Month: June 2023

Authorized Economic Operator (AEO) Arrangement Between China and Uganda Will Improve Trade and Help URA in Revenue Collections

Posted on By Sino Uganda Research Centre

By Alan Collins Mpewo

 Technology has been prioritized by many countries allover the world because of the advantages and potential hacks that can be exploited. Often times the exploitation has been used to wage war, spying and propaganda. Other nations to the contrary have taken a distant trajectory from the usual, and used technology to outlive the blocks that avail themselves. Much as technology keeps improving and it still gets so much threat from people’s perception, it should be underscored that technology is the future.

Recently, China together with the Uganda Revenue Authority, a public body in charge of Revenue collection in Uganda, had a commemoration of a memorandum of understanding, that the two parties entered into in 2021. The spirit of the memorandum of understanding was the Authorized Economic Operator (AEO) Mutual recognition arrangement and this was signed at the 5th AEO Global Conference that was held in Dubai.

Uganda would be able to benefit from the arrangement in terms of streamlining trade finance and revenue collection which is aligned to China’s Revenue collection practices and enhancement of trade framework. If critically analyzed, the main informing aspect for Uganda to enter this mutual arrangement was on a basis of China’s stand on the global floor of trade. The arrangement was also meant to further the corporation between Uganda and China on the basis of the Forum on China-Africa Cooperation (FOCAC). This way, Preferential treatment will be accorded to the goods coming from China to Uganda and vice versa. Therefore, this will be a wake-up call for companies that engaged in supply of goods, works, and services to and from Uganda and this can be confirmed to thus far have been achieved on great strides.

Numerous companies have taken part in registration and confirming participation in this great initiative and it can safely be said that there have been more than 5,000 Chinese companies and over 150 from Uganda adapting to this new trade arrangement. The good news with this is that over 230 companies from both countries have since engaged and participated in trade together using the arrangement and about 130 billion have been collected by the Uganda Revenue Authority for the trading done by those companies along the border and within the boundaries of Uganda. The value of the trade between the companies in both countries has also increased in the recent financial year to over 750 billion Ugandan shillings. This goes back to the objectives set out in the various Corporation agreements that two countries have been engaged in, in the recent years.

The most known modern way the countries worldwide are able to facilitate state activities and governments is through revenue collection and this is the main basis for engaging into this kind of arrangement by the two players. Therefore, each country twice as much to simplify not only ways of generating more revenue but also without inconveniencing the taxpayer while maintaining stable means of putting such finances to productive use. As far as application of the revenue is concerned, Uganda still grapples with all possible forms of corruption and should therefore seek as much of lessons from China to make sure that their education of the vice is also a major objective if it wants to make proper realization of the revenue’s benefits.

The two countries also realized the adverse effects of delay in transportation of goods and services across boundaries and therefore since data is one of the most important resources in a government can have grip on, since this arrangement is also meant to enable easy data sharing on various cargo that would be transported to and from the two countries.

However, with multi border trade comes risks and therefore imperative to come up with risk assessment to measures. In this case, the arrangement was also meant to provide for better grip on the control of the Trade Practices between all key players during transportation and find a delivery of the goods to the consumers. On another bright side, the arrangement has since helped to increase competitiveness among the companies involved in the platform in as far as manufacturing, packaging, delivery, and response to consumer feedback. With clearance now eased, goods and services will be able to reach their final destination in the shortest possible time and also enable the companies involved to compete and set up themselves for better and bigger deals in the trade sector. Presently, more than 20% is being benefited from only the companies that are participating in this arrangement which is a great side and commendable initiative by the two countries. The figures from China are equally promising and therefore an indicator of why good international relations is important and a stable means of achieving much of the goals amongst various nations.

Tax evasion is a crime that many countries grew up with fighting to the nail to make sure that its effects are greatly eradicated. Otherwise, failure to combat such vices undermines efforts that would have been invested. Therefore, this calls for possible forms of compliance with the day’s tax laws, regulations, and practices. The benefits of this arrangement can not be overemphasized, but ultimately, with furthered sensitization, there will be more players joining along the way.

Alan Collins Mpewo, is a Senior Research Fellow, Development Watch Centre.

