44
TRADE AND ECONOMIC DEVELOPMENT IN UGANDA Issue No.19 - October/November 2012 Special Edition on SOCIAL MARKET ECONOMY AND SUSTAINABLE DEVELOPMENT

Actade kas study read it. see my remarks

Embed Size (px)

DESCRIPTION

Africa will enhance economic growth when ( not if) they embrace Economic Transformation. Trade matters. Aid is past tense. Poor leadership. Elly Twineyo Kamugisha; Author: WHY AFRICA FAILS

Citation preview

Page 1: Actade kas study   read it. see my remarks

TRADE AND ECONOMIC DEVELOPMENT IN UGANDA

Issue No.19 - October/November 2012

Special Edition on SOCIAL MARKET ECONOMY AND SUSTAINABLE DEVELOPMENT

Page 2: Actade kas study   read it. see my remarks
Page 3: Actade kas study   read it. see my remarks

1

2 FOREWORD

ARTICLES

3 ECONOMIC PERFORMANCE IN UGANDA SINCE 1997

7 THE CONCEPT OF SOCIAL MARKET ECONOMY – AN INSPIRATION FOR UGANDA?

14 INCLUSIVE GROWTH FOR SUSTAINABLE DEVELOPMENT

19 THE IMPACT OF NATIONAL BUDGETING ON TRADE AND WEALTH-CREATION

23 WHY CITIZENS’ PARTICIPATION IN THE BUDGET PROCESS IS CRITICAL

27 THE ROLE OF NDP IN THE SOCIAL MARKET ECONOMY AND SUSTAINABLE DEVELOPMENT

30 THE ROLE OF THE PRIVATE SECTOR IN DEVELOPMENT

32 THE WAR WITHIN

35 UGANDA’S ECONOMIC CHALLENGES – A YOUTH PERSPECTIVE

CONTENTSPublisher:African Centre for Trade and Development (ACTADE)P.O. Box 16452, KampalaPlot 474 Gaba Road, 3rd Floor Pension House, KabalagalaTel: +256 414 664 616 Email: [email protected] Website: www.actade.org

Project Coordinator:Aine Gloria Ag. Programme Officer, ACTADE Tel: +256 783 134 404 Email: [email protected]

Design & print:Media PH Ltd.Email: [email protected],Tel: +256 312 371 217

Photo credit:All photos courtesy of the New Vision Group, ACTADE and Konrad-Adenauer-Stiftung.

Funding:Konrad-Adenauer-Stiftung UgandaP.O. Box 647, KampalaPlot 51a Prince Charles Drive, KololoTel: +256 414 259 611

Copyright:

© ACTADE 2011

All rights reserved. Reproduction of all or parts of this publication for educational or other noncommercial purposes is authorised without prior written permission from the copyright holder provided the source is fully acknowledged and any alterations to its integrity are indicated.Reproduction of this publication for sale or other commercial purposes is prohibited without prior written consent of the copyright holder.

The opinions expressed in this publication do not necessarily reflect the views of ACTADE or the Konrad-Adenauer-Stiftung but rather those of the authors.

THE GUIDE

Page 4: Actade kas study   read it. see my remarks

2

FOREWORD

Elly Twineyo Kamugisha

is the Executive Director

at the African Centre for

Trade and Development

(ACTADE). He is a senior

public policy analyst and

has worked as a senior

professional at Uganda

Export Promotion Board/

GoU and with UNDP

projects on promotion of

external trade. He has

worked as a part time

lecturer of Makerere

University Business

School (MUBS) and as

an Associate Consultant

at Uganda Management

Institute (UMI). He is the

author of the book “Why

Africa Fails” (2012).

Page 5: Actade kas study   read it. see my remarks

3

ECONOMIC PERFORMANCE IN UGANDA SINCE 1997By Fred Muhumza

Fred Kakongoro

Muhumuza holds a

PhD in Development

Economics from the

University of Manchester

and is endowed with vast

experience in the areas

of research and policy

analysis. In the last fifteen

years, he has taught

economics in various

Universities in Uganda,

worked at the Economic

Policy Research Centre at

Makerere and is currently

an Economic Advisor in

the Ministry of Finance

Planning and Economic

Development. He has

carried out considerable

analysis of various aspects

of the socio economic

development policies

and outcomes in Uganda

leading to a number of

publications and public

discussions on the subject.

