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!