Impact of Policy Reforms on Agriculture and Poverty in Uganda

Abstract

This paper reviews the recent economic performance of the Ugandan economy, with a particular emphasis on the impact of the reform program on agricultural development and poverty. The constituent elements of the reform program in place since 1987 are described, and the resulting impact on the real economy is critically assessed. There was a significant fall in the headcount poverty ratio between 1992/93 and 1999/00 although more recently this trend has reversed. Uganda experienced a strong deterioration in its external terms of trade as well as high population growth rates which make it more difficult to meet its poverty eradication objectives. Government policies set out in the Poverty Eradication Action Plan and the Plan for Modernization of Agriculture are initiatives in the right direction, but require sustained effort to ensure their implementation.

Keywords: Policy reform, agriculture, poverty, food security

JEL Classification: Q13, Q18, Q19