Uganda: A Development Overview

Uganda’s existence and borders were determined in 1894 by competition between European imperial powers for control of the River Nile rather than through a gradual process of national integration. Not surprisingly, most natives to the region felt no allegiance to this imperial creation as its borders cut across existing economic, political, and social relationships. Uganda finally achieved independence from the British Empire in 1962 through a relatively harmonious handover of power. This peaceful transition to independence created a sense of optimism and high expectations for the nation’s future.

Unfortunately, within five years of independence, Prime Minister Milton Obote unilaterally suspended the constitution due to rumors of plots and assassination attempts. During the next twenty years under Obote and Idi Amin, Uganda would become notorious for tyranny and oppression, economic collapse, black marketeering, tribalism, and civil war. The economy was devastated during these two decades as it became difficult to trade in any way within Uganda or with the outside world. Most Ugandans were forced to face desperate shortages of basic goods such as soap, salt, sugar, milk. Smuggling was commonplace, inflation was rampant, and the currency was almost worthless. Once described by Winston Churchill as the ‘Pearl of Africa’, Uganda, after just 20 years of independence, was widely seen as one of the worst off nations on the continent.

In 1986, the National Resistance Army – the armed wing of the National Resistance Movement (NRM) – captured Kampala and installed a new government. Under this new leadership, which is still in power, Uganda is once again considered as a model in Africa. Under the leadership of President Yoweri Musevini, the government introduced an economic recovery program which is widely perceived to be both ambitious and successful. This recovery has continued over the last decade – economic growth rates have been consistently positive, inflation dropped from 200% in 1987 to 4% in 2000, and the nation’s commercial, economic, and social infrastructures have improved. Additionally, the government introduced Universal Primary Education and focused particularly on improving university level education.

Although it is held up as one of the few African success stories of the last decade, a closer look at the situation of poverty and development in Uganda reveals a much less encouraging picture. Economic development in Uganda is severely constrained due to internal conflict, the high prevalence of infectious diseases, environmental degradation, lack of infrastructure, and low capacity for business development. Most serious has been the scale of ongoing internal conflict, especially in parts of northern and western Uganda where chronic insecurity has resulted in social dislocation and economic underdevelopment. These conflicts pose a large financial costs to the entire nation in order to maintain high levels of military personnel and equipment – revenue that could otherwise contribute to national economic growth.

According to international standards, Uganda still ranks amongst the twenty poorest countries in the world in terms of gross national product (GNP) per capita, with over 50% of the population living below the official poverty line. The HIV/AIDS epidemic takes a particularly heavy toll on the economy as it tends to rob society of its most productive members in their 30s and 40s. There has been a growth in inequality, with an increasingly common feeling that only privileged groups and regions are benefiting from economic growth, while others are being left behind. These impacts are particularly prevalent in rural areas, where the economy tends to be dominated by low productivity subsistence agriculture. Rural Ugandans have seen very little real growth in crop production over the last decade due to lack of access to agricultural inputs and financial services, declining soil fertility, poor infrastructure, lack of critical information and communication, and the inability to access large markets.

FSD directly supports community-founded organizations working to address these social, economic, and environmental issues. Our program is headquartered in Jinja - Uganda's second largest commercial center, located 60 miles (90 km) from Kampala. Claimed to be the ‘Source of the Nile River,’ the city sits on the shores of Lake Victoria – the world’s largest tropical lake. While over 100,000 people reside in the city, another 80,000 commute each day from surrounding areas due to the availability of jobs.

Due to its striking beauty, world class kayaking and rafting, and proximity to Lake Victoria, Jinja is a prominent tourist destination on the route from Kampala to Kenya. FSD participants in Jinja get the unique opportunity to work with underserved, local communities, while encountering the ways in which tourism (predominantly from Western nations) affects local culture and economy. This dichotomy provides a controversial and thought-provoking encounter for volunteers in the region.

For more about subject-specific development issues and internship/volunteer opportunities in Uganda, click on the links below:

Micro-enterprise/Microfinance ▪ Environment ▪ Health ▪ Youth and Education

Women's Empowerment ▪ Community Development ▪ Human Rights