Page 6: Actade kas study   read it. see my remarks

4

� �

3

2.5

2

1.5

1

0.5

0

Coffee Price (US$/Kilo)

1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04

Page 7: Actade kas study   read it. see my remarks

5

8000

7000

6000

5000

400

3000

2000

1000

0

Credit to Private Sector

lend

ing

rate

s

30

25

20

15

10

5

0

Cre

dit t

o P

rivat

e S

ecto

r

Page 8: Actade kas study   read it. see my remarks

6

� �

2000

1500

1000

500

0

-500

-1000

-1500

-2000Current account balance

Reserves and related items

Capital & financial account balance

08/0

9

09/1

0

92/9

3

93/9

4

94/9

5

95/9

6

96/9

7

97/9

8

98/9

9

99/0

0

00/0

1

01/0

2

02/0

3

03/0

4

04/0

5

05/0

6

06/0

7

07/0

8

Page 9: Actade kas study   read it. see my remarks

7

THE CONCEPT OF SOCIAL MARKET ECONOMY – AN INSPIRATION FOR UGANDA?By Mathias Kamp

��

Mathias Kamp is a German

political scientist with

expertise in the areas of

development cooperation,

democratisation,

governance and civic

education. He holds

bachelor degrees in

Public Administration

and European Studies

and a master degree in

International Relations

and Development Policy.

Currently he works as

Programme Officer in

the office of the Konrad-

Adenauer-Stiftung for

Uganda and South Sudan,

based in Kampala.

Page 10: Actade kas study   read it. see my remarks

8

� �

Page 11: Actade kas study   read it. see my remarks

9

��

Page 12: Actade kas study   read it. see my remarks

10

��

Page 13: Actade kas study   read it. see my remarks

11

Page 14: Actade kas study   read it. see my remarks

12

Page 15: Actade kas study   read it. see my remarks

13

Page 16: Actade kas study   read it. see my remarks

14

INCLUSIVE GROWTH FOR SUSTAINABLE DEVELOPMENTBy Annette Were Munabi

Annette Were Munabi

holds an M.A. in

Economics from

Makerere University

in collaboration with

the African Economic

Research Consortium

(AERC) and a B.Sc.

in Economics and

Statistics from Makerere

University. Currently

she works as a Policy

Analyst for Economic

Policy and Livelihoods at

Development Research

and Training (DRT).

Page 17: Actade kas study   read it. see my remarks

15

Bank of Uganda (December 2011). State of the Economy Report .

Ministry of Finance, Planning and Economic Development. Budget speech, FY 2012/13 delivered at the meeting of the second session of the 9th Parliament of Uganda

12

10

8

6

4

2

0

10.8

8.5 8.7

7.2 7.36.7

5.95.1 5

3.52.62.8

2.11.7

GDPgrowthrate

PercapitaGDPgrowthrate

2001

/200

2002

/200

2003

/200

2004

/200

2005

/200

2006

/200

2007

/200

2008

/200

2009

/201

2010

/201

6.86.5 6.3

4.8

8.4

3.6

Agricultureforestry and fishing

Industry

Services

2008

/09

2009

/10

2010

/11

2011

/12

10

9

8

7

6

5

4

3

2

1

0

Page 18: Actade kas study   read it. see my remarks

16

Ministry of Finance, Planning and Economic Development. Annual Budget Performance Report, FY 2010/11

Lukwago, D., (2010). Increasing Agricultural Sector Financ-ing. ACODE Policy Research Series No. 40,2010

Page 19: Actade kas study   read it. see my remarks

17

Page 20: Actade kas study   read it. see my remarks

18

Page 21: Actade kas study   read it. see my remarks

19

THE IMPACT OF NATIONAL BUDGETING ON TRADE AND WEALTH-CREATIONBy Charles Mulozi Olweny

Charles M. Olweny holds

a degree in Human

Resource Management

and a Masters degree

in Human Rights from

Makerere University.