 

 

Diplomacy and Development: A Citizen’s Perspective on China’s Role in Uganda’s Economic Development

Posted on By Sino Uganda Research Centre

By Busulwa John Ivan

Diplomacy, international relations, and foreign policy play crucial roles in shaping nations’ economic development. China, a country known for its rich history and economic prowess, has significantly contributed to Uganda’s economic growth over the years. This essay explores the historical context of Uganda’s friendship with China and the role it has played in fostering economic development in Uganda.

The diplomatic relations between China and Uganda began in 1962 when Uganda gained independence. Nine days after Uganda gained her independence on October 9, 1962, China established diplomatic ties by opening its embassy within the country. Since then, both countries fostered a friendship based on mutual respect and non-interference in each other’s internal affairs. This approach laid a strong foundation for sustained cooperation and shared development objectives.

China has emerged as one of Uganda’s most important trading partners. Over the years, bilateral trade has grown significantly, reaching approximately $1.13 billion in 2022. This accounts to 6.6% growth! In a bid to improve and boost trade between the two countries, China granted zero-tariff to 98% of taxable items to Uganda. China has also become a key importer of Ugandan agricultural produce, including coffee, tea, and other agricultural products which stood at $36.19M in 2022. These exports have contributed to Uganda’s economic growth and provided income opportunities for local farmers.

Another key area where China has and continues to play a significant role in Uganda’s economic development is infrastructure.  Chinese companies have participated in various projects, including the construction of roads, bridges, stadiums, and hydroelectric power plants. Notably, the Kampala-Entebbe Expressway which cost USD 479M with the Chinese government funding 74% of that cost, the ongoing Entebbe Airport Expansion and Upgrading Project which is a US$200 million preferential loan project financed by the Export-Import Bank of China, the Karuma Hydroelectric Power Station, and the Isimba Hydroelectric Power Station which both combined added a significant 783 megawatts of electricity to Uganda’s national grid are some of other examples of successful collaborations. These infrastructure projects have improved transportation networks, boosted tourism, and enhanced Uganda’s overall competitiveness.

The Chinese commitment to helping Uganda construct and develop world class infrastructure isn’t a recent phenomenon but one that has been existing for decades. A case in point is the Mandela National Stadium that was constructed by the Chinese way back in April 1993 and handed over to the Ugandan Government in February 1997. The stadium, 30 years after its construction still remains Uganda’s biggest with 40000 seats with accessory constructions including a hotel of 120 beds, 2 outdoor tennis courts, 2 volleyball training grounds, 2 basketball training grounds and one football training ground.

In health sector, China contribution cannot be underestimated. For the past four decades, China has been sending medical teams to Uganda to provide support, share expertise, and offer training programs. Up to now, 11 teams and about 128 doctors have been sent to work in Uganda mainly in Jinja and Naguru Hospitals at the Chinese Government’s own expenses.

In response to the COVID-19 pandemic, China provided medical supplies, including personal protective equipment (PPE), testing kits, and vaccines to Uganda. The Chinese government has donated 1 million doses of Covid vaccines and thousands of units of testing kits to Uganda. These contributions have been crucial in strengthening Uganda’s healthcare capacity and addressing public health challenges at a time when other developed countries chose vaccine nationalism. As other countries opted to consider vaccines for their citizens first, China declared covid-19 vaccines a public good!

One of the crown jewels of the strong Chinese support of Uganda’s health sector is the $8M Uganda-China Friendship hospital in Naguru. Completed in December 2011, the hospital consists of seven buildings, four operating rooms, a maternity ward, a pediatric unit, a teenage center (adolescent health unit), a blood bank, radiology department (including a CT scanner) and housing for medical staff. Earlier this month, Chinese Ambassador to Uganda, Zhang Lizhong told Ugandan media and think tanks that currently, “Chinese experts are conducting a feasibility study on the renovation and expansion project of the China-Uganda friendship Hospital.”

In the education sector, China has offered scholarships to Ugandan students, enabling them to pursue quality higher education in China. These educational opportunities have empowered young Ugandans with knowledge and skills that contribute to Uganda’s human capital development. Additionally, the Chinese embassy established the Confucius Institute at Makerere University, which has fostered people-to-people cultural exchange between the two friendly countries.  The Chinese government has also offered scholarships locally to help students who are economically underprivileged students. Since 2016, over 6000 Ugandans have attended China-aided training courses and seminars in different sectors such as agriculture, medical care, public administration, infrastructure among others.

