THE AFFECT OF IDI AMINS

RULE ON THE UGANDAN

ECONOMY

Uganda is a landlocked country bisected by the equator. Its neighboring

countries include sudan Zaire Rwanda and Kenya . It was taken over by the
british in 1893 as it was an attractive colony due to its numerous natural
resources and to fact it contained the source of the nile. Britain maintained its
rule over Uganda until 1962 when it was forced to grant Uganda. At this stage
Uganda appeared to be in a healthy condition to thrive economically due to large
amounts of natural resources(churhill described it as the pearl of Africa)
however poor governments and government leaders meant its economic
potential was never fulfilled
During idi amin 8 year rule of Uganda he acquired a reputation of being brutal
ruthless and even sadistic. He was known as the butcher of Uganda for his
purges of terror on Uganda from which an estimated 300000 people died. He was
also was also known as the hitler of Africa for his brutality and his rascist ideas
and acts including the expulsion of the Asians and his comendment of hitlers
final solution. Idi amin was born in koboko in what is now the republic of Uganda.
Amin was deserted by his father at a young age and his mother had little money
so he received little formal education. Amin lack of education and tremendous
physique made the army ideal for him. He initially was a cook in the army but
rose through the ranks quickly to become an effendi(the highest rank possible
for a black African serving in the army at the time). However during his time in
the army he developed a reputation of brutality and cruelty. This was seen when
he was sent north by obote to stop cattle stealing and carried out such
atrocities(buried people alive) that the british demanded he be prosecuted.
However obote arranged for him to receive further military training instead. He
would live to regret this as amin continued to rise through ranks of what was now
the Ugandan army(received independence in 1962) becoming a general and then
chief of staff. He then turned against obote leading a military coup while obote
was at a commonwealth meeting. He took control of Uganda declaring himself
His excellency president for life. Amin was initially greeted with open arms as
the new president by the Ugandan people as there was a lot of hatred of obote
from the Ugandan people. However he contrived to turn the Ugandans against
him due to his cruel purges and and by detioriorating the Ugandan economy.

When idi amin dada took control of Uganda in 1971 the Ugandan economy was
already in a declining state due to the mass exodus of Asians. An estimated 2000
asians were leaving a month in by the end of 1970. This mass exodus was due to
the Milton obote nationalization policies in which the government would acquire
60% ownership of all banks insurance firms,oil companies and indusrial firms.
These businesses were mostly owned by Asians. Another reason for the mass
exodus was the immigration act issued at the same time. This act meant that all

non- citizens had to get work permits. These two acts were introduced to allow
obotes government to have more control over the economy. The mass exodus of
Asians caused a vacuum of skilled workers and abandonement of businesses
resulting in a declining economy
However idi amin contrived to worsen ugandas economic state by mass
overspendings by mass overspendings for military purposes. As idi amin was
formely an army man he was naturally interested in military affairs and wished to
make Uganda to make Uganda well armed and secure. He wanted to do this as
he wanted ugandas military to portray Uganda as a strong nation thriving
independently.Between 1971 and 1977 amin increased the number of personnel
in the army to 21000 (almost twice what it was in was in 1971. During his first
year as leader amin also spent 20 % of recurrent and about 45% of
developmental expenditures on the military. His expenditures on the military
were much higher than obotes government. This overspending resulted in the
GDP declining further in 1971 and the real growth rate was only a meer 2%.
Uganda poor economic state left amin needing to take action and also a
scapegoat which he found in the Asians. amin decision to expel the Asians in
1972 to expel the Asians in Uganda was almost as bizarre as it was catastrophic
for the economy. The 1973-1973 budget released in in june 1972 showed the
need for mojor cutbacks and taxing on consumer goods. However idi amin took
no heed of this instead he gave the Asians in Uganda 90 days to leave the
country. He did this as he claimed to see in a dream that the asians were a
problem. However the real reason for his expulsion of the Asians are thought to
be his need for a scapegoat for the poor performance of ugandas economy under
his rule. Also he was trying to further populerise himself by appealing to the
ethnic Ugandans as there was a history of indophobia in Uganda pre dating
amins rule. This history of indophobia began when during the 19 th and 20th
century when Asian immigrants came to Uganda and began to set up
businesses. This meant that by the mid 1900s the vast majority of ugandas
businesses were owned by Asians. The ugandas disliked the Asians attitude
towards them and the dominance of Asians in businesses and industries enraged
them. Amin claimed he was taking the power from the Asians and giving Uganda
back to the ethnic Ugandans
we are determined to make the ordinary Ugandan master
of his own destiny and above all see that he enjoys the wealth of his country
our deliberate policy is to transfer the economic control of Uganda into the
hands of of Ugandans.
The expulsion of the Asians from Uganda was disastrous for the economy as the
Asians played a huge role in the Ugandan economy. Most buisnesses and
companies were owned by Asians meaning that many of the businesses
previously owned by Asians were forced to be abandoned as(despite amin
profusely advertising the businesses(he put728 buisnesses up for sale in local
press)buyers were few as most ethnic Ugandans lacked the expertise to run
these businesses. This led to the abandonment of many businesses. The
expulsion o f the Asians also meant that there was a huge shortage of skilled

workers.the shortage of skilled workers had an especially critical affect on

ugandas industry and agriculture as now there was a huge vacuum of workers in
factories that produced agricultural inputs meaning that agricultural production
declined hugely. This was catastrophic for the Ugandan economyas agriculture
was the primary source of GMP. It also allowed Kenya to take ugandas internal
and east african markets due to ugandas stagnating production. The expulsion of
the Asians also destroyed ugandas urban taxation base. It also destroyed
ugandas international credibility meaning organisations were reluctant to invest
in Uganda.
The huge amount of businesses industries being abandoned meant that idi amin
had to take action. He attempted to counter the abandonement of businesses
and industries by implementing the Declaration of assetsof non-citizen
Asians.this declaration meant the government could take over abandoned
businesses and properties. This improved things marginally but the businesses
still were not functioning at the same level when they were owned by Asians.
Amin then in a attempt to further show his loyalty to ethnic Ugandans ,to achieve
more control over the economy and to make Uganda more self sufficient
announced that European owned farms in western Uganda would be subject to
compulsory purchase. On December 35 british owned businesses were taken
over by the Ugandan government. Another 88 were british firms trading licenses
were not permitted to be renewed and those with licenses were threatened with
nationalization. These acts caused many trading links to sever and many of the
nationalized businesses went bust.
Idi Amin then demanded that all expatriate religious personnel should have their
work permits and entry permits checked. If there were any irregularities were
found or if renewal applications were pending the personnel were declared illegal
immigrants or spies. The expulsion of expatriate religious personnel greatly
worsened the state of educational and medical services which were already
understaffed as many religious personnel worked as teachers and doctors. The
worsening of education was especially terrible for the Ugandan economy as
skilled workers were needed to work in and run the Ugandan businesses if they
were to obtain economic independence.
As well as idi amin horrific crimes against humanity(massacre of an estimated
300000 ugandans)one of the most disastrous affects of idi amins leadership on
Uganda was his destruction of the ugandan economy which should have thrived
due to its plentiful resources. However when amin was ousted from power in
1979 by the Tanzanian armed forces(who were retaliating against his attempts to
expand Uganda) the economy had gone from very prosperous to extremely bleak
and many obstacles were left for his successor to face.