The influence of economic and development policies on science and technology in Africa

,. n~'D~

C

~

\

ECNSTS/3m/94e

UNITED NATIONS ECONOMIC COMMISSION FOR AFRICA

THE INFLUENCE OF ECONOMIC AND

DEVELOPMENT POLICIES ON SCIENCE AND

TECHNOLOGY IN AFRICA

PROCEEDINGS OF A TRAINING SEMINAR ON THE INTEGRATION OF SCIENCE AND TECHNOLOGY, ECONOMIC AND DEVELOPMENT

POLICIES IN AFRICA KAMPALA, MAY 1993

SCIENCE AND TECHNOLOGY SECTION NATURAL RESOURCES DIVISION February 1994

,J_,~._~,-.,

FOREWORD

Science andtechnology cannotplay its full role in development in an unfavourable economic policy environment.

One of the reasonswAyscience and technology in Africa contribute little to development is that distorted

and

non-competitive economic policies do not provide an enabling climate which could make science and technology a critical factor of development. Economic policies in

Africa

have

been

improved in recentyears but they still often weaken the capacity of African countries to develop, apply and market or -transfer and assimilate appropriate technologies, particularly agro-

industrial technologies.

So far, inmost African countries, S-T policies have narrowly focused on public research and higher education with little regard to improving the general economic policy environment that could facilitate the application and diffusion of appropriate technologies, the commercialization of research results and the creation of jobs for the highly trained manpower. Giventhepresent state of S-T in Africa in general, it is recognizedthat

S-T

development hasto

rely

to a greater extent

on market

mechanisms and on the application of readily available technology which exists on the market place.

Bureaucratic trade policies, restrictive foreign investment policies, controlled exchange rate policies, the lack of credit and unfavourable fiscal policies are seriously limiting the initiative of entrepreneurs to develop or acquire the technology they need to improve their situation and become more productive and competitive.

Technology

transfer

regulations

add further irritating controls which makeit more difficult to apply available technology. Immigration policies, which deny

their freedom to observe technological development abroad and bring back usefulideas andbusiness contacts. Public ownership of landand industry does not provide the necessary incentives to farmers and entrepreneurs to use science and technology to better their own economic situations.

Theseissues and constraints have made the object of a training seminar organized by the United Nations Economic Commission for Africa and the Uganda National Science and Technology' Council with the financial support of The Carnegie Corporation of New York.

This document puts together the papers presented at the seminar and it couldbe helpful instrengthening the endogenous capacity of African countries in using S-T and economic policies for development. More specifically, it couldhelp scienceand technology and economic policy..

makers to reinforce the mutuallyself-supporting role and linkages of each set of policies.

The papers cover African and Asian experiences in integrating S & T and economic policies for economic growth and social progress

and

suggest policy reforms to increase the contribu.tion of S & T in development. The report of the seminar is also included.

~-e~'£JJ

Peter N. Mwanza

~

Chief

NaturalResources Division

CONTENTS

FOREWORD ..•••..••.•... ., • . • . . • • • . . • . • • • • . . . •• 1

THE LINKAGES BETWEEN ECONOMIC POLICIES

AND SCIENCE & TECHNOLOGY IN SOCIO-

ECONOMIC DEVELOPMENT IN SUB-SAHARAN

AFRICAN COUNTRIES ^{a . ' a • • • a} • • • • • • • • • • • 13 1.

Introduction

^{a • , • • • • • • • • • • • • •}

13

2. The linkage between science, technology and

production .

_~

. . . .. 14

3. The effects of inward looking policies on the contribution of science andtechnology '.. ]6

3.1 Importsubstitution 17 3.2 The impact of other economic policies 18 4. The Impact of

outward

looking economic

policies and the case of Mauritius ....,... 20

Macro

economic environment . . . .. 21

Exchange rates . . . .. 21

Credit

and

interest

rate

reforms ...,...

21

Tax and tariff reforms . . . .. 22

Simplification ofadministrativeand bureaucratic procedures . . . ^{a • a • • • • •} 22 Investment promotion " ^a 23 The Korean model ,. ^a • • • • • • • a • • • • • • • • • • •

25

'The Indian model ... ^{a • • • a • • • • • • , • • • a • , • •} 26 The case of Mauritius ^{a • • •} 26 Political-economic perspective ^{a • • •} 27 The Mauritius Export Processing Zone 28

Objectives of the MEPZ '. . . .. 28

The Secret behind

Mauritius success story: ... 29

5. Conclusion . . . '. . . .. 31

References 34

A NATIONAL SCIENCE AND TECHNOLOGY POLICY:

THE CASE OF UGANDA .. .. .. • .. .. .. .. .. .. 36

Introduction 36

Science and

technology policy

39

Integrating science and technolOlY and national

development . . . .. 41 Conclusion .... . . '. . . . .. . . .. 49

INTEGRATING SCIENCE " TECHNOLOGY.

ECONOMIC AND DEVELOPMENT POUCIES IN

AFRICA: AN OVERVIEW •••••••••••••••••••• 53 1-Introduction ^{+ • .. • • • • • • • • • • •} 53

2- Science and technology

dcve10pmcftt

as a multi-

dimensional process 54

3- Integrating g..T into the

I1oba1 econDmies

56

4- Integrating S·T and

~

policies f9r sustainable

development . . . .. 60 5-

Integrating

national

OOOftOftUes to

the S

&

T

locomotives . . . • . . . 61 5.1 Integrating S

a:

T policiea, foreip direct

investment, joiM ventM:IWand licensing

policies 62

5.2 Integrating SAT policies with tedmology

~ ~. J~' 63

tranalet l'Cga_aoR polet• • • • • • • • . • • • •

5.3 Integrating S & T policies

and

trade

pol

fetes •••••••••••••••••••••••..