He holds numerous

certificates in human

rights and humanitarian

law. He worked with

Foundation for Human

Rights Initiative (FHRI)

as Research Monitor and

documentation officer

for two years and is now

working with Volunteer

Efforts for Development

Concerns (VEDCO) as

advocacy officer.

Page 22: Actade kas study   read it. see my remarks

20

Sectoral Shares in FY 2012/13

Agriculture, 3.4%

Health, 7.6%Water &Environment, 3.0%

Justice/ Law &Order, 5.6%

Accountabilty, 5.2%

Tourism, Trade and Industry, 0.7%

Land Housing andUrban Dev, 0.2%

Social Dev, 0.8%ICT, 0.1%

Public Sector Mgt, 9,7%

Legislature, 1.7%

Interest Payment, 7.7%

Security, 7.3%

Works &Transport, 14.8%

Education, 15.7%Energy,13.9%

Page 23: Actade kas study   read it. see my remarks

21

Page 24: Actade kas study   read it. see my remarks

22

US

$ in

milli

ons

2000

2002

2004

2005

2003

2000

2002

2004

2005

2003

2000

2002

2004

2005

2003

2000

2002

2004

2005

2003

2000

2002

2004

2005

2003

Tanzania Rwanda Burundi China

600

400

200

(400)

(600)

(200)

Trade Balance

Imports

Exports

Kenya

Page 25: Actade kas study   read it. see my remarks

23

WHY CITIZENS’ PARTICIPATION IN THE BUDGET PROCESS IS CRITICALby Julius Mukunda

Julius Mugisha Mukunda

is an economist from

Makerere University

and currently a Senior

Programme Director

at Forum for Women in

Democracy (FOWODE).

He is also a coordinator

of the Civil Society

Budget Advocacy

Group (CSBAG), a

coalition of individuals

and organisations

interested in influencing

the national budget

processes and

specialised in the area

of Economic Policy

Advocacy.

Page 26: Actade kas study   read it. see my remarks

24

Parliament

Cabinet

MFPED

Line Ministries/

Spending Agencies/

SWGs/Donors

National Budget Workshop-Indicative Sector Ceilings-Budget & SWG Guidelines

Proparation of SectorBFP and RevisedMTEF Allocationswithin the ceiling

Oct- Dec Jan-Mar Apr-June

The Consultative Budget Process

Budget Speech

Submission of IndicativePlan MTEF

Cabinate approval of BFP/MTEF

Compilation of National BFPAnd Upated MTEF

Finalisation of BudgetAllocation MTEF

FER

Preparation of DetailedBuget Estimation

Final Budget Approval

April 1 May15 June15

InterministerialConsultations

Page 27: Actade kas study   read it. see my remarks

25

Page 28: Actade kas study   read it. see my remarks

26

100%90%80%70%60%50%40%30%20%10%0%

Central Govenment Local Governement

2012/132011/12 2013/14 2014/15

7,633.807,693.507,693.506,218.70

2,483.502,106.102,106.101,671.40

Page 29: Actade kas study   read it. see my remarks

27

THE ROLE OF NDP IN THE SOCIAL MARKET ECONOMY AND SUSTAINABLE DEVELOPMENTBy Richard Mugisha

Richard Mugisha holds

a degree (Hons) in

Business Administration

majoring in management

from Nkumba University,

Uganda. He also holds

a Diploma in Secondary

Education obtained from

Nkozi National Teacher’s

College. He has ten

years professional

working experience and

three years experience

in policy and advocacy

related work. Since 2010

he has been working

with PELUM Uganda

as Program Officer for

Policy and Advocacy.

Page 30: Actade kas study   read it. see my remarks

28

Page 31: Actade kas study   read it. see my remarks

29

Page 32: Actade kas study   read it. see my remarks

30

THE ROLE OF THE PRIVATE SECTOR IN DEVELOPMENTBy Paul Busharizi

Paul Busharizi

is currently the

contributing editor –

Business & Politics

at the Vision Group.

