still a long way to go before an equilibrium exchange rate would be reached. The government had sizeable budget deficits during 1981-83, necessitating domestic borrowing, essentially from the central bank. 2 This, together with the removal of price controls on most items, raised average annual inflation to over 40 per cent during this period.
12 Crisis, Adjustmentand Growth in Uganda contradictions) arising from the brief, but eventful, postIndependence experience: how to preserve state power; how to expand investment and thereby increase economic growth; how to prevent the 'leakage' of national resources abroad; how to incorporate peasants and the rural sector in the development process; how to redress the inequalities in incomes and opportunities; and finally, how to bridge the regional economic gaps. Unfortunately for Uganda, the 'heights' acquired in the nationalisation drive, which included manufacturing and transport companies as well as banks, were not sufficiently 'commanding' even in government hands.