The World Bank & its dealings with Uganda for economic development

The World Bank and its dealing with Uganda for Economic Development

Uganda was eventually being considered as among the poorest country in the world with a per capita income of about US 280 in 2005 . Life expectancy at birth remains low but the population growth is 3 .5 percent and it remains one of the highest in the world . Agriculture is the most important sector having 80 percent of the workforce with cofee being the bulk of export revenues . Though it has significant natural resources ample fertile lands and regular rainfall for agriculture

not to mention its mineral deposits , political instability and unstable economic management had led to a record of continous and persistent economic decline that made Uganda one of the poorest country . The country received considerable foreign assistance after the Amin era that boost its economic program . But in mid-1984 civil strife and overly expansionist fiscal and monetary policies caused a set back in its economic performance

Musevenis government , after taking power in 1986 , took important steps towards economic rehabilitations . Infrastractures , communication systems and roads , which were destroyed by war and neglect , is being rebuit . Due to the need for increased external support , Uganda seek the help of the International Monetary Fund and the World Bank to create a policy framework for economic development . Economic policies were being implemented concentrating mostly to restore price stability and sustainable balance payments , rehabilitate infrastracture , improve capacity utilization , improve resource mobilization and allocation in the public sector , and restore producer incentives through proper price policies

Considerably Uganda is the most advanced country with respect to the adoption of new and supposedly , poverty-oriented policy concessional lending instruments , Poverty Reduction Strategy (PRSP ) of the government , Poverty Reduction Support Credit (PRSC ) of the World Bank and the Poverty Reduction and Growth Facility (PRGF ) of the IMF . Over 41 countries are in the streamline for the necessary adaptation of similar policies reaching from countries dotted across mostly in Asia Caribbean , Latin America and Africa

The Poverty Reduction Strategy of Uganda is based on a revision of the Poverty Eradication Action Plan (PEAP , through which the country had originally produced during 1995 up to1997 . The World Bank and IMF upon the request of the Government of Uganda , determined that an updated revision of the PEAP could possibly serve as the operative PRSP needed for debt-relief under the Heavily-Indebted Poor Country (HIPC initiative . Through a series of Poverty Reduction Support Credits (PRSCs , Uganda was the first to provide financing of the World Bank 's country program . The program provides external finance to the budget supporting the authorities ' commitment and implementation of the Poverty Eradication Action Plan 's (PEAP ) reform agenda . In 2001 , the first PRSC amounting to US 150 million was approved . It focused on measures of improving public service delivery and cross cutting public sector issues . The fifth and current PRSC An amount of US 135 million was approved in January 2006 for the fifth and current PRSC focusing on economic growth

Uganda joined the...