It shouldn’t be left unnoticed that the 61-year-old longstanding bond between Uganda and China encompasses more than just economic transactions but one that serves as a testament to the profound influence of diplomacy and international relations in shaping the destinies of nations. China has played a vital role in supporting Uganda’s security efforts. Both countries have engaged in military exchanges and training programs, promoting capacity-building and knowledge sharing. China has provided military equipment and technology to enhance Uganda’s defense capabilities. This cooperation has bolstered regional stability and contributed to peacekeeping efforts in Africa. Early 2021, Chinese appointed special envoy for the Horn of Africa (HA) who among other countries visited Uganda and through diplomatic channels continue to engage countries in HA with aim of ensuring stability which is key for both social and economic development.

China’s involvement in Uganda’s economic development through diplomacy, international relations, and foreign policy has been significant. The history of friendship between China and Uganda has laid the groundwork for extensive cooperation. China’s contributions to Uganda’s health, education, agriculture, trade, and infrastructure development have positively impacted the country’s economic growth and improved the livelihoods of its citizens.

While acknowledging China’s positive contributions, it is important to recognize that international relations are complex and involve diverse perspectives. By harnessing the synergies between the countries’ respective strengths, China and Uganda can embark on a journey that not only enriches their bilateral ties but also sets an exemplary model for international collaboration. In light of this, I urge Uganda’s leaders, businesses, and citizens to actively engage with China, explore new avenues of collaboration, and capitalize on the immense promise that our relationship holds so as to build a community of shared future and prosperity for mankind in the new era.

Busulwa John Ivan is a Law student at Makerere University and a research Fellow at the Sino-Uganda Research Centre

Ugandans Increasingly Benefitting from China’s Agricultural Initiatives

Posted on By Sino Uganda Research Centre

By Moshi Israel

Development assistance comes in many forms and at various levels. It can be extended to governments and its institutions, to private institutions and to local communities. China has been involved in all forms of development assistance to Uganda.

It is important for local communities to benefit from development aid because they are at the center of national development strategies. The local communities in Uganda largely depend on Agriculture to make ends meet. It is the reason why Agriculture is the backbone of Uganda’s economy. Agriculture is a lucrative venture in Uganda despite obvious obstacles. The sector employs 70% of the population, contributes half of Uganda’s export earnings and a quarter of its gross domestic product (GDP).  Therefore, investment in local communities and in Agriculture is paramount to shaping Uganda’s economic development.

The Chinese government and private sector are having a profound imprint on Uganda’s progress to a middle-income country. China’s extended hand of friendship has touched the very core of Ugandan society and testimonies from the beneficiaries are everywhere for all to see.

China has strengthened its already cordial relationship with Uganda by increasing its presence in the country and injecting much needed aid into the very backbone which keeps Uganda’s economy standing straight. Uganda has received project aid in form of interest free loans and grants from her Chinese friends.  Projects like Kibimba and Doho rice schemes, are one of many initiatives that validate Uganda-China Partnership.

Rice farming has been a leading project of interest by china in Butaleja district in Uganda. Here, the local communities attest to milestones achieved due to direct collaboration with China.  A number of local farmers have benefited from hybrid rice farming in the district. Rice farming has radically shifted the fortunes of local farmers and enriched the community. Locals have attested to being elevated from absolute poverty. Some have been able to build homes, educate their children and purchase previously unaffordable luxuries. Women are also increasingly contributing to household incomes by participating in rice farming. China has also purchased state of the art machinery to further modernize farming in the area. This machinery is set to arrive in Butaleja district anytime. Farmers are also supplementing rice farming with the growing of fruits such as mangoes and water melons for commercial purposes. Butaleja has become a reputable hub for rice and is supplying their products to other regions.

Additionally, as they say, one good turn deserves another. The best practices of rice farming in Butaleja have the potential to be replicated in other regions of Uganda which would boost the Agricultural sector nationally. Besides, some farmers in Butaleja already export their products to neighbouring Kenya.

