By Prof. Augustus Nuwagaba, Deputy Governor Bank of Uganda
Conventional economics dictates that economic growth must generate employment. Why? Because jobless growth is neither desirable nor sustainable. It is gainful employment that creates robust aggregate demand, which is a major driver of sustained economic growth.
Furthermore, it is an obvious truth that robust wealth creation comes from increased productivity and the development of a highly skilled workforce.
However, it should be noted that strong economies are built not only on increased production and productivity, but also on innovation and market competitiveness. For example, given our agro-based economies in Africa, Uganda inclusive, improving access to quality inputs, mechanisation, affordable finance, and better market infrastructure can greatly enhance product competitiveness.
As is well known, people are every country’s greatest asset. Investing in quality education, competitive skills, healthcare, and lifelong learning improves productivity and prepares citizens for the opportunities of a modern economy.
Public policy is also crucial because it helps create an enabling environment that promotes ease of doing business, thereby facilitating firms to invest, innovate, grow, and employ more people. In addition, a vibrant private sector is essential for market development, accelerated economic growth, and, ultimately, genuine economic transformation.
