Industrialization is not the answer to Africa’s poverty

BY MATHIAS KULUBYA
IN LONDAN

I wish to offer an alternative view to The Ugandan President Yoweri Kaguta Museveni’s argument that industrialization is the prime answer to Africa’s severe poverty and social transformation. Industrialization is not the key to alleviating poverty in Africa or in a single poor and developing country. It is integrated development plans including upgrading our transport systems, hospitals, provision of decent housing, identification documents and security that can do so.

The proponents of industrialization forget the basic tenets in International Economics of comparative advantage and economies of scale. This is not an era to work hard but to work smart. Consider this: Premark, a British company, is the cheapest clothing store thanks to exploiting close to 2.2 million Bangladeshi factory workers who earn about £10 a month.

It is, therefore, cheaper to build factories in the third world to provide opportunities for the west to develop their environment and turn former industrial sites into housing. The countryside in England is so beautiful that you sometimes wonder whether all the talk about Uganda's beauty is just meant to lull us into our small world.

President Museveni has interacted with top-notch billionaires like Richard Branson, Bill gates and others who could easily sign investment cheques without draining our treasury. why then does he have to deal with poorly-funded businessmen who need free land?

Business is not charity but a profit-making venture using today's collaborators with capitalism. What brings money and investment capital is worthwhile products and Uganda needs repackaging itself better. Every project in the UK, for example, goes through the relevant councils not the executive arm of government.

What are our labor unit costs and the necessary infrastructure to support these discovered beliefs in industries as the key to Africa's poverty alleviation and employment growth? Do we have comparative advantage against China and India in manufacturing from textile to processing?

The reasoned and researched answer is no. There are alternative ideas to counter the government reasoning of giving away our land without an integrated development programme including building new hospitals, schools, roads and railway extensions. Uganda is in an enviable position in Africa having lakes Victoria, Kyoga, Albert, Edward and the second longest river in the world including being closer to the Congo basin.

However, we have failed to manage these resources for our generation and the future generations. It costs $25m to get each household in Uganda to have tap water! The swamps and forests which used to filter our wells are being lost to investors and haphazard property developments.

Richard Branson recently announced close to $2 billion to invest in reducing carbon emissions and bio- gas, ethanol related industries.

We can use our position in Africa close to the desert to fight for a portion of these funds in the global fight to save the world from climate changes. Commercial farming is preferable to industries once again using our water resources.