KAMPALA – Renowned American economics professor Prof Jeffrey Sachs has dismissed concerns that Uganda’s debt is reaching unsustainable levels and instead lashed out at the World Bank and IMF for limiting the country from borrowing to finance its budget.
Prof Sachs who is on a four-day visit to Uganda, told Prime Minister Robinah Nabbanja on Sunday that the government will not be able to finance its budget if it cannot borrow.
He also suggested that Uganda should go for long-term loans such as for 40 years.
“I think you should borrow a lot, but it should be a 40-year loan. Because in 40 years, this is going to be a rich country and so what looks like a lot right now is going to look like a little in 40 years,” he said.
According to the International Monetary Fund, Uganda’s public debt of Shs96.1 trillion places the debt-to-GDP ratio at around 52 percent which is above the declared policy threshold of 50 percent.
But Prof Sachs said developing countries like Uganda pay a premium to access development financing.
“With the IMF and the World Bank, I’m sorry to say they don’t really get it either. They are telling your government… not to borrow so much; don’t get into trouble, and keep your debts low. I disagree with this philosophy very much,” he said.
…if you don’t borrow now, how are you going to ensure all the things you need to do that can’t fit in the national budget right now?” he wondered.
Prof Sachs also Uganda is on the right path to achieve Sustainable Development Goals by 2030.
“…the steps that you are taking for the SDGs are exemplary. The integrated structure, the clear commitments, the long-term vision, and the plans of action are exactly the kinds of measures that are needed because this is a complicated agenda,” he said
“I’m very impressed and very proud to be together with you with all of your accomplishments in a framework of governance for the SDGs,” he said.
He said Uganda needs to focus on six core areas including education, science, technology, and innovation.
“So the first investment is I want Ugandan children to be world leaders in knowledge in 20 years, in 30 years. I want to make sure every child in this country is in a good school with qualified teachers, with classrooms that have electricity and connectivity; can get online, with a modern curriculum, and with the ability to compete internationally. And that requires more funding than you can afford,” he said.
About Prof Jeffrey Sachs
Jeffrey D. Sachs is a university professor and Director of the Center for Sustainable Development at Columbia University.
Among others, he is President of the UN Sustainable Development Solutions Network, commissioner of the UN Broadband Commission for Development, and academician of the Pontifical Academy of Social Sciences at the Vatican.
He has been Special Advisor to three United Nations Secretaries-General and currently serves as an SDG advocate under Secretary-General António Guterres.
He spent over 20 years as a professor at Harvard University, where he received his B.A., M.A., and Ph.D. degrees. He has received 42 honorary doctorates, and his recent awards include the 2022 Tang Prize in Sustainable Development, the Legion of Honour by decree of the President of the Republic of France, and the Order of the Cross from the President of Estonia.
His most recent books are The Ages of Globalisation: Geography, Technology, and Institutions (2020) and Ethics in Action for Sustainable Development (2022).
