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Economic System
Uganda runs off of a traditional economic system. Agriculture is the most important sector of the economy as it contributes the most labor force and the most goods to be sold and exported. One key economic indicator is the labor force and labor distribution in Uganda. There are 18 million people in the labor force in Uganda making Uganda 34th in the world for labor numbers. 82% of the labor force is agriculture, 13% is service, and 5% is industry. Another key indicator is poverty rates. In Uganda, 19.7% of the population lies below the poverty line. Yet another indicator is the inflation rate which has been a key focus for the Ugandan government in stabalizing the economy. In 2013 the inflation rate was 5.5%, since then they have succeeded in lowering the inflation rate to 4.7% in 2014 and are working to lower the inflation rate even more as they continue to stabilize the economy. The GDP-per capita as of 2014 for Uganda was $2,000 (1).
Because Uganda's economy relies heavily on agriculture most of the countries resources are used to produce crops, more specifically coffee. Uganda's goal is to stabilize the economy by using its number one exporter good, coffee, and its other extremely valuable natural resource, oil. They intend to do this by using their resources to raise producer prices on export goods such as coffee and increase the prices of oil. By doing this they can dampen inflation and increase production and export earnings. By using the resources given to them to build their natural resources they can stabilize their economy and use these natural resources as products to export.
(1) (n.d.). Retrieved November 2, 2015, from https://www.cia.gov/library/publications/the-world-factbook/geos/ug.html
Because Uganda's economy relies heavily on agriculture most of the countries resources are used to produce crops, more specifically coffee. Uganda's goal is to stabilize the economy by using its number one exporter good, coffee, and its other extremely valuable natural resource, oil. They intend to do this by using their resources to raise producer prices on export goods such as coffee and increase the prices of oil. By doing this they can dampen inflation and increase production and export earnings. By using the resources given to them to build their natural resources they can stabilize their economy and use these natural resources as products to export.
(1) (n.d.). Retrieved November 2, 2015, from https://www.cia.gov/library/publications/the-world-factbook/geos/ug.html