Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Investment in infrastructure gets Uganda up and running

13.07.2007
Investment by the Ugandan government in physical infrastructure will pay itself back says Dutch-sponsored researcher Aldret Albert Musisi. Each shilling that the government invests in infrastructure will yield a return of 1.2 to 3.6 shillings. This seems to be substantial enough to counteract the symptoms of the so-called 'Dutch disease': the phenomenon where currency value rises and the economic position of a country deteriorates due to investments with development funds.

Musisi argues that the Ugandan government should invest 24 percent of the gross domestic product in physical infrastructure. Then in the mid to long term the investment will have a highly positive effect on various sectors.

The research reveals that most districts in Uganda have very low levels of infrastructure for it to have any significant productivity effects. Only one-fifth of the Ugandan districts investigated have the critical density (threshold value) required to stimulate growth. Further investments in the electricity network seem to yield the greatest return and the services sector in particular clearly benefits from investments in the infrastructure.

The returns to the industrial sector also considerable, while other types of infrastructure have a positive effect on the agricultural sector. Musisi therefore calls upon the government to make investments in infrastructure a top priority because it can play an important role in the process of economic structural change, a major channel through which developing countries can escape from low-growth development traps.

Strengthening of socioeconomic research

Musisi's research has contributed to a strengthening of research conducted at the Ministry of Finance, Planning, and Economic Development in Uganda. Cooperation with the Institute of Social Studies (ISS) in The Hague has resulted in a development project that is being implemented in collaboration with the Economic Policy Research Centre, the most important think tank of the Ugandan government as well as the Uganda Bureau of Statistics. During that project it transpired that the Ugandan government lacked important information and therefore, together with the ISS, a Social Accounting Matrix (SAM) was set up. This matrix is to be used as a basis for building a computer model that can be used for socioeconomic research and analysis.

Current views called into question

The results of Musisi's research challenge the current tendency to reduce investments made by the government in developing countries, pinning hopes on the private sector to bridge the gap. The decline in public infrastructure investments has not been offset by higher private investment in infrastructure which is having negative effects on economic growth. According to Musisi, investments in the infrastructure can also have a significant contribution to poverty alleviation, the country’s major development objective.

Dr Aldret Albert Musisi | alfa
Further information:
http://www.nwo.nl/nwohome.nsf/pages/NWOA_74HHSK_Eng?Opendocument

More articles from Business and Finance:

nachricht Corporate coworking as a driver of innovation
22.11.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO

nachricht Mathematical confirmation: Rewiring financial networks reduces systemic risk
22.06.2017 | International Institute for Applied Systems Analysis (IIASA)

All articles from Business and Finance >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: First-of-its-kind chemical oscillator offers new level of molecular control

DNA molecules that follow specific instructions could offer more precise molecular control of synthetic chemical systems, a discovery that opens the door for engineers to create molecular machines with new and complex behaviors.

Researchers have created chemical amplifiers and a chemical oscillator using a systematic method that has the potential to embed sophisticated circuit...

Im Focus: Long-lived storage of a photonic qubit for worldwide teleportation

MPQ scientists achieve long storage times for photonic quantum bits which break the lower bound for direct teleportation in a global quantum network.

Concerning the development of quantum memories for the realization of global quantum networks, scientists of the Quantum Dynamics Division led by Professor...

Im Focus: Electromagnetic water cloak eliminates drag and wake

Detailed calculations show water cloaks are feasible with today's technology

Researchers have developed a water cloaking concept based on electromagnetic forces that could eliminate an object's wake, greatly reducing its drag while...

Im Focus: Scientists channel graphene to understand filtration and ion transport into cells

Tiny pores at a cell's entryway act as miniature bouncers, letting in some electrically charged atoms--ions--but blocking others. Operating as exquisitely sensitive filters, these "ion channels" play a critical role in biological functions such as muscle contraction and the firing of brain cells.

To rapidly transport the right ions through the cell membrane, the tiny channels rely on a complex interplay between the ions and surrounding molecules,...

Im Focus: Towards data storage at the single molecule level

The miniaturization of the current technology of storage media is hindered by fundamental limits of quantum mechanics. A new approach consists in using so-called spin-crossover molecules as the smallest possible storage unit. Similar to normal hard drives, these special molecules can save information via their magnetic state. A research team from Kiel University has now managed to successfully place a new class of spin-crossover molecules onto a surface and to improve the molecule’s storage capacity. The storage density of conventional hard drives could therefore theoretically be increased by more than one hundred fold. The study has been published in the scientific journal Nano Letters.

Over the past few years, the building blocks of storage media have gotten ever smaller. But further miniaturization of the current technology is hindered by...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

See, understand and experience the work of the future

11.12.2017 | Event News

Innovative strategies to tackle parasitic worms

08.12.2017 | Event News

AKL’18: The opportunities and challenges of digitalization in the laser industry

07.12.2017 | Event News

 
Latest News

Engineers program tiny robots to move, think like insects

15.12.2017 | Power and Electrical Engineering

One in 5 materials chemistry papers may be wrong, study suggests

15.12.2017 | Materials Sciences

New antbird species discovered in Peru by LSU ornithologists

15.12.2017 | Life Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>