TRADE AND ECONOMIC DEVELOPMENT IN UGANDAIssue No.19 - October/November 2012Special Edition onSOCIAL MARKET ECONOMYAND SUST...
12 FOREWORDARTICLES3 ECONOMIC PERFORMANCE INUGANDA SINCE 19977 THE CONCEPT OF SOCIAL MARKETECONOMY – AN INSPIRATION FORUGA...
2FOREWORDElly Twineyo Kamugishais the Executive Directorat the African Centre forTrade and Development(ACTADE). He is a se...
3ECONOMIC PERFORMANCE INUGANDA SINCE 1997By Fred MuhumzaFred KakongoroMuhumuza holds aPhD in DevelopmentEconomics from the...
432.521.510.50Coffee Price (US$/Kilo)1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04
580007000600050004003000200010000Credit to Private Sectorlendingrates302520151050CredittoPrivateSector
62000150010005000-500-1000-1500-2000Current account balanceReserves and related itemsCapital & financial account balance08...
7THE CONCEPT OF SOCIAL MARKETECONOMY – AN INSPIRATION FORUGANDA?By Mathias KampMathias Kamp is a Germanpolitical scientist...
8
9
10
11
12
13
14INCLUSIVE GROWTH FORSUSTAINABLE DEVELOPMENTBy Annette Were MunabiAnnette Were Munabiholds an M.A. inEconomics fromMakere...
15Bank of Uganda (December 2011). State of the Economy Report .Ministry of Finance, Planning and Economic Development. Bud...
16Ministry of Finance, Planning and Economic Development.Annual Budget Performance Report, FY 2010/11Lukwago, D., (2010). ...
17
18
19THE IMPACT OF NATIONAL BUDGETING ONTRADE AND WEALTH-CREATIONBy Charles Mulozi OlwenyCharles M. Olweny holdsa degree in H...
20Sectoral Shares in FY 2012/13Agriculture, 3.4%Health, 7.6%Water &Environment, 3.0%Justice/ Law &Order, 5.6%Accountabilty...
21
22US$inmillions2000200220042005200320002002200420052003200020022004200520032000200220042005200320002002200420052003Tanzani...
23WHY CITIZENS’ PARTICIPATION IN THEBUDGET PROCESS IS CRITICALby Julius MukundaJulius Mugisha Mukundais an economist fromM...
24ParliamentCabinetMFPEDLine Ministries/Spending Agencies/SWGs/DonorsNational Budget Workshop-Indicative Sector Ceilings-B...
25
26100%90%80%70%60%50%40%30%20%10%0%Central Govenment Local Governement2012/132011/12 2013/14 2014/157,633.807,693.507,693....
27THE ROLE OF NDP IN THESOCIAL MARKET ECONOMY ANDSUSTAINABLE DEVELOPMENTBy Richard MugishaRichard Mugisha holdsa degree (H...
28
29
30THE ROLE OF THE PRIVATE SECTOR INDEVELOPMENTBy Paul BushariziPaul Bushariziis currently thecontributing editor –Business...
31
32THE WAR WITHINBy Angelo IzamaAngelo Izama is aninvestigative reporterand blogger at MonitorPublications. He is anOpen So...
33
34
35UGANDA’S ECONOMIC CHALLENGES –A YOUTH PERSPECTIVEBy Bernard MukhoneBernard Mukhone isthe Coordinator ofthe „Young Leader...
36
37
38
39W.RöpkeA.RüstowA.Müller-ArmackL.ErhardF.BöhmW.EuckenW.RöpkeA.RüstowA.Müller-ArmackL.ErhardF.BöhmW.EuckenWestriveforthegr...
40
African Centre for Trade and Development3rd floor, Pension House, Plot 474 Gaba RoadP.O.Box 16452, Kampala UgandaTel:+256-...
