The subsistence sector has tended to dominate in Uganda. Several reasons could be responsible for this current trend.

The prices of farmers' produces are often too low to encourage production for the market.

Traditionalism and conservatism among certain societies have underscored the importance of production for the commercial sector.

In Uganda, the underdeveloped infrastructure especially in remote rural areas has been a great hinderance to transport produce for the market.

The prevailing low levels of education in the country, too, have hampered production for the market.

The limited levels of skill development among the rural producers has not encouraged production for exchange.

In Uganda, co-operative movements are still weak to encourage production for commercial purposes.

Government policy. The state policies have not clearly identified its priorities, to increase campaigns/propaganda aimed at increasing the monetary sector production.

The socio-cultural settings in Uganda are such that apathy tends to prevail. Subsistence production is still at large due to people/farmers' choice not to opt for production for the market.

The rural farmers, who are the majority tend to promote the desire to be self- reliant in food production.

The need to reduce the subsistence sector in Uganda

There is urgent need to reduce the subsistence sector in the country by monetizing of the majority of the economy, because of a number of reasons.

 

Most economists have always noted that a monetary economy encourages the growth and expansion of the market economy.

Economies, world over have opted for specialization so as to increase the scale of output. Monetization encourages specialization.

Trade and several commercial transactions can be facilitated with the use of money as a medium of exchange.

The expansion of the monetary sector increases the quality of output produced.

A large monetary sector is quite significant as it tends to increase government revenue.

The use of money in an economy minimizes the possible problems of the barter system e.g double coincidence of wants, bulk, perishability, determining relative values of goods, etc.

It is common knowledge among scholars that monetization of the economy is a crucial element to modernization and development.

The monetary sector creates job opportunities through its expanded operation.

There is likely to be an increase in food supply with a monetary economy.

Monetization of the economy leads to a greater exploitation of the domestic resource potential. Increase in output especially for export will enable the country to earn more foreign exchange. In this way, Balance of Payment deficits  would be minimized.

A monetary economy stimulates the extraction and supply of adequate necessary raw materials to be used in industries. This, further, promotes industrialization process.

Monetization encourages the creation of forward and backward linkages in production. This will go a long way in the minimization of resource wastage.

A monetary economy should be encouraged because the prevalent subsistence sector is always associated with low output.

Investments are likely to reduce with the existence of a large subsistence sector. This is because subsistence production is associated with low income and savings.