On the 2nd of December,2008 Monitor Publication, Mr.Moses Byaruhanga submitted his observations of the high level of India's agricultural mechanization and commercialization of the sector as a strategic engine for national development. While I entirely agree with his observations and the need to revamp and re-invigorate the agricultural sector in Uganda, my surprise was in his tone of presentation. He sounded like an information broker to the much patronized and derided Ugandan rural farmer, especially for a Special Presidential Advisor on Political Affairs.
Like many government projects, The National Agricultural Advisory Services(NAADS) has often been found wanting in its delivery of services to the rural farmer causing the President to suspend the program in 2007 till it was "reviewed". Problem? Over politicization of government programs for tactical rather than strategic national goals by the political elite in Kampala. The President's apparent election slogan was "Bona Baggagawale" during the 2006 election. He promised access to low interest micro-credit for rural farmers and the urban poor similar to "Entandikwa" to invest in small enteprise development. It is from this camapign that SACCOS mushroomed around the country all waiting to tap into the Presidents committment to fight poverty head-on. It is from this pledge that Gen. Salim Saleh became the State Minister for Micro Finance.
As usual this was but political manouvery in a country yearning for a radical political shift. Todate, the Micro Finance Minister is the most invisible face of the President's large cabinet. In the end, Ugandans have lost millions of shillings to shoddy organizations such as boda boda associations, Dutch International alias TEAM, COWI and many others as a state suffering from political inertia looks on. The effect has been loss of trust to a sector so important for an agro-based economy. Cooperatives are not a problem but the lack of necessary policy reforms, regulatory mechanisms and institutional oversight that is lacking in everything going on in Kampala. Cooperatives provide, through resource pooling access to market information, collective storage and technology adoption in value and commodity market chains.
It would be interesting to know what Mr.Byaruhanga's brief was for that trip. Who funded this trip? What were the core objectives for the pilgrimage? That would help readers know whether Mr.Byaruhanga and his team have put down a blue-print to the National Planning Authority(NPA) as accountability for public funds for that trip to India. I would wish to know if there is any effort in the Ministry of Agriculture to facilitate farmers obtain and adopt appropriate technology through innovative policy reforms. Mr.Byaruhanga's observations are actually all over the internet. As a policy advisor to the President, it is prudent that he uses his influence to fast-track the establishment of a more effecient, effective and accountable goverment through technology adoption vertically and horizontally in public service as this will help facilitate information and knowledge sharing. This approach, for a political advisor, means him understanding the intricate requirements for the state at strategic level to be more progressive and reformist in orientation. It means developing a strategy to reform the structure of public administration to a small but effective, efficient and accountable structure of government. It calls for a radical approach in adoptiong smart-technologies, flattening of the decision making process as well as establishing policy reforms needed to implement the strategy.
Mr.Byaruhanga, a key political player in President Museveni's government,mentions that it is his dream to have a tractor in each Sub-County. This has been a pipe dream for many political talkers in Kampala since 1986. Tractors are not a new invention anyway. They have been part of the cooperative movement since the 1960s till the collapse of the same movement with the advent of World Bank/IMF economic reforms that liberalized the agricultural sector. The drive for SACCOS in government political circles by default is admission by the NRM government that actually the cooperative movement was the right vehicle to emancipate the rural poor, majority of whom are farmers. Deregulation and markets were adopted with alot of excitement in return for donor aid to run government in 1987 resulting into the collapse of the cooperative movement and now the white elephant that formerly housed the Coffee Marketing Board(CMB)in Bugolobi and just recently the Agoa Tri Star factory. Coffee Marketing Board(CMB), Lint Marketing Board(LMB) and other parastatals were part of various agro-value chains and fed into the cooperative movement that brought synergy into the agricultural sector in the 1960s, 1970s and 1980s. Our Kenyan neighbours despite their gradual adoption of market reforms have preserved some of this cooperative movement infrastructure not mention a controlled privatization of public corporations. In France, 9 out of 10 farmers are members of agricultural co-operatives; co-operative banks handle 60% of the total deposits and 25% of all retailers in France are co-operatives. (Source: GNC Newsletter, No 348, June 2007). In Kenya, co-operatives are responsible for 45% of the GDP and 31% of national savings and deposits. They have 70% of the coffee market, 76% dairy, 90% pyrethrum, and 95% of cotton. These facilitate effeciency at every level of the value and commodity market chains. It is therefore of concern that Kampala does not seem to have a visible strategic plan with any sustainable broad social impact. Rather you see a sexy mentality from those supposed to public policy for good of country.
I must submit Mr.Byaruhanga sounds awed by India strategic shift and seems helplessly hostage in a rough public policy management environment. And that is my only problem with the presentation from a Special Presidential Advisor.
Wednesday, February 11, 2009
Uganda now officially in the global credit crunch,the option?
Is the collapse of GTV, a UK based satelite TV corporation in 24 African countries including Uganda a clear signal to spend-thrift Ugandans that indeed the global economic meltdown is here with us for real? The sub-prime mortgage crisis in the US and the subsequent financial crisis has been in the news since 2008 and many of us have been somewhat indifferent. While the Americans and europeans have parked their cars due to the credit crunch as they adjust their lifestyle to a more realistic approach, Ugandans do not seem yet in sync with what is going on around the world. Reason, we just bought our dear President a $44m gulf stream 5 jet to ease his transport. Public expenditures such as these with no protest are a clear signal of a non-progressive government and now forward-looking or politically resigned citizenry.
