Uganda concentrates on agricultural products and has a relatively small secondary sector. In the 1990s, the Ugandan government privatised most of its firms, including banks and railways. Some economists believed that this privatisation did not succeed, because poverty increased and unemployment stayed high. In more recent years, the Ugandan government has applied supply-side policy measures to reduce unemployment.
(a)[2]
Define privatisation in simple terms.
(b)[4]
Explain the distinction between absolute poverty and relative poverty.
(c)[6]
Analyse how specialisation may benefit firms.
(d)[8]
Discuss whether the use of supply-side policy measures will or will not reduce unemployment.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Sale of state-owned / public sector firms or assets held by the public sector” …