Category: Economics
Reasons for privatization of public enterprises
To create more employment opportunities. Privatization leads to efficient allocation of resources which leads to the expansion of production and business activities. This increases employment ... Read More
Privatization
Privatization refers to the transfer of ownership of public enterprises from government to private individuals. It is aimed at building a strong private sector to promote ... Read More
Forms of Privatization
Divestiture. This refers to the total (outright/complete) sell of all government shares in public enterprises to private individuals. This enables private individuals and companies to ... Read More
Nationalization
Nationalization is the process by which the government takes over the ownership and management of privately owned enterprises. Read More
The Role of the public sector (Parastatals) in economic development
Positive role It provides productive social and economic infrastructure. This is in form of water supply, power supply, roads, schools, hospitals, financial institutions etc. This ... Read More
Policies (measures) to promote the private sector in Uganda
Economic liberalization. There is need for the government to remove unnecessary restrictions from economic activities to allow people involved in the private sector to carry ... Read More
The public sector
The public sector is that part of the economy where resources are owned and allocated by the government on behalf of its citizens. That is, ... Read More
Problems facing the private sector in Uganda
Inadequate capital. This is mainly due to low levels of incomes and limited access to credit facilities from financial institutions due to lack of collateral ... Read More
Role (Implications) of the private sector in the development process
Positive role (Implications) It creates more employment opportunities. This is in form of the production activities and business enterprises established. This increases income for the ... Read More
Features of Uganda’s private sector
It is small but slowly growing sector. It is still a weak sector due to limited capital. It mainly undertakes enterprises producing consumer goods for ... Read More
The private sector
The private sector refers to the part of the economy where economic activities are undertaken by private individuals or units Read More
Policy Instruments under taken by the Government of Uganda under Structural adjustment programs (saps)
Privatization of public enterprises aimed at strengthening the private sector. Cost sharing in social service delivery. For example in schools and hospitals Retrenchment of civil ... Read More
Structural adjustment programs (saps)
These were a package of policy measures and other institutional reforms recommended by International Monetary Fund (lMF) and World Bank to governments of developing countries ... Read More
Aims (objectives) of Structural adjustment programs (saps)
To stimulate economic growth (GNP) To expand the private sector so as to improve efficiency in production of goods and services. To increase employment opportunities ... Read More
Dangers (problems) of a large subsistence sector
It leads to low government revenue. This is because it is associated with a narrow tax base due to limited production activities. This makes it ... Read More
The subsistence sector
This is a sector where production of goods and services is meant for the producers' own consumption needs. Read More
Features (characteristics) of the Subsistence sector
There is limited or no specialization and division of labour. There is use of back ward and out dated technology. For example use of hoes ... Read More
Measures to promote the informal sector
Providing credit facilities by the government. There is need for the government to provide credit facilities to the people involved in the informal sector at ... Read More
Problems facing the informal sector in Uganda
Inadequate capital required for business expansion due to low savings and incomes. Poor and inadequate infrastructural facilities. This is reflected in form poor transport network, ... Read More
The Role (Contribution)/advantages/merits of the Informal sector to Development
Positive roles/contribution/advantages/merits of informal sector It creates employment opportunities. This is because most of its activities are labour intensive and are on self-employment basis. ... Read More
Similarities between the Informal sector and Small scale industries
Both mainly operate on small scale with low out put Both mainly employ limited capital for establishment and maintenance Both mainly use local raw materials ... Read More
The informal sector
The informal sector consists of activities that have market value but are not formally registered. The sector is mainly comprised of self-employed persons like Hawkers, carpenters, ... Read More
Features (characteristics) of the Informal Sector
Business activities are not formally registered by registrar of companies. There is easy entry in business activities. Licenses either do not exist, are cheap or ... Read More
Ways of reducing Economic dependence in Developing countries
Adopting the inward looking development strategy. This is achieved by setting up import substituting industries to reduce heavy dependence on imports. Economic integration. This is ... Read More
Economic implications of Dependence of Uganda’s Economy
Positive implications It promotes economic growth and development. Loans, grants and direct foreign investments are used to produce goods and services hence economic growth and ... Read More
Ways in which Uganda is economically dependent
Trade dependence. Uganda heavily relies on international trade in terms of imports and exports for her survival. Direct economic dependence. Uganda's political and economic decisions ... Read More
Economic Independence
Economic Independence. This refers to a situation where the economy is mainly self-sustained in terms of resources and economic decisions for its survival Read More
Economic interdependence
Economic interdependence. This refers to a situation where two or more countries rely on each in terms of resources and economic decisions for survival. Read More
Economic dependence
Economic dependence is where the country relies on specific sectors or other economies in terms of resources and economic decisions for its survival. Read More
