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OPINION: Competent Judicial System Is A Stimulus To A Sound Economy

Bank of Uganda, Crane Bank Saga

Have you ever imagined the magnitude of impact the courts have to the economy? And without them, there would be lawlessness and hopelessness in society. That is why the Justice and Order sector needs to be highly priotised in the allocation of the budget to enable them execute their duties well.

Our courts need to devise mechanism on how to reduce backlog through using electronic forms, like of late we are using video conferencing, courts also need to invest in websites plus electronic registers among others.

Investment in court computerization leads to higher productivity of judges. Well functioning judicial systems play a crucial role in determining economic performance notably by guaranteeing the security of property rights and enforcement of contracts. Protection of property rights and enforcement of contracts encourage savings and investment while promoting positive impacts and competition, innovation and development of financial markets and growth according to the report by Organisation for Economic Cooperation and Development (OECD).

Length civil proceedings can be a drag to economic activity since the victims are not having concentration for long time and the expenses they incur is a lot hence making the country lose more investment and more jobs for youths.

Of late, most governments agree that FDI is an important source of capital and technology necessary for economic development and to seek new ways to induce foreign investors to locate within their jurisdiction. Even commentators and development agencies regularly agree that FDI flows are to some extent determined by the effectiveness of the host legal systems.

For example: Spotpesa, a betting company in Kenya filed law suits against Kenya Betting Control and Licensing Board (BCLB) seeking a court injunction to stay the closure of their business.The defendant alleged that they were not paying taxes.This is one of the good examples were investors rights are heard.

Back home in Uganda, Sudhir Ruparelia Arnor Vs Crane bank (In receivership). For respect of subjudice law we can’t preempt. However the gist is that the applicant has consistently lost two times to justify the suffocation of their former clients who is an investor for this case, his business and Assets in a more non transparent way.

In this situations, the judicial system is trying it’s best to salvage the situation in the best time possible. This case can be seen as a sigh relief to investors here in Uganda and assurance that their investments will always be guarded against wrong elements. This is also a plus to attract more foreign investors who might have been skeptical.

This case some way or another will also be protecting the jobs of Ugandans who have always been victims due to the misconduct and impunity of service workers.

By Ben Sebuguzi.

The writer is an economist and Secretary General of Uganda Poor Youth Movement.

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One thought on “OPINION: Competent Judicial System Is A Stimulus To A Sound Economy

  1. I need some help from you like be some money for fees

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