ugnet_: FDI, UIA - Uganda

[dbbwanika db]

UPDATES
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Mr. Ojambo


- Let me repeat FDI will never ever develop Uganda; I offer examples in that respect;

- What is the price tag of a T-72 second hand Russian made tank (between $730,000 - $850,000), MIG 23 or 25-fighter plane or an MI helicopter?

- It takes less than four seconds to destroy a tank by an anti-tank device you see these images daily don’t you?

- Now how many houses will one T-72 second hand Russian tank, build in Uganda? Let alone how many construction engineers will it train?

- Mark you Uganda does not have any sort of INDUSTRIAL ESTABLISHMENT in the fabrication of machine tools and design

- NOT even a SCHOOL in machine design or tool fabrication! MADHVANI at jinja!

- One home stead, one house has all the necessary industrial establishment in a nation state; TV, Telephones, Cookers, refrigeration, Radios, washing machines, carpets, utensils, furniture, clothing (agoa), books (paper), food etc,.

- Not least material for building that very house; bricks cement, paints, wall paper, electrical fittings, roofing, stones, wood and timber etc,.

- Who built Bugologi flats – Israeli firm – who build Ndegge, Lubiri, Mengo, Tororo, Nabisunsa and other such schools Israeli firms

- Can you compare such school structures to UPE building structures –NO! And why?

- In China and other Asian states – the army in a pre- monetariesed economic (financial instruments & stock exchange) state does such work.

- What is Uganda army doing; wars in Congo, Sudan, Teso, Karamoja, Kasese etc,.

- Who built Mulago hospital, Gulu road, Jinja, Jinja- Tororo, Mudende- Fort portal, Masaka, Entebbe road, Pakwacha Arua- foreign companies!

- Why not Ugandans to build hospitals, schools, roads?

- Who built such institutions in china?

- China built Namboole and indeed all-national stadiums in China are designed and built by the army NOT DIRECT FOREIGN INVESTMENTS.

- What happens if those roads deteriorate- BORROW FROM THE WORLD BANK, IMF and contract the same firms for job.

- WHERE ARE UGANDA PROFESSIONALS- aduyi, kimpimizi- non historicals, non revolutionaries (rubbish)

- Europe and the USA plus Canada and Australia never used DFI to develop apart from Hitler’s Germany, which was bombarded to ashes necessitating the so-called marshal plan.

- NRM will never develop Uganda. why?

- Ugandans do not have the experience, hands on skills, research and there is no effort at all made by the state in mobilising people in doing so.

- Uganda require only about 6 billion shilling to off set – agricultural production through buying off surplus produce (Magny Maize)

- With National silos, freezers in specified location – Uganda in a period of one year will be exporting beef meat, groundnuts, fresh peas; fruits concentrate, cotton, tea and dried products to the Middle East.

- During the FIRST AND SECOND WORLD WAR, Britain through its administrative core in Uganda, used local farmers to supply: cotton, groundnuts, beans, tobacco, tea, cattle, timber and even hard cash from taxation! In thousands of pounds (billions of shilling today)

- China is not transforming because of foreign direct investment – NO

- China long ago mobilised its army (ARMED FORCES) in engineers, doctors, pharmacist, scientist etc;, in building factories, roads, schools, cleaning cities, doing research etc.,

- Uganda army, NRA (UPDF), amuka group, arrow group under the Presidential Special Brigade uses the same people as cannon fodder to practice what majors have learnt abroad to the amusement of the NRA leadership!

- In essence killing its own people in sham rebellisonism.

- China, South Korean, Singapore, Malayasi, Taiwan, Indonesia besides the Philippines which thought USA could build roads schools etc, all those countries raised huge armies to do society transformative work.

- Is that what I want in Uganda yes-

- But NOT under NRM that has shown a primitive state of thought structures- it will kill people why?

- Uganda does not need any foreign ideaology, money, but only its peoples needs and demands – to transform.

- For NRM when it wants a war there’s money, material and people!

- When it comes to society needs there is no money, material and people.

- When there is need to go to the Congo there is money, material and people.
- When Ugandans need medicare, schooling facilitiesm, houses, public transport there is no money, material and people.

- NRM itself the destroyed all public entities by selling them to themselves; Textile mills, Public Hotels, Transport (buses, airlines, trains), etc,.

- How do you trust such people now claiming to be democrats?

- NRM from the start NEVER UNDERSTOOD and MISINTERPRETed Marxism, socialism – Marx was against the state and Marxsim is misunderstood or misused in exactly the same way Moa tse Tung did to the Chinese or Pol Pot!

- Read Karl Marx Grundrisse (translation by Martin Nicolaus) 1973, pg 100 – 111): The method of Political Economy.

- If NRM knows anything then they misread Marx.

