Uganda on January 26th marked the 26th anniversary of the Liberation day remembering the takeover of Uganda by the National Resistance Amy led by current President Yoweri Museveni. The national celebrations were held in Masaka under the theme “NRM’s 25 Years’ Heritage to Uganda: a solid foundation for a Progressive Nation”.
Below is the address of His Excellency President Gen. Yoweri kaguta Museveni who presided over the national celebrations.
I wish to congratulate you all fellow Ugandans upon this occasion. Uganda today commemorates this historic occasion that ushered in momentous dimension to the politics and governance of Uganda 25 years ago. This was, however, only just a culmination of a long process of sacrifice by gallant sons and daughters of this nation over many years; many of whom have not lived to enjoy the fruit of their labour, sacrifice and struggle.
Museveni and his wife Janet
Today we remember the victory of the Ugandan people over the forces of terror, economic breakdown, oppression and chaos. As we look back 25 years since the National Resistance Movement gained victory, we see remarkable achievements in Economic Stability, Economic Growth, Agricultural Modernization, Financial Sector Development, Industrialization, Infrastructure and Development, Mineral Exploration, Health, Education and Regional Integration.
The tremendous progress in achieving macro-economic stability, reviving the economy from ruins and sustaining rapid economic growth since the launching of the economic recovery programme in 1987 and the subsequent reform programs cannot be overemphasized.
The NRM has the skills, the discipline, the commitment and the will to maintain economic stability, accelerate economic growth and improve the standard of living of all Ugandans. With new strides in industrial policy, new discoveries of oil and increased investment in infrastructure, especially energy, we are confident that the economic expansion will accelerate so that we can have full employment and prosperity for all. This is our dream and every Ugandan’s hope. I want to assure you that the NRM is capable of realizing this dream and I urge you to commit yourselves with us so that we can, indeed, achieve prosperity for all.
The theme for this year’s celebration, therefore, “NRM’s 25 Years’ Heritage to Uganda: a Solid foundation for a Progressive Nation”, is most fitting. Right from its inception, the NRM was premised on progressive ideology, as opposed to parochial line of thinking that promotes sectarianism. The NRM programs have been designed to meet the legitimate interests of the people of Uganda.
The Ugandan economy contracted by over 25 per cent and economic growth was negative in the late 1970s. This situation has been reversed with the country achieving an average growth rate of 7 percent over the previous ten years. During the period between 1963 and 1970, GDP increased at an average of 5.1 per cent per annum. By the end of that period, the manufacturing sector was able to adequately meet basic consumer requirements like soap, sugar and textiles and even leave a small surplus for export.
This relatively good performance, however, hid the dependent character of the economy. The economy lacked significant linkages between the industrial and agri¬cultural sectors and there was a total lack of a capital goods industry. Many of the industries depended on the importation of foreign raw mate¬rial inputs. This partly explains why the industries collapsed when for¬eign exchange became scarce.
The situation was worsened by the up¬heavals the country experienced during the 1970s and 1980s. As a result of mismanagement, by the end of 1980, real GDP and per capita income had fallen to 78.1 per cent and 65.7 per cent of their respective 1971 values. Between 1983 and 1985, real GDP declined at an annual average of 3 per cent annum. Given a population growth rate of 3 per cent per annum, therefore, income per capita declined at 6 per cent per annum.
By 1985, average industrial capacity utilization in Uganda stood at 20 per cent, in spite of substantial credits offered to Uganda by the International Monetary Fund and other donors. By 1986, the Uganda economy had been reduced to ruins because of a prolonged period of economic mismanagement, as well as political and social instability. Industries had collapsed and goods that had initially been produced in Uganda were being smuggled from across the borders into the country. As a consequence, tax collection was as low as 6% of GDP by 1986. Over interference of government into the economy was a major contributory factor to its collapse. The nationalization of businesses was a major setback to the economy of Uganda. It was, indeed, the case of the ‘hired hand tending the sheep’, because civil servants were not devoted to businesses they did not own.
After 1986, the economy posted an impressive post- conflict recovery; a strategic reform program marked by strong macroeconomic stabilization, liberalization of key sectors and privatization of several public enterprises. The program involved measures to liberalize domestic prices as well as financial and trade sectors. Our pragmatic policies have had a significant positive impact on the economy and welfare of the people. The National Resistance Movement has, over the last 25 years of its rule, led the nation along the path of socio-economic development, several setbacks and challenges notwithstanding.
As a consequence of persistently sound economic policy and management reform since 1986, the Uganda economy has been stable over the period. The economy has recovered registering an average annual real GDP growth rate of 7.5% over the last twenty five years.
In 1986, when the NRM Government came to power, agriculture contributed 56% of the total output in the economy. Industrial output was only 10.2% GDP and services contributed only 33.4% of GDP.
By 2010, this situation had been reversed to 16.1% for Agriculture, 28% for Industry and 56% for Services. In the first five years development plan after Independence, the aim was to achieve a percentage of industry to GDP of 12.4% by 1967. You see how far we have gone! In the last 15 years electricity has grown by 20.3% per annum and construction has grown by 18.0% per annum. The production of electricity would have grown by much more if it had not been for the sabotage by the Sixth Parliament. Once we solve the problem of electricity, which we are about to do, the economy will roar forward. Households living below the poverty line have declined from 56% to 24.5% by 2010. We have, therefore, met the global target of cutting poverty by half by 2015.