64 5.4

Integrating

S &. T policies and miJration

p<>11C1e8 • • • • • • • • • • • • • • • • • • • • • • • • • 66 5.5 Integrating S& T

policies

withdevdopnlCDt

aid policies 67

6- S & T policies and rePMaJ ecOllOlDie iJDe&tatitln

policies 67

7 Integrating S & T policies with education, training

and manpower policies 67

8- Refocusing S' & T policies on the innovation

system 68

9- Conclusion .. . . .. 69 INTEGRATING SCIENCE AND TECHNOLOGY WITH

DEVELOPMENT: THE JAPANESE & INDIAN

EXPERIENCES . • . . • . . . • • • • . . • . • . . • • • . • • • • •• 71

Introduction 71

Initiation of s & t policies: the context of developing

countries 73

The japanese experience. . . .. 76

References 78

INTEGRATING SCIENCE AND TECHNOLOGY,

ECONOMIC AND DEVELOPMENT POLICIES IN

THE GAMBIA ..•.•••••..•..•.•.•.•..••.... 81

Background 81

Programmesand projects : .. 83

agriculture: . . . .. 83 housing and building construction 84 small scale industries . . . .. 84

energy 85

cooking stove . . . .. 85 Institutional aspects . . . .. 8S

erp 86

pad policy orientation 88

Science and technology policy 89

Recommendation. . . .. 91

Organization 92

Tnternational cooperation 93

THE INTEGRATION OF SCIENCE AND TECHNOLOGY

AND ECONOMIC POLICIES IN NIGERIA ....•.• 96

1.0 Background to the policy 96

2.0 S&t policy weaknesses in nigeria 99 3.0Strategies for integrating8&tpolicy into the

socio

1-

economic development in nigeria 103

/ '

3.1 Engineering infrastructure development

programme 104

3.2 Summary of the policy 105

3.3 Programme content. 108

3.4 Institutional framework . . . .. 110 3.5 Programme objectives. . . .. 113

RELATIONSHIPS BETWEEN SCIENCE AND

TECHNOLOGY POLICIES AND ECONOMIC

POLICIES IN AFRICA 116

1. INTRODUCTION : . . . .. 117

A. Background. . . .. 11 7

B. Outline of the PiWer ". 119

II. LINKAGES BETWEEN S&T POLICIES AND

ECONOMIC POLICIES IN AFRICA 119

A. Historical Backw>und . . . .. 119 B. LinkaiWs between S&T Policies and

Economic Policies in Africa 122 TIT. IMPACT OF ECONOMIC POLICIESON S &

T CONTRIBUTION TO SOCIO- ECONOMIC

DEVELOP~NT ^{0 • •} 126

A. General Overview of Plannin& Practices •

in Africa 126

B. Structural Deficiencies of the African

Economy . . . .. 128 C. Consegyences of Economic Policies for

the Role of S & T in Deve]QPment . . . .. 131

IV. CON C L U S ION S A N D

RECOMMENDATIONS 141

R&D IN AFRICA - WHY BOTHER? . . • . . . • . . . 149 INTRODUCTION . . . .. 149

FUNDING OF R&D 149

Technology and Economic growth 149

Thresholds of expenditure 150

Level of expenditure .. . . .. 152

APPLICATION OF R&D 152

Success and failure rates 152

Stages in production development. . . .. 153

Costs of product development 154

Structure of expenditure 155

Enhancing R&D application. . . .. 155

"IT WAS MY IDEA!" 157

REFERENCES 158

THE STATUS OF SCIENCE AND TECHNOLOGY IN

SOCIO-ECONOMIC. DEVELOPMENT IN

KENY'A • • • • • • • .. .. . • • • • • • • • • .. • .. • • • • • • • • • • ... IS9 1. INTRODUCTION. . . .. 159 2. mSTORICAL PERSPECTIVE. . . .. 159

3. CURRENT STATUS OF SCIENCE AND

TECHNOLOGY IN KENYA .. , . . . .. 163

4. DIFFERENTIAL POLICIES BETWEEN

SECTORS 164

5.

THE

DYNAMICS OF S & T POynCS 165 6. PROBLEMS

AND

CHALLENGES OF S

c%

T

IN KEIDrA : : 166

Lack of

financial

resources 167

Institutional and legal framework ]67

Human Resources 167

Information and Public Awareness 168 Protection ofIndigenous Technology 168

Population Pressure . . . .. 168

Equipment and Raw Materials .-... 169

Natural Disasters. . . .. 169

External Factors . . . .. 169

7. CONCLUSIONS. . . .. 169

REFERENCES ~ .. ~ , . . . .. ]70

ROLE OF NGOtS IN INTEGRATION OF S

&

T INTO ECONOMIC

ANDD~VEWPMENT POLICIES ••. 172

THE ECONOMIC DIMENSION OF THE PROTOCOL ON

SCIENCE & TECHNOLOGY

OF THE TREATY

ESTABLISHING

THE AFRICAN ECONOMIC CO -. • . • . . • . • . • . • • • • . • . • • • . • • . ...

176

INTRODUCTION , . . . 176

GLIMPSES FROM THE DRAFT PROTOCOL 178 Modalities for the Establishment of the Community: 180 Science and Technology as an Important Component for Economic Development in Africa , . . . 181

Science & Technology Policies within OAD: .. 182

CONCLUSION '.' . . . .. 183

INTEGRA11NG SCIENCE AND TECHNOLOGY, ECONOMIC AND DEVELOPMENT POUCIES IN AFRICA: THE SIERRA LEONE SITUATION .... 187

1. Preface. . . .. 187

2. Backwound Information of

Sierra

Leone . '.' . .. 188

2.1 GeoWaphical Setting . . . .. ]89

2.2

National

Resources . . . .. ]89

23 Description ofthe Economy ~ 189 J. Definitional problem of I'Science" and

"Technolo~y't : . . . 191 3.1 Science. . . .. 191 3.2 Technology. . . .. 191 4. Status of Science and Technology in Sierra

Leone 192

4~1 Historical Back~round . . . .. 192 4.2 Current Efforts to Promote Science and

TechnoloKY for Development . . . .. 194

4.3 The R&D Situation 196

Manufacturing Sector Example 198

Problem Type Identified: 199

Policy Recommended: 199

Operational Mechanisms Strategies . . . .. 199

Programs Proposed 200

Projects Listed: 200

Mining Sector Example. . . .. 201

Problem Type 201

Policy 201

Strategies 201

Projects . . . .. 201 Future Polices (improvement): 202 4.4 Science and Technology Policy 202 5. Economic Policies .... ; . . . .. 203 5.1 BudgetinG and fiscal policy . . .. 203 5.2 Interest Rates . . . .. 205 5.3 Monetary and credit policies 206 5.4 Export and Import Policies' 206

6. Development Goal and Objectives 208

7. Institutional and policy linkalle weaknesses 209

8. Recommendations 210

8.1 Policies. . . .. 210

8.2 Coo.peration amOnaS! LDCs _2~1

References 2J2

POLICY ON SCIENCE AND TECHNOLOGY:

NAMIBIAN EXPERIENCE •..•••.•••...•..'... 214

INTEGRATING SCIENCE & TECHNOLOGY,

ECONOMIC AND DEVEWPMENT POLICIES'IN

AFRICA mE CASE OF BURKINA'FASO •...•.• 222 1. The burkina faso's experience in interpreting

science and technology for development 223 2. A multi-sectorial coverage policy initially 224 3. Final assessment ofan experience . . . .. 224 4. Difficulties of the policy on integration of

science and technology in development . . . .. 227 5- Future prospects . . . .. 228

INTEGRATING ECONOMIC, DEVELOPMENT AND

SCIENCE AND TECHNOLOGY POLICIES: THE CASE OF RWANnA •..⁰ • • • • • • • • • • • • • • • • • • • • •

1. INTRODUCTION .

2. SCIENCE AND TECHNOLOGY

DEVELOPMENT POLICIES .

