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Uganda lies on the equator surrounded by the countries: Kenya, Sudan, Congo, Rwanda and Tanzania. It is a landlocked country, dependent on its neighbours for access to sea with a population of over 30 million people.
It has substantial natural resources including fertile soils, regular rainfall and sizeable mineral deposits of minerals such as copper, gold and cobalt. Agriculture is the most important sector of the economy employing over 80% of the work force. Coffee accounts for the bulk of export revenues. Since 1986, the government with help from foreign countries and international agencies have acted to rehabilitate and stabilize the economy by undertaking currency reform, raising producer prices
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Uganda’s tax shortfall lies in the fact that the rich and the politically well connected do not pay tax. This undermines equality which is a critical element in the democratization process.
Uganda has also become infamous for its outrageous military budgets. In 2005, the government spent approximately US$200 million on the military. Mwenda (2006) goes ahead to mention that “the army payroll contains thousands of “ghost soldiers” whose salaries go straight into the pockets of army officers. Uganda is endemic with corruption and has failed to implement macroeconomic reforms that would be beneficial to its citizens and the development of the country due to the incentive structure that foreign aid creates.
Mwenda (2006) notes that foreign aid acts as a subsidy for government corruption and incompetence. If donors stopped disbursing funds to Uganda, the government of Uganda would be forced to reform its imprudent fiscal policies or else watch its regime collapse. Many of the dictatorial regimes in the continent have been saved by foreign aid from political collapse. Therefore, politically, foreign aid undermines accountability as an integral element of
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In the six years after HIPC, it averaged US$783 million. Rising by about 32 percent of aid inflow. With the rising amount of aid in Uganda, the country still remains swathed in pervese underdevelopment.
In the years preceding the rise of foreign aid to Uganda, the country experienced high rates of economic growth and poverty reduction.
Uganda’s encounter, justifies that debt cancellation paired with its twin policy, foreign aid does not necessarily help the poor. It only contributes to unnecessary government spending, bureaucracy and undermines the effort of government accountability.
In as much as the World Bank and IMF claim that they have ceased disbursing funds to autocratic and dictatorial regimes, this is clearly a white lie especially in the case of Uganda where human rights are immensely violated. The fundamental aspects of democracy such as freedom of expression, Right to life and Due process of law are not protected. Elections are not free and fair, which explains the current President Yoweri Museveni’s 30- year- old rule.
The latest act of Uganda, not being keen on protecting human rights was when the parliament prohibited same sex

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