Actade kas study   read it. see my remarks
Actade kas study   read it. see my remarks
Upcoming SlideShare
Loading in …5
×

Actade kas study read it. see my remarks

208 views

Published on

Africa will enhance economic growth when ( not if) they embrace Economic Transformation. Trade matters. Aid is past tense. Poor leadership. Elly Twineyo Kamugisha; Author: WHY AFRICA FAILS

Published in: Technology, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
208
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Actade kas study read it. see my remarks

  1. 1. TRADE AND ECONOMIC DEVELOPMENT IN UGANDAIssue No.19 - October/November 2012Special Edition onSOCIAL MARKET ECONOMYAND SUSTAINABLE DEVELOPMENT
  2. 2. 12 FOREWORDARTICLES3 ECONOMIC PERFORMANCE INUGANDA SINCE 19977 THE CONCEPT OF SOCIAL MARKETECONOMY – AN INSPIRATION FORUGANDA?14 INCLUSIVE GROWTH FORSUSTAINABLE DEVELOPMENT19 THE IMPACT OF NATIONALBUDGETING ON TRADE ANDWEALTH-CREATION23 WHY CITIZENS’ PARTICIPATION INTHE BUDGET PROCESS IS CRITICAL27 THE ROLE OF NDP IN THESOCIAL MARKET ECONOMY ANDSUSTAINABLE DEVELOPMENT30 THE ROLE OF THE PRIVATE SECTORIN DEVELOPMENT32 THE WAR WITHIN35 UGANDA’S ECONOMIC CHALLENGES– A YOUTH PERSPECTIVECONTENTSPublisher:African Centre for Trade andDevelopment (ACTADE)P.O. Box 16452, KampalaPlot 474 Gaba Road, 3rdFloor PensionHouse, KabalagalaTel: +256 414 664 616Email: actade@actade.orgWebsite: www.actade.orgProject Coordinator:Aine GloriaAg. Programme Officer, ACTADETel: +256 783 134 404Email: gloshy2007@yahoo.comDesign & print:Media PH Ltd.Email: mediaph@gmail.com,Tel: +256 312 371 217Photo credit:All photos courtesy of the New VisionGroup, ACTADE and Konrad-Adenauer-Stiftung.Funding:Konrad-Adenauer-Stiftung UgandaP.O. Box 647, KampalaPlot 51a Prince Charles Drive, KololoTel: +256 414 259 611Copyright:© ACTADE 2011All rights reserved. Reproductionof all or parts of this publication foreducational or other noncommercialpurposes is authorised without priorwritten permission from the copyrightholder provided the source is fullyacknowledged and any alterations to itsintegrity are indicated.Reproduction of this publication forsale or other commercial purposes isprohibited without prior written consentof the copyright holder.The opinions expressed in thispublication do not necessarily reflectthe views of ACTADE or the Konrad-Adenauer-Stiftung but rather those ofthe authors.THE GUIDE
  3. 3. 2FOREWORDElly Twineyo Kamugishais the Executive Directorat the African Centre forTrade and Development(ACTADE). He is a seniorpublic policy analyst andhas worked as a seniorprofessional at UgandaExport Promotion Board/GoU and with UNDPprojects on promotion ofexternal trade. He hasworked as a part timelecturer of MakerereUniversity BusinessSchool (MUBS) and asan Associate Consultantat Uganda ManagementInstitute (UMI). He is theauthor of the book “WhyAfrica Fails” (2012).
  4. 4. 3ECONOMIC PERFORMANCE INUGANDA SINCE 1997By Fred MuhumzaFred KakongoroMuhumuza holds aPhD in DevelopmentEconomics from theUniversity of Manchesterand is endowed with vastexperience in the areasof research and policyanalysis. In the last fifteenyears, he has taughteconomics in variousUniversities in Uganda,worked at the EconomicPolicy Research Centre atMakerere and is currentlyan Economic Advisor inthe Ministry of FinancePlanning and EconomicDevelopment. He hascarried out considerableanalysis of various aspectsof the socio economicdevelopment policiesand outcomes in Ugandaleading to a number ofpublications and publicdiscussions on the subject.