2.1 General context .

2.2. The case of

Rwanda .

REPORT OF TIlE SEMINAR ..•.••...•...•••..

I. INTRODUCTION' · .

Objectives of the Seminar .

Opening statements .

Attendance . . . .

321

231 233 233 235

261

261 261 261 263

Election of the bureau . . . .. 264 TT.ACCOUNT OF PROCEEDTNGS . . . .. 264

Presentation and consideration of country

experiences

264

III ISSUES AND RECOMMENDATIONS 276

AGE N D A . . . • . . . .. . .. . . • . . • . . . . • .. 284 LIST OF PARTICTPANTS • • . • . . . • . • • • • • • • • . • . • . . •• 288

THE LINKAGES BETWEEN ECONOMIC POLICIES AND SCIENCE & TECHNOLOGY IN SOCI()..ECONOMIC

DEVELOPMENT IN SUB-SAHARAN AFRICAN

COUNTRIES

ERISA O. OCHIENG DirectorofPlaaniog

Ministryof FinanceandEconomic Planning Uganda

1.

IDtrodaetioD

Many Sub-Saharan African Countries (SSAC) prospered in the 19608

due to very high commodity prices and inflow of foreign finance. The period beginning mid 19708 was

very

trying for most

SSAC because the prices of the few export commodities

they

depended on plummeted and concessionary foreign finance dried up.

Most

SSAC reacted by introducing inward looking policies of import..substitution,

controls,

regulations, outright bans and public.

ownership of productive

enterprises.

These policies produced negative .

economic results such as excessive encouragement of consumption and

fallinsaving and investment; of

growth

of exports and

growing

deficit on the current

account;

internal inflationary pressures and

emerging

parallel markets;

and

growing

unemployment.

The policies also marginalised the contribution that science and technology could contribute towards socio-economic

development.

Some countries have realized that doctrinaire inward looking

policies are expensive and cannot

be

sustained. They have turned to

outward looking policiesand introduced changes which have produced

impressive positive growth rates and allowed science and technology to

play

its

rightful

role in the economic development of those countries.

This paper investigates how the distorted, non-market oriented and non-competitive policies have negatively affected the contribution that science and technology could make in socio-economic development; and suggests reforms drawing from the experience of Mauritius.

The paper is divided into the following sections : Introduction;

The linkage between science, technology and production; The effects

of inward

looking economic policies on

the

contribution

of

science

and

technology; The

case

of Mauritius; and Suggested reform package.

2. The Unkage Between Science, Tecbnology

aDd-

Production

The economic development of any country depend directly on the size of resources available, the extent of their utilization, and their productivity. The ultimate contribution of the resources to economic

development

depends on many factors among which technology plays averyprominent

role.

Whether the need is more food, better education,

improved

health care,

increased

industrial output, or more efficient transportation and communication, technology plays a decisive role.

Technology

is

a system of

knowledge,

skills, experiences and organization that is used to

produce

and utilize goods

and

services. The Technology

could be imported

or

indigenous.

The

relationship between

science, technology

and

production can

be

depicted in form of a cybernetic model.

(A) Represents potentials of Science, Technology and ProductionSpheres.

,(B) Illustrates processes of transformation taking place in all three spheres. The essence of Science is

the research

activity aimed at discovering new phenomenon and truths. The

technology

sphere focuses on transfonning

these theoretical

development

into practical applications while

production on converting them into goods and

services satisfying human needs.

(C) Presents results obtained on therespective stages of the whole cycle.

(0) (1) Illustratesthestock

of worldtechnical

knowledgewhich is

freely

available and

may

be

called

non-proprietary.

(0) (2) Represents the propriety portion of world technical

knowledge. It is

protected

by proprietary

rights

and/or

kept confidential and

is

subject to international transfer on a predominantlycommercial basis.

A

science

and technology system has various components such as institutions and production facilities supported by infrastructure comprising fieance,

physical

facilities,

and human skills. Technology

systems perform several functions startingfromspecification of its final

outputs, and proceeding to choice of

technologies,

engineering-

design,

implementation, 'management, marketing, and R and D.

There appears to be differences in science and technology systems in

industrialized

andlessdeveloped countries. In industrialized world evolution of scientific activity bas led directlyto and isclearly

linked

with advances in production techniques. They possess 1ft

endogenous science and technology base. In less developed countries knowledge generating

activities

are often not related

to

productive activities. These possess exogenous science and technology bases see figure 2.

Technology system in most "less developed countries are characterized

by

dualism:

the

existence of a modem urban enclave linked

to the international

market

place and a traditional

rural

setting.

The modern sector

usually

operates

independently

of the traditional sector. The

traditional

sector bas

been

under-valued and under- ⁴

developed while the modern

sector

baa

been

associated

with

technical progress, The modem

sector

generally employs

imported

technologies

that Dring

with

them skills

requirements,

use of materials, organizational skill,' and

technical

tradition alien to the local

environment. science and technology

systemsin

African countries are not developed. The existence of individual coDiponents like science and

technology institutions artificiallycreateddoesnot constitute a system.

In some countrieS all the components of ftte technological system do no, yetexist and the linkages are

weak -a6d ineffective.

Also decision- making capabilities need to be'strengthened, and

political leadership convinced of the

role

that science and technology

system

can

play in

the attainment of development goals.

3.. The effects of IDward lookingpoUeiel 011 the coDtrlbadoD of scieDce and

teehno1olY

Whenthe SSAC

began

facinghostile international environment

in form of declining JUices of their exports and dWindling inflow of foreign

finance

they

reacted

by

introducing inward looking policies such as importsubstituti~controls, regulations, over expansion of the

tariff

substitution industries.

As

the economic situation got worse, so did the

controls get tighter.

3.1

Import

SUbStitutioD

Because of reduced external reserves and dwindling inflow of foreign exchange, the countries took to import-substitution as a way of saving scarce foreign exchange and promoting development. The impetus for import substitution' was generally provided through very high protection which together with overvalued exchange rates biased investment incentives towardsproduction

with

low value-added for the domestic market. The structure of production shifted,from agriculture and exports

with

adverse consequences for the growth in demand and

input

supply

that was needed

for the full

use of

industrial capacity.

State

ownership

was

presentto somedegree everywhere, and the strongly interventionist strategies discouraged private industrial development where nationalization was a primary tool of public

industrial expansion.

