ITEM 5
A large multinational corporation (MNC) from a wealth country invested in Uganda’s natural resources extracting oil and minerals on a large scale.
The MNC pays minimal taxes to the local government, employs few local workers and contaminates the Environment, causing health problems for the nearby communities.
Meanwhile, Uganda is heavily indebted to the wealthy country and is forced to implement economic policies that benefit the MNC, rather than its own citizens.

Task: Write an essay showing how the above has undermined the development of Uganda.
The situation in the scenario is related to neo-colonialism.
Neo colonialism is an indirect rule through which powerful economies of imperial powers rule the poor and weak states of Africa. Neo colonialism is the continued imperial domination and exploitation of independent African states.
The problem in the scenario is failure by the government of Uganda to implement economic policies that benefit citizens due to extreme imperial influence in the country.
However, the situation in the scenario can undermine development of Uganda in the following ways.
The situation in the scenario has caused massive unemployment in Uganda. This is due to the poor education curriculum Uganda inherited at independence which was more theoretical than practical. Also Uganda has adopted capital intensive techniques of production which has left many semi-skilled and unskilled Ugandans unemployed.
There is low capital accumulation in Uganda which has undermined the country’s development. This is due to low local savings and investments as we wait for foreign grants, loans and donations which undermine development.
The situation in the scenario has hampered decision making in Uganda hence undermining development. The leaders in Uganda make decisions consciously to avoid displeasing the imperialists. Example the current anti-homosexuality law in Uganda has a lot of opposition from imperial powers like USA.
It has promoted imbalanced regional development in Uganda. Most large multinational corporations in Uganda like coca cola, total energies and their employees prefer living in urban areas other than countryside. Thus better social services in Uganda
have been set up in towns neglecting rural areas. Example recreation centers, hospitals among others.
The above situation in the scenario undermines the ideology of non-alignment in Uganda. Uganda continues to cooperate with communists like Russia, China, and Capitalists like Britain and South Korea yet they all approach Uganda’s development needs with selfish interests.
The scenario situation has caused brain drain in Uganda hence underdevelopment. Highly trained Ugandan doctors, teachers, lawyers voluntarily seek employment in most developed countries after failing to get jobs in Uganda. This is due to the poor education system which cannot accommodate them in the economy.
There is retarded technological development in Uganda which frustrates development. This is due to technological transfer from imperial powers to Uganda which hinders research and innovation as well as creativity among Ugandans. Many Ugandans continue to consume imperial technology other than coming up with own technology.
As a result of the scenario situation in Uganda, poverty has increased among Ugandans. Private foreign companies and investors take all profits to their mother countries which worsens poverty levels in Uganda.
These imperial companies fund political programmes in Uganda other than poverty eradication programmes.
The situation has led to low levels of industrialization in Uganda. Imperial Donors Fund industrialization emphasizing extractive and processing industries ignoring manufacturing industries which could enable Uganda to develop. This makes Ugandans to continue depending on imperial manufactured goods.
Because of the situation in the scenario, Uganda has accumulated a big external debt. Our country is one of the most indebted by international monetary bank and the World Bank because they keep on financing our national budget through loans. Our government can even borrow new loans to pay off old debts.
There is over exploitation of Uganda’s resources by imperial powers leading to under development. This is done through multi-national companies which deal in mineral extraction, agriculture and fishing hence under development.
The scenario situation makes Uganda to suffer unfavorable terms of trade. Ugandans are tricked to export unprocessed goods which fetch low foreign exchange and we buy manufactured goods from imperial powers which are sold at high prices. This leads to high capital outflow hence underdevelopment.
GOOD
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