The Uganda Budget Framework Paper FY2018/19 for Energy and Mineral Development is saying that the External Financing is the key for this Sector – Period!

The Budget Framework Paper for Financial Year of 2018/2019 for the Ministry of Energy and Mineral Development is really revealing how the financing of the sector is and how the state is involved with the manner. Also, how low-key the main factors are and lacking transparency is hitting the Energy Sector of Uganda. Not that is surprising, since the agreements, the licenses and the tenders are usually kept behind closed doors.

However, the main part of the Framework Paper is evident of the issues at hand:

“The indicative budget ceilings for the Ministry of Energy and Mineral Development have been rationalised in line with the sector priorities and national priorities as communicated in the Budget Call Circular and in the Presidential Directives. The ceilings for Vote 017 for the FY 2018/19 are as follows: Wage Recurrent is UGX 4.23Bn; Non-Wage Recurrent is UGX 74,04Bn; GoU Development is UGX 307,84Bn and the Development Partner contribution is UGX 1,608.41Bn. Under Vote 123 ceiling is UGX 81.98Bn is for the GoU Domestic Development and UGX594.00Bn is from external financing” (Energy and Mineral Development, Budget Framework Paper FY 2018/19, 2018).

The building of vital infrastructure, the refinery, the pipelines and energy production facilities are all dependent on funding from abroad. If it is grants, loans or paid-in-full agreements done in secrecy. Because, there are more than the shadows of this budget framework paper. It is saying a lot and the votes for the future is showing the future too. That the Ugandan economy is prospering, as the budget are needing all funding from afar to be able to build needed infrastructure. Also, needs the grants for the Rural Electrification, the ones who the state has even borrowed to do.

Therefore, this Budget Framework Paper is showing the troubles ahead. This isn’t voting for better economy, know this is dependency and also proving how much the donors and partners are involved in making sure the economy gets addicted to it.

When it comes to the refinery, the details are clearly still in the wind: “The process of selecting of the Lead Investor is still progressing and the negotiations are ongoing between Government and the selected investor. The process is expected to be completed in FY 2017/2018. There after FEED and ESIA for refinery development will be undertaken with the Lead Investor on board” (Energy and Mineral Development, Budget Framework Paper FY 2018/19, 2018). So the selecting of it is not finalized, well, for some thought Russians had secured agreement and the reason for Museveni to visit Moscow. Clearly, that ship has sailed, we can wonder if Total or any other company would do this. As Total has the biggest chairs of licenses in the Lake Albertine Basin. Time will tell, but another proof of lack of transparency, when the Ministry has to write this.

“Procurement Bottlenecks including lengthy bidding processes that require no-objections from the external financiers at each stage of execution. There is need for PPDA to revise guidelines for procurements relating to flagship projects. In addition, the following measures need to be considered: financing agreements are signed, project is almost ready to kick off. PPDA should reduce the administrative review timelines that sometimes stall progress” (Energy and Mineral Development, Budget Framework Paper FY 2018/19, 2018).

This here is initially following the guidelines of the First Amendment of the 1995 Constitution of 2017, the Land Amendment that the National Resistance Movement put forward before the Age Limit. That would fit the narrative of the Ministry and their wishes. It is like reading the same idea, to give more power to the state and able to land issues quickly.

What we can learn, also and which is important, these developments, these infrastructures projects couldn’t have been built if it wasn’t for external loans, externals grants or direct aid, if not on the license fees and the parts that is taxed. However, the grand amount and the majority of the projects needs the external funding.

This is not surprising, it is to be expected because Museveni doesn’t want to use his money. He want to spend other people’s money and also the money of the future. To benefit him today, that is why the deals are done in the secrecy…. We don’t know the reasons and the value of the licenses, the ones who is to build the refinery, even the grand agreement between the Corporations who will build the Pipeline. We know that certain companies has failed to build the dams and used bad material, but that is because of the Chinese Contractors has saved money, while being paid-in-full.

President Museveni blessed that deal and got scraps back. Time will tell, but this isn’t a good look. Not because I want it to be bad, but because the money says so. Peace.

Opinion: President Museveni praises Equatorial Guinea for it’s rampant Oil-Corruption; wants to learn his tricks!

In these days the President Yoweri Kaguta Museveni of the Republic of Uganda are on a state visit in Malabo, visiting and learning tricks from the Equatorial Guinean President Teodoro Nguema Obiang, who has used the oil to enrich himself and his loyal subjects. Not build a welfare state, but make sure the family of Obiang get wealthy. Certainly, Uganda is preparing for their own oil production in the Lake Albertine basin, as the pipeline building from the production to the Port Tanga in Tanzania.

This is why President Museveni are visiting Equatorial Guinea to learn the tricks of the trade, as the state of Uganda are still in the dark of the oil-deals between the international companies and the state. We can wonder how the funds will be spoiled and how Museveni plans to use the oil funds for personal gains. If so, he wouldn’t praise President Obiang, who has his whole career to spend the oil profits from his republic. This is what Museveni wants to learn, since his career has been tricking out all sorts of play from Ugandan republic. The petroleum profits can be misspent and hidden just like in the republic of Obiang. Take a look!

