Skip to main content

NOT ONLY THE HARDWARE BUT THE SOFTWARE TOO



In the middle of September the United Nations released its annual Human Development Indicator (HDI).

This index serves as an indicator of the quality of life of a country’s people by measuring the health, education, inequality, poverty and security standards. Aside from the statistical measures of development like GDP growth, this is obviously a better measure of how people are actually doing.

In this year’s HDI report Uganda was ranked 162 out of 189 countries with a HDI score of 0.516. The index goes from zero to one, the nearer you are to one the better. Our score puts us in the low human development category.

But as bad as that sounds we have been worse.

In 1990, the earliest year that these figures were compiled our score was 0.311 even the UN recognises that we have improved 66 percent in the last three decades.

According to the UN figures life expectancy has risen to 60.2 years  from 45.5 in 1990; expected years of schooling has doubled to 11.6 from 5.7, as have the average years of school which are up to 6.1 years from 2.8 years.

We have come a long way but to paraphrase Nelson Mandela, no sooner have you climbed one hill than you realise there are many more to climb.

Currently we are committing increasingly more of our budget to infrastructure development --- roads and power generation. Which makes sense.

As it is now Uganda has about 16 km per 1000 square km of land area, while an average middle income county has about five times that figure at about 80 km per 1000 square square kilometres. On power, using consumption as an indicator, according to the International Energy Agency’s (IEA)latest figures Uganda’s consumed less than 111 kwh per capita  compared to neighbouring Kenya 167 kwh per capita and the island state of Mauritius punching above its weight at 2,183 kwh per capita.

The importance of adequate infrastructure cannot be overemphasised. A robust infrastructure network improves the ease of doing business by increasing efficiency in production, distribution and consumption of goods and services. Increased economic activity should lead to higher revenue collections which will pay for investments in social services and creating new infrastructure stock.

The deficiencies everywhere you turn, be it in infrastructure or human development means that hard decisions have to be made in prioritisation and sequencing.

We are between a rock and the proverbial hard place. We can either prioritise, funnel more and more funds into select sectors and let the rest make do with the left overs, or  spread our resources so thin that it is impossible to be effective.

But in addition, to help this cause we need to widen our tax base, so that more and more people carry the burden of supporting this country’s development ambitions. As it is now we are collecting about 14 percent of GDP, a figure that has inched up from 12 percent a decade or so ago. The sub Saharan Average is average is 16 percent.

This is important because without increasing our revenue collections it will be impossible to bridge the deficits ourselves or borrow abroad to salvage the situation.

As it stands now barely a million workers are paying income tax out of a workforce of 11 million. Government is trying to use a series of indirect taxes – fuel duties, mobile tax and OTT to try and make this happen.

The logic is simple we can have all the beautiful statistics about economic growth, but if this growth is not spread more evenly through the elevation of of the lifestyles of more and more people there will always be grumbling.

(SEPTEMBER 2018)

Comments

Popular posts from this blog

THE MUKWANO I KNEW

We have lost the greatest Ugandan entrepreneur of our time, Mr Amirali Karmali, more popularly known as Mzee Mukwano. I have known Mzee Mukwano for more than 40 years and most of what I am today is due to him. And I am not alone. "He has helped countless people through school – as he did me. Helped countless more in business – as he did me. And he has been a steadfast friend and source of support to countless more – as he was to me.... I first met Mukwano around about 1977. My mother was the secretary for the chief of operations at Uganda Airlines, a man I knew only as Hamid. Mukwano had come to charter the Uganda Airlines’ Hercules plane and I happened to be around the office then. He was a short man, an unassuming man, but clearly a serious businessman who would charter the plane to bring in goods that were in high demand here. He run a popular whole sale shop in Nakasero – Egesa Commercial Agencies, a beehive of activity and the go-to place for anythin

CRYPTOCURRENCIES ARE COMING, ARE WE READY?