Then there is the tripartite partnership Uganda has with China and FAO. The three partners plan to implement phase three of the FAO China-Uganda South-South Cooperation (SSC).This three-year $12m (Shs44b) project would benefit over 9000 farmers. The project aims at improving crop, livestock and fish production. Consequently, 3000 women, 1,000 livestock farmers and 100 fish farmers in 30 districts are set to gain from technical instruction and knowledge-sharing with Chinese experts. According to the project head, Mr. Zhang Xiaoqiang, the beneficiaries will be selected in collaboration with the Ministry of Agriculture, Animal Industry and Fisheries and district agriculture officials. Furthermore, during the event at the Kajjansi Aquaculture Research and Development Center, H.E the Ambassador, Zhang Lizhong, assured Ugandans that the project is one of many vital collaborations between Uganda and China, and the latter will continue to support Uganda by sending experts to share knowledge with local farmers.

In the long term, thousands of youths and women will have improved livelihoods by earning an income without overcrowding the already bloated formal job market that has left many Ugandans frustrated.

China has also aided in the setup of Wakawaka fish landing site and] Kajjansi Aquaculture Training Center. Coffee, fish, cotton, tea and various food products are among Uganda’s major exports. The country is a food basket in the region.

China has a very good eye for opportunities and identifying the agriculture sector of Uganda as a major recipient of development assistance is a wonderful exhibition of their mature diplomacy and tact. This is how local communities tell the difference between serious allies and opportunists. A true friend seeks to improve those areas about you that are vital for your progress. This is what the agriculture partnership between Uganda and China is yielding.

Once, every local farmer can access modern ways of farming and implement them to their logical end, then Uganda is on its merry way to unprecedented economic development. Uganda’s tax base is limited due to rampant poverty. However, if the common people can utilise their naturally endowed land and earn a living with a decent income, then the tax base dramatically changes for the best and the country at large benefits.

The partnership between Uganda and China underlines one important tenet; there is no national development without uplifting local communities. It is good news that China understands and appreciates this fact.

The Writer is a Research Fellow with Development Watch Centre

 

 

Diplomacy and Economic Development: Taking Stock of China-Uganda Relations

Posted on By Sino Uganda Research Centre

By Nanziri Christine

The world today considers diplomacy vital in shaping and developing countries’ economies. As a landlocked country in East Africa, establishing diplomatic relations with various countries is considered one of the ways to boost Uganda’s economy. Through economic diplomacy from both sides, to a greater extent, Uganda continues to attract Chinese investments in different sectors a trend that started 60 years ago and improved from strength to strength in the last two decades that today, for consecutive years, China tops Uganda’s source of foreign direct investments!

China’s role in Uganda’s economic development is evident in various forms, including infrastructure development, education, health, agriculture, and trade. Last year, the two countries celebrated 60 years of diplomatic relations. China was one of the first nations to recognize the newly independent nation, Uganda, and the relationship between the two has been strengthened by China’s policy of non-interference in internal affairs of others.

China has been involved in Uganda’s infrastructural development, positively impacting the economy of Uganda as a whole and neighboring countries. Examples include the construction of Uganda’s largest hydropower dams, Karuma and Isimba power dams, which have increased Uganda’s electricity generation capacity. Other China supported infrastructure projects include roads, with China funding the glamorous Entebbe express highway.

China has equally positively impacted Uganda’s healthcare sector. China has so far sent 21 medical teams to Uganda to support its medical healthcare services plus building a 100-bed – China-Uganda friendship hospital (Naguru hospital) to boost Uganda’s health. When the Covid 19 pandemic broke out, as the rest of major economies of the world embraced vaccine nationalism, China religiously amplified her support donating the much-needed medical supplies to Uganda.

The Agriculture, fishing and trade sectors have also been developed through China’s training programs and the provision of equipment. For example, the Aquaculture Research and Development Centre Kajjansi also known as China-Uganda Friendship Agricultural Technological Demonstration Centre is one of many vivid examples in this sector.

