LKOS Bad Government As A Cause Of Poverty

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The real Idi Amin, who presided over Uganda in a dictatorial regime from 1971 to 1979, is the archetypal African Dictator. Uganda in the 70s is the classic case of bad government leading to poverty. Not only did Amin's actions and policies result in immediate poverty, they also have had long-lasting effects.

Upon coming to power, Amin immediately appointed military officers to government positions across the board. The resulting corruption, embezzlement, and mismanagement led to an immediate economic decline, with businesses and factories collapsing left and right, leading to financial despair for Ugandans. The unstable military leadership also perpetuated violence and unrest, which increased instability and caused and even further economic downturn.

In addition to this awful government, real military conflicts, both of the civil and foreign types, took a heavy toll on the Ugandan economy. Extreme human rights abuses were the norm. Torture was prevalent.

Bad government and poverty are not necessarily always connected, however, in most cases of instability, oppression and violence, economies tend to suffer. Uncertainty makes for unattractive investment potential. Business owners, domestic and foreign, have little or no incentives to create jobs or invest capital. The effect can be similar to pulling the rug out from underneath an economy. Bad governments also cause the exceptionally talented to do everything within their power to get out. Without educated innovators, economies are often left stagnant, and, when this is coupled with other factors that coincide with bad government, they often decline.

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