All this has been achieved in spite of our high rate of population growth. The total export of goods and services in 1986 only amounted to US$406 million. Between 1986 and 2010, total exports of goods and services grew by 714% to US$2.3 billion for goods and US$991 million for services, giving us a total of US$3.3 billion. This does not include money from kyeyo which amounts to US$860 million. This gives us a total of US$4.16 billion.
Three reasons exist for this economic performance:
- First, Government insisted on the prevalence of macro-economic stability, by ensuring that the causes of high rates of inflation observed before were addressed decisively.
- The second reason for the economic success Uganda has achieved has been a result of the NRM Government’s unwavering promotion of private sector-led growth.
- The third reason for Uganda’s positive experience has been the prevalence of peace and security and the rule of law throughout the country. Government has also ensured that areas that were previously insecure such as Northern Uganda are now peaceful and people can engage in productive enterprise.In order to build on this foundation, NRM continues to further its vision of having a transformed society. The liberation that was ushered in 25 years ago would be meaningless if the lives of the people were not totally transformed. Having ushered in peace and ensured total peace even for formerly war and conflict ravaged areas, the focus is on increasing household incomes of our people all over the country. Children are receiving free education, health infrastructure has been rehabilitated and more Health centers built and equipped; physical infrastructure has been put in place and continues to expand and the economy is stable.How, then, do our people benefit from these achievements and ongoing programs that have been put in place to transform their lives? The NRM is putting in place measures to curb and eliminate corruption and improve service delivery. It must be appreciated that the government jobs are not enough for our growing population. We are, therefore, promoting investments and industrialization in order to increase employment opportunities, as well as empowering people to create their own jobs.Faster socio-economic transformation in Uganda has called for a comprehensive approach to address national and sector level constraints to growth. This has been achieved through the design of a National Development Plan to guide efficient deployment of our resources. The National Development Plan outlines strategies and interventions that are in line with the National Vision of achieving “A Transformed Ugandan Society from a Peasant to a Modern and Prosperous Country within 30 Years”.
The National Development Plan (2010/11-2014/15) has as its investment priorities: physical infrastructure development mainly in energy, railway, waterways and air transport; human resource development in areas of education, skills development, health, water, and sanitation; facilitating availability and access to critical production inputs especially in agriculture and industry; and promotion of science, technology and innovation. Economic growth and poverty eradication must go hand in hand, with the private sector remaining as the engine of growth and development.
In line with socio-economic transformation through the empowerment of the household incomes, government continues to train the people and step up their financial capability by availing credit through SACCOS. NAADS has been removed from districts and sub countries to the village level. All adults aged 18 years and above, will form the village development forum meetings to decide what to do and elect a team to manage NAADS at village level. This year, Government will put more money in NAADS.
Government has put in place mechanisms for ensuring accountability and efficient service delivery by all public servants and some of the errant officers have been apprehended and tried before the courts of law.
Owing to the good economic policies of the NRM, Uganda has reached a level of self-sustenance, the fact that we still get loans and grants notwithstanding. It is important to note that the NRM government is now able to fund many of the infrastructural developments in the country, with less funding from development partners. This must be applauded, because it is a major shift away from dependence and is, indeed, a true mark of a liberated country.
The NRM has put Uganda back on the road to constitutionalism and restored law and order as well as the people’s franchise. The return to the multiparty democracy, which was decided upon by Ugandans through a referendum, has been hitherto well managed. Uganda today has a vibrant and fully functional multiparty system of government, with an active opposition. The country is now slated to have elections, again, on the 18th of February, 2011. This year’s elections will be the second time that multiparty elections are held in the country.
This is a major step in the politics of Uganda, to have free and fair elections throughout the country. When the NRM liberated Uganda, one of our cardinal aims was to reform the electoral laws, because the reason that took us to the bush in 1981 was precisely the rigging of the 1980 elections. I call upon the general public to be vigilant in protecting and preserving our much cherished franchise and help the law enforcement bodies to detect and fight any traces of election malpractices. It the bounden duties of every Ugandan, as we go to the elections, to ensure that law and order are kept and that no malpractices are tolerated. The structures are in place to ensure law and order and anyone found guilty of any offence should face the full arm of the law.
As the country goes into elections, it is important that you all elect leaders who will deliver, those who have the development of the nation at heart and will represent your legitimate interests. I urge you not to listen to people who want to divert you from developmental issues, who preach diversionary and sectarian politics.
The mission of NRM now entails the following: value addition; scientific innovation; mass acquisition of skills beyond literacy and numeracy; industrialization; infrastructure development especially in connection with electricity, the railway and the roads; modernizing and securing agricultural production with irrigation; science and vocational education; consolidating security and banishing sectarianism – whether religious, ethnic or other forms of chauvinism of any type; fighting corruption; and regional economic and political integration.
I call upon all Ugandans to embrace patriotism and work for the transformation of our society. The legacy of the 25 years of NRM rule provides a firm foundation for total socio-economic transformation to take place.
I wish you all happy celebrations.