Relatedly, working with the United Nations’ Food and Agriculture Organization (FAO), in 2009 China introduced a new programme dubbed FAO-China South-South Cooperation (SSC) and created a FAO-China Trust Fund with $30 million to specifically support Uganda’s agriculture sector. In 2015, China launched the second phase of SSC and injected $50million before adding another $50million in phase III which was launched in 2021. During implementation of SSC’s phase II, China funded and sent 47 Chinese agricultural experts and technicians on a two years mission to train Ugandans to improve technologies used in production of rice, grapes, cherry tomatoes, foxtail millet, and apples among others. The project focused on exchanging mechanization, agro-processing and value-addition expertise. Considering the multiplier effects that comes with such projects, the role of China in Uganda’s agriculture sector cannot be ignored.

In trade, last year China announced a preferential trade arrangement for Ugandan goods granting zero-tariff treatment to 98% of imports from Uganda – a development that in many ways will widen the market for Uganda’s agricultural produce. Agriculture sector is the backbone of Uganda’s economy, with over 70% of the country’s population deriving their livelihood from it.

China has also invested in Uganda’s mining sector, majorly in the exploration of oil and gas. Uganda and Tanzania are seeking funding from China to develop an export pipeline before 2025. China’s willingness to fund Uganda’s oil sector leaves us in a privileged position to have China as a creditable development and business partner are evident. Future plans for the oil industry and exploration by the Chinese North Offshore Oil Company (CNOOC) by 2025 will boost Uganda’s economy, transforming the standard of living of the majority of Ugandans through job creation for both skilled and unskilled citizens in the oil and gas sector.

In human capital capacity development, China’s hand is visible. As of today, China has provided thousands of scholarship opportunities to Ugandans, including both short and long courses.

Generally, talking about Uganda’s economic development journey without mentioning China’s role makes the analysis incomplete. The unique part is that unlike other cooperation between Uganda and other traditional development partners, China-Uganda cooperation is partnership of equals, mutual trust and is based on win-win cooperation.

However, Sino-African critics have always claimed that Chinese development assistance especially infrastructure funding is leaving Uganda and some other African countries heavily indebted with the so-called debt trap. However, while we cannot completely dismiss voices against over borrowing, such sweeping statements should be cautiously listened too. Today, as a result of global politics and changing global order, it is clear that there is a calculated move meant to discredit Sino-Africa relations which has seen many of critics cherry-picking facts when it comes to critiquing China’s development assistance to developing world. However, to allay fears of critics, Uganda and in general all developing countries should aim to remain responsible borrowers and only go for loans when very necessary. Otherwise, it is unfair to carry on sweeping statements of the so-called debt diplomacy and misinterpret China’s good will of offering development assistance that China is hiding what critics claim to be ulterior motives.

In conclusion, it is indisputable that China plays a major role in Uganda’s economic development. The relationship between the two countries is characterized by mutual benefit and cooperation, with both countries working together to promote economic development and improve the wellbeing of their people and build a community of shared prosperity for mankind. Its pertinent therefore for countries around the world to continue cooperating in order to ensure that economic development is experienced by all nations and build a world of shared future with shared prosperity.

Nanziri Christine is a law student at UCU and a Junior Research Fellow at Sino-Uganda Research Centre.

China-Uganda Relations: As it Was During Colonial Rule, China Remains a Reliable Development Partner!

Posted on By Sino Uganda Research Centre

By Musanjufu Benjamin Kavubu

China and many African countries have shared a history regarding the sense of imperialism and colonialism. China was not so long ago under the colonial rule of Japan and some of its territories like Hong Kong under Britain. China’s Communist Party set an example and also went ahead to support African independence struggles. Even with its rich history, China can be credited with the front of economic growth that has a basis on the political will of CPC and its leaders from the days of Chairman Mao to to-date where CPC Secretary General and President of China Xi Jinping advocates for building a community with shared prosperity for mankind.

Like every global player for China Africa is part of its economic playground and places like Uganda are both its geopolitical and geo-economic outposts. One may then wonder if Uganda is just a pony on a grander chessboard. It depends on how you watch events and the perceived results. What makes news is Beijing’s economic strategy and it’s in a few cases in the past decades save for its ambitions unify its claimed territory of Taiwan when China’s military strategy has come under the world’s microscope. Even with the military bases in the South China Sea and some off the African coast, the answer is supply chain interests that facilitate its trade with the world. Put differently, China has never been a coloniser and to date, if critically analysed, Beijing bears no such ambitions but rather win-win cooperation where countries world over benefit from a win-win cooperation under world order where each country’s sovereignty is respected!