President Museveni’s praise:

“We are therefore in Equatorial Guinea for two things: looking at how to support prosperity of one another and how to push for our strategic security. I also congratulate Equatorial Guinea for using it’s oil and gas very well. When I was last here for the AU Summit, I noticed gaps between the airport and the city centre. Today, all these gaps were gone. In their place are new, well-planned buildings. And I see the city is refurbished. Some people say oil is a curse but in Equatorial Guinea it is a blessing” (Yoweri Kaguta Museveni, 26.08.2017)

Business in Equatorial Guinea:

“Since the discovery of the offshore oil deposits, many investors have shown great interest in the country. Foreign direct investment inflows into the country had thus been consistently high for the past years. Nevertheless, in 2016 the FDI inflow amounted to USD 54 million, a sharp decrease from USD 233 million recorded the previous year (and the historical peak of USD 2.73 billion in 2010) . The total stock of FDI in the country is currently at USD 13.4 billion” (…) “Corruption in particular is problematic. In addition, the business climate of the country remains rather unfavourable for investment. Cumbersome procedures and high compliance costs slow licensing and make starting a business more difficult. Weak regulatory and judicial systems may discourage foreign investment as well, along with high credit costs and limited access to financing. The government controls long-term lending through the state-owned development bank. Equatorial Guinea ranked 178th out of 190 countries in the 2017 Doing Business report published by the World Bank, losing three spots compared to the previous year” (Santander Trade, 2017).

Son of the President on trial:

“The corruption trial of Teodoro Nguema Obiang Mangue, the son of the president of Equatorial Guinea, ended in Paris on 6 July with the prosecution calling for a three-year jail term, a €30 million (US$34 million) fine and the confiscation of assets. The Tribunal will return a verdict on 27 October. The 48-year-old vice-president of Equatorial Guinea was not in court to hear the prosecution’s claim that he used money stolen from his country’s treasury and laundered through a shell company to fund a lavish lifestyle in France” (Transparency International, 2017).

This was what that is well-known of the Equatorial Guinea corruption and the son of President has also had challenging cases in the United States. Now the son is also having alleged fraud and criminal charges in France. Clearly, the Ugandan President has already known for corruption behavior. Therefore, even a state agency of PPDA has some words, that the government needs strict regulations before procurement and infrastructure development. This will be clearly important when it comes to petroleum industry. Take a look!

PPDA strict regulation on public procurement:

“Public procurement is a key pillar of the public financial management system. The country’s budget and plans are translated into actual services to our people through the public procurement system. It is also the link between the public sector and the private sector as it is the medium through which the private sector does business with Government. Public procurement therefore involves large sums of money and as our budget grows with the priorities of Government remaining infrastructure development, the proportion of the budget earmarked for public procurement remains significant and therefore calls for strict regulation” (PPDA, 2017).

“Audits and investigations by the Public Procurement and Disposal of Assets indicate that corruption in the procurement process manifests more in the evaluation of bids, reported to be at 58%. PPDA’s Manager Capacity Building Ronald Tumuhairwe says such corrupt practices lead to awarding of contracts to incompetent individuals hence shoddy works in several government projects” (…) “He adds that the second process where corruption manifests is awarding of contracts at 12.5%, followed by receipt and opening of bids, reviewing evaluation of bids, advertising and signing of contracts” (Sebunya, 2017).

President Museveni clearly has own agencies saying it is important with strict regulations on procurement and infrastructure developments like the ones needed for oil industry in the republic. The regulation of oil industry is lax, to make sure the state isn’t transparent with its profits and taxation of the industry. This is what Museveni wants, that the state and the public doesn’t know the contracts or the agreements between the parties involved. That is something President Obiang surely have the capacity to teach Museveni. And how to make sure his family is earning from the state resource, instead of the public and the state itself. Peace.

Reference:

Transparency International – ‘ON TRIAL FOR CORRUPTION: FRENCH PROSECUTORS DEMAND JAIL TERM AND €30 MILLION FINE FOR OBIANG’ (11.07.2017) link: https://www.transparency.org/news/feature/on_trial_for_corruption_french_prosecutors_demand_jail_term_and_30_million

Santander Trade – ‘EQUATORIAL GUINEA: FOREIGN INVESTMENT’ (August 2017) link: https://en.portal.santandertrade.com/establish-overseas/equatorial-guinea/investing-3

Sebunya, Wycliffe – ‘Corruption manifests most in the procurement process – IG’ (25.08.2017) link:http://radioonefm90.com/corruption-manifests-most-in-the-procurement-process-ig/

PPDA – ‘EVALUATING INNOVATIVE ANTI CORRUPTION POLICIES IN PUBLIC PROCUREMENT IN UGANDA’ (02.08.2017) link: https://www.ppda.go.ug/evaluating-innovative-anti-corruption-policies-in-public-procurement-in-uganda/

OAG Muwanga explains in two reports problems and errors within the Petroleum Industry!

The Auditor General has two reports on the Petroleum Industry and the issues of Petroleum Data and the Petroleum Fund. The errors of the state, the PAYE of the tax to URA. Proves that the monies earmarked for the Petroleum Fund, ends up in the Consolidation Fund. This is proof of the problematic use of the added taxes before the oil adventure really takes off and the drilling of the explored blocks in the Lake Albertine Basin. Where already different international companies have come to drill and the state is making a petroleum pipeline to Port Tanga in Tanzania. Therefore, these vast resources and possible taxes created by the industry and within the Republic. Still, the default problems that the Auditor General address can be fixed. It is just a matter of morals and actually following guidelines. Some are even set in the Public Finance and Management Act of 2015, so if for instance URA follows it, the problems of transactions into wrong fund can create payment arrears and also future problem of spending by the state. Since the misuse of funds and taxes can be allocated to other than what they was expected, as the Consolidation Fund has other uses than the Petroleum Fund. Just take a look!