Political

consideration

and social objectives often

became paramount rather than financial and economic performance

thereby

imposing high operating costs on public firms.

Dependence on imports

actually

increases because the

import-

substitution industries did

not only

require imported machinery

by

also

imported

inputsfor the new technologies due toweakness in indigenous sub-contracting facilities. At the firm level, incentives often favored excessively capital intensive techniques rather

than

the adoption of technology to local resources and conditions.

Among the reasons

for this non..sustainability was failure to

incorporate appropriate science and technology

strategies. Some

countries were not even aware of the great importance of technology

for their development, and most are up

to

now unable to exercise real

choice in designing effective strategies for their technical transformation. The intemationil situation has kept them in conditions of technological dependence i.e, most of their technology comes from abroad.

Many

developing countries sufferⁿ double dependence" in that they need not only to acquire the elements of technical knowledge but also to import the capacity to use this knowledge in investment and production.

Importedtechnology if well harnessedhassome positive effects such as increasing the physical stock of productive factors, increasing the extent of exploitation of these resources, increasing productivity

&

efficiency, and increasing production capacity. The SSAC were able to exploit these advantages up to a certain point because there was no strategy to internalize the technology.

Because of the weakness in local Research and Development and weak links between R&D and production (depicted in figure 2) imported technology proved detrimental to the domestic innovative activity by replacingindigenous research efforts,divertingthe attention of research and development staff and isolating research and development from production. The activities of local science and technology institutions were devalued. Foreign technology went into

competition withindigenous

technology and

replaced

ordestroyed

most

of it. In addition it destroyed local industry

and

imposed import and consumption-led growth

pattern,

and internationalized the SSAC economies. It also destroyed traditional system of values, debilitated

traditional social linksand created the

disarticulationphenomenon [split between modern (rich) and traditional (poor)]. Technological dependence is nowperpetuated and strengthened.

3.2 The Impact of other economie policies

Apart from the in-built problem concerning' importation of foreign technology, the economicpolicies pursuedby the SSAC further marginalised the contribution of science and technologyto the socio- economic development of the country.

At independence the SSAC were impatient^to catch up with the developed countries and because of the boom of 19605, the governments over-expanded the public sector. The mid-1970s brought in acuteeconomic crisis dueto rapidly deteriorating terms of trade

and

dwindling inflow of concessionary finance. Also many African countries experienced political upheavals culminating into civil wars, coups and mass population movements resultingin large expenditure on defence related items.

Faced

with

an expanding expenditure requirements and dwindling revenue base, the Governments were faced with ever increasing deficits which

was

financed mainly through the banking system. This gave rise to rapid expansion of money supply and galloping inflation.

The reaction of governments wasthatof more rigid controlsand regulations i.e. fixed interest rates giving rise to negative real interest rates; price controls giving rise to parallel market activities and smuggling, fixed exchange rates giving rise to overvalued exchange rates; "xed wage rates giving rise to brain drain; and introduction of the allocative system giving rise to distorted resource allocation.

Thehigh inflation rates, negative interest rates, and overvalued exchange rates discouraged local saving andinvestmentandencouraged capital flight. It also discouraged foreign investment. In other words there were no~ economic activity i.e, no invention, no innovation

and

no imitation,

but there

was decline.

The

contribution of science

and

technology had come to a stand still.

Since Research and Development is a very expensive investment with unclear returns, it is the first to suffer when considering expenditure cuts.

The spate of nationalization scared away foreign investment with

unclear returns, it

is

the

first to

suffer when considering

expenditure

cuts.

Becauseof declining economic activity and high inflation there was a crisis in the labor market, i.e, rampant unemployment of education manpower and crisis of paying a living wage. This gave rise to reverse technological transferin form of brain drain to developed' countries. The people who should have spear-headed Research

and

Development in Africa soughtgreenerpastures elsewhere.

The imposition of exchange control measures because of the balance of payments crisis discouraged foreign investment, foreign technology and foreign personnel.

4. The Impad ofOutward IooIdDI economicpoIides aDd the easeofMauriU...

Some countries haverealized that the inward looking policies cannot be sustainedandhaveturned

towards

outward looking policies with

amazing results.

Countries undertaking policy reforms usually make changes

in

'the macro economic environment, exchange

^rate

regime, .the

trade

regime,

tax regime,

credit

regime,

institutional

framework,

and

incentives.

Macro Economle EnvironmeDt

The promotion of economic gR?wth and development requires .

. . enabling

environment which comprises :

political

stability,

strong private sector

bias,

friendliness to local and foreign investors, large; productive and cheap labor force, good infraStructure geared

^to

production,

tax

incentives,

a viable democracy

etc...

Also the .success

in

promoting economic development rests on macro-eeonomic stability i.e, low inflation, low fiscal deficits, stable and adequate exchange rates.

EsehaDge rates

An adequate real exchange

rate

helps to ensure equilibrium in the balance of payments and in domestic markets,

~

well as being

compatible with growth in tradable and output over the longer term.

Policies

usually

include

market determined rates.

Credit and Interest

Rate

Reforms

Before the reforms, the public sector

tended

to crowd out the private sector, and interest rates,

were

fixed by the Central

Banks irrespective of inflationary rates.

The reforms

in

this sector include :

Limiting government recoursetooverdraft at the Central Bank;

According the Central-Bank greater legal autonomy in monetary policy;

Removing distortions in credit allocation.

Allowing Commercial Banks

to

determine their own

interest rates (deregulating interest rates to be

determined

by market

forces),

Tax

aDd

Tariff Reforms

Tax

and tariff

rate are usually very high and there is

usually

wide spread usc of quantitate restrictions. The reforms

usually

consist of:

reductionoftariff, incometax, and ^comJ)8DY tax rates and reductionintheir dispersion;

restructuring of thetax systems, abolitionofquantitative

restrictions,

redirection of taxesfrom

trade

to inoome

and wealth, establishment of

autonomous

Tax Collection bodieswith motivated

and

well equipped staff.

SJmpHficatioD of AdBJlnistnttve . . . . aue ^Procedures

Most Countries are engulfed in a maze of bureaucratic procedures. The tendency has been to increase controls and introduce extra procedures whenever economic conditions worsened.

The reforms in this area are to reduce administrative and bureaucratic procedures for exports and investments to minimum. For

example:

Introduction of a stable and transparent regulatory

environment;

Introduction of a singledocument whichincorporates all

aspects of documentation requirements;

Reduction of time to approve the

document;

Reducing documentation requirements for investment;

Setting up special windows to

by-pass

bureaucratic

mazes;

Decentralization of licensing offices to all areas of the country;

Liberalization of prices, wages and the

marketing

system.

