THE IMPACT OF STRUCTURAL ADJUSTMENT PROGRAMMES ON UGANDA (WITH PARTICULAR REFERENCE TO UGANDA MANAGEMENT INSTITUTE) DAVID KAGWA WAMALA SSONKO A Thesis Submitted in Fulfillment of the Requirements of the Award of the Doctor of Business Administration Degree of the University of Glasgow. University of Glasgow Business and Management School February 2007 i DECLARATION I, David K W Ssonko, declare that this thesis represents my own work except where referenced to others and that it does not include work forming part of a thesis presented successfully for another degree. ii DEDICATION I dedicate this work in loving memories of my late father and mother Erinesti Kaggwa Ssonko Salongo and Anzelena Birabwa Kaggwa Nalongo respectively. They gave me unconditional love, encouragement, sacrifices and support that directly influenced my success. This thesis is also dedicated to our late son Paul Kato Ssonko who always admired and envied me for taking on a doctoral programme at my age. He died a few months before its completion. iii ACKNOWLEDGEMENT At the outset, I would like to place on record my enormous gratitude to the vast numbers of people who helped me in various ways during the process of my study. Their large numbers make it impossible for me to mention them here individually. In this respect however, I wish to extend my special and humble thanks to the management and Council of Uganda Management Institute (UMI) for sponsoring my study. Dr John Kiyaga-Nsubuga UMI’s Director General was a great source of inspiration. My very special thanks go to Prof. Sir Laurie Hunter, my Glasgow-based supervisor for his patience, useful suggestions, encouragement and great commitment in guiding me throughout the preparation of this thesis. I owe him a lot for the standard attained by this work and the skills acquired from this experience. One of the precious things I have gained through the researching and writing of this thesis is the friendship and inspiration of those I have worked with and gotten to know better. Several UMI erstwhile colleagues such as Deo Lukonji Bbosa and Wilber Turyasingura painstakingly went through my work and offered suggestions that have considerably enhanced the usefulness and value of this thesis. Several managers in the private sector and government officials were the sources of much of the information I utilized. No words can adequately express my deep appreciation of the support I received from my wide family members especially my wife Joy and our children: Michael, Marjorie, Ritah, Joyce and Paul (RIP). They were persistent and unsparing in their exhortation to me to complete this thesis and whenever there was a let-up from my side, they urged me on. I am sure they quietly suffered the throes of my study and all that this implies (other scholars will know what I mean). I would like to thank Ms Specioza Mukalukundo for her excellent secretarial services that gave shape to my thesis. In conclusion though of the greatest personal priority, I praise and thank most heartedly the Almighty God for the gift of life without which the completion of this work would have been impossible. iv ABSTRACT It is a requirement of the Doctor of Business Administration (DBA) award of the University of Glasgow that the candidate undertakes a research which is relevant to the strategic development of his employing organization. The overall aim of the DBA thesis is to conduct a critical and strategic analysis of the environment in which the candidate’s organization operates, and to demonstrate how this analysis might inform and contribute to that organization’s strategic planning and development. In this particular case the author is an employee of the Uganda Management Institute. In order to achieve the above general objective and in conformity with the University of Glasgow DBA requirements, the author examined the environment through a series of five (5) Learning Goals. While handling each Learning Goal, a firm eye was directed towards its implications for Uganda Management Institute’s (UMI) strategy. In the final analysis, the views through those different Learning Goals (or lenses) were integrated to provide a more holistic appraisal of UMI’s strategy. The following are the Learning Goals which were examined: Learning Goal No.1 “To conduct an initial strategic analysis of the business environment in which the Uganda Management Institute (UMI) operates which analysis should support the primary organizational goal”. UMI which is keen to improve its own management and performance, needs a solid foundation and a clear criterion to which it can refer in examining issues such as the relevance of its staff structure and work methods; or the appropriateness of its internal organization and operational planning and control systems. This is because today’s business climate is increasingly characterized by rapid change and fierce competition necessitating organizations to adapt to their environment if they are to survive and prosper. UMI must therefore adapt a strategical and dynamic approach in its planning, management systems and operations. The first Learning Goal therefore sought to provide a preliminary assessment of the competitive environment in which UMI operates and to identify some of the main forces operating there. v A situational analysis on UMI’s strategy positioning was made. The analysis centred on UMI’s current status and what capacity it must obtain in terms of the physical infrastructure, human capital organizational set up and the financial needs. This was considered necessary because unless UMI has a strong resource base, it might be difficult for the Institute to sustain itself amidst the current competitive environment. This Learning Goal has revealed that UMI is seriously constrained in terms of physical space and premises which need to be expanded. Second, although UMI has the necessary critical mass of professionals as a basis of developing its institutional capacity and competences, it must raise the overall academic qualifications of its professional staff. Third, the current UMI structure introduced under the Universities and Other Tertiary Institutions Act, 2001 may introduce bureaucratic administrative systems and processes that might undermine cost-effectiveness implementation of innovative and forward-thinking activities and programmes. Finally, UMI does not have adequate financial resources to meet both its recurrent expenditures and capital development. This therefore necessitates UMI to broaden its revenue base. Learning Goal No. 2 “To undertake a programme of study in research methods and data analysis likely to be relevant to the other Learning Goals” As already explained, in order to satisfy the requirements for the award of a DBA of the University of Glasgow, the student is required to undertake research on a number of learning goals or elements. Such research is intended to enable him to become a well- trained researcher and an effective contributor to his organization. Since the candidate was work-based, the major objective under this Learning Goal was to expose him to the research methodologies which would later provide him with a basis for selecting appropriate research for the rest of the Learning Goals. This was therefore a desk research which enabled him to cover a wide range of areas which were necessary while carrying out an inquiry. The study under this Learning Goal which is placed under part 2 of the thesis consists of four chapters. Chapter 1 gives a general introduction and a brief overview of research. The rest of the chapters discuss in detail some of the methods the writer employed while vi undertaking research on the different learning goals. The second chapter discusses considerations involved in action research (AR) and participant observation. The intention was to help the researcher to make an informed choice about his approach to this research. Chapter three is devoted to discussing pertinent issues relating to the use of qualitative survey. It outlines the steps in a survey project and attempts to discuss in some reasonable detail the common methods used in qualitative survey which include the questionnaire and interview. These methods are discussed because the author later uses them in his subsequent learning goals. The fourth chapter concentrates on the research design which is considered to be the “glue” that holds all elements in a research project together. The execution of this study entailed a participatory approach with key stakeholders. This approach was intended to enable key stakeholders to significantly contribute to UMI’s strategic analysis and development. Accordingly, the following research methods were utilized: (1) Meetings and discussions with key management representatives and UMI staff; (2) In-depth interviews with other stakeholders; (3) Questionnaires; and (4) Obtaining secondary data through a review of literature from a series of documents. Learning Goal No. 3 “To evaluate the context of the structural adjustment programmes (SAPs), past and contemporary, affecting economic development in Sub-Saharan Africa and in particular the Ugandan economy”. One of the main influences on the activities of UMI is the general economic development of Uganda, and in particular the economic and social development programmes designed to deliver greater prosperity and growth. The economic policy and development debate since the early 1980s in Sub–Saharan Africa (SSA) has been singularly dominated by structural adjustment programmes (SAPs) which have been part of the conditionality