Petroleum Fund:

“For the six months ending December 31, 2016, the Fund received non tax revenue worth UGX 922,348,854 (USD270,900) as surface rental fees from Tullow Uganda Operations Pty and Total E & P Uganda” (OAG, P: 7, 2017).

“It was however noted that monies collected by Uganda Revenue Authority (URA) under the income tax on income derived from petroleum operations such as PAYE, VAT and WHT is not being remitted to the Uganda Petroleum Fund. This contravenes the Public Finance and Management Act 2015” (…) “In their opinion PAYE is not tax charged on income derived from petroleum operations but paid by the employees and as such it had been excluded from the definitions of petroleum revenues. Arising out of the above it was established that UGX.l1,390,530,053 collected through the commercial banks and remitted to the consolidated fund should have instead been transferred to the Petroleum Fund. Management has promised to remit it to the Petroleum Fund before closure of the financial year 2016/17” (OAG, P: 10, 2017).

“During the period under review, the fund received USD 270,900 (Two hundred seventy thousand, nine hundred dollars) in respect of surface area rentals consisting of USD 113,400 (One hundred thirteen thousand, four hundred dollars) paid by Total E& P Uganda for the development areas of Ngiri, Jobi-Rii and Gunya and USD 157,500 was paid by Tullow Uganda Operations Pty Ltd for development areas of soga, gege, Kasemene, Wahrindi, Nzizi-Mputa & Waraga, and Kigogole- Ngara Unrealised foreign exchange gains worth UGX 15,093,435,449 have been recognised in the Statement of Changes in Equity. These arose from translating the USD opening balances and revenue collected during the period into UGX at the closing rate for reporting purposes” (OAG, P: 14, 2017).

Petroleum Data:

“The oil companies did not fully comply with submission of reports relating to their drilling, exploration activities and operations as required. Delays and non-submission of reports results in an incomplete database which may reduce the effective use of the database in petroleum resource management” (OAG, P: vi, 2016). “The shortcomings in the management of petroleum data by the Ministry of Energy and Mineral Development may affect the completeness of the data on the existing petroleum potential, extent of reserves, and amount recoverable thus reducing Uganda’s ability to maximally exploit and benefit from its oil and gas resource potential. A thorough understanding of the resource base and its geographical distribution informs key decisions on the rate of exploitation and potential future revenues” (OAG, P: viii, 2016).

This should all be worrying that the State and the Industry isn’t sufficiently ready for the activity, as the URA cannot even allocate funds correctly. This is even before the Petroleum Data is taken care of and made sure that the exploitation and drilling happens where the best well is within the block. Secondly, the real value of the reports and the licenses that the state would offer to the companies. That because the flow of data and the status of it wouldn’t be where it could be. This is losses created by maladministration and lacking will of institutionalize the knowledge. Instead, the Petroleum Industry is controlled and has just a few handshakes away from the State House. That is why the URA might have delivered the funds to the Consolidation Fund instead of the Petroleum Fund. All of the potential might be wasted in the lack of protocol and care of resources management that is needed in the Ministry of Energy and Mineral Development (MoEMD).

The recommendations and the looks into the issues should be taken serious by the Petroleum Industry and the MoEMD. So the state could both earn more on the industry and also create more positive growth through the provisions that is already made in Public Finance Management Act (PFMA) 2015. So time will tell if they will be more reckless, if they will listen to the OAG or if the Presidential Handshakes will steal it all for keeping the NRM cronyism at bay. Peace.

Reference:

Office of the Auditor General Uganda – ‘REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE PETROLEUM FUND FOR THE SIX MONTH PERIOD ENDED 31sT DECEMBER 2016’ (07.06.2017) – John F.S. Muwanga

Office of the Auditor General Uganda – ‘Management of Petroleum Data by the Ministry of Energy and Mineral Development’ (December 2016) – John F.S. Muwanga

Ugandan economy could get Oil-Shocks due to external factors, recent BoU report claims!

Surprise, surprise the Bank of Uganda (BoU) has made a working paper on the possible consequences of the oil price, the oil exports and the oil imports on the Ugandan economy. This didn’t exceed my expectation of a report or paper, but said enough to clearly anticipate changes in the economy with the coming export. Even as the BoU called the domestic oil production in embryonic stages, which means the real impact will come when it is closer petroleum production the GDP and CPI feel more impact of the oil prices and the volumes exported from the Lake Albert Basin.

That the Ugandan State and the Republic of Uganda, should know that the fresh foreign exchange and currency into the economy, as the domestic parts of petroleum is not having big impact on the economy! Still, the export can change it as the oil prices and change the consumer price index for instance. Take a look!

“One such shock that is a source of major concern and risks to monetary policy-making in Uganda is the oil shock. To our knowledge, the effects of oil shocks in Uganda, to date, have not yet been analyzed. The objective of this paper therefore, is to analyze the nature and importance of oil shocks to Uganda’s economy in a dynamic framework” (Nyanzi & Bwire, P: 4, 2017).