Inyestment Promotion

Investible resources are

DOW

scarceworld wide and many LOCs

have devised innovative measures to

compete

for these scarce

resources. These -devices include a wide range of incentives,

exemptions,. and the creation of

export

zones.

The measures

Wldertaken

to attractlocal and foreign investment include :

i)

Exemptions from payment of all forms of taxes;

ii)

Secure capital and

profit

repatriation;

iii)

Independent management of foreign

currency;

iv)

Customs

Service at site;

v) .Manpower availability and training;

vi)

Provision of utilities;

vii)

Creation of

Industrial

Promotion

organizations to carry

out some promotional activities.

These promotional activities are

used

for different purposes :

IQ1De are used to build a particularimage of the country, others are

used

:togenerate

investment

directly, and

still

others are investment

service techniques.

viii)

(\ . ix)

Creation of Free Zones where most of

the

incentives, utilities and exemptions arc provided;

Promulgation. of the Investment law or code which

outlines many of the incentives

an~

otherlaws intended

to

atttaet,'

protect

and encourage foreign investment.

Countries which have taken these steps have witnessed phenomenal revival of their economies and high growth rarest the

most

outstanding example in SSA being Mauritius..An outline of the case is given at the end of this section.

When there is economic revival, it follows that more goals and services are being produced and more scienceandtechnologymust

be

applied. This technology could be imported or indigenousdepending on the

technology

policy being pursued in the country, even

imported technology

could become

endogenous

i.e. making a

transplant

to grow its own roots.

The success achieved by some developing countries in the development of their

technological capacities is difficult

to

generalize.

It is interesting to compare, take the examples of Korea and India which have developed some technological capacity.

TIle

Koran

Dlodel taD be

depleted a. follow. :

PHASEONE

Export

Promotion

Foreign Investment

Foreign Technology and Management know-how transfer.

Outward - Oriented Dependence (ForeignInvestment and Control) PHASE TWO

On the basis of

the

expertise gained during the first

phase,

the.model

becomes more international and delinking takes place

Endogenous Science &. Technological Base

(A transplant that grew its own roots)

... bMtiuModel iaas foUom :

Blockforeign ownership of productive activities

and foreign control and domination of the economy

Emphasize internationalization of skills and institutional structures Acquire self confidence required

tomeet

the nation's needs Entry into the world

marketthrough

nationally owned companies

Thereis no simple method for defining the

best

course of action for the development of indigenous technological capacities. But

many

African countries are

too

small

to

follow the Indian model because one

needs a captive

local

market as a springboard to the international market. Mauritius which is the most advancedinSSA took the Korean model and it is at the end

of

Phase I. It will be very interesting to

observe Mauritius cross over technology

to

phase Il.

The ease of Mauritius

Mauritius lies to the east

of Madagascar,

just off the coast of northernAfrica. Mauritius has a population

of about

1.1 million people,

and has an average annual

growth

rate of 9010;

its

per

capita

income bas just shop

up

to US

$

1.800.

Mauritius has an area of 1.865 Sq.

Kms

(a mere size of a

county in

Uganda) of

which agriculture occupies 1.062

sq.

Kms ;

(57%) forest, grass and scrub occupy 65 sq.

KIDs (3S%);

developed

areuoccupy a mere

118

sq.Kms

(6%)

and the remaining 40 Sq.Kms are unclassified.

At the

time

of political independence (12 March 1968), the Mawitian export

sector

was dominated

by

cane cultivation and ^sugar

production; the island used

to import

most of her needs.

The infrastructure

and services

sectors comprised

the auxiliary industries and activities connected or dependent upon the

sugar

industry. In other words, the sugar industry was the island's engitte of growth

in that

a cane sugar mono-culture

shaped the

island's economic and social environment. If the sugar industry prospered, the maUritius economy also

prospered

from

the

colonial hangover comprising of a highly

specialized,

extroverted and dependent economic

system

basedon sugar cane production.

Polidcal-EcoDomle Penpeetive

The loomingdominance of

the

sugar industry in Mauritius is on the decline being challenged

by

the newcomer on the economic scene,

viz : the Mauritius Export

Processing

Zone (MEPZ).

The attainment of political independence acted as an

important positive catalyst in theisland's economic diversification, advancement

and independence. It brought the island out of its secular isolation as

a British colonial outpost acting as a peripheral sugar producer for the

British

market.

Political independence opened

the

Mauritius economic

doors with new alluringprospects as a prospering exportmanufacturing

base. Economic issues became. predominant among the preoccupations

of the island's leaders and the business community in their task of

constructing aviable post-independence economy, Thus the political

leaders and.the business community conceived the splendid idea of

establishing an Export Processing Zone (EPZ).

TIle

MamitlaI

Esport ProaI_.

^ZoDe

Prior

to

1,970, Mauritius

export processing

sector

had

problems Such u inflation unemployment, lack of foreign exchange.

etc...

which ultimately

affected the

whole economy. The MEPZ scheme introduced in 1971 (the first phase)

bas been

the majorcontributing factor towards

the

island·s

spectaculargrowth. It

bas successfully attracted investors the world over-e.g,

ftom

France, the

UK,

Germany, Holland, Indi,

Hong Kong, Taiwan,A~ia, USA and other countries.

The industrial revolution

which has

taken

place

in Mauritius with

the setting up

of

the

BPZ bas

changed

Mamitiua

^t image from

a cane sugar producer BDd a tomist paradise

to

a shoppers paradise.

Buyers from the world over are flocking

to

the island,

after

realizing

the

reliability as a supplier of

manufactured products.

TheMawitiua

EPZ

,is also quiteUDiqucin thatit considers the whole island as an BPZ.There is thus^DO geograpbicallimitationand

an En enterprise can

beset up

anywhere on the island. Molt of the EPZare,located on

the

industrial estates of

the

Mamitian Development Bank

at

Plaine Lauzon, Coromondel

and

Phoenix.

The

maiD

objective of Mauritius'

industr;iaI

development policy is

the

improvement of the

COlDltry'S

foreign exchange outlook and

the creation

of

gainfull

employment

On

this scoretherefore,

M~tiUl

baa made remarkable progress with the setting

up

of the EPZ.

The EPZ currently

produces

an amazing

variety

of

quality

and

exotic products f6r-tbe international markets. The biggest firms are

specializing

in

textiles for which Mauritius

DOW

ranks third among the world

exporters.

The zone also makes

toys,

sunglaues

and

spectacle

frames,

plastic products, leather goods

(bags,

wateJt

straps,

garments. foot wear),

assembled watches, TV

seta,

telephonCl, etc...

