Oil Extraction and the Potential for Domestic Instability in Uganda

Abstract

The exportation of oil offers tremendous opportunities for Uganda. It also poses several risks to Uganda’s domestic security. Drawing on field research in Uganda, as well as archival research, this paper identifies three potential sources of domestic instability stemming from oil exportation: increased urbanization, unpredictability in tax revenue collection, and the formation of rebel groups. The paper concludes that government transparency is crucial in avoiding most of the pitfalls associated with oil extraction and makes several recommendations for improving transparency in Uganda.