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Overview of Uganda’s Experience with Public Service Reform
The Poverty Eradication Framework: Uganda faces an enormous development
challenge. Approximately 88% of the population live in the countryside, of whom
nearly 80% live on subsistence agriculture. The population currently stands at 24.7
million and is growing at an astounding 3.4% per annum; per capita GDP income
is US$ 330; and average life expectancy is 43 years.
1
The average female fertility
rate is a very high 7%, which is putting pressure on primary health and education,
and other services.
2
Furthermore, income inequality bas increased between rural
and urban areas and between regions.
3
It is estimated that 68% of the popula-
tion in the northern region lives below the poverty line while the corresponding
figures for the central, western and eastern regions are 20.3%, 28.1% and 36.5%
respectively.
4
To address these and other related challenges, the Government of Uganda (GoU)
has developed a broad policy framework in which poverty is identified as the key
element that must be addressed if the country is to overcome its underdevelop-
ment. Since 1997 GoU has been implementing an extensive Poverty Eradication
1 Office of the LTN Resident Coordinator, Uganda: Promise Performance and Challenges for At-
taining the PEAP and Millennium Development Goals (October 2003), p.viii
2 Ministry of Finance, Planning and Economic Developrrient, Background to the Budget, Financial
Year 2003/04 (June 2003,), p.6; Ministry of Finance, Planning and Economic Development, Uganda
Poverty Status Report, 2003, pp.7-8.
3 MOFPED, Poverty Status Report, 2003, p. 1 02.
4 Ministry of Gender, Labour and Social Development, The Social Development Sector Strategic
investment Plan (SDIP) 2003-2008 – Final Draft (February 2003), p. 4.
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Leadership Challenges in Mainstreaming Performance Enhancement …
Action Plan (PEAP) whose broad goal is to reduce poverty levels to not more
than 10% by 2017. It has four pillars: (i) creating a conducive framework for eco-
nomic growth and structural transformation, (ii) strengthening good governance
and security, (iii) increasing the ability of the poor to raise their incomes, and (iv)
improving the quality of the life of the poor.
The PEAP is implemented using the Sector Wide Approach (SWAP). Sec-
tors that directly target poverty include: education; health; water and sanitation;
agriculture; social development; justice law and order; and transport, housing and
communication. Government, donors, non-governmental organizations (NGOs),
civil society organisations and other stakeholders determine sector priorities
jointly. The partners also plan, budget, monitor and evaluate sector programmes
together. Resource ceilings are established through the Mid-Term Expenditure
Framework (MTEF) to facilitate sector planning and budgeting. Financial resources
are transferred to local governments from the centre through the Poverty Action
Fund (PAF), which comprises GoU funds, donor contributions and savings from
the Heavily Indebted Poor Countries (HIPC) initiative. PAF funds constitute
conditional, unconditional and equalization grants to local governments and are
protected from budget cuts.
Poverty eradication programmes and activities are implemented through a
decentralized framework in which popularly elected local governments determine
local development priorities, plans and budgets, and implement local programmes
using PAF funds and locally generated revenue. NGOs also participate in develop-
ment activities at the local level and are usually funded by development partners
that do not subscribe to basket funding. Poverty trends are monitored through the
Uganda Poverty Participatory Assessment Process (UPPAP); the Uganda Bureau
of Statistics also conducts national household surveys to keep track of poverty
changes at the lowest unit level. A poverty monitoring and evaluation strategy has
been developed to review the poverty monitoring scope, indictors, data collection
methods, use and dissemination of poverty related data, and institutional roles and
scheduled activities.
5
These activities are undertaken with strong support from
bilateral and multilateral development partners.
Significant gains have been made in the struggle against poverty as defined
within the PEAP, although a great deal of work still remains to be done. Among
other things, GDP growth has averaged 6% annually over the last ten years; an-
nual inflation has largely been contained below 5%; and, as indicated above, there
has been a sharp decline in the percentage of Ugandans living in absolute poverty.
Primary school enrollment has jumped dramatically, due to the Universal Primary
5 See: Ministry of Finance, Planning and Economic Development, Poverty Monitoring and Evalua-
tion Strategy (June 2002); Ministry of Finance, Planning and Economic Development, Deepening
the Understanding of Poverty (Second Participatory Poverty Assessment Report, December 2002);
Ministry of Finance, Planning and Economic Development, Uganda Poverty Status Report, 2003; and
Uganda Bureau of Statistics, Uganda National Household Survey: Report on the Socio-Economic
Survey (November 2003).
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