Challenges for Pro-Poor Growth in Uganda

Country Economic Report
Susanna Lundström , Per Ronnås
This country economic report explores the challenges for achieving sustainable pro-poor growth and poverty reduction in Uganda, against the backdrop of an increasing disillusion with Uganda's performance in these regards in recent years. It is found that past successes and an excessive belief that macroeconomic stabilisation and investment in human development more or less automatically would translate into pro-poor growth have diverted attention from the need to think through the challenges of achieving sustained pro-poor growth. The study concludes that breaking the present trend of stagnation in poverty reduction will require (1) addressing the issue of population growth, (ii) a rapid and sustained intensificationof agriculture, and (iii) a diversification of the economy through the development of the non-farm sectors. The study was produced as an analytical input into Sweden's forthcoming collaboration strategy with Uganda. It is also part of an on-going methodological work within Sida (a cooperation between the Department for Infrastructure and Economic Cooperation and the Department for Policy and Methodology) aimed at achieving a sharper poverty focus in economic analysis. The study is part of a series of studies, undertaken by Sida itself and by various Swedish universities and academic research institutes in collaboration with Sida. The main purpose of these studies is to enhance our knowledge and understanding of current economic development processes and challenges in Sweden's main partner countries for development co-operation. It is also hoped that they will have a broader academic interest and that the collaboration will serve to strengthen the Swedish academic resource base in the field of development economics.

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