What is behind NRM facade of infrastructure development?

John Perkins wrote a book entitled Confessions of an Economic Hit Man. Perkins worked with one of several United States’ corporations called MAIN as its chief economist. His main job was to make a case for huge loans from the Bretton Woods Institutions – World Bank and International Monetary Fund – United States Agency for International Development, among others, for development of physical infrastructure such as roads, railways, port harbours, and energy in developing countries.

He did this by projecting falsified economic growth figures to these corporations. In return, corporations such as MAIN would be given huge loans to be invested in the development of infrastructure and energy, purportedly to spur growth in these countries. These loans, however, were designed to have the opposite effect. This was/is precisely because the same countries that gave the loans repatriated all the funds through high interest rates and contracts awarded to their own citizens’ companies.

Therefore, given that nearly all the funds went back to the ‘donor’ countries through high interest rates, unfair aid terms and given also that there is low return on investment/value for money, as well as narrow tax bases to furnish loan repayment, these countries continue to wallow in the vicious cycle of poverty, backwardness and underdevelopment. The developed countries and their puppets in the developing countries on the other hand enjoy more prosperous and ostentatious lifestyles.

In the opening statement of the preface of this book, Perkins had this to say about his mission as an economic hit man: “Economic hit men are highly paid professionals who cheat countries around the globe out of trillions of dollars. They funnel money from the World Bank, United States Agency for International Development and other foreign ‘aid’ organisations into the coffers of huge corporations and pockets of a few wealthy families who control the planet’s natural resources.
“Their tools include fraudulent financial reports, rigged elections, payoffs, extortion, sex, and murder. They play a game as old as empire, but one that has taken on new and terrifying dimensions during this time of globalisation.”

Need I say more? Now we know why the NRM regime unpatriotically and pretentiously insists on investing funds borrowed from the Bretton Woods Institutions and other ‘donor’ agencies or countries in physical infrastructure and energy, without realising economic transformation. Besides, they lack the will and wherewithal to negotiate deals that benefit the country and all its citizens. Sadly, while this is happening, our most precious natural resources are being looted by these ‘donor’ countries.

The rulers too, are paid huge bribes to live the most expensive and comfortable lives at the expense of the poor ordinary citizens. Furthermore, close relations of the rulers, including their children, spouses, girlfriends and cronies are offered scholarships to study in some of the best universities in the world.
They are given medical services in top-notch medical facilities in the world. No wonder, the regime spews out rosy economic growth figures that do not translate to material changes in the lives of the common citizens. Little wonder, the regime registers growth without development.

It needs to be said, therefore, that President Museveni and his regime can’t and will not transform Uganda. The energy and infrastructure development that the regime is purporting to put in place has no foundation in and link to the development of human capital. It is like building a house on sandy soils or planting seeds on rocky soils. The house will not stand. The seed will not sprout. To transform a nation, one needs to develop the capacity of its citizens to constructively exploit such infrastructure.

Otherwise, why should the government build beautiful roads that Ugandans are unable to use for the sale of mere tomatoes? Why should the government build dam after dam of hydroelectric power when the vast majority of Ugandans can’t use it for mere lighting? What is the significance of constructing magnificent school buildings when Ugandan children are not learning? Why would government waste humongous amounts of borrowed funds in building hospitals that are not attending to Uganda peoples’ health needs? Why?

Mr Mugabe is a member of the Alliance for National Transformation party
[email protected]