“According to the Uganda’s Ministry of Energy and Mineral Development (2012), oil provides about 10 percent of Uganda’s energy requirements – the rest is sourced from the small and underdeveloped and unreliable electricity sub-sector and the cheap biomass energy. The oil sector was also deregulated in 1994, under the broad structural reforms implemented by the Government of Uganda, which effectively eliminated oil prices subsidies. Uganda is endowed with commercially-viable oil reserves, but domestic oil production is in embryonic stages. Consequently, all of the oil-energy needs of the country are satisfied by imports” (Nyanzi & Bwire, P: 8, 2017).

“The results of the variance decomposition in regard to oil shock are not entirely unexpected, given the structure of Uganda’s economy. Oil and its products constitute 8 percent of total intermediate consumption and 10 percent of energy requirements. In addition, oil is crucial to electricity supply in Uganda because hydro-electricity is unreliable and insufficient. This implies little or no substitutability of oil with hydro-electric energy in production in case of adverse oil shock, which could justify the long-run 20 percent variance in output due to oil shocks. Regarding consumer prices, the small percentage of variance in consumer prices due to oil shocks is justified by the small weight of oil in the CPI basket. Oil constitutes about 1 percent in the 2009/10 rebased CPI basket, of which 0.8 percent is oil for personal transportation and 0.2 percent a source of liquefied energy at home. These numbers are not surprising given that over 75 percent of the population live in rural areas and depend mainly on wood and charcoal as a source of energy, and that rates of car ownership are generally low. Moreover, the main source of short-run volatility in the Uganda CPI is weather-related factors affecting food prices. This leaves the bulk of fluctuations in the core consumer prices (Comprising over 80 percent) explained by demand” (Nyanzi & Bwire, P: 18, 2017).

“Oil shocks are transmitted through the supply channel, as a shock that increases the international price of oil leads to opposite movements in real output and consumer prices in Uganda” (Nyanzi & Bwire, P: 19, 2017).

It is hard to say how it could impact and how the petroleum production and exports will change the economy, how the prices and the inflation, as the measure of how much the price of the crude-oil will be at the given time. That the government has secret agreements with oil companies and also agreements with other to build the crude-oil pipeline that goes to Tanzania. Therefore, the reaction in the economy is not yet known, but with the background and knowledge of the how it is now. Most likely a real output and change in consumer prices in Uganda.

That will be an oil-shock no-one can be prepared for. Unless the Government and Parliament created legislation and policies who might soften the change of the economy. Therefore, with this in mind, the National Resistance Movement, the State House and the President Museveni have work to do. That is if they consider the implication the petroleum production and exports will have on inflation, currency value and consumer prices index as well. This report should open some eyes into it, but it should not be surprising. Peace.

Reference:

Nyanzi, Sulaiman & Bwire, Thomas – ‘Working Paper No. 04/2017 – The Macroeconomic responses to Petro Shocks for Uganda’ (May, 2017)

Uganda’s Growth in the Era of Oil and Volatility (Youtube-Clip)

“Despite the slump in global oil prices, the start of commercial oil production in Uganda in 2018 offers long-term prospects to diversify the country’s economy and catapult it to upper middle income status in 30 years, according to the country’s new economic memorandum” (World Bank, 2016).

The ironies of Socialism versus Neo-Liberalism; why I believe in a Keynesian approach instead of the Socialism or the Neo-Liberalism

Well, it is about that time, I make mockery of two statues of civilization and ideas that rules the world while not hoping the blindly followers of either comes to attack my person, my thoughts or my widely allegation on the parts. Both of the political views and framework have made a difference and is the reason why we have societies like we have today.

The main parts of socialism is that there is policies and regulations that fit for social and bigger government who cares for the citizens, like subsidized health-care, schools, university, transport and local government. Through taxes and higher fees on produce as the socialism need funding for the ability to make the government organizations and government programs. The Government need more taxes to able to serve the public with what they expect through the socialistic view, while the taxes are set-up in a way that the ones with more income is generating more revenue is supposed to pay more tax; than the ones that are paid less.

So with the big-government and grander government policies comes the address of the public will and citizens loses power, but that for the price of cheaper health-care, schooling and other government institutions. That stops the higher prices and free-market pricing of health care that lets major parts of the society might even be able to pay for the needed operations. So the reasoning and hateful measurement against big-government is wrong in some parts as the people are stronger when we work together and divide the expenditure on the whole society; instead of billing the whole ordeals on the single individual.

Neo-Liberalism is not as straight forward as this is supposed to be measurement to weaken the state, make it liberal and little. Give more power to person instead of the government and give more choices to the citizens of the given country. The issue is that Neo-Liberalism has come with certain ideas and prospects. For instance the New Public Management (NPM) is a Neo-Liberalistic idea. NPM have given the societies and the government who added these policies more watchmen and ombudsmen then before. They have given the power away from the departments and created institutions under the departments with specialist and experts that sets the standard and gives advice to the department. While the departments still need manpower, so need also the lower-expert-institutions. So you have two fronts with specialist working the same field and advising each other. So before NPM most of the experts and brains where at the Department and Local Government that worked with a given subject or the project that needed a specialist; thanks to NPM they have become self-serving and not cut down the amount of bureaucracies have become fluent. As much as the wish for the NPM as parts of the Neo-Liberalism idea, it hasn’t created less government, but more and longer away from the decision making.

