The Independent Uganda: You get the Truth we Pay the Price
One way of expressing this is to say that the cost of living in Kampala is lower than in New York i.e. most of the things a person needs to live on (like paying rent, buying food, hiring a maid at home etc., renting a boda, eating in fancy restaurants, getting a haircut, consulting a doctor, etc. are much cheaper in Kampala than in New York. When we convert $1,000 at market exchange rates, a Ugandan earning Shs3.8 million can buy much more than his/her counterpart in New York.
Thus, according to the latest IMF estimate, one dollar in Uganda has a purchasing power of $3.45 in America. So, if we take a basket of goods and services that people buy, prices would be the same in Uganda and America if the exchange rate were Shs1,100 to the US dollar. This is, therefore, the “correct” exchange rate that should inform our calculations. PPP is a more reliable estimate because Ugandans spend their income in Uganda and on things whose prices are really low. Market exchange rates are volatile.
For instance, about two months ago, the exchange rate of the shilling to the U.S. dollar fell from Shs3,800 to Shs 3,500 i.e. by about 7%. That is big, but did it really change much in the prices Ugandans pay for most of the things they depend on the live – food, transport, medicines, haircuts, school fees etc.? Today, it has again appreciated to Shs3,780 without significantly impacting prices of most of the goods and services that Ugandans spent on. The advantage of PPP is that it is much more stable than market exchange rates and deals with values as opposed to prices.
As a caveat, I am aware that there are many weaknesses with the PPP method, which I should not delve into because they will divert us unnecessarily. Suffice it to say that some economists give PPP a margin of error to the tune of 5-10% and sometimes more. Yet even with all its weaknesses, PPP is not a shortcut as Museveni said. It is a much more realistic measurement than nominal dollars.
To illustrate this point further, if Uganda ended its absurd tax claims on oil companies, and let them move towards the Final Investment Decision (FID), that will ensure an influx of huge volumes of dollars into the country. This investment will be to the tune of US$12 to 15 billion. Even with high import content, such investment can appreciate the value of the shilling to $2,700 to the dollar. Hence even without changing anything on the ground, our per capita GPD in Uganda would rise from the current $724 to $1,018 i.e. we would achieve the proverbial “middle income status.”
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So Andrew, what is new? These things have been said by you for what I consider time immemorial. You wont be able to hammer them into the naysayers beliefs. However, something stood out. why do you have only reliable information up to 2016? Do you have reason to doubt 2017 plus? Please come forward. Also, in a template format, what should a normal or star rated SOTN look like, without being to literal and also ensuring coherence with the later budget reading.
Mwenda you were corrupted coz i used to listen to you in 2009 but you have changed
We have persuaded,cajoled,maligned,hit-back-in-anger at most of Mwenda’s statistics where he tries to prove to the street urchin,the roadside maizer roaster,the destitute parent,the tuiion fees lacking drop-out etc……….. that the econmy is doing well and that things are better than what they were blahh blahh blahh.
I for one will never respond to Mwenda in anger again for the simple reason that I have now discovered that he will never know the real good times Uganda had long before and shortly after he was born. Mwenda was born when I was in Nyakasura having bread and margarine for breakfast(let alone other delicacies we were served) when fees were 625 UGX per year. The Uganda government paid for those services from graduated and other taxes.
Long before Uganda’s economy was sabotaged(it is forbidden history to say who) trains and buses shuttled 24/7 unfailingly and so were other services. Life is always life and education has always been education. How come we were in same class with Dr John Babiiha’s son and President Amin’s children were in Kabale preparatory? Were those two too poor to take their own kids abroad for school?
One day a TV footage wil be aired from archives when President Amin was being operated on under anesthesia on the neck in Mulago or Obote being stitched when he was shot in that same Mulago.
In 1972, during presidential campaigns in US, George McGovern (Democratic nominee) said, “If you elect me, I will stop the Vietnam war in 72 hours and to show you that it is a treasury hemorrhage, I will give every American (babies included) 1,000 USD in the following week”.
Mwenda would also do well not to go into figures (because statistics are the best lies and are tools of the best liars)
I will be very happy to one day read a headline in the INDEPENDENT that goes: “An oil drilling investor has come with money my fellow countrymen, consequently, every Munyoro has been given a kilo of sugar” or ” Countrymen, Bunyoro has started selling oil so Kabalega,Duhaga and Bulindi will no longer pay tuition fees but will instead be given pocket money to buy essentials”. Even if the oil comes out of the ground refined, can such an opportunity be availed to the people?
The greed such as is displayed in the little things available implies that “EVEN IF GOD RAINS HAILSTONES OF DIAMOND NUGGETS, NO PERSON CAN GET ANYTHING, THEY WOULD GET EVICTION AT BEST OR DEATH AT WORST” To the greedy, even the whole world is not enough.
I wasn’t in Tororo College (1970) alone and neither am I the only one still alive but I can bet my life here that the ‘nile perch’ we were served in the refectory; that it cannot be so grilled in the Serena or any other 5 star in Kampala now. Let a person who tasted both and has proof challenge me here. These people are running things down and paying some people to praise them and beguile the gullibles.
