Lessons from Uganda on preparing a national strategy for poverty reduction, with stakeholders participating. Uganda's experience contributed substantially to the design of the Poverty Reduction Strategy Papers.

Lessons from Uganda on pr ...

Part 1: Policy Issues

Uganda's National Resistance Movement (NRM) government has used credit as one of the policy strategies to reduce poverty levels. This study examines the effectiveness of that policy. It traces the ascendance to power of NRM in 1986, when the country was in crisis, devastated by years of political turmoil and economic mismanagement; and illustrates how the NRM, with the assistance of the World Bank and the IMF, embarked on a multi-pronged strategy to reconstruct the economy and improve living conditions. Issues explored are the extent to which the sweeping reforms impacted on the welfare of the rural poor; the extent to which credit programmes have economically empowered the rural poor; and further examines whether credit initiatives created economic sustainability for the beneficiaries. Dr. William Muhumuza is an Associate Professor in the Department of Political Science at Makerere University. He specialises in the study of political economy with a focus on rural development and good governance.

This paper discusses Uganda's Poverty Eradication Action Plan (PEAP) 2004/05-2007/08. The PEAP provides an overarching framework to guide public action to eradicate poverty. It has been prepared through a consultative process involving central and local government, parliament, donors, and civil society. The PEAP aims at contributing toward transforming Uganda into a middle-income country. The government's strategy in the short term is aimed at strengthening both agriculture and manufacturing. For agriculture, critical interventions include infrastructure, information and support to farmers' marketing. For manufacturing, the government will strengthen infrastructure, improve governance, and boost the education of the workforce.