The Neo-Liberalism of free-market and starch corporate control have not given added freedom to the consumer. As the markets are controlled by less and less owners and stakeholders; the corporate power have become stronger, but more centralized in conglomerates that issues the policies and secure the profits. The riches of the corporations and the borderlines agreements are built for the corporations not for the welfare for the citizens. The original businesses we’re built for single projects or for fixed procurement that the state and citizens needed like building roads and bridges. Not gaining profits that sky-rocket and then moves away the tax-money into tax-havens. That is the Neo-liberalism ways of economies. In a way the movement of money should happen without government interference or taxation.

The Neo-Liberalism brought also an idea that was worse than the NPM. That was the Structural Adjustment Program (SAP) under the World Bank and International Monetary Fund (IMF). SAP was made in the 1980s to liberate the subsidized agriculture, health-care and other public institutions as government got great loans through the funding of IMF and WB. So they released the governments and free-market ideas that killed the Co-Op’s in the countries that was already lots of them. They had commissions and centralized crop sales through Co-Ops that served the farmers, either they produces cocoa, coffee or tea. This was a standard of fixing training, production and prices to influx together a stronger unity. The ironies of this is that the IMF and WB gave this order through SAP to Low-Developed Countries while the countries that funded this had Co-Ops in agriculture themselves and still have to this day. So with the SAP they made the inside trading before the export more intricate and gave “supposed” more power to the farmer. Instead they became more reluctant and needed more to be careful to whom they offered their crops to. As the traders from capital who went up-country could fix prices and lie about the values to earn more on the trade to export. So the farmer would not get a given price on the world-market because there we’re less voices giving the farmer a hand in the trade of their cash-crops and their goods that they we’re not consuming themselves. So the SAP agreement stalled the government institutions and weakens them together with the trading experience on the ground. The structures we’re given big loans for building up trade-networks and export facilities while dismantling the structures that secured and fueled the industry and agriculture. As the Agriculture and Industry should not get subsidized, but get funding through free-market ideal and that killed the initial funding as the cheaper production came from abroad instead of making it locally. Therefore it is more normal to Chinese, Egypt and Brazilian products than own local products in the supermarkets of Uganda, for instance. Even meat, juice and toilet-paper are imported than produced in the country. That is because of the SAP and the Neo-Liberalism ideas.

Another important factor of the Neo-Liberalism idea is the abolishing ideas of Workers Unions and trying to ban them. As the Free-Market should fix the pay for the worker and the business it should fix it. That is why there been less strikes and less new Unions in our day. The reason why Unions in our time is important and the socialist idea of them is that the riches of the corporations; does not seem to trickle down to the citizens; it only left back to the stakeholders and owner, not to society or the workers that works for the rich corporations. Settling this is not easy. During the Reagan and Thatcher era tried to kill of the unions for their meddling and dissolve them so to actually centralize power. Instead this killing of mining-unions and other unions in the United Kingdom have weaken the industry and the ability of workers to fix pay while the corporations come with contracts that are good for business, but not good for steady income for proper work. The recent years of cover-ups in Sports Direct that is owned by Newcastle United Mike Ashley that offers their workforce lots of “Zero-Hour Contract”. Zero Hours Contracts work in the way that the employer has more people under their wings without paying extra for them. The Contract gives not benefits or sick-leave. As the Employee is paid by the hours and amount of time they work for the employer and nothing else. So all the benefits is added to the business and none for the worker, who has to fight and bend-over to add hours as the pool of willing workers are there. Even if the Zero-Contracts are bad, the non-Union and not-allowed to unionize work-force cannot go together and fight for their benefits and rights. As the Employer can continue to use and get new workers without having to stand-by them. Sports Direct is just an example of it, there are more business who uses this model and creates massive profits as they don’t have to offer needed benefits or health-care programs to the employees. As Wall-Mart have had low-hourly pay and no health-care benefit while letting their employees sign-up to government funded programs for health-care so that the Wall-Mart employees get little paid and at the same time uses food-stamps and Medicaid instead of Wall-Mart having health-Care benefits. So the business saves the money for salaries and also save the benefits of their employees; this is something you can thank the beautiful neo-liberal ideas.

The difference with the neo-liberalistic ideal of work is that the employee would give sufficient pay and have a contract that benefits the company and the workers. As they would have social responsibility for their workers as they have health benefits through the standard with standard payments of salaries together with state fueled community health care. The Neo-Liberal is that personal pay of the health-care instead of tax-payers money. So the health-care will be opened to the once who can have insurance or ability to pay for it. Instead of funded through the tax-payers pockets as solidarity between all citizens as in the socialist idea. That cannot be seen as a problem for a liberal person, to bring solidarity and also a structured health-care that everybody pays their fees into and when needed pay a small personal fee to get access, instead of footing the whole bill on their own.

Let me finish this up with the ideals that are ironic on the matter.