Prior to his current

appointment he was the

Business Editor at the

New Vision for seven

years. Previously he was

a Reuters Correspondent

for Uganda, a stint which

took him to various parts

of the country and to

the DR Congo. He is a

graduate of psychology at

Makerere University.

Page 33: Actade kas study   read it. see my remarks

31

��

� �

Page 34: Actade kas study   read it. see my remarks

32

THE WAR WITHINBy Angelo Izama

Angelo Izama is an

investigative reporter

and blogger at Monitor

Publications. He is an

Open Society Fellow.

He was a 2011 Knight

Fellow at Stanford

University working on

journalist security.

He previously held a

NED Reagan-Fascell

Democracy fellowship

and has founded a

human security think

tank in Kampala. He was

a special projects writer

at Monitor Publications

and obtained a law

degree from Makerere

University in Kampala.

Page 35: Actade kas study   read it. see my remarks

33

Page 36: Actade kas study   read it. see my remarks

34

Page 37: Actade kas study   read it. see my remarks

35

UGANDA’S ECONOMIC CHALLENGES – A YOUTH PERSPECTIVEBy Bernard Mukhone

Bernard Mukhone is

the Coordinator of

the „Young Leaders

Think Tank for Policy

Alternatives“, an

initiative supported by

the Konrad-Adenauer-

Stiftung. He is an

entrepreneur and the

CEO of Elegant Group

of Companies and also

works as a freelance

consultant specialised in

project implementation

and events coordination

and management.

Currently he is pursuing

a master degree in

„Local Governance

and Human Rights“

at Uganda Martyrs

University.

Page 38: Actade kas study   read it. see my remarks

36

Page 39: Actade kas study   read it. see my remarks

37

Page 40: Actade kas study   read it. see my remarks

38

Page 41: Actade kas study   read it. see my remarks

39

W. R

öpke A. R

üstow

A. M

üller-A

rmack

L. E

rhard

F. B

öhm

W. E

ucken

W. R

öpke A. R

üstow

A. M

üller-A

rmack

L. E

rhard

F. B

öhm

W. E

ucken

We

striv

e fo

r the

gre

ates

t pos

sibl

e fr

eedo

m in

fore

ign

trad

e in

ord

er to

em

phas

ise

the

prin

cipl

e of

the

inte

rnat

iona

l div

isio

n of

labo

ur a

nd it

s be

nefit

fo

r all

peop

les.

(L

udw

ig E

rhar

d)

…so

lid p

ublic

fina

nces

. …

open

mar

kets

in a

glo

balis

ed w

orld

not

re

gula

ted

by ta

riffs

and

trad

e re

stric

tions

.A

ny e

xper

imen

t in

the

char

acte

r of s

uppo

sed

wel

fare

of

char

itabl

e at

titud

e to

spe

nd m

ore

mon

ey th

an th

e Tr

easu

ry’s

reve

nues

, bre

ache

s go

od a

nd p

rove

d pr

inci

ples

. (L

udw

ig E

rhar

d)

��

��

…a

com

mitm

ent t

o so

cial

par

tner

ship

an

d co

llect

ive

barg

aini

ng. E

mpl

oyee

s an

d em

ploy

ers

can

orga

nise

thei

r lab

our

rela

tions

bet

ter t

han

the

stat

e.Ev

eryt

hing

mus

t be

done

to re

loca

te th

e fo

cal p

oint

of l

ife’s

resp

onsi

bilit

y fr

om th

e go

vern

men

tal c

entr

e to

the

posi

tion,

whi

ch re

ason

able

thin

king

and

his

toric

al

expe

rienc

e na

tura

lly d

eman

d, […

] to

the

dece

ntra

lised

no

n-go

vern

men

tal o

rgan

isat

ions

.

(Wilh

elm

Röp

ke)

��

…an

inde

pend

ent

mon

etar

y po

licy

focu

ssin

g on

mai

ntai

ning

pric

e st

abili

ty.