In the last few decades in Uganda we have seen the currency become so worthless a large part of the population resorted to barter trade – exchanging goods for goods. Then the currency stabilized and we enjoyed having money in our pockets. Our money habits continue to evolve. Increasingly we don’t need physical cash to do our business.  Debit cards, mobile money and e-banking services are pushing us fast towards a cashless society. And now we are moving into a more intangible space – cryptocurrency. "As I understand them these are digital currencies, generated using encryption techniques, that also verify fund transfers. Also that no central bank is involved in creating or regulating these currencies... The more widely known cryptocurrency, Bitcoin was launched in July 2010 and its fate has been at best back ground noise to many of us, if at all. it has registered some limited attention but mainly for   speculative gains. In recent years it has seen jumps

ARE WE HELPLESS TO DO ANYTHING ABOUT THE CARNAGE ON OUR ROADS?

Recently there was a horrific crash between a passenger bus and sand laden Isuzu truck on the Masaka-Kampala highway. To look at the pictures of the aftermath it is a miracle that only two were killed and 20 injured in the accident, which it is reported was a head-on collision between the two vehicles. We don’t go a week without news of a major accident on our trunk roads. I suspect that a combination of poorly maintained vehicles, improperly trained or inexperienced drivers, driving at break neck speeds are to blame. "A few months ago, there was a suggestion that the new paved roads were not properly designed and therefore causing the accidents, but I think that is a case of poor workmen blaming their tools.... If one was to buy this argument, what about the argument that we had fewer accidents when our roads were pot holed and it would take whole days travelling journeys that now take a few hours? So, we should we go back to our potholed roads? "Accord

GIVE OUR TRAFFIC POLICE A CHANCE

Last week during an investor interaction   Kampala Capital City Authority (KCCA) officials called on police to stop overriding traffic lights while directing traffic. KCCA argues that the traffic lights are large investment and it makes no sense for police to countermand them. In a classic case of “The importance of the river was not known till it dried up” on Friday the traffic police desisted from directing cars at the traffic lights leading to the worst traffic snarl-up in the city’s history. People were stuck in traffic jams around the city for hours and long into the night. Maybe it was the unhappy coincidence of the traditional Friday traffic and pre-Christmas excitement but without the traffic police directing traffic it was a mess. They made their point. It of course points to the bigger issue of a revamping of Kampala’s road network, which has remained   largely the same since independence but with an exponential increase in cars in the last three decades.

DEAL WITH PLASTICS BEFORE ITS TOO LATE

The first rainy season seems to have passed. Not too soon for some of us. It has become standard now that with the rains come the floods and with every season these become not only more and more daunting, but spread all over Kampala. While KCCA has done a lot of work in improving drainage, we are undoing the good work with our bad habits. Everyday we dispose of tons of plastic improperly, these find their way into the existing drainage systems of this city. These cause blockages, which we go about blissfully unaware of until the rainy season begins. The rainwater not only struggles to go past existing blockages but comes along with its own load of plastics to reinforce the existing blockage. The water, which should be finding its way to Lake Victoria, swells out of the drains and finds its way onto the road, into our offices and our homes. That’s the simplified version of events.  This is before we even start examining how we are building in the wetlands into

OUR WOMEN AMONG THE BEST ENTREPRENEURS BUT…

A study carried out in 57 countries around the world established that Ugandan women are among the most entrepreneurial in the world. The 2018 Mastercard Index of Women’s Entrepreneurship released last week showed that one in three businesses or 33.8 percent of businesses in this country belong to women. Our women were third behind their counterparts in Ghana, 44.4 percent and Russia, 34.6 percent. Survey after survey has shown that Uganda is one of the most entrepreneurial counties in the world, so it should come as little surprise that our women are among the most entrepreneurial in the world.  This does not in any way take away from their own initiative and resilience in surviving our competitive business environment. Our entrepreneurialism was forced upon us by the hard times we faced as a nation in the 1970s and 1980s, when few if any salaries could carry families through the month. For the majority of us who did not have the option of leaving the country to