My heartfelt condolences Andrew. Just learnt of your beloved mother’s death. We believers don’t doubt that she is safer than ever was.
“Even with high import content, such investment can appreciate the value of the shilling to $2,700 to the dollar. Hence even without changing anything on the ground, our per capita GPD in Uganda would rise from the current $724 to $1,018 i.e. we would achieve the proverbial “middle income status.”
THIS shows the dreamer that M9 is; this can not happen when you have the government ie M7 printing money and putting it in the economy.
THIS money , big quantities, is chasing a limited number of dollars, in high demand by companies and individuals wanting to move their funds(some of it earned illicitly) to safer havens.
SO even when the oil investment money comes in, due to the very high rates of corruption(artificial leakages), and also the fact that we have failed to go into any meaningful production, meaning that we import most of what we consume, and even most of what we use in the few industries , and on the other hand we do not produce enough for export, then the demand on the dollar will always remain high, and any fluctuations downwards will always be due to the weakening of the dollar, rather that the strengthening of the shilling.
AS they say, it is not the amount of water that you get from the WELL that matters, it is what you ultimately DELIVER .
If a thief steals and goes, the nation will heal itself. If a thief steals and stays, the cancer remains; rendering the nation incurably incapacitated.
Uganda has so much natural potential that there is no pit it cannot resurrect from…… 1980 proved that.
So, it is time for people to sober up and look who is, selfless,brave,clean nd capable; then elect him. If the incumbent rigs the people to take to the streets and remove him. Soldiers and police to be cautioned that they will be personally liable for any and all crimes when things normalise.
Gen Mugisha Muntu is respected by everyone except those who cal him a failure mbu because he did not steal. The army respect and love him. MM is capable and is never known to be tribalistic.
Need Ugandans look any further? Abduct him and enthrone him……….what are elections for?
MR ANDREW MWENDA , this is to convey my most sincere condolences to you, your family and relatives upon the passing of your beloved mother.
May the Good LORD give you strength at this difficult moment and pray and hope all goes well and you are able to lay her to rest with the dignity that she deserves.
We thank the Good Lord for her life and all that she has been able to accomplish during her time in this world.
May her soul rest in eternal peace.
Andrew my deepest condolences. My the Almighty Allah accept her good deeds and my He forgive her bad. You will be fine.
IT seems the government listened to the old man M9; I remember in one of his vintage articles , he said those who were shouting about the government not making the citizens rich fast enough or not doing enough to take them out of poverty, this was the old mans advise ” if the government wanted to make everyone one rich, it would just print money and give it to everyone”.
SO if this is the man who carries serious messages between two warring heads of state ( from Kagame to M7 as he claimed), I have no doubt he would use that opportunity to pass on such advise to M 7.
“The standard of living of a nation depends more on its output per person than on the money received as income for producing that output. Otherwise the government could make everyone rich by just printing money.”
This is the grand old mans statement as extracted from his article of December 17, 2018; but knowing M 9 the intellectual, he will conveniently forget that he ever wrote any such thing or he will come up with another set of statistics showing what he REALLY meant.
ME, severally I have called this “selective stupidity.”
This is not the ‘right’ time to tango with Mwenda ejakait; knowing he is down in mourning. Wealth is production not hand-outs true. How the truth is hidden in your words!!! There is a time Allan Tacca(that satirical angry man) suggested they put a money printer in statehouse basement. You remember when Kasaija and Tumusiime were at each other’s throats when that fellow of finance badly wanted the printer (I think a seller was heating them with a good commission) and Tumusiime (who really does not need any more money)was against the idea because too many rich people cause a jam in hotels and in shes who the rich love to change like shirts………..’kicking away the ladder’ you called it one time.
So these guys had an idea and put it in practice………….who can blame them? I wish I had the opportunity. I would rebuild Nyangole from the main gate to the convent and staff houses while during the reconditioning, I would shift the school to Rock Hotel closer to their sisters….TGS….then colonise Manjasi to annex it to TC. A good bribe to a PS can do it………..he can conduct a seminar of the BsOGs of both schools for 4 days, giving them a per diem of 1m each daily with accomodation, alcohol for those indulgent and the next thing you know, they are petitioning Visionary for a Union of both schools…… who knows if in 3 years t wouldn’t produce Bukedi University………..to replace,rival and saddle Makerere for ever after……………..an old dreaming you say I know Ejakait. You know only hard earned money……..free money does miracles.
The death of Andrew’s Dear mother has really dampened our spirits we pray that she rests well. We thank her for bringing up upright children. up to now we did not know the meaning of being blessed not until we met Andrew.
I heard M7’s critics say he always says the same thing during SOTN addresses .All leaders discuss trade,politics and war.
When you hear the likes of Rajab and Ejakait discuss and interpret aspects of development of a nation with such ease then you know there is a problem with their IQ.
Uganda is one of the few nations that has made tremendous economic achievements with a just a few key resources like tourism and agricultural products just imagine how much we will achieve when we begin exporting oil,electricity and Gold.
Andrew listening to Museveni’s address, it has all signs of your hand I have to say. You must have provided 75% input. So I were you , I would not dare comment. Andrew Ugandans ain’t stupid!