








“On the contrary, those loans and aid packages, can be a source of distortion and stunted growth as you can see across Africa. If foreign aid and loans, are a source of social-economic transformation, why the present growing crisis of even security and stability in Africa?” (Museveni, 17.08.2023).
Yes, we can morally question the World Bank for its reasons to cease to give new loans or grants to the Republic of Uganda. That is fair and assess the reasoning behind that is a matter of debate. As they are only doing it for one sole purpose and not for how the Republic itself is run or what sort of leadership it has. The World Bank has been in dialogue and been in negotiations with the Republic plenty of times over the years. The World Bank has been coordinating and ensuring development projects, budget support and other measures for the benefit of the Republic of Uganda. Therefore, they know the costs and the suffering, which will come with a ceasing of operating or offering support there.
That President Yoweri Kaguta Museveni uses the populist angle isn’t surprising. He has done so in regard to the Anti-Homosexuality Act and he thrives on it. It is easy political currency and now he can vilify the West and their means to an end. While his not coming with solid proof or reasons for his onslaught. He is acting like we don’t know he used to be a donor darling and a man of the West.
Museveni lived large and got big aid-money after the Bush-War. He was the new breed of leadership and the hope of a brighter future. Museveni and the likes was easy to sell and he was supposed reformer, a man of principals and a man with a vision. However, that was all false and narratives sold to make him feasible for the many.
That’s why I will only take a few words from a World Bank report, which is an assessment of the Poverty Eradication Action Plan (PEAP). That respectfully got funding from World Bank, which the report states this: “The total amount disbursed for the first PRSC5-7 series was $462 million ($137 million for PRSC5, $125 for PRSC6, and $200 million for PRSC7). PRSC5 was approved on January 17, 2006 and PRSC7, the last in the series, closed on November 30, 2009. The amount disbursed for the second PRSC8-9 series was $200 million ($100 million each operation). Because of delays in reform implementation and a corruption scandal involving diversion of bilateral donor resources, approval of PRSC9 was delayed” (World Bank – Report No. 96202, June 29, 2015).
When you read that and that’s only through one mechanism and one way of the World Bank. There are other ways that the Republic got funds or grants. This through the International Monetary Funds (IMF) or elsewhere, which isn’t covered here. Neither is this a overlook or a total oversight of the funds or grants given to Uganda. Only the ones through PEAP. That says something about how much money that was coming in and could be spent by the Republic or their respective government agencies, in coordination with the World Bank.
The report further states:
“On the positive side, the PRSCs helped finance Uganda’s budget within this broader budget support framework and shared priorities, contributing to macroeconomic stability and to maintaining public spending on basic social services (education, health, and water and sanitation) that otherwise would not have been possible given the low domestic revenue mobilization. The Bank also maintained broad and high-level policy dialogue with the government” (…) “But in their drive to extend budget support focused primarily on social sector expenditures, the Bank and the other budget support donors missed a major opportunity to help significantly increase domestic revenue mobilization, which would have made these gains more sustainable. In the event, as the donor budget support began to decline in 2009 and then came to an abrupt halt in 2012 as a result of a corruption episode with bilateral donor funds, low domestic government revenues––at 13 percent of GDP–– increasingly put pressure on public expenditures on basic social services. As a result, these services became underfunded and outcomes began to suffer in education and, especially, health. Even in water and sanitation––a comparative sector success story–acute underfunding is threatening to reverse past gains in access, especially in the most vulnerable rural areas” (World Bank – Report No. 96202, June 29, 2015).
This here report just shows how quickly the gains was lost. Also, what was offered and how the Republic itself didn’t galvanize the domestic revenue. Therefore, the NRM and the government itself didn’t do its due diligence, but hoped for a “helping hand” indefinitely. When the Republic of Uganda suddenly got a set-back and lost donors in a short-time span. The government couldn’t cover the shortfall and the government services came to an halt. When we know this from history.
We just know this will repeat itself now. When the World Bank is ceasing its operations or renewal of loans/grants to the Republic. That will hurt the economy and with an state budget run on deficit financing. The state will lack funds quickly, as it is servicing rising amounts of loans or debt. It has has to cover the debt before even paying the running costs of operating as a government. Meaning, the state will be in a deficit very quickly and there will be lack of funds. As the ones utilized will go to pay interests and pay the creditors for old debts. That’s where the World Bank would come in with budget support and facilitate good terms for credit. However, with the ceasing of operating and freezing loans. Means that ship has sailed and the short-term crunch is bound to happen. It will cost and no signal boosting can help the government out.
That’s why it is really unique that Museveni wrote these things in his 26 pages long piece…
“They are so shallow, they do not know when and where to stop. It is this shallowness in philosophy, ideology and strategy, that interferes with the global efforts to generate consensus for the good and even for the salvation of mankind from possible environmental and other man-made catastrophes. Hence, the recent provocation and arrogance by the World Bank Group on a subject of the homosexuals that we have so patiently discussed with so many of those elements. To dare think that the Ugandans, the brothers, the sisters and grandchildren of the Christian religious Martyrs of 1884 against our own tyrannical Kings, the Martyrs of the Luwero War (the 9th of June-Heroes), can be intimidated by the threat of withdrawal of loans and aid, that are, moreover, peripheral to our transformation efforts, is the epitome of mistake-making, to say the least” (Museveni, 17.08.2023).
“That is why Uganda under the NRM is an unsinkable ship in the stormy global sea of the World economy. It may be useful to remember the words of Dr. Mutharika, himself a former worker of some of those international bodies, when he became President of Malawi. He said that he wanted “a Malawi economic plan supported by the World Bank” and not “a World Bank programme for Malawi”. The Ugandans, should not waste time on it. Instead, we should launch a merciless war on the two internal inhibitors of our own: the corrupt and the neo-colonial planners. It is hightime, the two got off the scene completely. They have delayed us enough” (Museveni, 17.08.2023).
Musveni and the National Resistance Movement (NRM) got a bounty when they got into office. In the 1990s and early 2000s times where good. The International Community and its lenders covered the basics. There was so much money and ability to raise funds. The NRM and Museveni was promising and they could ate of other peoples plates without any hesitation. They were the new Kings in town and lived grand on donors money. Now those things are dwindling down and the goodwill is over. The outside isn’t as favourable and that hits the pride of the old man.
Museveni isn’t as beloved or bestowed. His not the future, but a relic of the past. His a man who has lost his way and trying to lecture anyone else on their misgivings. While never looking into what he himself never did. The World Bank commended the achievements earlier of his administration, but they also acknowledge that their easy money was taking away the ability of the state to raise domestic revenue. That is the problem to this day and is a reoccurring issue. That is a “bottleneck” that Museveni never got a handle of or idea of how to solve. This is why the Government and the NRM will have a hard time ahead.
He can speak vile and be angry. That doesn’t resolve the matter or help anyone. Neither does this text or article help his cause. The World Bank only cares about one thing. The President can torture, extra judicially kill, criminalize the opposition and use the military to detain civilians. Alas, the World Bank will not care about that, but they do want to save the Homosexuals of the World. That is obvious. Which is noble in one regard, but also very limiting in the other. As they are only safeguarding one minority, but not considering the implications for the rest of society. That’s where the scope of the World Bank is missing.
Museveni is right that the World Bank is shallow. That shallowness and pride was feeding him for years. It was giving him and his government a boost. The World Bank and other financial institutions gave Museveni the fire-power and ability to look successful without doing much labour. A lazy way of ruling the nation. Because, everyone else was paying the tab at the bar, but Museveni continued drinking. That’s what Museveni does and his now mad at the bartender for not allowing him another brew. Peace.