The'present

policy is

to

prepare the EPZ

to

enter the second phase whereby Mauritius will diversify into

high

technology and high precision goods with high added value - 8UCh as

computers,

varioua electronic

gadgets, etc..: It

is moving

away

from

labor to

capital - intensive technology.

The s.et

^heIabId

^Maulti..

^lUeaII

^{story :}

Mauritius offen. uDique blend of incentives and advantages

to export-oricnted

CIltcrpriaes.. TbeIe.

in

abort, include,:

1. A

stable

political and social

enviromDeat;

2. Duty-freeIDd

quota-free access

to

the

BEe

market according .

to

the Lome Convention.

This

convention provides for close economic cooperation

between

the

BEe

member countries and

the

ACP States.

Mauritius,

as a member, can export

its

manufactured

productstoBe

Countries

duty-free

and quota-free if

these projects satisfy the relevant rules 'and

origin.

Membership of this convention is probably the most

important

factor behind

the

success of the Mauritius EPZ and explains why the bulk of her exports

go

to the BEe.

3. A well-balanced package of fiscal incentives. These include:

Complete exemption from payment of import duty on

machinery,

equipment, spare parts. raw materials and semi-finished goods.

Payment

of nominal rare of 15%

corporate tax during

the

whole life of the company;

Exemptionfrom

payment

of incometaxon dividend for the first 10years;

Free repatriation of invested capital and dividends.

4. A highly literate,adaptable, productive and inexpensive labor force speaking English and French and other languages.

Mauritiushasa pool of young, educated and inexpensive

labor

(about one tenth of average European and one-sixth of Hong- Kong rates). The workers are reliable, hardworking and easily trained. Thehigh qualityof the labor force, coupled with the responsible trade unions, bas enabled the EPZ sector to achieve theremarkable growth rate of over25%.

5. A well-developed

infrastructure,

including excellent communications with all parts of the world.

Infrastructural

facilities (internal and external communications, internal road network, water and electricity supplies as well as port airport facilities are well developedin Mauritius.

FactoryBuildings

with

all amenities are availableat low rentals,

especially

inareas where labor is

plentiful.

A developed service" sector, including bankin!,

insurance,

management consultancy,

witlt

world-wide connections

facilitates the establishment and smooth running of enterPrises

in

MEPZ.

6. Availability offaetorybuildings and fully-servicedlandatcheap

rates.

7. A well-developed and diversified industrial base.

8. An exceptionallysophisticated

entrepreneurial

class prepared to

collaborate

with

overseas partners;

9. A keen (and proven) awareness of the need to maintain the highest quality standard of the goods produced.

10. Residence and work permits granted to foreign technicians at short notice;

11. Guarantee against

nationalization; and

12.

An

extremely efficient and dedicated administrative service.

The effects of these reforms

shows

that

GDP

increased

by

four

told between 1982 and 1992, agriculture by three fold, and manufacturing by six fold.

5. CODdusloD

Science and technology developed can

only

flourish in a

growing economy because in a

stagnantor

declining economy there are

no new economic activities, no inventions,

no innovations 'and no imitations. The preconditions for scientific and

technological

development, whether through imports or

indigenous

is a growing

economy.

For economies

to

grow,

it

has been demonstrated that they neea an open and outwardpolicies and therefore, for countries that have not yet

adopted

these policies the need

to

seriously wnsider the following changes

intheir

economic policies :

(i)

Creation of an enabling macro-economic envirtmIDe11t;

(ii)

Creation of macro-economic stability i.e, low inflation, low fiscal deficits and stable and adequate exchange rates;

(iii)

Removing distortions of

money

market,

labor

market and goods market;

(iv) Restructuring the

tax

system and

reduce

rates;

(v). Simplification of

administrative

and bureaucratic

procedures;

(vi)

Investment

and export

promotion;

(vii)

Promotion of private initiative and entrepreneurship;

(viii)

Provision of incentives for Science " Technology

innovation .

(ix)

(x) (xi)

Provision of a fixed percentage of GDP for Research and Development;

Protection of proprietary

rights;

I

Provi'sion of Subsidy

for·

Private R&D

(xii)

Evolution of an educational

system

which will enable African Societies

to

critically develop and' record their thought, culture and indigenous technology and also

to critically

assimilate,

adapt

and endogenise the

vital

and energizing foreign facets of culture, science and technology.

Once the economy begins

to

revive, the role of science

and

technology is activated and there is need

to

promulgate a science and technology policy

to guide,its

development.

An endogenous science and technology

policy

can only be fol'lDlllated on the basis of clearly defined development goals and objectives, and in

terms

of decisions concerning

types

and volumes of goods and services-

to be produced. In

other words, science and technology should be demand driven, derived

from

the need

to

solve the couutry's production problems given

its

requirements.

Once the country's production requirements havebeen identified then science goo technology

strategy

should

be

put in place which should have a two prongs attack.

(i)

Selection, acquisition and management

of

foreign inputs

and adaptation of the

imported technology and its

productsto

ensure

thatthey

can

be

absorbed

by

and can

operate

effectively in the new environment.

(ii)

Stinmlation of indigenous supplies of technology

and

initiative of an autonomous process of technological

innovation and development.

The government should then put in

place

a science and

technology policy to create a framework in which

decision~

concerning S

&,

T choice can

be

made and implemented.

References

1.

Kazi,

M. New Challenges face Indian Ocean Tiger,

African Business, April, 1993.

2. Nyiira, Z.M. Capacity Building and Technological change in

Sub-Saharan Africa : Experiences from selected countriesand suggested Agenda for Action BCO

1992 Public

Forum

Cairo 9 - 10

My

1991.

3. Nyiira, Z.M. Science and Technology "in the context of Uganda's Economic Reform. (Unpublished)

4.

s.

6.

7.

Ochieng, B.O.

UNIDO.

UNIDO.

UNlDO.

Export Policies, A

paper

delivered to,

East African Central Banking Course, -, Nairobi 1992.

Guide

to Guarantee

and

Warranty

Provisions

in

Transfer of Technology Transactions. Vienna

(1989).

Manual on Technology Transfer Negotiations.

Technological Self-reliance of the Developing countries : Towards operational strategies.

Development .and Transfer of Technologies

8. World Bank Mauritius

Managing

Success, Washington

(1989).

A NADONAL SCIENCE AND TECHNOLOGY' POLICY:

THE CASE OP UGANDA

INTRODUCIlQN

The rote and

impact

of science and teclmology

in

the social

ecoDoqUC

development process of a country hardly need any

^I

elucidation. Yet,

inoIt

developing C01D1tries have Dot

benefitted from :

this technological transformation process.