Measures to reduce dualism in developing countries
Use of appropriate technology. That is production techniques used should be in line with the social and economic requirements of the society. Delocalization ... Read More
Causes of dualism in developing countries
Unequal income distribution which leads to economic dualism. Unbalanced natural resource endowment hence regional and international dualism. Importation of inappropriate technology which leads to technological ... Read More
Dangers (problems) of Dualism
It leads to regional imbalances with the rural sector always lagging behind the urban sector. It leads to rural urban migration and its associated negative ... Read More
Forms (Types) of dualism in Uganda
Intra-Sectoral Dualism. This refers to the co- existence of different levels of development within the same sector. For example the coexistence of modem agriculture and ... Read More
Examples of dualism in Uganda
Market (monetary) sector versus subsistence sector Rural sector versus urban sector Modern culture versus traditional culture The rich versus the poor The literate versus the ... Read More
Policy Measures to Improve the Import- Export Structure
1. Establishing import substitution industries to produce goods which were formally imported. Setting up export promotion industries to produce manufactured goods for export as a ... Read More
The structure of Uganda’s import and export sector (foreign sector)
Exports Uganda mainly exports agricultural (primary) and semi-processed products. Uganda exports a few services (invisible exports) for example tourism, electricity, transport, security etc. It exports ... Read More
Economic implications (Consequences) of the nature/structure of Uganda Industrial Sector
Positive Implications It creates employment opportunities. This is due to the existence of a number of small scale industries which mainly use labour intensive techniques ... Read More
Leakages (Withdrawals) to circular flow in economics
Leakages (Withdrawals). These are items (elements) which reduce the level of circular flow of OR. Leakages are subtractions from the circular flow of income. They ... Read More
Injections (Additions) in economics
Injections (Additions)are items (elements) which increase the level of circular flow of income. OR. Injections are the additions to the circular flow of income. They ... Read More
Importance (Uses) of Price Indices
They are used to compare the cost of living between countries at a particular time and for one country overtime. For example comparing the cost ... Read More
Measures (Policies) to eliminate the deflationary gap
Fiscal policy: the government should reduce taxes on people’s personal income so that they are left with enough disposable income to spend. The government should ... Read More
Limitations of the Accelerator Principle
Investments in most cases are not always initiated by change in consumption only but also by increase in autonomous government expenditures. The principle assumes existence ... Read More
Factors limiting the Multiplier Process in Developing Countries
High degree of income inequalities. In developing countries, there are few rich people with high marginal propensity to save and low marginal propensity to ... Read More
Induced investments
Induced investments. This is the form of investment which depends on the level of income and profits. The higher the level of income, the higher ... Read More
Autonomous investment.
Autonomous investment. This is the form of investment which is independent of the level of income. It is influenced by other factors such as war, ... Read More
Net investment.
Net investment. This refers to the total amount of total capital invested minus depreciation (Capital consumption allowance) Read More
Investment
Investment is the process of devoting part of national income to create capital goods. OR Investment refers to the act of purchasing capital goods and ... Read More
Determinants of (factors influencing) the Level of savings in the Economy
Rate of interest on bank deposits. The higher the interest rate, the higher the level of savings and the lower the interest rate, the lower ... Read More
Determinants of (Factors influencing) consumption
Level of disposable Income. The higher the level of disposable income, the higher the level of consumption and the lower the level of disposable income, the ... Read More
The Gini – coefficient
The Gini coefficient (Gini index or Gini ratio) is a statistical measure of economic inequality in a population. It is the ratio of the area ... Read More
Income inequality (disparity)
Income inequality (disparity) refers to the economic gap between the rich and the poor within the same country. The income disparities can be illustrated by ... Read More
Income distribution
Income distribution refers to the extent to which various social economic groups are able to access incomes in a given country. This is reflected in ... Read More
Limitations of using per capita income in comparing standards of living between countries
Differences in income distribution. Per capita income does not show the nature of income distribution in the different countries. A country may be having a ... Read More
Advantages (merits) of income inequality in an economy
It increases efficiency in resource allocation. The major aim of private firms is profit maximization Therefore, they employ efficient techniques of production which leads to ... Read More
Problems involved in calculating (estimating) National income (Essay)
Inadequate accurate and unreliable statistical data. There is always inadequate information due to limited facilities like computers and lack of proper record keeping by producers ... Read More
The Uses of National Income Statistics or Reasons for compiling national statistics
Measuring the level and rate of growth of national income (Y) is essential to keep track of: determining standards of living determine the nature of ... Read More
Economic Chapter 3: Production theory and market structure
Economic Chapter 3: Production theory and market structure Production This refers to the process of creating utility in goods and services in order to satisfy ... Read More
Disadvantages (Demerits) of oligopoly
There are high costs of production involved in form of persuasive advertisement. This leads to wastage and misallocation of resources. There is consumer exploitation. Under ... Read More