Proposed Federal Economic Model

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By M. Kibuka

A federal model will only be feasible if it provides for the maximum autonomy of the federating units coupled with the appropriate machinery for the development of all the regions so as to establish equilibrium among the component parts of the federation. This requires an economic model that can reinforce the regions to make their autonomous plans. There should be a balance of economic power between the Centre and the units.

To embark on striking equilibrium between the units, it is necessary that units sketch a strategy of economic development. Focus must be placed on building of infrastructure, i.e., energy, transport, communication and machinery to make the necessary administrative decisions on the spot. It is expected that once infrastructures have been put in place, that private investments will move in. The regions must be very cautious as to which fields private investors are likely to invest in their regions depending on the market prospects.

Bunyoro-Kitara's economic and commercial activities for example stem from the vast cash crop agricultural produce and other commercial activities like, timber trade, cattle keeping, fishing, tea, tobacco and coffee farming. This region may want their goods not only to move to Kampala, but to the neighboring DRC too; these markets must be utilised and exhausted. "Disorganised markets", as Museveni would say, only need to be organised; market forces would regulate the rest!

West Nile could trade well both with Sudan and Congo with her production activities in oil, cotton, flour, coffee, grain and tobacco! These examples show very clearly that efforts must be put in place to encourage mechanisation of agriculture. Agricultural studies must be encouraged at educational institutions of all levels.

It is proposed that each region establishes its own Regional Planning Authority to cater for the development of the region. This institution should be part of the Federal Planning Authority. It should be distinct from the District Council (The District Council shall be the Planning Authority of a District, Art. 36, Local Governments Act 1997).

The units should be left alone to decide on what economic decisions are important for their regions.

A proposal for removing regional disparity must have a definite time limit. Considering the record Marshall Plan for Western Europe after the last world war, a ten-year period is both feasible and attractive in its appeal to the parties concerned.

In summary:

1. There shall be an Exchequer Board to overlook the financial matters of the federation. Although each region may collect some taxes, the major job of this financial experts group is to work out formulas to decrease economic/regional disparity, the most threatening issue in any federal arrangement.

2. Each region shall establish its own Regional Planning Authority to cater for the development of the region. This institution should be part of the Federal Planning Authority. It should be distinct from the District Council (The District Council shall be the Planning Authority of a District, Art. 36, Local Governments Act 1997).

3. Focus shall be placed on building of infrastructure, i.e., energy, transport, communication and machinery to make the necessary administrative decisions on the sport. It is expected that once infrastructures have been put in place, that private investments will move in. The regions must be very cautious as to which fields private investors are likely to invest in their regions depending on the market prospects.

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