Friday, April 2, 2010

Who Has Benefited from Debt Forgiveness: Museveni or Ugandans?


In the movie, Bamako, African lawyers and administrators, supported by a western liberal, make the case of the onerous national debts of the least developed countries. A western bank official responds by attacking the mismanagement by these countries’ leaders. Who is right?

When the debt forgiveness was being debated in Washington some US legislators questioned the purchase of a very expensive private jet by Museveni at the same time as Uganda’s debt forgiveness was being debated. Museveni’s supporters, led by the Black Caucaus, faught off any attempt to derail the purchase. Thanks to expensive lobbying with Uganda’s taxpayers’ moneys. Uganda’s debt was forgiven, and American taxpayers footed the bill. It means now Uganda had money available it could use for purposes other than paying the principle and interests.

The motivation behind the debt forgiveness was that these countries could now have resources to improve the quality of life for their people. What has happened in Uganda since then?

First, Mr. Museveni purchased for himself a sleek jet, with operation costs running in the millions as he jets around the world. He has now retired the old one, and upgraded. Questions are abound as to what has been done with money from sale of the old jet.

Next, Museveni boldly defied the so-called development partners who bankroll his national budget to the tune of nearly 50%. He would not limit his military expenditure. He even created himself a well-armed battalion, headed by his son, for his personal protection.

The state house in Kampala was no longer good enough for him. He renovated the colonial government residence in Entebbe to the tune of billions of shillings. This is his new presidential palace.

Now there is talk of building a high-rise tower for himself and his prime minister.

All these expenditures and others would not have been possible without debt forgiveness. At the same time the healthcare system is a figment of what the British left and the Obote I government improved on. The roads improved for CHOGM are again falling apart.

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