ABSTRACT
The 1960s was a decade of growing per capita incomes in Africa, but from the first half of the 1970s per capita incomes started to decline. The import-substitution policies that were pursued could no longer sustain growth. After a period of vacillation, African governments were forced to change their policies. From the early 1980s most countries in Africa have, more or less systematically, pursued structural adjustment programmes, with the aim of creating viable market economies. The growth results during the adjustment period have been mixed, but in some countries we have even seen extended periods of rapidly rising per capita incomes. Uganda is one of those successful countries, and the question I ask in this paper is whether Uganda has turned the corner. Has the economy taken off on the path of self-sustained economic growth?
The accumulation of physical and human capital, efficiency in resource allocation, and acquisition and application of modern technology are the basic determinants of growth in any economy. The policy question is how the environment should be organised in order for it to be able to facilitate the accumulation of production factors, their efficient allocation, as well as the introduction of more efficient technologies. There is now widespread consensus that economic policies at the micro level should aim to develop and sustain efficient markets, while macro policy must be geared towards guaranteeing macroeconomic stability. It is also clear that a supportive environment of efficient institutions is crucial for the functioning of the economy.