All

effor

ts to

ach

ieve

a c

ompe

titiv

e sy

stem

are

in v

ain

unle

ss a

cer

tain

m

onet

ary

stab

ility

is a

ssur

ed. T

hus,

ther

e is

a p

rimac

y of

mon

etar

y po

licy

in a

com

petit

ion

orde

r.(W

alte

r Euc

ken)

�…

a fu

nctio

ning

com

petit

ion

betw

een

com

pani

es p

refe

rabl

y w

ithou

t dis

tort

ive

subs

idie

s. Co

mpe

titio

n is

a g

uara

ntor

for

inno

vatio

n.If

ther

e is

no

or in

suffi

cien

t com

petit

ion,

ther

e w

ill b

e an

in

terf

eren

ce o

n th

e co

nstit

utio

nally

des

ired

driv

ing

forc

es

of m

arke

t pric

es. T

he p

rodu

ctio

n of

goo

ds a

nd th

e di

strib

utio

n w

ill b

e st

eere

d in

an

unde

sire

d di

rect

ion.

Th

is m

isdi

rect

ed e

cono

mic

coo

pera

tion,

how

ever

, is

not

even

the

cruc

ial p

oint

. Mor

e im

port

antly

, the

sub

stan

ce o

f so

cial

just

ice

in th

e fr

ee m

arke

t sys

tem

is d

isru

pted

.

(Fra

nz B

öhm

)

�A

str

ong

stat

e is

not

one

inte

r-fe

ring

in a

nd a

ttra

ctin

g ev

eryt

hing

. O

n th

e co

ntra

ry, t

he tr

uly

stro

ng

stat

e is

not

cha

ract

eris

ed b

y th

e co

mpl

exity

but

by

the

inde

pen-

denc

y of

inte

rest

gro

ups

and

it is

iden

tified

by

the

rigid

en

forc

emen

t of i

ts a

utho

rity

and

its d

igni

ty a

s re

pres

enta

tive

of th

e pu

blic

.

(W

ilhel

m R

öpke

)

…a

‘stro

ng’ s

tate

pr

ovid

ing

guid

elin

es

with

out i

nter

veni

ng

in a

ll ar

eas

of li

fe.

�...

equ

al p

artic

ipat

ion

in a

mer

itocr

acy.

Th

is c

once

rns

the

oppo

rtun

ities

on

the

labo

ur m

arke

t, th

e po

ssib

ility

for e

cono

mic

m

obili

ty b

y ed

ucat

ion

and

soci

al in

te-

grat

ion

assi

stan

ce fo

r im

mig

rant

s.It

is a

n es

sent

ial p

art o

f a p

ositi

ve fa

mily

pol

icy

to o

ffer

equa

l liv

ing

cond

ition

s an

d op

port

uniti

es fo

r adv

ance

-m

ent b

y pr

ovid

ing

equa

l edu

catio

nal o

ppor

tuni

ties

on th

e va

rious

leve

ls a

ccor

ding

to a

ffini

ty a

nd a

ptitu

de o

f our

yo

uth

rega

rdle

ss th

e in

com

e an

d th

e as

sets

of t

heir

pare

nts.

(Lud

wig

Erh

ard)

…th

e so

lidar

y as

sura

nce

of li

fe ri

sks

whi

lst e

nsur

ing

the

prin

cipl

e of

sub

sidi

arity

.Ec

onom

ic fr

eedo

m a

nd s

ocia

l com

puls

ory

insu

ranc

e ar

e in

com

patib

le. T

hus,

it is

nec

essa

ry

to re

cogn

ise

the

prin

cipl

e of

sub

sidi

arity

as

one

of th

e m

ost c

ruci

al o

rgan

isin

g pr

inci

ples

for t

he

soci

al a

ssur

ance

and

to g

ive

prio

rity

to s

elf-

help

an

d in

divi

dual

resp

onsi

bilit

y. A

ccor

ding

ly, t

he

gove

rnm

ent s

hall

halt

prot

ectio

n w

here

ver t

he

indi

vidu

al a

nd h

is fa

mily

are

stil

l abl

e to

mak

e in

depe

nden

t and

resp

onsi

ble

prep

arat

ions

.