Mr. Bwanika:

I will come to the Ugandan paradox in a minute, but I suggest to you or
anyone curious enough about Uganda and other African countries to read two
fascinating papers-unfortunately the Journal publishers are mean to the
extent that you cannot even copy and paste.

The papers came out of a symposium on the Social and Political Preconditions
of Capitalism: They are published in the Journal of Political Philosophy
Volume 11 (4), December 2003.

a) Arthur L. Stinchcombe. The Preconditions of World Capitalism: Weber
Updated: 441-436.
b) Claus Offe. The European Model of “social” Capitalism: Can it Survive
European Integration? 437-469.

Weber updated is fascinating and you will then begin to understand why
Uganda is in a paradox.

Now back to the data you cite. You have a point about FDI. You wonder why
FDI has not done magic for Uganda and other African countries. Here is the
story. The debate and this is an intense and empirical one has focused on
the channels through which FDI may help to raise growth in recipient
countries like Uganda, India or China. For the moment forget the fact that
China is the leading recipient. Suppose China and Uganda were equal (size,
attractiveness, technological development etc). What factors could then
explain the observed differences in the performance of FDI on economic
growth?

The likely answer is the role played by the circumstances FDI is confronted
with whenever in enters a recipient country (see Niels Hermes and Robert
Lensik, Journal of Development Studies, October 2003 Vol. 40 (1) :142-163).

What is the state of infrastructure, Human capital, Corruption, Financial
development, in Uganda? It is reasonable to assume that the state of
infrastructure in China or even Kenya is better than Uganda. In terms of
human capital, Uganda does have an educated and unemployed labour force so
that is in our favor but poor electricity, poor roads and corruption negates
it.

We may have a strong property rights regime to ensure investors that they
can always recoup their investment. In Kenya there was no such guarantee and
Mr. Kibaki’s unprecedented sacking of 20 plus judges was meant to re-assure
investors. If critics in Uganda are sure that the judiciary is corrupt as
they always claim {I think there is a conspiracy between the AG and some
well connected [read political lawyers] to throw away cases.

Do your homework and find out who the private lawyers appearing for the
government are. They are neither the brightest nor are they are the best
litigators with minor exceptions of one or two. The rest get jobs because
they are connected period. Apparently some are even ignorant of the law as
the Solicitor General disclosed the other day, but then why does the same
firm always get the big government files? Just think of the NSSF saga. Why
should NSSF pay Alcon? Who are the lawyers involved? If the trend
continues, Uganda’s commitment is going to be questioned. These are the
initial conditions one faces.

Forget China, if you were a long term investor where would you rather
invest: Uganda where the key word is “sad term” or Kenya where the political
question is settled with a strong team determined to fight corruption? Why
would any longer term investor choose Uganda over Kenya? Answer: if s/he is
a brief case type looking for speculative investment.

The point am trying to make is that Uganda ends up attracting crooks like
the Tri-Star guy-a brief case investor. Now is TRI STAR considered a
foreign investor or not? Remember that he was given money by the Ugandan
government along with a huge building at no cost. The point is that he never
invested his money. Now and this is serious: does UIA consider TRI STAR a
foreign investment? How many TRI STARS may be included in UIA data? Why the
huge discrepancy between total FDI and what is on the ground in Uganda? My
guess is that UIA is rigging the data if they include cases such as TRI STAR
as FDI. They are not.

Another factor is the state of our financial institutions. Again compared to
Kenya, ours are way under developed, yet a well developed financial system
is crucial.

China has over 50milions Chinese in the Diaspora who are courted and
welcomed back home. You mentioned Uganda. We are not sometimes welcome even
welcome to visit our embassies! And try sending in your passport for renewal
and you will curse. You are lucky if they don’t lose it. I personally avoid
using the embassies-I send my passport to my sister in Kampala who renews it
in less than a week and sends it back by courier. Less trouble.

Mr. Bwanika: FDI does have a positive impact. Just go to China and see the
wonders. And things were not always that way circa 1972.

If your figures are correct, then Uganda may not have the absorptive
capacity to put to productive use the FDI. That too would be strange given
the sound projects waiting for funding. But there have been reports in the
Media that apparently the BOU Governor has actually blocked billions of
donations to the Health sector! If that is true, he needs to be examined.
Health and we are talking about life.

Now why haven’t the MPs who fingered the government for failing to have
reliable electricity in Mbarara hospital protest against what the BOU
Governor has done? He is so concerned about inflation that he has the guts
to veto foreign donations to the health sector. Phew! Inflation fears in a
country that is not even producing at 50 percent capacity, what nonsense is
that? BOU is actually responsible for the poor state of the economy. That
mental thinking-obsession with inflation cost the former Canadian Bank
Governor his post-his term was not renewed.

There you have the initial conditions I was talking about.


Ojambo

__________
bwanika

url: www.idr.co.ug

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