KAMPALA, Uganda
The Uganda Bureau of
Statistics (Ubos), the government's statistical body and the World Bank have
disagreed on the methodology used while determining the Ugandan economy's
status.Meal time at a Ugandan home. Poverty levels very worrying (Courtesy: The Independent)
In his State of the Nation
address on June 7, President Yoweri Museveni said that Uganda would achieve the
economic indicators putting it in the threshold for lower-middle-income status
by the time of the budget reading a week later.
The president repeated the
same on budget day and wondered why the Finance, Planning and Economic
Development minister Matia Kasaija had not mentioned it in his speech. He said
the conclusion was based on the size of Uganda's economy or GDP compared to the
economy.
But on the last day of the
financial year 2021/22, the World Bank released the 19th Uganda economic
update, which showed that the country was yet to achieve the required figures
to join the middle-income countries. The report outs Uganda's per capita income
at $850 (Shs 3.1 million) as opposed to the $1,045 (Shs 3.8 million) stated by
Museveni.
According to the World Bank,
the GDP, which is the total monetary or market value of all the finished goods
and services produced within a country's borders in a specific time period, is
no longer used to determine the status of the economy, but the Gross National
Income (GNI), which considers GDP plus economic activities undertaken outside
the country by Uganda nationals, excluding activities of foreigners resident in
the country.
It's for this reason that
Ubos, World Bank together with the Bank of Uganda met to harmonize their
position following two opposing views on the economy. The meeting of the three
institutions was sanctioned by the president to harmonize the positions, but it
ended without agreement.
Ubos executive director, Chris Mukiza who described the meeting as cordial, said the only difference was in the choice of statistics to use.
"World Bank is reporting
using GNI, that we shall explain GNI per Capita. We at the bureau reported GDP
per capita. These are two different national account aggregates. So the issue
is the interpretation and the reference period by the two reports," Mukiza
said.
He expressed disappointment
that Ugandan journalists like quoting foreign reports as opposed to national
reports.
"Yes, we shall discuss it
because I want to concur with those guys who were running for a meeting,"
said a visibly angry Mukiza.
He, however, said the meeting
ended before concluding a joint statement, which, according to him, will be
written when they convene again on Wednesday.
"I don't want to release
it and they say 'this is not what we agreed on. We have to agree so that we do
not confuse the public. We agreed but did not finish the statement."
The earlier World Bank
statement created widespread social media criticism of the president, many
asking where he had gotten his figures from. - Observer
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