(Lud

wig

Erh

ard)

�…

the

appr

ecia

tion

of fa

mily

an

d ci

vic

enga

gem

ent.

We

firm

ly b

elie

ve th

at th

ere

is a

n in

finite

num

ber o

f th

ings

mor

e im

port

ant t

han

the

econ

omy:

fam

ily,

com

mun

ity, t

he s

tate

, all

form

s of

soc

ial i

nteg

ratio

n in

ge

nera

l […

].

(A

lexa

nder

Rüs

tow

)

��

…th

e pr

otec

tion

of li

velih

oods

and

sus

tain

able

, re

sour

ce-e

ffici

ent e

cono

mic

act

ivity

.Th

e pr

otec

tion

of th

e pe

ople

aga

inst

dam

ages

ca

used

to th

e en

viro

nmen

t req

uire

s th

e ec

onom

y to

reco

gnis

e an

d re

alis

e its

soc

ial r

espo

nsib

ility

in

taki

ng a

dequ

ate

mea

sure

s in

the

deve

lopm

ent o

f te

chno

logy

pre

vent

ing

dam

age

to h

uman

ity.

(Lud

wig

Erh

ard)

…co

nfide

nce

in p

eopl

e’s

tale

nts

and

skill

s, i.e

. the

ir ta

lent

for f

reed

om.

It re

lies

on th

e pr

inci

ples

of p

erso

nal

resp

onsi

bilit

y, th

e pr

otec

tion

of p

rope

rty,

fr

eedo

m o

f con

trac

t and

dec

entr

alis

ed

deci

sion

-mak

ing.

Civi

c fr

eedo

m is

an

illus

ion

as lo

ng a

s it

is n

ot b

ased

on

the

fund

amen

tal e

cono

mic

libe

rtie

s of

the

free

mov

emen

t of

capi

tal a

nd la

bour

, the

righ

t to

priv

ate

prop

erty

and

the

abili

ty to

sec

ure

an h

ones

t pro

fit.

(Alfr

ed M

ülle

r-A

rmac

k)

a st

rong

ent

repr

eneu

rshi

p an

d th

e co

mm

itmen

t to

smal

l and

m

ediu

m-s

ized

bus

ines

ses.

Acc

eptin

g re

spon

sibi

lity

and

risk-

taki

ng a

re

impo

rtan

t pill

ars

of s

ocia

l pro

gres

s.Th

e tr

ansf

er o

f res

pons

ibili

ties

[…] i

mpl

y a

syst

em in

w

hich

the

entr

epre

neur

fulfi

lls a

n ec

onom

ic ro

le in

ad

ditio

n to

sec

urin

g hi

s ow

n ec

onom

ic e

xist

ence

, ev

en th

ough

this

is n

ot a

lway

s ap

pare

nt a

nd e

vide

nt

to th

e in

divi

dual

. He

may

not

be

awar

e of

his

ec

onom

ic ta

sk; n

ever

thel

ess,

he p

erfo

rms

this

role

if in

th

is s

yste

m o

f a m

arke

t eco

nom

y th

e fr

ee fo

rmat

ion

of

pric

es a

nd th

e en

gine

of t

he c

ompe

titio

n re

mai

n pr

otec

ted

and

vivi

d.

(Lud

wig

Erh

ard)

…a

fair

syst

em o

f tax

atio

n re

quiri

ng th

e in

divi

dual

to

cont

ribut

e to

the

com

mun

ity

acco

rdin

g to

his

abi

lity.

Fo

r ins

tanc

e, it

is e

xtre

mel

y co

ntra

dict

ory

if th

e ci

tizen

com

plai

ns

abou

t the

unb

eara

ble

tax

burd

en a

nd, a

t the

sam

e tim

e, e

xpec

ts

stat

e ai

d, w

hich

, in

turn

, giv

e th

e go

vern

men

t the

mor

al

right

to le

vy e

ven

high

er ta

xes.

