Following a decision by the World Bank Group to suspend funding for Ugandan projects, several government officials, led by President Yoweri Kaguta Tibuhaburwa Museveni and Deputy Speaker of Parliament Thomas Tayebwa Bangirana, have been telling citizens of the impoverished East African nation that there is nothing to worry about.
Recently, the World Bank announced that it will no longer give loans to Uganda over the Anti-Homosexuality Law. (Read Story Here).
Museveni quickly downplayed the World Bank’s move, insisting that the decision will not stop Ugandans from moving forward; while Deputy Speaker Tayebwa told MPs to stop panicking over the World Bank funding freeze. (Read Stories Here and There).
But a respected expert on the economy and budgeting seems to disagree with government officials who are telling Ugandans that everything is okay.
Julius Mukunda, the Executive Director, Civil Society Budget Advocacy Group (CSBAG), says that in the World Bank, Uganda had a friend who was offering some kind of friendly loans.
“The current 30 active projects of the World Bank amount to $9.5 billion,” Mukunda told Hard Questions. “When you have that one rich friend who has been giving you loans at a concessional rate and they now decide to pull the rug from under your feet. That is what the World Bank’s departure looks like.”
Mukunda further argued that government is not in a good position and that it will struggle to work on its priorities following the World Bank funding freeze.
He added that government has two options: convincing the World Bank to lift the suspension, and cutting unnecessary expenditure.
“There is definitely going to be a big challenge for government to finance its [priorities]. The World Bank has been contributing the biggest share of the country’s multilateral credit. Government at this particular moment must try every possible means to win either win back the World Bank or cut on their appetite to spend.”
Mukunda further hit hard at government officials who are assuring Ugandans who will suffer the consequences of the funding freeze while the officials and their families continue to live lavishly.
“They say we shall survive but their children are going to public schools. They say we are going to be fine, but when their children are sick they are treated across borders. However, World Bank was not building private hospitals. It was building public hospitals.”
It should be remembered that a top Museveni minister has revealed that salaries of all public servants could be cut in a budget review following the World Bank decision over homosexuals. (Read Story Here).
See the list of government projects that will no longer get World Bank money over homosexuals HERE.
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