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USAID Information:
External Links:
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Uganda
The Development Challenge: Uganda has made substantial progress in social and economic development since the USAID program was revived in 1980, moving from recovery and reconstruction toward sustainable growth and poverty reduction. Nonetheless, significant challenges remain. Free primary education is available to all Ugandan children and enrollments have surged to nearly 90%. Only 66% of the children, however, complete primary school. As a result of economic reforms, Uganda achieved relatively high economic growth during the 1990s, but growth slowed to 4.9% in 2003 and per capita income is only $330. While the population living in poverty declined from 56% in 1992 to 38% in 2002, high population growth, now at 3.4%, is eroding economic growth, deepening poverty, and countering other achievements in social sectors. The number of people living on less than a dollar a day remains at 9.5 million in 2003, the same as in 1992. Conflict continues to affect the poverty level, which remains at 70% in the North, and 1.4 million people are displaced due to insecurity in the North and East. The agricultural sector is central to Uganda's economy and food security. It provides employment to 83% of the population, accounts for 40% of GDP, and generates 85% of export earnings. However economic growth is largely dependent on rain-fed agriculture, making it vulnerable to adverse weather conditions and declining international commodity prices. Consequently, Uganda must step up efforts to diversify the economy and provide an enabling environment to attract private domestic and foreign investment to achieve and sustain the 7% annual GDP growth needed to meet the poverty reduction goal.
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Uganda has one of the highest total fertility rates in sub-Saharan Africa, nearly unchanged for 40 years at seven births per woman. Increased availability and better quality reproductive health services are urgently needed to reduce population growth, decrease high infant and maternal mortality rates, and sustain achievements in the fight against HIV/AIDS and other infectious diseases. HIV/AIDS is a major challenge in Uganda's conflict areas where prevalence rates are thought to be much higher than other areas of the country. Despite an overall declining sero-prevalence rate among adults, the HIV/AIDS pandemic could resurge among Uganda's largely young population. Malaria incidence is also high and not improving.
Uganda's democracy lacks viable political opposition and has an overly strong executive branch. Uganda's progress toward a vigorous and representative multi-party democracy requires permitting political parties to operate freely and constructively, as well as building institutions and systems which can check and correct abuse of authority and corruption. On another front, armed conflict in northern Uganda and the spread of attacks on civilians in eastern Uganda by the Lord's Resistance Army (LRA) have displaced more than 1.4 million persons, creating Uganda's worst humanitarian crisis in 17 years. Continued conflict and insecurity causes more than $100 million per year in lost production.
The United States has security and humanitarian interests in helping Uganda tackle its economic and social problems. Stable political and improved economic conditions in Uganda and the East African region will prevent terrorism from flourishing. Uganda has been a model in the fight against HIV/AIDS, poverty reduction and economic reform, and is a strong ally in the war against terrorism. Promoting democracy and good governance, resolving conflict, developing human capacity, and expanding economic opportunity and growth in Uganda are consistent with U.S. national interests.
The USAID Program: The goal of the USAID program is to assist Uganda in reducing mass poverty. Three strategic objectives address: economic growth, improved human capacity, and effective governance. The rural sector growth objective addresses food security and sustainable agriculture, as well as trade and investment. It is designed to boost economic growth, restructure and revitalize Ugandan exports, curb environmental degradation, and enhance food security for the vulnerable elements of the population, including those affected by HIV/AIDS. This program supports Presidential Initiatives to End Hunger in Africa and Global Climate Change. The second objective, improved human capacity, will reduce vulnerability to poverty by improving education and health status. The program will help to reduce Uganda's high population growth and fertility rate and mitigate infant and child mortality due to preventable infectious diseases. Improving both the quality of basic education, and primary school completion rates are critical objectives of the program. In collaboration with the GOU and private sector partners, USAID will also implement major new interventions to ensure delivery of prevention, treatment, care and support services to those living with HIV/AIDS, including orphans. Uganda is a focus country under the President's Emergency Plan for AIDS Relief (PEPFAR). All proposed HIV/AIDS activities are being integrated into PEPFAR and are subject to the approval of the U.S. Global AIDS Coordinator. Additional funding from the Global HIV/AIDS Initiative account is anticipated for both FY 2004 and FY 2005. USAID's human capacity program also works in conjunction with PEPFAR; the Global Fund to Fight AIDS, TB and Malaria; and the Africa Education Initiative. The third objective, effective governance, addresses problems of accountability and improved legislative oversight, increased political pluralism, district-level management and budgeting skills, and the informed participation of civil society in processes of governance at both the national and local levels. The program also seeks to reduce the impact of conflict in selected areas of Uganda by promoting reconciliation and reintegration, peace dialogues, and support for vulnerable children and victims of torture.
Other Program Elements: Displaced Children and Orphans Funds assist war-affected children in northern and western Uganda, including formerly abducted children, former child soldiers, child mothers, and the internally displaced, with counseling and vocational training. Victims of Torture Funds are used to rehabilitate and reintegrate adults and children who have been physically or psychologically abused by rebel forces. Other USAID/W resources will assist in capacity building for those involved in conflict resolution. As part of it's overall $80 million food aid program in 2003, USAID provided 102,160 MT of P.L. 480 Title II emergency food aid, valued at $58 million, which represents 70% of the food aid distributed by the World Food Program to nearly 2.5 million people in the conflict and drought affected areas of northern and eastern Uganda. Other USAID/W resources promote community-based management of childhood illness and increased child survival in southwestern Uganda. Leland Initiative funds have been used to make the Internet accessible to hundreds of teacher trainees and tutors at nine training institutions and to provide girls' scholarships. Regional funding of Ugandan conflict mitigation and resolution activities is complemented by substantial resources from the Office of Foreign Disaster Assistance and Food for Peace to finance humanitarian relief activities and provide commodities for distribution, mainly in northern Uganda. In addition, Uganda benefits from USAID central funds for grants to the International Gorilla Conservation Program.
Other Donors: Uganda is highly dependent on donor assistance, estimated at $800 million for the fiscal year, which ended June 2003. Donor flows are expected to finance nearly half of the national budget this year. The World Bank is the largest donor, providing budget and project support for private sector development, infrastructure, civil service reform, HIV/AIDS prevention and care, and rehabilitation of northern Uganda. Other multilateral donors include the United Nations Development Program (UNDP), UNAIDS, United Nations Children's Fund (UNICEF), the European Union (EU), and the International Monetary Fund (IMF). The leading bilateral donor to Uganda, the United Kingdom, focuses on justice, rule of law, agriculture and environment, education, health, and public administration. The United States is the third ranking donor to Uganda and the second largest bilateral donor after the United Kingdom. Denmark, the Netherlands, Sweden, and Japan provide substantial bilateral assistance covering a wide variety of activities and sectors. The United States plays a key role in donor coordination as chair of sector working groups for conflict, health, environment, and democratic processes.
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