(Lud

wig

Erh

ard)

The

mar

ket e

cono

my

is th

e m

ost d

ocile

, dig

estiv

e an

d vi

tal

econ

omic

ord

er, w

hich

can

be

imag

ined

. As

long

as

only

a

min

imum

of c

ore

cond

ition

s ar

e m

et, i

t is

rem

arka

ble

how

lo

ng it

can

dea

l with

poi

sons

, con

tam

inan

ts a

nd h

eavy

bu

rden

s –

perf

ect a

nd u

prig

ht. [

…] A

nd I

here

by a

dd: e

ven

this

dig

estiv

e po

wer

of t

his

[…] s

yste

m is

not

infin

ite. T

he

long

er th

e ex

posu

re, t

he m

ore

visi

ble

the

dam

ages

, the

m

ore

criti

cal t

he te

st o

f end

uran

ce, w

hich

als

o th

is s

yste

m

coul

d ev

entu

ally

not

with

stan

d.

(Wilh

elm

Röp

ke)

... th

e ac

cept

ance

of d

iffer

ence

s in

inco

me,

as

long

as

the

gap

betw

een

poor

and

rich

is n

ot

too

wid

e. P

reci

sely

her

e, g

over

nmen

t pol

icy

of d

istr

ibut

ion

step

s in

.It

was

dem

onst

rate

d th

at th

e di

strib

utio

n of

the

natio

nal

prod

uct b

y th

e pr

ice

mec

hani

sm […

] is

bett

er th

an th

e di

strib

utio

n ba

sed

on a

rbitr

ary

deci

sion

s by

priv

ate

or p

ublic

co

rpor

atio

ns. [

…] A

lso

with

this

dis

trib

utio

n m

echa

nism

, ho

wev

er, q

uest

ions

rem

ain

unan

swer

ed a

nd it

requ

ires

adju

stm

ent.

[…] T

he in

com

e in

equa

lity

lead

s to

a s

ituat

ion

whe

re th

e pr

oduc

tion

of lu

xury

goo

ds a

lread

y ta

kes

plac

e al

thou

gh th

e ur

gent

nee

ds o

f low

-inco

me

hous

ehol

ds re

mai

n un

met

. Thu

s, th

is is

, whe

re th

e di

strib

utio

n in

a c

ompe

titiv

e or

der r

equi

res

adju

stm

ent.

(W

alte

r Euc

ken)

Self-

disc

iplin

e, a

sen

se o

f jus

tice,

hon

esty

, fai

rnes

s, ch

ival

ry, m

oder

atio

n, p

ublic

spi

rit, r

espe

ct fo

r hum

an

dign

ity o

f oth

ers,

firm

mor

al s

tand

ards

– a

ll th

ese

thin

gs

peop

le m

ust i

nter

nalis

e w

hen

ente

ring

the

mar

ket a

nd

com

petin

g w

ith e

ach

othe

r. (W

ilhel

m R

öpke

)

…an

eth

ical

foun

datio

n fo

r the

ec

onom

ic a

nd s

ocia

l ord

er.

The

Soci

al M

arke

t Eco

nom

y as

a re

gula

tive

polic

y ai

ms

to c

ombi

ne, o

n th

e ba

sis

of a

co

mpe

titiv

e ec

onom

y, fr

ee in

itiat

ive

and

soci

al p

rogr

ess.

(Alfr

ed M

ülle

r-A

rmac

k)

…co

re re

gula

tory

bel

iefs

, w

hich

sho

uld

be e

nfor

ced

on E

urop

ean

and

inte

rnat

iona

l le

vel i

n th

e in

tere

st o

f ec

onom

ic s

tabi

lity.

… fl

exib

le th

inki

ng

not i

nter

pret

ing

free

dom

an

d so

cial

bal

ance

as

oppo

nent

s.

��

��

��

��

Page 42: Actade kas study   read it. see my remarks

40

Page 43: Actade kas study   read it. see my remarks
Page 44: Actade kas study   read it. see my remarks

African Centre for Trade and Development3rd floor, Pension House, Plot 474 Gaba Road P.O.Box 16452, Kampala Uganda Tel:+256-414-664616 Fax: +256-414-343456Email: [email protected]: www.actade.org