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Uganda oil contracts give little cause for optimism
The transition to a sustainable energy economy will be put back two decades or more, while political tension will only increase if the president, Yoweri Museveni, holds on to power beyond 2011 in anticipation of the new revenues.For all the work of the country's 8,000 NGOs, the 30% budget support from donors and the rhetoric of international aid, it is these botched contracts and the financial interests of oil companies that will do most to define Uganda's future. While increased oil revenues give the impression of superficial growth, the sudden influx of cash distorts the economy and exchange rates, undermining alternative sectors, including agriculture and industry, that employ and...
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