  5. 5. 432.521.510.50Coffee Price (US$/Kilo)1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04
  6. 6. 580007000600050004003000200010000Credit to Private Sectorlendingrates302520151050CredittoPrivateSector
  7. 7. 62000150010005000-500-1000-1500-2000Current account balanceReserves and related itemsCapital & financial account balance08/0909/1092/9393/9494/9595/9696/9797/9898/9999/0000/0101/0202/0303/0404/0505/0606/0707/08
  8. 8. 7THE CONCEPT OF SOCIAL MARKETECONOMY – AN INSPIRATION FORUGANDA?By Mathias KampMathias Kamp is a Germanpolitical scientist withexpertise in the areas ofdevelopment cooperation,democratisation,governance and civiceducation. He holdsbachelor degrees inPublic Administrationand European Studiesand a master degree inInternational Relationsand Development Policy.Currently he works asProgramme Officer inthe office of the Konrad-Adenauer-Stiftung forUganda and South Sudan,based in Kampala.
  9. 9. 8
  10. 10. 9
  11. 11. 10
  12. 12. 11
  13. 13. 12
  14. 14. 13
  15. 15. 14INCLUSIVE GROWTH FORSUSTAINABLE DEVELOPMENTBy Annette Were MunabiAnnette Were Munabiholds an M.A. inEconomics fromMakerere Universityin collaboration withthe African EconomicResearch Consortium(AERC) and a B.Sc.in Economics andStatistics from MakerereUniversity. Currentlyshe works as a PolicyAnalyst for EconomicPolicy and Livelihoods atDevelopment Researchand Training (DRT).
  16. 16. 15Bank of Uganda (December 2011). State of the Economy Report .Ministry of Finance, Planning and Economic Development. Budgetspeech, FY 2012/13 delivered at the meeting of the second session ofthe 9thParliament of Uganda12108642010.88.5 8.77.2 7.36.75.95.1 53.52.62.82.11.7GDPgrowthratePercapitaGDPgrowthrate2001/2002002/2002003/2002004/2002005/2002006/2002007/2002008/2002009/2012010/2016.86.5 6.34.88.43.6Agricultureforestry andfishingIndustryServices2008/092009/102010/112011/12109876543210
  17. 17. 16Ministry of Finance, Planning and Economic Development.Annual Budget Performance Report, FY 2010/11Lukwago, D., (2010). Increasing Agricultural Sector Financ-ing. ACODE Policy Research Series No. 40,2010
  18. 18. 17
  19. 19. 18
  20. 20. 19THE IMPACT OF NATIONAL BUDGETING ONTRADE AND WEALTH-CREATIONBy Charles Mulozi OlwenyCharles M. Olweny holdsa degree in HumanResource Managementand a Masters degreein Human Rights fromMakerere University.He holds numerouscertificates in humanrights and humanitarianlaw. He worked withFoundation for HumanRights Initiative (FHRI)as Research Monitor anddocumentation officerfor two years and is nowworking with VolunteerEfforts for DevelopmentConcerns (VEDCO) asadvocacy officer.
