Uganda: What is the economy like? Not much manufacturing Secondary Industry But a lot of Primary Industry especially farming Sugar cane growing

Uganda produces Primary Products coffee tea cotton tobacco

Some gold mining Second in value to coffee Also a Primary Product The European Union is Ugandas largest trading partner with more than one third of Ugandas exports consumed in EU markets

What are the main imports? What does this tell us? What are the main exports? What does this tell us?

This diagram is a very simplified model of trade between LEDCs and MEDCs.

Uganda has presently a $1 billion trade deficit. The country is very poor and a lot of people Including children Have to work Long hours for very low pay The country imports more Than it exports So the Balance of Trade is negative causing DEBT.

What does this cartoon tell us about trade between Uganda (an LEDC) and MEDCs? Or Uganda

In 1996, Uganda paid out $0.66 in debt service for every$1 received in aid grants Uganda like most LEDCs is heavily in DEBT Most of the money given as AID grants by MEDCs is used to pay interest on debt to MEDCs

A lot of Ugandans live in poverty But rural areas are worse Than the towns.

The country is getting more and more into DEBT as time goes by

Top five creditors Main export markets ItalyNetherlands UKFrance UK JapanUSA Spain Uganda's total debt in 1998 was $3.6 billion- This is about 3 times the value of its exports Almost 75% of its debt is owed to the international banks.

FairTrade helps to give more money from the price of tea or coffee or other primary product to the person who grew it. Rather than to the manufacturer or retailer

GNP: 5.5 billion dollars Per capita GNP: 240 dollars Foreign debt: 43% of GNP Main products: coffee, cotton, tea, tobacco Photo: a village home!