Uganda focuses mainly on agricultural products and has a comparatively small secondary sector. During the 1990s, the Ugandan government privatised most firms, including banks and railways. Some economists judged this privatisation to be unsuccessful, as poverty rose and unemployment stayed high. In more recent years, the Ugandan government has applied supply-side policy measures to cut unemployment.
(a)[2]
Define the term privatisation.
(b)[4]
Explain how absolute poverty differs from relative poverty.
(c)[6]
Analyse the ways in which specialisation can help firms.
(d)[8]
Discuss whether the use of supply-side policy measures will reduce unemployment.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme.