Abstract This paper describes bailouts as a contentious issue but rather critical element for improving competitiveness of business in Uganda. Existing research points reveals that bailouts on the large have not yielded expected returns. In some instances though bailouts have saved firms, employment and enabled firms to bounce back in national tax revenue base. Based on interviews, documentary reviews and monitoring of talk shows on television and radio, this paper concludes that bailouts are not bad a practice by governments but lack of an objective and systematic framework to guide the process of managing bailouts. The outcome of this study point to the need to develop a framework that would enable bailout to support business recovery and competitiveness. These findings of this study are relevant not only for Uganda but for countries with similar situations such as Syria, European Union(EU), Greece that are faced with challenge of firms that are exposed to receivership, filing for bankruptcy and liquidation amidst a lack of bailouts framework, increasing the role of government in improving business competitiveness.
Keywords; Bailouts, Competitiveness, Leverage bailout framework