{UAH} JUMPING INTO THE DEBT TRAP, OR OVER IT?

Let's face reality. The Africa Report of June 2021 determined that the World Bank is Africa's biggest official money creditor. Africa owes more money to the World Bank/IMF than to anyone else in the world, therefore making the World bank group the biggest debt shackles on Africa. Just a month ago, the IMF was even claiming that Uganda's debt is sustainable, basically wanting us to take even more loans from them. The recent Entebbe airport saga is clear evidence that we shouldn't.

TWhile the finger pointingisoward China, in reality it is evidence that the faulty Debt Management Policy imposed on Uganda by the World Bank has essentially crumbled, putting at risk Uganda's public assets.

We also must admit that this situation is of African leaders making, usually under pressure from Western geopolitics. Thus it stems from instigated financial indiscipline. As a by-the-way anecdote, just a few weeks ago, the lady who is IMF's representative in Uganda was on local TV reassuring the people of Uganda that the nations debt is still at sustainable Debt to-GDP levels.  First of all, what else should we expect to hear from someone who makes their living from lending money to poor African nations that cannot actually afford their loans?

The second problem here is that while IMF/World Bank hold the biggest percentage of Africas debt enslavement, they are also leading in diverting blame to China.

Just two days ago the Head of Britain's M16 intelligence agency made a rare public appearance on the BBC. He was mysteriously blaming China for Africa's debt problems yet the data shows its mostly someone else behind the problem.

Ironically, his unfounded public utterance on this international matter might only serve to give credence to increasing fears that the worlds biggest democracies are engaged in covert, intelligence-orchestrated malice, a relentless demonization campaign against their economic competitors and international political opponents. An area where Britain has clearly excelling, possibly even beyond the best efforts of Adolf Hitler's Nazi propaganda maestro Joseph Goebbels in their attempt to conquer the world.

As for Uganda, we need to pragmatically embark on several concrete remedial austerity measures thought out by ourselves instead of waiting to be misled again by so called international experts who somehow always put us under more debt, they also always have ulterior geopolitical and/or economic agenda's that are actually against the best interests of our nations, our peoples, our sovereignty, and our nations prosperous independent future.

What can we therefore do to remedy the situation ourselves?

1 - We need to enact a moratorium where we agree that the Ugandan cabinet and parliament stop requesting, approving and/or taking any new loans in the name of the people of Uganda until further notice.

2 - Establish a 10-year emergency Debt Management Policy where the annual amount of new loans to take must not exceed 50% of our annual debt servicing obligations (which today is at around 7 trillion Shillings annually)

3 - The current Debt Management Policy based on the irrational Debt-to-GDP ratio theory must be discarded globally, and a new realistic policy based on a governments actual annual income be put in place instead. This so as to rationalize debt management and permanently protect African nations from getting into debt default situations where they jeopardize their own economic stability, their own national sovereignty, and possibly even their own national security.

There is no way that the World Banks Debt-to-GDP theory could have for example warned Uganda that its coffers do not have enough money to repay it's Entebbe airport loan.

So someone probably deserves a Nobel prize in Economics, the first ever for Africa, for being the one wh9 publicly figured out that what the worlds nations need in Debt Management Best Practices is a simple and realistic, safe, brand new global economic theory: The Debt-to-INCOME ratio (DTI).

Not Debt-to-GDP.

The benefits of this new approach to entire world economies, especially for the poorest nations grappling with the shackles of Debt Enslavement, and their seemingly perpetual fight against poverty and disease, the benefits of realistic Debt Management is invaluable to mankind going forward in this era where the dark spectre of deadly COVID-19 variants and climate change are both looming over the global economy, and all nations need to develop their internal economic resilience as fast as possible in order to best face the already destructive global climate challenge together.

By Mr. Hussein Lumumba Amin

Kampala Uganda.

Thursday 2nd December, 2021.

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