Lessons from Uganda on Strategies to Fight Poverty

59 Pages Posted: 20 Apr 2016

See all articles by John Mackinnon

John Mackinnon

Centre for the Study of African Economies, Unversity of Oxford

Ritva Reinikka

The World Bank

Date Written: November 1999

Abstract

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.

Countries receiving debt relief under the Heavily Indebted Poor Countries initiative will be among the first to benefit from the new World Bank-International Monetary Fund approach to strengthening the impact on poverty of concessional assistance in low-income countries. The new approach features a more inclusive and participatory process for helping recipient countries develop poverty reduction strategies. From these strategies, joint Poverty Reduction Strategy Papers (PRSPs) will bring together the country's own priorities and Bank-Fund assistance to the country.

In Uganda, such a strategy has existed for several years. Uganda was one of the first low-income countries to prepare a comprehensive national strategy for poverty reduction using a participatory approach. Indeed, its experience contributed substantially to the design of the PRSPs. Uganda's top leadership is heavily committed to poverty reduction. Formulation of Uganda's Poverty Eradication Action Plan (PEAP) in 1996-97 was the executive branch's effort to make that commitment and vision operational.

Mackinnon and Reinikka draw lessons from the drafting of Uganda's PEAP. First, the plan made extensive use of existing data and research about Uganda to refocus a range of public policies and interventions relevant to poverty reduction. Second, the government's approach was highly participatory, with central and local governments, the donor community, nongovernmental organizations and civil society, and academics invited to contribute. Third, the government was quick to translate the plan into its budget and medium-term spending framework. Public expenditures on basic services were significantly increased after adoption of the PEAP in 1997.

Mackinnon and Reinikka discuss the general characteristics of a poverty reduction action plan, drawing on Uganda's experience; discuss what is known about poverty in Uganda and identify shortcomings in the data; examine the macroeconomic and fiscal policies that were considered most important to poverty reduction during the participatory process; discuss the delivery of public services, especially those that directly affect the poor; and highlight problems associated with land issues, including problems with access to credit and financial services and with the security of productive assets.

This paper - a product of Public Economics, Development Research Group - is part of a larger effort in the group to study public service delivery and poverty and to translate the results into poverty reduction strategies. The authors may be contacted at jwm1962@aol.com or rreinikka@worldbank.org.

Suggested Citation

Mackinnon, John and Reinikka, Ritva, Lessons from Uganda on Strategies to Fight Poverty (November 1999). Available at SSRN: https://ssrn.com/abstract=632511

John Mackinnon

Centre for the Study of African Economies, Unversity of Oxford ( email )

Oxford
United Kingdom

Ritva Reinikka (Contact Author)

The World Bank ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-458-2893 (Phone)

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