Unlike the British Empire that is only visible today through a shadow of Common Wealth nations that kicked off with military expeditions and remained in place with the power of the gun and the United States hegemony that has a thirst for energy resources also backed with senseless wars, China has had this supposed strong foothold on the world and places like Uganda with no boots on the ground in terms of soldiers or even private contractors. China chooses economic diplomacy and it has run lately on projects like the famous Belt and Road Initiative (BRI) and Maltiplarism through BRICS a block made up of Brazil, Russia, India China and South Africa which unlike the G7, BRICS advocates for equality of all countries as well as respect for all irrespective of their size or military might.

Nothing has brought criticism to Beijing like the true intentions of the Belt and Road Initiative a project that has seen China seriously considering and supporting developing countries’ infrastructure development loans to among others construct, sea ports, airports, rail line networks and roads from Africa to Americas, from Asia to Europe all aimed to facilitating trade. This development has arguably revolutionized developing countries’ infrastructure development which organisations like world bank have continuously said they receive very low funding despite being key in social-economic development aspect.

Sadly, some people claim BRI is about China taking out raw materials and bringing back low-quality products through its massive web of the supply chain, with other critics of China especially from the West who often cherry-pick and ignore reality and brand China’s generous infrastructure development assistance as “debt trap.”

For a moment picture this China through EXIM bank provides a loan to Uganda to construct a hydropower dam on the Nile River, in the process technology is imported and at the end of it, all rural electrification is achieved which will facilitate industrialisation leading to employment, in turn creating a population with disposable income that is used to develop microeconomics of households that bring further education and research in the academia field. It’s from such initiatives that a real middle class is a bred that will in the end consume quality Chinese products because of the disposable income. The question is who wins? A real middle class that pays taxes will in the long run offset the loan for the dam, a real middle class will trade and create a functional society. A functional society has no appetite for civil war or trade in arms and that will ensure civility and a level of peacetime. That sounds like true economic development!

In the past two decades, Ugandans that speak Mandarin have increased and it’s not because it’s part of the school syllabus even if they are few language schools in Kampala that offer to teach it. The main reason for Mandarin in Africa is the increased scholarships that Beijing is offering. There is a likelihood that every Uganda knows someone close who has travelled to China for education on a fully Chinese government funded scholarship. When these people return after studying, they have contributed to the local academia and thus bettering the educational sector that is very fundamental in economic development. Whatever China’s foreign agenda policy is behind shipping Ugandans to China educating them and sending them back it’s to our society’s advantage in the long run.

China has a thirst and also a shortage for oil in its massive industrialization scheme and on that note, it’s watched carefully through its activities on the energy market. CNOC is one of the partners of Uganda in the oil sector and the company’s efforts can’t be downplayed in the facilitation of black gold’s take-off in the country. It’s a writing on the wall that if the oil sector is handled well by the state and its full potential is realised, then it will overturn the economic prospects of the nation. Today, many Ugandans in Albertine region have already seen fruits from oil sector especially through CNOC’s cooperate social responsibility where social services for communities are looked at as well as employment opportunities! The other most striking example are modern houses CNOC constructed for people affected by oil project in Kingfisher oil field.

Uganda like most African countries will seem like small pieces in China’s economic strategy but the reality these tiny pieces are useful and all need to work. China at some point will even go beyond its comfort zone to ensure these pieces function as expected beyond United Nations Security Council speeches where it’s a permanent member. It is important that the war in Ukraine and the new world order on the horizon led by players like China Kampala maintain a strong relationship with Beijing to realise further economic development.

While China’s critics and Sino-Africa skepticists especially in the West claim that China’s engagement with African countries is guided by what they claim to be Beijing’s “selfish interests” at times with absurd claims that most African countries have received fewer tangible benefits from China relations the reality is that where greatly or otherwise, tangible or otherwise, China-Africa relations are working and wonders are being created! The fact that China respects African countries sovereignty and that these relations are based on equality not the West’s assumed big brother role, African countries should jealously guard these relations! As African countries demand for equality and permanent representation at the UN security Council, it is clear that China at some point will ensure this dream becomes a reality by supporting Africans as they did while Africans fought against brutal colonial rulers.

