The economy
Museveni chose to liberalize the economy, despite his Marxist leanings, and the country has a free market economic system. Foreign investment has been encouraged, along with the return of Asian business people who were expelled en masse in 1972 by Idi Amin. The economy has grown at an average of about 5-6% per annum, though many have yet to benefit from this; the average income per head is U$240 per year, and 35 to 38%% of the population are estimated to live below the poverty line. The population is also growing at a rate of 2.97 % per annum, despite the high infant and maternal mortality rates.

Uganda remains heavily dependent on aid and heavily in debt, to the tune of $4.5 billion in 2004. Debt and its accompanying repayments hamper poverty reduction strategies and infrastructure investment including education, health and communications, especially in rural areas. 14% of the population is urban with the largest concentration in Kampala, whose population of 1.2 million is slightly larger than that of Birmingham, and about double that of Edinburgh. Other large towns with a population of over 50,000 are Jinja, Gulu and Lira. Most people, however, live and work in the countryside; the land is generally fertile and well-watered. About 80% work in agriculture, 5% in industry and 13% in service industries. In Britain, the comparable proportions are 1.5% in agriculture, 26.5% in industry and 72.7% in service industries. Most of Uganda's exports are agricultural products - coffee, fish, tobacco and cut flowers, and the price received for these is driven by external global factors.

Transport links are difficult and slow, as 6.7% of roads are sealed and there is only one train line, used for freight, between Kampala and Kasese. Sugar milling, brewing and cement production are among the industries; main imports are items such as vehicles, capital equipment and cereals. Natural resources include copper, cobalt, limestone, salt and alluvial gold; in 2003 it was reported that there were oil reserves in the Semliki Valley. At the moment fuel is imported and is consequently expensive.

Much farming remains small-scale or subsistence, but there are also tea and coffee estates. Cattle are both a source of milk and of wealth, especially for the Ankole people who live in the south west of Uganda, and the Karamajong in the north east. Population growth is putting pressure on land, for food production and housing, and there are also problems of deforestation, poaching, and pollution. Lake Victoria has suffered as a result of the introduction of non-native fish and plants, and from the effects of sewage, industrial effluents and chemical run-offs.

One of Uganda’s biggest natural assets is its scenery and wildlife; it has about fifteen national parks and reserves with the biggest attraction probably mountain gorillas in the south west, close to Rwanda. There are also many bird species, savannah game and forest animals which draw overseas visitors. Efforts are being made to promote eco-friendly tourism, with community involvement. Visits to tea plantations and factories take place in some areas, and there are also heritage tours which include sites of historical interest. One tourist attraction, white water rafting at Jinja (visited by Prince William in 2003), is threatened by the construction of a dam further upstream to generate electricity - only 3% of Ugandans can get electricity. The rafting companies are mostly owned by and attract foreigners, so should the rapids be preserved for them or flooded so that local people might benefit from an improved electrical supply? The dam project has been beset by problems with its effectiveness, generating capacity and costs questioned by environmentalists, and concerns expressed by local people whose land and burial sites will be drowned.

Uganda has made great progress following the chaotic period after Independence thanks in great part to the efforts made by the Museveni regime, which has brought an improved degree of political and economic stability, and has started to address issues of education, health and social welfare provision. Problems like external debt and internal conflict remain, but many of the achievements of the past 20 years, if built upon and strengthened, could make Uganda a potential model for other African countries.

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