• Smaller Government under NPM has actually made more Ombudsmen and Expert Organizations. Meaning that the Government didn’t become smaller, just longer away from the Department to the Experts and the Ombudsmen that the Government want to control
• The SAP in Neo-Liberalistic method didn’t bring wealth to the countries it was applied to. The Farmers, the government institutions got weaken, while the loans got higher and less development as the Free-Market got the resources, but without control of the Co-Ops or other ways of maintaining support of citizens. The economies became more fragile as a result of the Neo-Liberal SAP then under the Co-Ops with the control of selling cash-crops and so on.
• The Free-Market idea of Neo-Liberalism while destroying Labor-Unions to secure more government control of the market. While deteriorating the labors ability and therefore opening for the “Zero-Hour” Contracts that gives all the advantages to the corporations and none to the employee who only get security for the hourly work and nothing else for the employee. That would not happen with stronger unions and government who could enforce the rules for corporations.

All of these is ideals against each other I myself is not a clear socialist, even if I am raised on socialist country in a social-economic balance system. I myself is a clear Keyenist in the way that I believe in free-market and free-society to an extent. That extent is that the governments automatically bails out the necessary institutions and have a hand into the banks and other needed businesses of a society. That the workers are secured and fixed through strong barriers so that the market is made sure that the governments, and also facilitate the marker for the corporations. So that the market will have input from the government as the eruptions is inevitable and needs a structure to control it.

This three main components are basic:

• Aggregate demand is influenced by many economic decisions—public and private.
• Prices, and especially wages, respond slowly to changes in supply and demand, resulting in periodic shortages and surpluses, especially of labor.
• Changes in aggregate demand, whether anticipated or unanticipated, have their greatest short-run effect on real output and employment, not on prices. Keynesians believe that, because prices are somewhat rigid, fluctuations in any component of spending—consumption, investment, or government expenditures—cause output to change. If government spending increases, for example, and all other spending components remain constant, then output will increase.

So with that in mind you understand why I am in between of the socialist and the free-market neo-liberalism as the Keynesian ideas that are more subtle and securing society as the mixed of government control and free-market gives sustainable societies. Not only full freedom without security for other than the corporations which is the main mantra of the Neo-Liberalism as the individual freedom usually get used by the legal person the corporations and not coined will by the persons themselves as the belief is under the ideology of liberal ideas. Instead of having total control of the state in the Communism, and strong big-government with socialism; but the Keynesian sees it in middle of that and have a free-market with control of the wages and workers by the government. That gives a steady economy and also a greater stability in the values of inflation and stronger value of the person instead of being a commodity as resources in the free-market thinking of the neo-liberalism that have deteriorated the markets and only winner is the corporations; not the fellow human beings. Peace.

How Mzee pledge to fix the problems in every campaign rally; as he has done since 1986; nothing new just polished pledges

The issue is here, I don’t have to be to specific about the campaign promises from Mzee. Yoweri Kaguta Museveni and his National Resistance Movement have their own way of repeating themselves. YKM or Mzee have the class-act of a tiring Tata model. You know what he going to promise.

He will promise new roads from the central towns in the area and towards other main centers under 50 kilometers away. They will be tarmacked and built in the next period. If there is harbor or forest nearby him will help investment and build a paper-mill or functioning industry fitting the area. The same happens in other areas where it is more fitting for metal-industry, tea-factory or a sugar-factory. To prove that NRM will get jobs to the areas finally after 29 years of reign.

Mzee does not only promise industry and infrastructure. That would not be to fun. He will promise after 29 years to fix or build health-care facilities in every district or furnish them. This while his police force will close them down when the opposition passes by, he fears that they can actually see the #SteadyProgress on the matter.

Mzee will also promise the use of NAADs money. For those who don’t know – NAADS is short for: National Agricultural Advisory Services. NAADS funds are to set up functions to use cash crops and educate the Ugandan small plot farmers into profitable produce. He will promise more of this and offer specific funds for a set of fixed funds that are for one group of people in the district like Micro-Finance for hard-working woman in Busia. They are promised extra millions if they vote for you.

Mzee will promise the youth more work not industrial, but in general without saying the solution to the matter. You will point out the #SteadyProgress and the greatest program ever since the Ten-Point Program – Operation Wealth Creation; where you have made a few small steps and funds to fix the issues of poverty. And you promise that more people in that district will be included into the Wealth Creation scheme and have district youth being supported through it.

Mzee will promise more security and ask the people of the district to be grateful for the decent performance of the NRM on this point. That they will continue to serve the districts and the public, both the army and police will only be there for them if they promise to vote for him and NRM, because nobody else keeps them cool.

Mzee will promise the district and the people school equipment and have a technical school in every district. So that he can prove that he takes the education of the children of the country seriously. As they will be promised to get schoolbooks and notebooks for their studies!

Mzee will promise more districts and sub-counties to secure loyalty and in the end more government funds to support these new districts and hire more loyal people in the area in a new functioning of the movement-program of the 1980s (the last piece is just refreshing the memories of the voters).

Mzee will again promise to become a middle-income country and earn enough on its own. So that the country will go into a new term and make sure to the steady progress started in 1986; that he have to continue because he couldn’t finish it last term since he have all the time worked to secure peace in the country fighting ADF and LRA an such instead of building the land. But now that they are fought back he can now promise to secure the country and become a middle-income country.

I think that is enough of him for now. There will be more since he is still the President of Uganda. Running the country and using the government institutions against the opposition as done so systematically. There will be more things to come, but I hope that the people and voters don’t buy into these promises. It is 29 years of the same kind of promises and respectably we can see that Mzee haven’t kept the promises of old, why should he keep the new ones now?

Peace.