  21. 21. 20Sectoral Shares in FY 2012/13Agriculture, 3.4%Health, 7.6%Water &Environment, 3.0%Justice/ Law &Order, 5.6%Accountabilty, 5.2%Tourism, Trade andIndustry, 0.7%Land Housing andUrban Dev, 0.2%Social Dev, 0.8%ICT, 0.1%Public Sector Mgt, 9,7%Legislature, 1.7%Interest Payment, 7.7%Security, 7.3%Works &Transport, 14.8%Education, 15.7%Energy,13.9%
  22. 22. 21
  23. 23. 22US$inmillions2000200220042005200320002002200420052003200020022004200520032000200220042005200320002002200420052003Tanzania Rwanda Burundi China600400200(400)(600)(200)Trade BalanceImportsExportsKenya
  24. 24. 23WHY CITIZENS’ PARTICIPATION IN THEBUDGET PROCESS IS CRITICALby Julius MukundaJulius Mugisha Mukundais an economist fromMakerere Universityand currently a SeniorProgramme Directorat Forum for Women inDemocracy (FOWODE).He is also a coordinatorof the Civil SocietyBudget AdvocacyGroup (CSBAG), acoalition of individualsand organisationsinterested in influencingthe national budgetprocesses andspecialised in the areaof Economic PolicyAdvocacy.
  25. 25. 24ParliamentCabinetMFPEDLine Ministries/Spending Agencies/SWGs/DonorsNational Budget Workshop-Indicative Sector Ceilings-Budget & SWG GuidelinesProparation of SectorBFP and RevisedMTEF Allocationswithin the ceilingOct- Dec Jan-Mar Apr-JuneThe Consultative Budget ProcessBudgetSpeechSubmission of IndicativePlan MTEFCabinate approvalof BFP/MTEFCompilation of National BFPAnd Upated MTEFFinalisation of BudgetAllocation MTEFFERPreparation of DetailedBuget EstimationFinal BudgetApprovalApril 1 May15 June15InterministerialConsultations
  26. 26. 25
  27. 27. 26100%90%80%70%60%50%40%30%20%10%0%Central Govenment Local Governement2012/132011/12 2013/14 2014/157,633.807,693.507,693.506,218.702,483.502,106.102,106.101,671.40
  28. 28. 27THE ROLE OF NDP IN THESOCIAL MARKET ECONOMY ANDSUSTAINABLE DEVELOPMENTBy Richard MugishaRichard Mugisha holdsa degree (Hons) inBusiness Administrationmajoring in managementfrom Nkumba University,Uganda. He also holdsa Diploma in SecondaryEducation obtained fromNkozi National Teacher’sCollege. He has tenyears professionalworking experience andthree years experiencein policy and advocacyrelated work. Since 2010he has been workingwith PELUM Ugandaas Program Officer forPolicy and Advocacy.
  29. 29. 28
  30. 30. 29
  31. 31. 30THE ROLE OF THE PRIVATE SECTOR INDEVELOPMENTBy Paul BushariziPaul Bushariziis currently thecontributing editor –Business & Politicsat the Vision Group.Prior to his currentappointment he was theBusiness Editor at theNew Vision for sevenyears. Previously he wasa Reuters Correspondentfor Uganda, a stint whichtook him to various partsof the country and tothe DR Congo. He is agraduate of psychology atMakerere University.
  32. 32. 31
  33. 33. 32THE WAR WITHINBy Angelo IzamaAngelo Izama is aninvestigative reporterand blogger at MonitorPublications. He is anOpen Society Fellow.He was a 2011 KnightFellow at StanfordUniversity working onjournalist security.He previously held aNED Reagan-FascellDemocracy fellowshipand has founded ahuman security thinktank in Kampala. He wasa special projects writerat Monitor Publicationsand obtained a lawdegree from MakerereUniversity in Kampala.
  34. 34. 33
  35. 35. 34
  36. 36. 35UGANDA’S ECONOMIC CHALLENGES –A YOUTH PERSPECTIVEBy Bernard MukhoneBernard Mukhone isthe Coordinator ofthe „Young LeadersThink Tank for PolicyAlternatives“, aninitiative supported bythe Konrad-Adenauer-Stiftung. He is anentrepreneur and theCEO of Elegant Groupof Companies and alsoworks as a freelanceconsultant specialised inproject implementationand events coordinationand management.Currently he is pursuinga master degree in„Local Governanceand Human Rights“at Uganda MartyrsUniversity.