Musanjufu Benjamin Kavubu is a Junior Research Fellow at Sino-Uganda Research Centre.

 

Parish Development Model: Lessons from China’s Poverty Alleviation initiatives

Posted on By Sino Uganda Research Centre

By Alan Collins Mpewo

 

Poverty is a concept not alien to any human that has graced the communities that have since covered the globe. From many corners of earth, in the days of the past, and some (corners of earth) presently, resources were owned and controlled communally. This gave off the position that everyone that stood as a beneficiary for any of the subject resource(s) would stand at an equal footing in the sense of ownership and control, without anyone exceeding the set confines. Transition saw the birth of barter trade, as a mode of exchange, dispose of, and acquisition. Better means (as some will argue) later got introduced. Cowrie shells, beads, iron pellets, carefully cut fabric, and more, as the medium of trade. Finally, the currency as we know it came about – paper money. It has been projected to be the longest standing medium of exchange and trade that may have to be used for a few generations ahead, compared to those it replaced. In the same context, organization systems (notwithstanding their pros and cons) have been picked out for each separate societies, with capitalism being the most widespread. Incidentally, the control of equity and wealth are in a circle of a few individuals, and majority taste the bite of poverty at different levels.

Consequently, the various governments globally always come up with initiatives to reduce the poverty levels whose understanding has been tied around a metric system that determines the poverty line, depending on the changes of economies. Uganda has (and had) various programs established for that cause. Some notable ones have been the “Bona bagagawale, Entandikwa, NAADS, Operation Wealth Creation, Emyooga” and now “Parish Development Model.” However, the challenges and consequential failures for all the programs have similar traits. But are lessons ever picked? Dangers of face-lifting a project on the cosmetic outlook can only do so much in a short time. Underlying factors therefore don’t merely come as of lack of the will for a general change in mechanisms, but remains a mystery for political capital only aimed at a specific point of time. The parish development model for example was unveiled with a fairly switched modus operandi, but the results don’t lie. As time has sailed away, the problems that in many ways led to the demise of its predecessors, may if not remedied, write a similar story for it in time not so far away.

Countries globally have had similar initiatives to lower poverty levels, although sometimes it’s merely a showcase for political capital. The major focus of this opinion is focused on similar policies by China. It’s only fair to determine how China’s initiatives have scored, and being categorized as one of the fastest growing economies of this century, vis-à-vis Uganda’s. About 40 years ago, China had one of the highest poverty levels per aggregate population having millions of its citizens surviving on as low as $1.9 per day. How the script got a parallel chapter spares many lessons for willing countries to choose. The opening of extensive economic transformation and targeted support were the two game changers. For obvious reasons, the will against the fight against corruption and the sociopolitical system also played great roles. It realized the urgency of minimizing economic gaps between various regions in order to have a supportive economic balance before embarking on radical changes. Average economies saw their uplift through systemic tracking of development and accountability. Sustainability was foundational. Building infrastructure on all levels of community organization to withstand changes in the economy and political environment.

Uganda just like many other African countries have mastered the art of short time achievements. Empowerment isn’t considered as the political ideologies are mainly built around dependency on those in higher positions of society, than empowerment. China understood that concept and the results speak for themselves. There are uncountable local entrepreneurs that not only have dealings within China, but also across the globe. For a country with the world’s greatest population, pulling off such an achievement isn’t a small feat. Uganda needs to first set its governance priorities straight on all levels of administration. Key indicators have it that even the distributed finances for the various projects barely meet their target recipients. Such administration gaps are one of the greatest setbacks. Just like China, poverty alleviation should be on an equal from of all sectors, because the intersection among them is interdependence. Without proper infrastructure, trade is slower. Without proper governance, economic transformation is a myth. Without proper healthcare, labor productivity is lowest. Without improved ICT, industrialization is minimal. Without government support of local entrepreneurship, traditional commercialization becomes riskier to invest in. A broken education system will have society at great loses in all sectors.

The bare minimum should then be in strategizing as China and other fast-growing economies did, and establishing new and focused priorities of transformation. Otherwise, the statistics on poverty levels in Uganda haven’t been shining any bright light in the past two decades, to date.

Alan Collins Mpewo is a Senior Research Fellow, Development Watch Centre