2016/169/AFR: World Bank Group unveils $16 Billion Africa Climate Business Plan to Tackle Urgent Climate Challenges (24.11.2015)

One third of funds expected to come from Bank’s fund for the poorest countries

WASHINGTON, November 24, 2015—The World Bank Group today unveiled a new plan that calls for $16 billion in funding to help African people and countries adapt to climate change and build up the continent’s resilience to climate shocks.

Titled Accelerating Climate-Resilient and Low-Carbon Development, the Africa Climate Business Plan will be presented at COP21, the global climate talks in Paris, on November 30. It lays out measures to boost the resilience of the continent’s assets – its people, land, water, and cities – as well as other moves including boosting renewable energy and strengthening early warning systems.

“Sub-Saharan Africa is highly vulnerable to climate shocks, and our research shows that could have far-ranging impact — on everything from child stunting and malaria to food price increases and droughts,” said World Bank Group President Jim Yong Kim.  “This plan identifies concrete steps that African governments can take to ensure that their countries will not lose hard-won gains in economic growth and poverty reduction, and they can offer some protection from climate change.”

Per current estimates, the plan says that the region requires $5-10 billion per year to adapt to global warming of 2°C.

The World Bank and the United Nations Environment Programme estimate that the cost of managing climate resilience will continue to rise to $20-50 billion by mid-century, and closer to $100 billion in the event of a 4°C warming.

Of the $16.1 billion that the ambitious plan proposes for fast-tracking climate adaptation, some $5.7 billion is expected from the International Development Association (IDA), the arm of the World Bank Group that supports the poorest countries. About $2.2 billion is expected from various climate finance instruments, $2.0 billion from others in the development community, $3.5 billion from the private sector, and $0.7 billion from domestic sources, with an additional $2.0 billion needed to deliver on the plan.

“The Africa Climate Business Plan spells out a clear path to invest in the continent’s urgent climate needs and to fast-track the required climate finance to ensure millions of people are protected from sliding into extreme poverty,” explains Makhtar Diop, World Bank Group Vice President for Africa. “While adapting to climate change and mobilizing the necessary resources remain an enormous challenge, the plan represents a critical opportunity to support a priority set of climate-resilient initiatives in Africa.”

The plan will boost the region’s ability to adapt to a changing climate while reducing greenhouse emissions, focusing on a number of concrete actions. It identifies a dozen priority areas for action that will enhance Africa’s capacity to adapt to the adverse consequences of climate variation and change.

The first area for action aims to boost the resilience of the continent’s assets. These comprise natural capital (landscapes, forests, agricultural land, inland water bodies, oceans); physical capital (cities, transport infrastructure, physical assets in coastal areas); and human and social capital (where efforts should include improving social protection for the people most vulnerable to climate shocks, and addressing climate-related drivers of migration).

The second area for action focuses on powering resilience, including opportunities for scaling up low-carbon energy sources. In addition to helping mitigate climate change, these activities offer considerable resilience benefits, as societies with inadequate access to energy are also more vulnerable to climate shocks.

And the third area for action will enable resilience by providing essential data, information and decision-making tools for climate-resilient development across sectors. This includes strengthening hydro-met systems at the regional and country levels, and building capacity to plan and design climate-resilient investments.

“The plan is a ‘win-win’ for all especially the people in Africa who have to adapt to climate change and work to mitigate its impacts,” said Jamal Saghir, the World Bank’s Senior Regional Adviser for Africa. “We look forward to working with African governments and development partners, including the private sector, to move this plan forward and deliver climate smart development.”

The Africa Climate Business Plan reflects contributions and inputs from a wide variety of partners with whom the Bank is already collaborating on the ground, in a coordinated effort to increase Africa’s resilience to climate variability and change. The plan aims to help raise awareness and accelerate resource mobilization for the region’s critical climate-resilience and low-carbon initiatives.

The plan warns that unless decisive action is taken, climate variability and change could seriously jeopardize the region’s hard-won development gains and its aspirations for further growth and poverty reduction. And it comes in the wake of Bank analysis which indicates climate change could push up to 43 million more Africans into poverty by 2030.

Press Releases on the Coup d’etat in Burkina Faso

It’s been a day with heavy deployment in Burkina Faso. The recent activities are still under way and the reports from the ground and they will continue to come. The Coup d’etat which is happening as we speak is strange especially thinking about the recent process that the nation has been under in recent months. That the military has all of a sudden carried out! The releases that are released are from certain big organization, multilateral organization and bigger nations that have a say in the world.

African Union statement:

“The Chairperson of the Commission of the African Union (AU), Dr. Nkosazana Dlamini-Zuma, continues to follow with deep concern the situation in Burkina Faso following the abduction yesterday, in Ouagadougou, of the President of Faso, Michel Kafando, Prime Minister Yacouba Isaac Zida and some members of his Government, by elements of the

Régiment de sécurité présidentielle (RSP), as well as today’s announcement of the appointment of “new authorities” (…)”She welcomes the unanimous condemnation by the international community of these acts, which constitute a serious threat to peace, stability and security in Burkina Faso, the region and the rest of the continent. She calls on all the AU Member States and the international community as a whole to ensure that this attempt to undermine the Transition is defeated. The AU considers the announcement by the military of the “dismissal” of President Michel Kafando and the attempt of substituting him with “new authorities” as null and void” (…)”The Chairperson of the Commission reiterates the imperative for the defense and security forces to operate under the control of the political authorities. She stresses that the repeated destabilization attempts by elements of the RSP since the beginning of the Transition highlight the need for security sector reform in Burkina Faso, as part of the efforts to deepen democracy and strengthen the rule of law in this country” (African Union, 2015).

