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AN OVERVIEW OF POVERTY REDUCTION EFFORTS IN UGANDA

By Kimule Sulait

Parliament of Uganda

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MAP OF UGANDA

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GENERAL INFORMATION ON UGANDA

Found in East Africa Total area of 241,040 sq km Capital city is Kampala Got independence from British Rule in 1962 Current population estimated at 33 million

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ECONOMIC POTENTIAL

Endowed with significant natural resources:– Fertile soils– Regular rainfall– Mineral resources– Recent discoveries of viable oil deposits– First years of Independence recorded economic

growth

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SPATE OF POLITICAL INSTABILITY

Military coup of Idi Amin in 1971 caused:– Dictatorship– Industries collapsed– Agriculture also collapsed– Infrastructure dilapidated– Severe shortage of essential commodities– High inflation, high interest rates, shortage of

foreign exchange, low tax revenue e.t.c

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POLITICAL INSTABILITY CONTD.

Overthrow of Idi Amin by UNLA/Tanzania in 1979

General Elections in 1980 won by Milton Obote Results contested by Yoweri Museveni/New

war in 1981 Military Coup in 1985 Museveni takeover in 1986 20 year LRA war by Joseph Kony

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POVERTY REDUCTION EFFORTS

INTRODUCTION– The aim is to reduce income poverty, inequality

and improve human development– Why poverty reduction? The effects of sound

economic growth did not benefit the poor– Hence development of Poverty Eradication Action

Plan (PEAP) in 1997– PEAP is also Uganda’s PRSP

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Poverty Reduction Process

Formation of Task force on poverty in 1995 The responsibility of the task force was to

identify key priorities for reducing poverty This led to first PEAP in 1997

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PEAP 1997

The task force produced 1st PEAP strategy in 1997 with priories as:

Primary Health Care (PHC) Primary Education Modernization of Agriculture Rural feeder Roads Provision of safe water

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Challenges of the PEAP 1997

Differences in the implementation of priority areas at local government level

There was a problem of low absorption capacity

Poor quality of service provision Inadequate infrastructure Unequal distribution of benefits of growth

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Challenges of the PEAP 1997 Contd,

Poor performance of agriculture Lack of consultation.

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PEAP 2000

Result of PEAP I revision Had 4 pillars: Creating an environment for econ growth &

structural transformation Good governance & security Increasing ability of the poor to raise incomes Quality of life of the poor

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Challenges of PEAP 2000

Economic growth was unequal Led to increased poverty Growth + environmental degradation Insecurity in northern Uganda increased The need for effective, transparent & efficient

use of public resources Need for coordination, sequencing +

prioritization of reforms

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Challenges of PEAP 2000 Contd.

The need to involve stakeholders in the PEAP process

Need to engage regional blocs like EAC, COMESA

Need to align PEAP targets to international developments e.g. MDGs

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The Current PEAP 2004

This PEAP has 5 pillars as follows: Economic Management Production Competitiveness and Incomes Security, Conflict Resolution and disaster

management Governance Human Development

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Key Features in the current PEAP

Linking public expenditure to the PEAP priorities

Functionality. Pillars were named in accordance with their functions in the PEAP

Results and policy matrix to ease M&E Emphasis on balance btn social sector +

productive sector spending

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Key Features in the current PEAP Contd.

Ending insecurity is a priority in this PEAP The process was more consultative Attention is paid to cross cutting issues e.g.

gender, environment, HIV/AIDS, Population e.t.c.

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EMERGING ISSUES

Cabinet Decision Emerging planning frameworks and initiatives Oil Discovery and Mineral Development The role of PPPs Regional level developments The return of peace and security

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TRENDS AND PATTERNS OF POVERTY IN UGANDA

Income poverty fell in the 1990’s as follows: In 1992, 56% below the poverty line In 1997/8, 44% below the poverty line In 2000, 34% below the poverty line

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Why poverty fell between 1992 and 2000

Increase in producer prices for crops, especially coffee

Liberalization of agricultural marketing led to Farmers benefited from increased world

prices However, from 1998 economic growth

slowed and ToT deteriorated

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Why poverty rose since 2000

o Slower growth in agricultureo Decline in farmers’ priceso Income diversificationo Insecurity o Fertility and mortalityo Use of public expenditure

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Conclusion

The GoU has made efforts to tackle the poverty problem by implementing a series of PEAP strategies but still faces a number of challenges.

It is hoped that the coming into force of the National Development Plan (NDP) with a longer planning horizon will go a long way in addressing poverty in Uganda.

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Conclusion

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