Jobs. Men pick tiles from a production line in a factory in Kapeeka.
Finance minister Matia Kasaija said before any discussion transpires
with any investor, he must be satisfied that the investment on the table
will guarantee massive jobs. PHOTO BY RACHEL MABALA
Kampala. In
addition to keeping tabs on price stability, Bank of Uganda should also
keep unemployment under check, economic experts have recommended.
While discussing the key note address whose theme was, “Key Policy Triggers for Economic Growth with Jobs,” delivered by the Finance Minister, Matia Kasaija at the third annual NTV Economic Forum last week, the panelists urged government to expand the responsibility of the Central Bank to enforcing policies that would stimulate the economy through creating jobs.
“Monetary policy can be used to try to keep prices stable. But we also need monetary policy for jobs,” Dr Fred Muhumuza, the principal moderator of the third annual NTV Economic Summit emphasised during the panel discussion on the matter.
Before that, the deputy managing director of National Social Security Fund (NSSF), Mr Patrick Ayota, had set the ball rolling.
“Bank of Uganda should also look at jobs and its impact apart from concentrating on ensuring price stability. This will mean that the mandate of government policy supervised by the BoU will not just be about price stability but also job creation. ”
Mr Geofrey Onegi-Obel, a veteran banker and a member of the thought provoking panel of experts, disclosed that the country’s monetary policy, which includes maintaining price stability, does not acknowledge jobs as an important factor in the grand scheme of things — balancing economic growth and price stability.
Like what it is already happening in several economies, he suggested that jobs should be introduced as a component of monetary policy.
“Jobs are the underlying trigger to realise middle income status. So the jobs signal should have targets monitored and everything done to ensure they are actualised,” he said.
Although return on investment in short-term is attractive, it is pathetic in medium to long term. This has an effect on quality of jobs rendered by investors because impactful employment has medium to long term results in the economy.
For that to happen, the economy will have to grow at 8 per cent year-on- year over five years.
Mr Samuel Sejjaaka, the associate professor of accounting and finance at the Abacus Business School, said unless the skills problem is addressed, the economy may not grow at the pace that can guarantee jobs.
PURPOSE
The primary purpose of Bank of Uganda is to foster price stability and a sound financial system.
While discussing the key note address whose theme was, “Key Policy Triggers for Economic Growth with Jobs,” delivered by the Finance Minister, Matia Kasaija at the third annual NTV Economic Forum last week, the panelists urged government to expand the responsibility of the Central Bank to enforcing policies that would stimulate the economy through creating jobs.
“Monetary policy can be used to try to keep prices stable. But we also need monetary policy for jobs,” Dr Fred Muhumuza, the principal moderator of the third annual NTV Economic Summit emphasised during the panel discussion on the matter.
Before that, the deputy managing director of National Social Security Fund (NSSF), Mr Patrick Ayota, had set the ball rolling.
“Bank of Uganda should also look at jobs and its impact apart from concentrating on ensuring price stability. This will mean that the mandate of government policy supervised by the BoU will not just be about price stability but also job creation. ”
Mr Geofrey Onegi-Obel, a veteran banker and a member of the thought provoking panel of experts, disclosed that the country’s monetary policy, which includes maintaining price stability, does not acknowledge jobs as an important factor in the grand scheme of things — balancing economic growth and price stability.
Like what it is already happening in several economies, he suggested that jobs should be introduced as a component of monetary policy.
“Jobs are the underlying trigger to realise middle income status. So the jobs signal should have targets monitored and everything done to ensure they are actualised,” he said.
Although return on investment in short-term is attractive, it is pathetic in medium to long term. This has an effect on quality of jobs rendered by investors because impactful employment has medium to long term results in the economy.
For that to happen, the economy will have to grow at 8 per cent year-on- year over five years.
Mr Samuel Sejjaaka, the associate professor of accounting and finance at the Abacus Business School, said unless the skills problem is addressed, the economy may not grow at the pace that can guarantee jobs.
PURPOSE
The primary purpose of Bank of Uganda is to foster price stability and a sound financial system.
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