Amnesty:

“The situation in Burkina Faso is deeply worrying. The interim president and all those detained must be immediately freed and their physical integrity protected,” said Gaetan Mootoo, Amnesty International’s West Africa Researcher” (…)“The security forces must respect the right of the population to protest peacefully, and take action to avoid any more deaths or injuries,” (…)”The coup d’état comes just two days after the National Reconciliation and Reforms Commission recommended that the RSP be disbanded following accusations that its guards opened fire on unarmed protesters during last year’s anti-government protests” (Amnesty, 2015).

Freedom House:

“The Presidential Guard’s decision to detain key members of the transitional government weeks before the election is a direct threat to Burkina Faso’s transitional process,” said Vukasin Petrovic, director of Africa programs. “It is imperative these officials be released and citizens of Burkina Faso be given the opportunity to peacefully vote for their new government” (Freedom House, 2015).

South Africa;

“South Africa strongly condemns any attempt to seize power through extra-constitutional means or the resolution of political disagreements through the use of force. This incident is a serious violation of Burkina Faso’s Constitution and the country’s Transitional Charter. South Africa calls for the immediate release of Interim President Kafando, Prime Minister Zida and other leaders, and appeals to the people and all political leaders in the country to refrain from any violent activities that may further undermine peace, security and stability in the country. We urge all involved, including Burkina Faso’s security forces, to adhere to non-violence, and to debate issues in a peaceful and inclusive manner” (RSA, 2015).

United Nation:

“The United Nations stands firmly behind the transitional authorities and President Kafando.  The Secretary-General notes the strong support of the people of Burkina Faso for a peaceful transition and urges compliance with the transitional calendar, including the upcoming elections.”(United Nation, 2015).

U.S. Statement:

“The United States strongly condemns any attempt to seize power through extra-constitutional means or resolve internal political disagreements using force” (Kirby, 2015).

On a total different note:

“today confirms that operations at its Mana Mine in Burkina Faso have not been interrupted by the coup d’état that erupted yesterday in the Ouagadougou area” (…)”The Mana Mine is located 270 kilometers southwest and a five-hour road trip from the capital of Ouagadougou. We are closely monitoring the situation with our partners to ensure the continued safety and security of SEMAFO employees” (La Valliere, 2015).

Afterthough:

Hope this was some insights and hope when it has transgressed over the recent day. I have nearly ever read that governments and human rights organizations have been positive to a coup d’etat in any country. So that they are telling and condemning of the actions of the military should been seen as reasonable in any sense. The process of the matter and the reactions is normal. I and other just pray that this lead to security and safety for the public. The Burkinabe should get political and economic freedoms that they deserve, because there to many coup d’etat’s in the country. If they get this by yet another coup d’etat we cannot be sure of. That this will generate wealth or generate any kind of stabile government is not certain. Especially when they jail the ones that we’re leading the transitional government that was in place for the moment and time. And the outcome of this will lead to outrage and issues between the public and the new military government. The issues between the Burkina Faso and the outside world will also be in jeopardy and the legitimacy of the government would be hard task. Reasons for the coup and knowledge will be dropped later and the stories behind will surface. For now we will hope and pray that this will lead to something good. Though it’s hard to know since the ones grabbing guns and taking it by force isn’t often a way to a healthy democracy or peoples republics. The last one who stepped aside and made a difference this way was Ghana’s Jerry Rawlings. But he is a rarity in this world. Peace.

Reference:

African Union – ‘THE AFRICAN UNION REJECTS AS NULL AND VOID THE ANNOUNCEMENT BY THE MILITARY OF THE “DISMISSAL” OF THE PRESIDENT OF THE TRANSITION IN BURKINA FASO’ (17.09.2015) link:http://www.peaceau.org/uploads/auc-press-release-burkina-faso-17-9-2015-.pdf

Amnesty- ‘Army must free detained leaders in Burkina Faso and avoid violent repression of protests’ (17.09.2015) link: http://www.amnestyusa.org/news/press-releases/army-must-free-detained-leaders-in-burkina-faso-and-avoid-violent-repression-of-protests

Kirby, John – ‘Recent Actions by Elements of the Presidential Guard in Burkina Faso’ (16.09.2015) link: http://www.state.gov/r/pa/prs/ps/2015/09/246990.htm

LaValliere, Robert – ‘Business as Usual at SEMAFO’s Mana Mine in Burkina Faso’ (17.09.2015) link: http://www.canadianminingjournal.com/press-releases/story.aspx?id=1003706346

Freedom House – ‘Burkina Faso: President and PM Detained Ahead of Vote’ (16.09.2015) link: https://freedomhouse.org/article/burkina-faso-president-and-pm-detained-ahead-vote

RSA – ‘South African Government expresses concern over the Republic of Burkina Faso’ (17.09.2015)

UN – SG/SM/17080-AFR/3208: ‘Outraged over Reported Detention of Burkina Faso Leaders, Secretary-General Calls for Immediate Release’ (16.09.2015) link: http://www.un.org/press/en/2015/sgsm17080.doc.htm