Effects of the Expulsion of Asians
The
expulsion of Indians from Uganda had many negative effects on the
economy and Uganda's development in general. Some of the effects are
bad while some are good.
The following are the bad effects:
Unfortunately, there was total destruction of the economy. This was
because the economy was lying solely in the hands of Asians. When they
left Ugandans mismanaged everything.
Uganda lost a lot of manpower in Industries, schools, hospitals,
commerce and other institutions. These were replaced by untrained
workers who mismanaged everything in the country.
Breakdown in trade and industry was another impact. Ugandans who took
over control of Asian property lacked managerial skills. As a result
business collapsed; decline in production accelerated the unemployment
rate; traders lacked access to foreigners exchange. The regime was just
spending a lot of money on buying ammunition. By the time the military
took over power in 197I the gross domestic product had been rising at
an average rate of 4.6%; the expulsion of the Asians was the last nail
in the coffin. By 1973 the gross domestic product was-0.6 %.
There was massive rural urban migration. This affected agriculture in villages leading to famine.
There was loss of international respect for Uganda. This also led to
poor relationship with many countries especially Britain, USA and
India. Britain stopped all aid to Uganda. In retaliation Amin sent away
Richard Slater, the British high Commissioner to Uganda
Hyper inflation became a fact of life. This was caused by shortage of
essential commodities. For example in 1972, a bar of washing soap cost
about Shs.3. By 1979, it was officially Shs.17 but retailed at Shs.50
on black market. In December 1985, it was at Shs.2, 000 or more.
Inflation greatly affected the country. Those, who engaged in
smuggling, priced goods highly; everything cost more than 10 times its
price in 1971. Money supply increased over 6 fold but was chasing too
few goods. It was reported that this inflation was probably the world's
highest rate. Life in the villages turned primitive as people had to do
with wild plants to substitute for soap, ash for salt while on the
other hand there was a roaring trade in crude salt from Kasese. Those
who were found hoarding were beaten thoroughly and had the goods
confiscated in addition to ordering them to to eat up the salt they
were found hoarding.
The destruction of the industries by managers who lacked experience.
The general infrastructure in the country was destroyed. Because of
this, the Per capita in the income in the country fell so low.
Illegal trade in the name of "Magendo" started along the borders of
Uganda. "Magendo" was a practice, which involved dishonest activities
in the pursuit of monetary gain. Every Ugandan had to be involved in
order to survive. An era of "Magendoism" (black marketeering) was
ushered in Uganda. The term "Magendo" was originally not part of the
local vocabulary but it started with Amin's regime. When traders failed
to get spare parts, they resorted to smuggling eg soap, sugar, etc into
Uganda. Permanent secretaries, office messengers, rural peasants etc
were all involved in magendoism to make ends meet. Amin failed to solve
the problem because it had its root in fascism itself.
Uganda became an importing country for every commodity. This was
because there was no production within Uganda. Most shops in the city
which were formally filled with valuable items such as Televisions,
radios, cars, and clothes were replaced by tomatoes, ripe bananas and
Cocoyams.
Essential commodities became scarce in Uganda. People resorted to using
ash as , papaw leaves for soap and crushed sugarcane for sugar.
Some Ugandan Africans opposed Amin. Amin had started with the expulsion
of Asians holding British passport, and Indian citizens. However, when
he extended the economic war to Asians who were Ugandan citizens, he
subsquently retraced his steps under pressure from some Ugandan
Africans who argued for the need to respect the concept of citizenship.
However, Amin changed his tactics by first revoking their citizenship
and then expelling them under inhuman conditions. But when Amin died in
2003, some of the Asians who were interviewed were surprisingly
grateful to him for having expelled them.
Disagreements emerged over the sharing of Asian property. Though Amin
created the Custodian Board to take care of the property of the
expelled Asians, he disagreed with opportunists, the likes of Kibedi,
Nabudere and Rugumayo who fled to Nairobi from where they sent
resignation letters. Even among the manufacturig class, competition
developed over who should control resources.
The expulsion became a humanitarian crisis of international
proportions. Kenya sealed her boarder with Uganda. The then vice
president Moi declared that Kenya was not a dumping ground for citizens
of other countries, [n India, authorities barred the expelled Asians
from entering the country insisting that they were Britain's primary
responsibility. In Britain the population was split into two: those who
felt Britain had an obligation to care for Asians since they had
British passports and others who felt the Asians were just a nuisance
who would drain the country's resources, strain the social services
sector and lead to shortage of housing and employment. There were
public protests in Smithfield, London against the imminent immigration
of such a large number of Asians.
The British government did not keep a deaf ear to the Asian question.
Britain reacted to the expulsion by cutting off economic aid to Uganda.
In 1972, British attempt to bring the issue of Amin's expulsion of
Asians before the UN to get a censure of the Uganda government was
unsuccessful, in October 1972, the British ambassador was ordered out
of Uganda and Uganda's ambassador was called back from London hence
strained relations between (he two.
Related to the above, records show how Britain had planned an invasion
of Uganda, capture Kampala and Entebbe for 10 days, under what was
dubbed 'Operation Zeus'. By this plan, all the British and Asians in
Uganda were to collect at Entebbe international airport to wait being
flown to Britain. Britain feared that Amin would kill 7000 of its
citizens and 25000 Indians whom he had expelled. However unknown people
leaked the information into Amin's ears; it was reported that he
reacted by warning Britain about this invasion and that neighbouring
countries were prepared to back him up. The records about this British
conspiracy were discovered in Kew, west of London in July 2003.
The expulsion led to the involvement of the United Nations High
Commissioner for Refugees [UNHCRJ, When the flustered British
government had tried diplomacy by sending a special envoy to negotiate
with Amin, Amin remained rigid. He instead threatened to also expell an
estimated 2300 Asians of Uganda, Indian, Parkistan Bangladesh origin
and "all non-nationals who are sabotaging the economy". This prompted
the office of the UNHCR to get involved, mobilising resources for the
soon to become stateless Asians. In the end Britain had to take in
about 27000 while Canada took about 5000.
The Ugandan exilees in Tanzania hurriedly assembled their forces to
invade the country during the confusion of the Asian exodus and topple
the regime. iFt was a great mistake; it took place when Amin's
popularity was at its zenith. The invasion was ill conceived and
planned as if the participants were being sent on a picnic. It would be
very difficult to defeat a consolidated national force already on the
alert to deal with the emergency of the Asian exodus.
Amin turned to foreign countries for assistance. To save the economy
from crumbling Amin borrowed a lot of money from the middle East but
this money ' was not used for meaningful economic activities. It was
instead diverted to the military sector; even after the Amin regime,
Uganda continued to suffer from the debt burden. The government also
sought for manpower to fill the gap left behind by the Indians. On
December 1972, Uganda received an Egyptian team of 14 doctors, sugar
technicians and engineers. On August 13th 1973,; the minister of
education, Brigadier B. Kill received 45 Ghanaian teachers who had come
to take up teaching posts in secondary and teacher training colleges.
In the final analysis the once well-intended drive to de-indianise the
Ugandan economy turned out to be a great disaster rather than a
redeemer of the economy. On these grounds, Uganda was described as "a
country in economic chaos." Amin was held responsible for Uganda's
economic crisis; today the nation is still struggling out of the pit of
economic decline.
National Movements and New States in Africa