Remarks By

ELLY TWINEYO KAMUGISHA

At the Uganda Launch of the Book Why Africa Fails: The Case of Growth Before Democracy (NB Publishers, 2012) 19th December, 2012- Kampala Uganda At Imperial Royale Hotel Let me welcome the chief guest, dignitaries and all protocol observed. Ladies and gentlemen thank you for coming. I wish to thank my dear wife and children for being patient with me as I worked on this project. I wish to thank the organizers of this Uganda Launch of my book. Thank you my colleagues at ACTADE (African Centre for Trade and Development). Thank you my colleagues and friends at Uganda Management Institute, and the press. Hon. Zitto Kabwe my Tanzanian brother thank you for coming. I was very happy when we agreed on your visit to Uganda and being with us at this launch. Thank you for the support you and your time gave me when we are in Germany. We are one: we are Africans. Dr. Muhumuza. Asante. You know how I respect you. (Dr. Fred Muhumuza is the advisor to the Minister Finance Planning and Economic Development, Republic of Uganda) Before I make my remarks, let me start by congratulations all Ugandans for making it to 50! 50 is surely an age of taking stock of what achievements one has made in life. Look at the life expectancy of most Africans! I wish to express my condolences to the Ugandans for the loss of Hon. Cerinah Nebanda that young jovial MP! God gives; he also takes. Now my remarks Let me mention that Africa is making more strides than before. More than 20 countries have had leadership elected democratically. The middle class is 355milion (2011). And the lion is more likely on the move. That is why we need to know causes of failure. But more important we need answers and solutions. So why this book and why has Africa been failing? Let me state that we need to first critically address internal factors for Africas power economic showing. Africa is not where it is because most countries are landlocked, or have poor soils or have no oil and gas.

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Colonization is no longer a viable excuse for Africas current poor growth. History is not destiny. Leadership is an issue. Africa needs leadership. This is infact the greatest challenges and problems of Africa fall under lack of leadership. I will not delve into this now. Read the book on this issue. Lack of institutions. Political institutions. Legal institutions for law and order. Institutions to support private sector development. Management of Africas resources is very critical. Better management and not rent seeking. Aid is not the answer to the capital problem of Africa. African businesses require cheap capital. There is lack of an African cooperation that is strong to represent and work for Africans. The Answers and solutions? I am one of the contributors. You are the other. I base my contribution on my practical experience in international trade, business, government, policy research work and teaching. Committed and visionary leadership is not only vital for private companies; it is necessary for managing countries and the public sector. Such leadership will appoint a team that is committed to enhancing the success of such a country. In this book, the difference between benevolent leaders (led Asian nations to success) and the dictators has been analyzed. Duration of the leader in power and its impact on the economy has been analyzed. An African leadership to wade off external aggressors and new colonizers is urgent. Merit based appointment as opposed to favouritism or nepotism: this has no substitute. African countries need to start valuing quality of experience and qualifications. Dont just pick friends and relatives. Value the quality of the personnel that will enhance growth. Stop this attitude of I have to help my people, our clan, group, ethnicity, region or religion. Talk about our people not my people. Leadership for inclusive growth. Leadership for transparency and accountability. Leadership for behaviour and attitude change. A change

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towards working hard and earning but not picking money from our national coffers. A change from arrogance and impunity by those who manage our national resources. Good leadership will have the political will to fight endemic corruption; and all abuse of countries meager resources. Embrace nationalism. Become patriotic. Good Leadership uses ethnic groups positively. Bad leaders use it to exploit society. A nation can be united in its in diversity of ethnicity. The Asian countries, South Korea for example achieved higher growth and later developed because of a social consciousness. In my book I look at patriotism/nationalism. Prosperity is a choice. Let us start a campaign on the future we want. We have to choose prosperity. Attitude change is timely. Attitude is a predisposition; related to perception (the way we see the world around us). Work hard pays. Free things dont build nations. An attitude of we will never make it is wrong and pessimistic. An attitude of we need help to survive. This kind of attitude has been observed in some places in Africa The role of government is vital here. Regulation is important. Lack of regulation is the price of inequality (alluded Stiglitz, 2012). We need to establish and strengthen institutions and ultimately value and respect them. The government has to influence the level of economic activities in the economy. Promote exports. Promote investments (both local investment & FDI). Let me mention that can should be careful on states role in the economy and business. It should be state intervention not interference. State intervention should not last forever. Population control strategies are vital. A quality population is necessary as a market (consumers) and providing labour. Which comes first? I agree with Bloom and Canning, that better health first and then income. The solution to the capital problem We need to ensure property rights. Property titles can be used for security in banks, or to obtain shares in companies. We need investments both FDI and local. We need markets. We need government to undertake economic diplomacy.

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We need markets for our exports; for employment and incomes; and for economic growth. We need trade and aid exit. Aid is not working. I have been part of those for the aid exit strategy. Even before Moyo wrote her Dead Aid (2009). I have continued this debate in this book (Why Africa Fails (2012)). Who needs cheap capital in Africa? Entrepreneurs not the government. We need attract remittance from African Diaspora. Government put in place systems that encourage Diaspora to invest in Africa. Africa needs cooperation from honest partners urgently. Identify and partner with honest partners wherever they are. The UN system has failed to address the African issues well. The genocide in Rwanda took place when the UN was there. Currently, DRC is suffering internal wars when UN is there. See the efforts of Africans themselves trying to solve DRC question: Uganda, Angola, Rwanda and DRC? The case for growth before democracy Please before you say that I am in for growth before democracy, first read my book, pg. 48. The Asian countries seem to have followed the so called Asian Model: growth before democracy or democracy after growth; e.g Japan, S. Korea, Taiwan, and Singapore. And now China. There are currently visible different approaches to going democratic. That proposed by the west; which when they were developing they never followed. The other is that Asian model. We could have an African model. Why always copy? I believe that ultimately democracy is important. But which came fisrt.read the book and the analysis based on empirical evidence. We all should know that democracy evolves gradually. Let us build institutions. Growth makes people demand for democracy. The middle class requires protection, good laws and ultimately democracy. The power of the middle class and the literate will force the governments in power to democratize. Let me caution about the middle class. Avoid a politically created middle class. Such a middle class tends to disappear with the end of the government that created it. When the regime collapses, that middle class disappears.

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I come from Uganda.I could be a descendant of people from South Africa..or Zimbabweor Zambia or Tanzania..or Rwanda. But I am a Ugandan. Above all I love Africaand I am an African. This will never change. THANK YOU FOR LISTENING TO ME.

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