  37. 37. 36
  38. 38. 37
  39. 39. 38
  40. 40. 39W.RöpkeA.RüstowA.Müller-ArmackL.ErhardF.BöhmW.EuckenW.RöpkeA.RüstowA.Müller-ArmackL.ErhardF.BöhmW.EuckenWestriveforthegreatestpossiblefreedominforeigntradeinordertoemphasisetheprincipleoftheinternationaldivisionoflabouranditsbenefitforallpeoples.(LudwigErhard)…solidpublicfinances.…openmarketsinaglobalisedworldnotregulatedbytariffsandtraderestrictions.AnyexperimentinthecharacterofsupposedwelfareofcharitableattitudetospendmoremoneythantheTreasury’srevenues,breachesgoodandprovedprinciples.(LudwigErhard)…acommitmenttosocialpartnershipandcollectivebargaining.Employeesandemployerscanorganisetheirlabourrelationsbetterthanthestate.Everythingmustbedonetorelocatethefocalpointoflife’sresponsibilityfromthegovernmentalcentretotheposition,whichreasonablethinkingandhistoricalexperiencenaturallydemand,[…]tothedecentralisednon-governmentalorganisations.(WilhelmRöpke)…anindependentmonetarypolicyfocussingonmaintainingpricestability.Alleffortstoachieveacompetitivesystemareinvainunlessacertainmonetarystabilityisassured.Thus,thereisaprimacyofmonetarypolicyinacompetitionorder.(WalterEucken)…afunctioningcompetitionbetweencompaniespreferablywithoutdistortivesubsidies.Competitionisaguarantorforinnovation.Ifthereisnoorinsufficientcompetition,therewillbeaninterferenceontheconstitutionallydesireddrivingforcesofmarketprices.Theproductionofgoodsandthedistributionwillbesteeredinanundesireddirection.Thismisdirectedeconomiccooperation,however,isnoteventhecrucialpoint.Moreimportantly,thesubstanceofsocialjusticeinthefreemarketsystemisdisrupted.(FranzBöhm)Astrongstateisnotoneinter-feringinandattractingeverything.Onthecontrary,thetrulystrongstateisnotcharacterisedbythecomplexitybutbytheindepen-dencyofinterestgroupsanditisidentifiedbytherigidenforcementofitsauthorityanditsdignityasrepresentativeofthepublic.(WilhelmRöpke)…a‘strong’stateprovidingguidelineswithoutinterveninginallareasoflife....equalparticipationinameritocracy.Thisconcernstheopportunitiesonthelabourmarket,thepossibilityforeconomicmobilitybyeducationandsocialinte-grationassistanceforimmigrants.Itisanessentialpartofapositivefamilypolicytoofferequallivingconditionsandopportunitiesforadvance-mentbyprovidingequaleducationalopportunitiesonthevariouslevelsaccordingtoaffinityandaptitudeofouryouthregardlesstheincomeandtheassetsoftheirparents.(LudwigErhard)…thesolidaryassuranceofliferiskswhilstensuringtheprincipleofsubsidiarity.Economicfreedomandsocialcompulsoryinsuranceareincompatible.Thus,itisnecessarytorecognisetheprincipleofsubsidiarityasoneofthemostcrucialorganisingprinciplesforthesocialassuranceandtogiveprioritytoself-helpandindividualresponsibility.Accordingly,thegovernmentshallhaltprotectionwherevertheindividualandhisfamilyarestillabletomakeindependentandresponsiblepreparations.(LudwigErhard)…theappreciationoffamilyandcivicengagement.Wefirmlybelievethatthereisaninfinitenumberofthingsmoreimportantthantheeconomy:family,community,thestate,allformsofsocialintegrationingeneral[…].(AlexanderRüstow)…theprotectionoflivelihoodsandsustainable,resource-efficienteconomicactivity.Theprotectionofthepeopleagainstdamagescausedtotheenvironmentrequirestheeconomytorecogniseandrealiseitssocialresponsibilityintakingadequatemeasuresinthedevelopmentoftechnologypreventingdamagetohumanity.