The rehabilitation of the economy of Uganda : internal and external balance

Abstract

The purpose of this study is to devise an approach to macro-economic policy in the reconstruction of the Ugandan economy. The study analyses Ugandan economic performance in the major sectors of production, the principal markets in the economy and external trade and tries to identify the important trends and their cause. A framework, built around the attainment of internal and external balance objectives, is designed from which a package of macro-economic policies and strategies is derived. The macro-economic policies and strategies are classified into three categories: stabilisation, rehabilitation and development. Stabilisation and rehabilitation are pursued concurrently in the short-run while development strategy focuses on the long-run. Stabilisation policy is directed at attaining stability in the price level, full employment and external balance; rehabilitation strategy aims at rebuilding Uganda's production capacity to the 1970 level where it can support an economic growth rate of at least 6 per cent; development strategy aims at boosting the rate of investment in order to attain a high rate of economic growth (at least 6 per cent per year) with high employment and equity. A long-term strategy of macro-economic stabilisation is recommended to support the development strategy. Show more