Uganda:
What is the economy like?Not much manufacturing
Secondary Industry
But a lot of Primary Industry
especially farming Sugar cane growing
Uganda produces Primary Products
coffee
tea
cotton
tobacco
Some gold mining
Second in value to coffee
Also a Primary Product
The European Union is Uganda’s largest trading partner with more than one third of Uganda’s exports consumed in EU markets
What are the main imports?
What does this tell us?
What are the main exports?
What does this tell us?
This diagram is a very simplified model of trade between LEDCs and MEDCs.
Uganda has presently a $1 billion trade deficit.
The country is very poor and a lot of people
Including children
Have to work
Long hours
for very low pay
The country imports more
Than it exports
So the Balance of Trade is negative causing DEBT.
What does this cartoon tell us about trade between Uganda (an LEDC) and MEDCs?
Or Uganda
In 1996, Uganda paid out $0.66 in debt service for every$1 received in aid grants
Uganda like most LEDCs is heavily in DEBT
Most of the money given as AID grants by MEDCs is used to pay interest on debt to MEDCs
A lot of Ugandans live in poverty
But rural areas are worse
Than the towns.
The country is getting more and more into DEBT as time goes by
Top fivecreditors
Main exportmarkets
Italy Netherlands
UK France
France UK
Japan USA
Spain
Uganda's total debt in 1998 was $3.6 billion-
This is about 3 times the value of its exports
Almost 75% of its debt is owed to the international banks.
FairTrade helps to give more money from the price of tea or coffee or other primary product
to the person who grew it.
Rather than to the manufacturer or retailer
GNP: 5.5 billion dollars
Per capita GNP: 240 dollars
Foreign debt: 43% of GNP
Main products: coffee, cotton, tea, tobacco
Photo: a village home!