Britain,Uganda's largest bilateral donor is in recession just like greater Europe. Japan and the US are in recession with factories and businesses closing shop. China whose economic growth was on a roller-coaster has caught the cold too. The thing is, the problem is very real. GTV is the first "blue-chip" corporation to close shop just like that and the impact is grave. 49 employees have instantly lost their jobs back on the streets. 700 franchise dealers have lost business while "bibanda" owners, bars and restaurants where premier league football has been a cash cow are either out of job or just in trouble. The spiral effect is certainly not obvious to many but the next 3 years are going to be different ladies and gentlemen.
You might not know what goes on in the corporate board rooms of your company. Why would you anyway? You're not a commissioned officer to qualify sitting in the corporate "situation room". But the possibility that you can lose your job in the current economic conditions is not something distant. You wont have anyone to blame by the way. Yes, you can lose your job anytime and I am not bluffing!! How prepared are you? Have you tried making a few adjustments in your lifestyle? If it is business as usual, then I bet you're going to crush!
It is obvious many corporate businesses in Kampala are going to be affected if not already but they rather would not publicly confront the 'monster" as they have floated on the Uganda Security Exchange due to a possible "run for the money" stampede especially in the banking sector. But all banks whose equity investors are foreign especially those based in Europe and the US can do a "GTV" and do not forget government insures only between 10-30% of your deposits. I am not saying dash for the money, just invest smart and be in the know of what is going on.
Britain is currently facing wide spread wildcat strikes over foreign workers shipped into the UK. Prime Minister Gordon Brown has asserted that UK jobs will remain for British workers a clear departure from the EU immigration policy as the recession bites. This is a time we might, collectively, regret all the lost opportunities we had when the global economy was in a boom. We might have to start regreting all the resources we have wasted out of excitement from a public policy stand-point. I am talking about a government that has been in celebrant mood for long.
If the $700m annual remmittance kit from kyeyo does not come home as a result of the credit crunch in Europe and the US due to loss of jobs and increased economic hardships, it will have massive impact on the construction, education, health and other social sectors of the economy. Government is going to realise low revenue to actually deliver the little it was delivering to the public if corruption remains a constant. Bureaucratic red-tape in the European Union governments and the US will delay disbursement of donor funds to the Ugandan government and NGOs as programs will be postponed for future action as resources are mobilized to address domestic economic problem in donors coutntries. NGO donors will find it hard to send money to Uganda when faced with harsh domestic economic challenges too. This therefore is not a good time for the beggar-economy we have bult over the years. This is not a good time of wasteful spending both at personal and state level. This is a time for frugal behaviour both from government and at individual level.
Unfortunately, we seem to rarely learn from history and we forget very fast and hardly anticipate the future.
For God and my Country,
Britain,Uganda's largest bilateral donor is in recession just like greater Europe. Japan and the US are in recession with factories and businesses closing shop. China whose economic growth was on a roller-coaster has caught the cold too. The thing is, the problem is very real. GTV is the first "blue-chip" corporation to close shop just like that and the impact is grave. 49 employees have instantly lost their jobs back on the streets. 700 franchise dealers have lost business while "bibanda" owners, bars and restaurants where premier league football has been a cash cow are either out of job or just in trouble. The spiral effect is certainly not obvious to many but the next 3 years are going to be different ladies and gentlemen.
You might not know what goes on in the corporate board rooms of your company. Why would you anyway? You're not a commissioned officer to qualify sitting in the corporate "situation room". But the possibility that you can lose your job in the current economic conditions is not something distant. You wont have anyone to blame by the way. Yes, you can lose your job anytime and I am not bluffing!! How prepared are you? Have you tried making a few adjustments in your lifestyle? If it is business as usual, then I bet you're going to crush!
It is obvious many corporate businesses in Kampala are going to be affected if not already but they rather would not publicly confront the 'monster" as they have floated on the Uganda Security Exchange due to a possible "run for the money" stampede especially in the banking sector. But all banks whose equity investors are foreign especially those based in Europe and the US can do a "GTV" and do not forget government insures only between 10-30% of your deposits. I am not saying dash for the money, just invest smart and be in the know of what is going on.
Britain is currently facing wide spread wildcat strikes over foreign workers shipped into the UK. Prime Minister Gordon Brown has asserted that UK jobs will remain for British workers a clear departure from the EU immigration policy as the recession bites. This is a time we might, collectively, regret all the lost opportunities we had when the global economy was in a boom. We might have to start regreting all the resources we have wasted out of excitement from a public policy stand-point. I am talking about a government that has been in celebrant mood for long.
If the $700m annual remmittance kit from kyeyo does not come home as a result of the credit crunch in Europe and the US due to loss of jobs and increased economic hardships, it will have massive impact on the construction, education, health and other social sectors of the economy. Government is going to realise low revenue to actually deliver the little it was delivering to the public if corruption remains a constant. Bureaucratic red-tape in the European Union governments and the US will delay disbursement of donor funds to the Ugandan government and NGOs as programs will be postponed for future action as resources are mobilized to address domestic economic problem in donors coutntries. NGO donors will find it hard to send money to Uganda when faced with harsh domestic economic challenges too. This therefore is not a good time for the beggar-economy we have bult over the years. This is not a good time of wasteful spending both at personal and state level. This is a time for frugal behaviour both from government and at individual level.
Unfortunately, we seem to rarely learn from history and we forget very fast and hardly anticipate the future.
For God and my Country,
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