Neo Liberal Economic Theory in Underdevelopment: Trade Liberalization in Uganda

This study attempts to explore whether or not the economic progress for which Uganda has received numerous international accolades is a reality for the majority of Uganda’s population. Furthermore, this study attempts to examine this question within the context of the global economy, to see if and how the international economic system and its policies have contributed towards underdevelopment in Uganda. Secondary research was the principal source of data with limited primary research data drawn from seven interviewees. The majority of these respondents agreed that Uganda’s economy has indeed improved since 1986. It was interesting to find that even though respondents agree that Uganda is enjoying economic prosperity, they had varied responses on whether poverty and economic inequality have decreased during this same time period. The majority also agreed that foreign investment in Uganda has not benefited the majority of Uganda’s population. Finally, and most interesting of all, respondents unanimously agreed that the global economic system is unfair and that it favors its architects in the West. Western protectionism was cited as an example of the unequal terms of trade liberalization that actually sustain poverty Uganda. The enormous economic disparities that exist in Uganda today are obvious. It is clear that policies guiding Uganda’s economic development need to be altered, along the lines of social democracy, in order to allow for a more equitable development. Unfortunately, the world’s economic giants and institutions on which Uganda is dependant for financing, investment, markets, and debt relief, strongly oppose economic policies that deviate from the neo liberal economic ideology