Despite

theawamlCSS

«eated

almost two decades

ago in

Vienna of

the

role

ofsciCllCC

and technology

in

development, and despite

thepersistent

efforts by S & T policy makers in.developing countries

to

build

up

infrastructures and

set

up promotional schemes, science and technology have failed

to

take

tootand bearfruitsin

most of the developing world. Overthe last three

decades

several United Nations Agencies have been engaged in the

elaboration of practical measures

needed

to integrate sciettce

and technology

in the

development process, particularly

in

developing

countries. The major S " T plana which have

been elaborated

for

review, or are applicable

in

the Afri'*l region are :

i) The

Africa Regional Planof Action for the Application of Science and Technology to Development (1970)

ii)

First

CoDfereace

of MiDisterl respollJible for the

AppI~eatiODof

Science

aDd TecImoIogyto

Dcvelopmeat

in

Africa CASTAFRICA (1974)

iii) The ViennaProgram of_~ction(1979) iv) Lagos Plan of action

(198()"2000)

v) Program of Action .for the Industrial Development Decade of Africa (1980)

vi)

Africa's Priority Prolram for

'Beonomic

Recovery APPER (1986-1990)

vii) The United Nations Program of Action for African Economic Recovery and Development (1986-1990)

(UNPAAERD)

viii) Second. Conference of

Ministers

Responsible for the Application of Science and Technology

to

Development

in Africa

(CASTAFRICA). Kilimanjaro Declaration (l987)

x)

Priority

Africa-

UNESCO

Programme of Action (1990- 1995)

The main

objectives of the above efforts

havebeen :

a) To

sttalgthcn

the scientific and technological

capacity

ofthe developing countries

to

eDable themapply science and technology

^to their

own development.

b) To

adopt

effective

mcat1S

for utilization of Scientific and

Technological potentials

to

solve the development

problems

of natiOllal, regional and global significance,

especially for the benefit of developing countries.

c) To provide instruments of

cooperation

between developed and developing countries in utilizing science

and technology to solve socio-eccnomic problems that cannot

be

solved

by

individual action

in

accordance with national priorities.

Over these

years,

one of the most

important

lessons that baa been

learnt is that science and technology in developing countries

^has so far been treated as an isolated process in the dynamics of

development and not as an

integral part.

inseparable

from

the social, economic

process.

Furthennore,

decisions

regarding technologies have

often been taken in isolation without due consideration of the total development

picture.

Thus in

general whatever has been done

in

this manner has failed

to

produce the full intended results.

There

is, therefore, a need

to

respond

to

this

situation.

This requires fostering a total environment for science and tedmology

to

prosper in support of

development

and, promotingautonomous decision making

^{capacity -}

a

need to build and strengthen Endogenous Capacity in science and technology, Endogenous

Capacity

in this sense being

understood to mean the

extent

of

local capability to

exercise

independent,

informed

judgement and actions regarding the generation, acquisition and

deployment of technologies for sustainable economic and

social development, including the fulfillment of basic

needs, within

a

society.

Itis this capacity, that determines or deters the

pace of

development of

a country through the application of science and technology.

Fostering a total environment for science and technology

to prosper in support of development calls for the formulation and implementation of effective science and technology policies whoee intended objectives are

to enhance the application of science and

technology

to the development process. Concurrent and in support

of this exercise, there is a need to identify and examinetheoptions open

to us^to improve the management of science and technology policy at the national level.

SCIENCE AND TECHNOLOGY POLICY

The widelyfelt need for a science and technology policysprings

from an explicit commitment to a national goal and the acceptance of

science and

technology as important strategic variables in the development process. science and

technology

policy formulation ought

to naturally follow the establishment of a development vision or perspective

plan

characterized amongothers, by a desired mix of the goodsto be produced and

the services to

be providedin

the medium

to longterm future. The policyframework:must be

broad

and flexible enough and

must

take into account the dynamics of change. In Uganda for example, current government effort isbeingdirected to creating an independent, integrated and self-sustaining economy. This being the vision of the country, we

will

have to formulate and implement a scienceand technologypolicygeared

towards

achieving this. This calls for resources, both human, material and commitment.

Our

intention in Uganda is to have a policy

that

will be a comprehensive statement by the highest policy-making body of government to guide;promote and regulate science and technology activities for national development purposes. It will contain statements ofailDland objectives, of principles and purposes and

of commitments

of Government for scienceandtechnology. The role of the policy will be to provide the overall direction for the use of resources. It will provide guidance for formulating policy instruments and plans. While setting the

national

technology goals and objectives

and

inducingthe

formulation of

relevant policy instruments, it will embody anticipatory

decisions on specific investment programsin varioussectors. The main

purpose of the policy will be :

To commit governmeat fimd.I and

to set

priorities for research and development;

To encourage technology innovation

to meet

national objectives;

-To attract enough dedicated science and technology workers;

To induce

^and

enhance the provision of science

^and

Technology services;

To utilize selected technologies

81

tools for national development

to

legitimize the

policy;

To ensure

that

policy is

integrated

into the national development policy.

We are aware however. that the succcssfu1 implementation of

thepolicy will demand

commitment.

These

commitments

will

translate

the policy

into

action. They will need to be specific and

must

be present at

all levels of

the systems

IDd will have

to bear

appropri.

sttength. We will try

to ensure

that the

hierarchy

of

commitment

corresponds to the stl1lcturc

of government i.e., natioual, aectoral aDd specific technology commitment

at

the enterprise level. These commitment$,

raDked

in

the

order of increasing relative

sblmgth

are

the

public

statement, public

official

statement,

statement

in planning

documents, law and

articles

in

the

CODBtitution.

We are fully aware of

the

fact

that

technological evolutiOD

^t

which

isaffecting

every facet

ofhuman

activity,

is

very dynamic. We

1berefore believe that science and teebnology development initiative

must

be.

undertaken without delay.

In

this

respect,

we acknowledge the

fact~l'Otiey

declarations and

commitments

are time-bound. The

time

dimeaJion

and its

implieatiODI

will

therefore

be appropriately

considered during

the policy

formulation process

and we will try ^to

ensurethat the validityof

commitments

matchesthe time

frame

of plm implementation.

In the science and technology policy

that

is currently under formulation by the Uganda National Council for Science and

Tcc1mology~

we will take into

^8CCOlDlt

the

factthat

improvement of om capability

to

assimilate and

adapt imported

technologies will

be

necessary. In addition, we believe that integration of technology considerations

into

the development plan should include provision for formulating policies andguidelines

to

generateand

promote

demand

for

indigenous technologies and

to

strengthen technology

capability.

