Mayanja Nkangi In its editorial of October 16, The New vision most commendably called for increased economic growth in Uganda at double digit rates of growth, echoing the World Bank. In doing so, however, an intriguing statement was made, as follows: �Macro-economic stability is a good thing and even crucial for sustainable growth but is not and end in itself.� Now here was a classic ambivalence. Macro-economic stability is critical or decisive for securing enduring economic growth, so that sustainable growth is practically inconceivable without the stability. And yet stability is NOT an end in itself! Human blood is crucial for human life, and yet it is not an end in itself. The decisive determinant or agent of human existence is not in itself desirable although it is what it is IN itself that guarantees human life. What sophistry! Clearly, the expression, �not an end in itself� means �not intrinsically; not for its own sake, as an object of pursuit or desire.� Something is an end in itself if, by its intrinsic quality or attribute, it serves a specific purpose, whether or not the purpose is ultimate or only contributory to the realisation of another desired objective. Blood then is an end in itself, an end being an object of pursuit for some specific purpose, value or usefulness, however perceived. thus the expression �in itself� relates only to the intrinsic usefulness or value which an end generates or serves. The above argument applies word for word for macro-economic stability in relation to sustainable economic growth, if we substitute �macro-economic stability� for blood. It follows that macro-economic stability is an end in itself, whose intrinsic usefulness lies in its promotional role for sustainable economic growth. The view that macro-economic stability is not an end in itself is a recipe for economic disaster. If it were adopted by the managers of the economy it would eliminate the maintenance of macro-economic stability as a legitimate objective of national economic policy, at all times and for all levels of output or economic growth. Such policy laissez-faire would have dire consequences, unless it was unrealistically assumed that the economic system would consistently insulate itself against ills such as underemployment or hyperinflation. Undoubtedly macro-economic stability has its own economic usefulness, and to hold otherwise is to court financial recklessness in the management of the economy, which can only be arrested at a great cost. If anyone doubts this, let them try macro-economic instability whereby the sources, incidence, magnitudes, frequency, and duration of the relative changes in the major variables of the economy are erratic, unpredictable, and relentlessly divergent; these variables being savings, investment, output or income, prices, interest rates, the money supply and the foreign exchange rates. Instability in these variables will create such a havoc of adverse expectations among businessmen and consumers that the cherished economic growth will itself be seriously destablised. Therefore policy makers and implementers will do well to continue focusing on macro-economic stability as a legitimate and crucial objective of economic management. It is an economic growth. Macro-economic instability would be a vicious cat among the pigeons. Macro-economic stability designates a structural state of the economy and indicates the relative relationships between determinate or measurable magnitudes of the above variables and changes in them. It is, therefore, an invaluable management compass on the high seas of potential economic turbulence.
The writer is leader of the Conservative party Indeed it would not be an economic irrelevance even if, theoretically at any rate, economic growth was zero as when the economy was at full employment. But, to be charitable, since macro-economic stability can be achieved at low levels of output, it is conceivable that the apparent denigration of macro-economic stability in the New Vision was intended purely as a caution against smug complacence on the part of the policy makers, once some degree of stability was registered. In that case the caution could not have been more salutary and significant. There can be no laurels to rest on as long as the growth potential remained unexploited. The writer is leader of the Conservative party Bwanika ________ http://www.idr.co.ug --> for your consultancy needs http://p201.ezboard.com/fugandamanufacturersassociationfrm1 ----------------------------------------------------------- Spela poker mot verkliga m�nniskor �ver Internet. �ver 60 000 spelare online http://www.multipoker.com _______________________________________________ Ugandanet mailing list [EMAIL PROTECTED] http://kym.net/mailman/listinfo/ugandanet % UGANDANET is generously hosted by INFOCOM http://www.infocom.co.ug/
