Uganda

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Development Challenge The USAID Program Other Program Elements Other Donors Program Data Sheets Summary Tables USAID Search: Uganda Previous Years' Activities 2002, 2001, 2000, 1999, 1998, 1997 Last updated: 22     THE DEVELOPMENT CHALLENGE: Uganda emerged from decades of political upheaval and economic mismanagement 15 years ago to become a development success story, with GDP growth between 1992 and 2000 averaging 6.7% per year. Uganda is also a poverty alleviation success story, with the proportion of Ugandans living in poverty declining from 56% in 1992/93 to 35% in 1999/00. Uganda's Poverty Eradication Action Plan is a model poverty reduction strategy and enabled Uganda to be the first country to qualify for debt relief under the Heavily Indebted Poor Country Initiative (HIPC) and the enhanced HIPC. However, Uganda's successes are also very fragile. In 2001, annual GDP growth dropped to 5.1%, private investment is low at 10% of GDP or less, and annual government revenues are stagnant at under 12% of GDP. Per capita GDP is $320; child mortality is 152 per 1,000; 800,000 adults are living with HIV/AIDS; 43% of adult women are illiterate; nearly 600,000 people are internally displaced due to conflict. Most Ugandans derive their livelihood from subsistence farming, but agricultural productivity is declining, the natural resource base is being degraded, and Ugandan products are not competitive in regional and international markets. The quality of health and educational services is poor, and these services are unable to adequately address key issues of high infant and child mortality, a basic education system that has been successfully reformed but that is stretched to its limits by a massive influx of pupils, and persistent high fertility. Over half of the population is under the age of 15, vulnerable to a new wave of HIV/AIDS infection, and population growth is high at 3% per year, eroding social service gains and adding 300,000 job seekers to the economy every year. The Government of Uganda has undertaken a far-reaching decentralization program that puts service provision, planning and budgeting into the hands of locally elected officials. However, this program has been hampered by poor capacity both centrally and in local government units. Continued political instability in the north and west, linked to regional conflicts, undermines both economic growth and poverty alleviation. Concerns about the government's lack of commitment to multi-party democracy have been increasing. Primary U.S. national interests in Uganda are economic development and regional stability. Uganda's prosperity and stability are essential to growth and stability in the east and central African regions. Uganda has also demonstrated its strong commitment to the global war on terrorism. THE USAID PROGRAM: FY 2002 Estimate: $ 67.284 million FY 2003 Request: $78.824 million In response to the challenges articulated above, the USAID integrated strategic plan, approved in June 2001, is based on three new strategic objectives that support the program goal of assisting Uganda to reduce mass poverty. The Program Data Sheets provided below cover the three new objectives for which USAID is requesting funds. The program builds on proven successes and incorporates new approaches to environmentally sustainable growth, human capacity development, and effective governance. The economic growth, agriculture and environment program will expand economic opportunities for rural Ugandans through an integrated agriculture, food security, trade, and environmental sustainability approach that will increase the competitiveness of Uganda's exports, increase agricultural productivity, create jobs, and increase household income. The human capacity program will build individual skills and capabilities through integrated health and education interventions targeted at the key age groups of infants and young children, the school-aged population, and adults. This approach will reduce HIV/AIDS prevalence, ensure that more children survive early childhood and complete primary school, reduce fertility, and address the needs of vulnerable children and people living with AIDS. The democracy and governance program is focused on effectiveness and participation and will simultaneously address the institutional weaknesses of the legislative branch and local governments, increase accountability in governance and enhance citizen participation in decision-making. The program will also address the special needs of conflict-affected areas of the country by supporting local communities to engage in coalition-building, peace dialogue, reintegration, and development. All estimated FY 2002 and requested FY 2003 funds will be obligated to these three new strategic objectives. ONGOING PROGRAMS FOR WHICH NO NEW FY 2002 OR 2003 FUNDING IS REQUESTED: The USAID program in Uganda includes six objectives for which USAID is not requesting new funds, but is continuing to expend funds already appropriated. Number: Title: Last Notified: Planned Completion: 617-001 Increased rural household income FY02 CBJ p. 654 FY 2003 617-002 Natural resource management FY02 CBJ p. 659 FY 2003 617-003 Primary education reform FY02 CBJ p. 664 FY 2002 617-004 Maternal/child health and HIV/AIDS FY02 CBJ p. 669 FY 2003 617-005 Democracy and governance FY02 CBJ p. 674 FY 2003 617-006 Northern Uganda reintegration FY02 CBJ p. 679 FY 2002 OTHER PROGRAM ELEMENTS: USAID has utilized funds from other USAID programs and activities in addition to its bilateral budget to support specific initiatives. Funds have been received from the Education for Development and Democracy Initiative (EDDI) for a girls' scholarship program and, in concert with funds from the Leland Initiative, used in a program of Internet connectivity and computer-assisted learning in six primary teachers' colleges. Working with Ugandan and U.S. private sector partners, EDDI resources have also provided Makerere University with the first wireless network in the region. Uganda also benefits from other USAID/Washington-funded activities to support the regional famine early warning system network and tree crops development. The Uganda program also receives support from USAID/Washington for contraceptive procurement, social marketing, policy dialogue, child survival, and land use systems management. Resources from the Greater Horn of Africa Initiative have funded a water hyacinth control program on Lake Victoria, and conflict mitigation activities. P.L. 480 Title II food aid continues to be an integral part of USAID's program in FY 2002 and 2003. Food aid complements other USAID efforts in the areas of economic growth, agriculture, environment, HIV/AIDS and food security. Uganda has been designated as a focus country for administration initiatives in agriculture, trade, and HIV/AIDS. OTHER DONORS: Uganda receives significant donor support (approximately $500 million per annum). The U.S. is the second largest bilateral donor following the United Kingdom, whose portfolio focuses on justice, law, and order, agriculture and environment, education, health, and public administration. Other key bilateral donors include Denmark (infrastructure, education, health, agriculture, water, democracy, private sector), the Netherlands (decentralization, local government capacity building, gender), Sweden (natural resources, democratic governance, infrastructure, trade and industry) and Japan (health and sanitation, human resource development, basic education infrastructure, and agricultural development). Other bilateral donors include Norway, Italy, and Ireland. Multilateral donors include the World Bank, the United Nations Development Program (UNDP), the United Nations International Children's Fund (UNICEF), the European Union (EU), and the International Monetary Fund (IMF). The Bank's non-lending program covers rural development, capacity building and private sector development, while the loan portfolio funds infrastructure, civil service reform, and HIV/AIDS. The EU supports infrastructure, education, health, agriculture, environment, private sector and sanitation. The USG plays a key role in donor coordination, chairing five sectoral donor groups (private sector, Northern Uganda, environment, commercial justice, and Parliament) and participating in nine others. Program Data Sheets 617-007  Expanded Sustainable Economic Opportunities for Rural Sector Growth 617-008  Improved Human Capacity 617-009  More Effective and Participatory Governance Country Background Information Resources     CIA Factbook Library of Congress National Geographic Country Maps State Dept. Country Information

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