This will call for the creation of a technology culture i.e,

the

existence of a general

base

of trained manpower, a mass of middle technical managerial staff, down

to

and including skilled worlanen. The mass

media.

technology expositions, societies and clubs at

every

level, scientific

and

technical

literature can all help create a

technology culture

and

an innovative climate.

INTEGRATING SCIENCE AND TECHNOLOGY AND

NATIONAL DEVELOPMENT

It

is

being

suggested that while

integrating the

science

aDd

technology plan

into

the national development plan,

it

win

^benecessary

to build a vision or scenario

to

be arrived at by using tools of economic analysis

to

analyze growth, investment, resources, employment and

,other

identifiable variables. Webelieve

that essential

components of the

technology plan will include :

Institutionalization of Technology Assessment(TA)and Technology Forecasting (TF) at different organization levels of Government;

Human

resource development planning;

Institutionalization of research plansfor various sectors

to supportthe national development plan;

Development of engineering design capability;

Hardware and material development to meet needs of the

national

development

plan.

Development of the information services sector.

Based on the technology plan, programs at

the

sectoral

and

enterprise levels will then be derived, specifictime frames set, and institutional mechanisms for extensive market surveys developed. In view of the above, we are now suggesting that for us to be able to achieve our intended objectivesof building an independent, integrated and self-sustaining economy, an objective whose achievement

win

definitely depend on our local capability to exercise independence, informed judgement and actions regarding the generation, acquisition and deployment of technologies for sustainable economic and

social

development, the basic framework for technology development given belowcouldbe adopted and the considerations shown in the figure

that

follows mustbe taken into account.

From the two figures, the following observations can bemade:

1. There has to be -political, administrative and financial commitment at all levels of government - the science and technology

policy mentioned above, integrated with the National Development Plan. The policy will induce the establishment of laws and policy guidelines and facilitate the creation, building and strengthening of technological infrastructures.

As noted above, a science and technology policy is not yet in place. It is under formulation. As a result, the few technological infrastructures that have

been

built, laws established and

policy

guidelines issued have not been organically linked, This can sometimes lead to duplication of effort, waste of time and resources with a danger of conflict and non performance. there is therefore, need for us to come up, as soon as possible, with a science and technology policy, integrated withtheoverall national development plan, to guide, promote and regulate science and technology activities for national development

purposes.

2. The laws established andpolicy guidelinesissued must facilitate

the creation

of

a

technology

culture. The mass media,

clubs,

societies,

professional association etc can all help create the necessity technology climate. In this respect, efforts of the Uganda Manufacturers Association in mounting expositions from time to time must be commended. To help strengthen the technological climate in the country, there is need from timeto time to hold trade fairs, science and technology expositions. in schools, colleges and universities and to facilitate free flow of information through the mass-media, technical publications etc...

3. The established laws and

policy

guidelinesissued must also take into account our need for technological innovation and competition.

Institutionalized national annual prizes could help. In additional financial support through the universities, colleges etc...must be extended to innovators to help them with their research and development work. To ensure that we attain our objective of self-

reliance, thei~licensing authorities couldact in such a way that local production is encouraged, while taking into account the needto

maintain

acceptable standards, fair prices,

and

adequate quantities on the

market.

4. There is need to build and strengthen our technological infrastructures. 'These

win

help us to develop the necessary human

resources.

It

has been observed

that

we are

very

weak on

technological

infras1ructures. A

population of

16.8

m

people growing

at

a

rate of

2.8%

per

annum

has :

1 Polytechnic producing about 300 people at· ordinary and higher diploma levels

per

annum.

24 technical schools and 29

technical

institutes all producing about

4 000 technicians

and craftsmenevery

year.

4 technical colleges baving an annual output of about 200 technicians.

1 Faculty of Technology with an annual output of about 50 graduate engineers.

These numbers are

depressingly

low. Considering

the

fact that

the few institutions we have are

ill-equipped

in terms of

training materials, trainers and course content, there is need

to urgently

address the issueofbuilding and strengthening our technological infrastructures.

In doing this, we

must

ensure that properlinkages exist betweenthe

institutions and those

they

are

to

servee.g. industry. The curriculamust

be

designed such as

those

who go through the education and training

programs ^will

^be

found useful

by

industry. There is therefore need for

training

institutions,

professional

associations and industry to

get

together and come up with a suitable curriculum. The task of producing a national curriculum should not

be

left to one section of

society,

e.g. The

National

Curriculum Development Center or the University.

While building and strengthening our technological infrastructure cognizance must

be

taken of the need to strike the

right

balance between brain and skill. We need creators and innovators as much as we need skilled people.

Another factor which will have

to

be born in mind is the need

to

build and strengthen our information services. This will be necessary

in

order for us to avoid wastage of time and resources. A national

system

of information generation, acquisition, processing, storage, retrieval and dissemination

mustbe

developed. It should

be

possible

to

know what research bas been or is being done where?

What

the results

were

and where and how the results of

the

research are being applied.

At present, there are a number of information and documentation centers as well as a number of teaching and documentation centers as well as a number of teaching and research institutions. A systemis called for whereby all these institutions will be' able to share experiences and research results witb the objectives of saving time and costs.

S. We must generate a capability to forecast world technology trends

and

to

assess

emerging

technologies.

It

is

to

some extent

true

that

the

limiting factor

to

renewing our economy is not raw materials

rather technological information and

knowledge

to

tum the raw

materials into process and products. The technologies (especially

in

information, biotechnology and material sciences) have reshaped the

world economy and have marginalized those countries such as Uganda

which depend on the

export

of raw materials -for foreign exchange

earnings. These shifts have affected us much more than any other region of the world because of our excessive dependence on raw materials (coffee, tea, cotton, tobacco) and our inability to move to higher levels of industrial processing (e.g, making instant coffee and other products from the grown coffee beans, finished garments from the cotton, fruit concentrates from the oranges, pineapples, mangoes, etc for export). Our strategic importance as a source of raw materials has diminished as the industrialized world continues to identify alternatives to our exports.

A national science and technology policy, organically integrated with the national development plan, will lead us to an identification of our technological needs and specifications. Therefore if we had the capacity to forecast the world technological trends and were able to assess emerging technologies, we would then be in a positionto carry out a national technological needs assessment on one hand and a national capabilities assessment on the other. Having identified and assessed our technological needs and capabilities, these, together with technological considerationsintegrated into national plans, would help us in the process of national social-economic development planning which would have to be done on the basis of three domains :

i) Digestion, adaptation and improvement of imported technologies;

ii)

Improvement of

indigenous and traditional technologies;

iii) Production of new and future-oriented technologies;

6. After identifying our technological needs and specifications, decisions on which technologies to buy and which ones to develop locally will have to be made. Should the decisions regarding a

be