(LudwigErhard)…confidenceinpeople’stalentsandskills,i.e.theirtalentforfreedom.Itreliesontheprinciplesofpersonalresponsibility,theprotectionofproperty,freedomofcontractanddecentraliseddecision-making.Civicfreedomisanillusionaslongasitisnotbasedonthefundamentaleconomiclibertiesofthefreemovementofcapitalandlabour,therighttoprivatepropertyandtheabilitytosecureanhonestprofit.(AlfredMüller-Armack)…astrongentrepreneurshipandthecommitmenttosmallandmedium-sizedbusinesses.Acceptingresponsibilityandrisk-takingareimportantpillarsofsocialprogress.Thetransferofresponsibilities[…]implyasysteminwhichtheentrepreneurfulfillsaneconomicroleinadditiontosecuringhisowneconomicexistence,eventhoughthisisnotalwaysapparentandevidenttotheindividual.Hemaynotbeawareofhiseconomictask;nevertheless,heperformsthisroleifinthissystemofamarketeconomythefreeformationofpricesandtheengineofthecompetitionremainprotectedandvivid.(LudwigErhard)…afairsystemoftaxationrequiringtheindividualtocontributetothecommunityaccordingtohisability.Forinstance,itisextremelycontradictoryifthecitizencomplainsabouttheunbearabletaxburdenand,atthesametime,expectsstateaid,which,inturn,givethegovernmentthemoralrighttolevyevenhighertaxes.(LudwigErhard)Themarketeconomyisthemostdocile,digestiveandvitaleconomicorder,whichcanbeimagined.Aslongasonlyaminimumofcoreconditionsaremet,itisremarkablehowlongitcandealwithpoisons,contaminantsandheavyburdens–perfectandupright.[…]AndIherebyadd:eventhisdigestivepowerofthis[…]systemisnotinfinite.Thelongertheexposure,themorevisiblethedamages,themorecriticalthetestofendurance,whichalsothissystemcouldeventuallynotwithstand.(WilhelmRöpke)...theacceptanceofdifferencesinincome,aslongasthegapbetweenpoorandrichisnottoowide.Preciselyhere,governmentpolicyofdistributionstepsin.Itwasdemonstratedthatthedistributionofthenationalproductbythepricemechanism[…]isbetterthanthedistributionbasedonarbitrarydecisionsbyprivateorpubliccorporations.[…]Alsowiththisdistributionmechanism,however,questionsremainunansweredanditrequiresadjustment.[…]Theincomeinequalityleadstoasituationwheretheproductionofluxurygoodsalreadytakesplacealthoughtheurgentneedsoflow-incomehouseholdsremainunmet.Thus,thisis,wherethedistributioninacompetitiveorderrequiresadjustment.(WalterEucken)Self-discipline,asenseofjustice,honesty,fairness,chivalry,moderation,publicspirit,respectforhumandignityofothers,firmmoralstandards–allthesethingspeoplemustinternalisewhenenteringthemarketandcompetingwitheachother.(WilhelmRöpke)…anethicalfoundationfortheeconomicandsocialorder.TheSocialMarketEconomyasaregulativepolicyaimstocombine,onthebasisofacompetitiveeconomy,freeinitiativeandsocialprogress.(AlfredMüller-Armack)…coreregulatorybeliefs,whichshouldbeenforcedonEuropeanandinternationallevelintheinterestofeconomicstability.…flexiblethinkingnotinterpretingfreedomandsocialbalanceasopponents.
  41. 41. 40
  42. 42. African Centre for Trade and Development3rd floor, Pension House, Plot 474 Gaba RoadP.O.Box 16452, Kampala UgandaTel:+256-414-664616Fax: +256-414-343456Email: actade@actade.orgWebsite: www.actade.org

×