Module 12 - Uganda: Cross-Sectional Programmatic Adjustment Lending Focusing on Poverty Reduction

 

• Improve responsiveness and impact of publicly funded research.
  
  
• Increase access and effectiveness of agricultural advisory services.
  
  
• Develop the legal and regulatory framework governing microfinance and improve operating capacity of microfinance institutions.
  
  
• Implement the 1998 Land Act in a prioritized manner and promote access to land by women and orphans.
  
  
• Integrate environmental sustainability concerns in all government programs.
  
  
• Improve the network of district roads.

Benefits and Impacts

Implementation of reforms in basic service sectors (education, health, and water and sanitation) has proceeded broadly as planned. Net primary school enrollment has increased from 76 percent and 85 percent in 1999 to 83 percent and 90 percent in 2002 for the poorest and richest quintiles, respectively, with equal numbers of boys and girls. HIV/AIDS prevalence has declined, and safe water coverage increased from 46 percent in 1999 to 55 percent in 2002.

The government has also made progress with structural reforms in the area of rural development. Preparations for a comprehensive reform of agricultural research delivery have been made, and a new strategy promoting more demand-driven agricultural research has been developed. The National Agricultural Advisory Services program, supported by multiple donors, promotes comprehensive reform of agricultural extension services and is a demand-driven program that channels public funds to farmer fora at the subcounty level to contract the services of farm advisors. Arrangements to implement land reforms have also been established.

Lessons Learned and Issues for Wider Applicability

• The rolling nature of the policy framework enhances predictability of resource flows and improves the Bank’s ability to carry out continuous policy dialogue with the government on a key set of issues and monitor progress towards meeting agreed outcomes.
  
  
• PRSC has turned out to be a mechanism to bring donors together and harmonize their practices. A large number of other donors have linked their budget support disbursements to the PRSC reform program, and PRSC missions have become joint donor missions.
  
  
• A series of PRSCs can be an effective mechanism for comprehensively addressing sector-level and systemwide reforms.
  
  
• The shift to PRSCs is also attractive in that it is consistent with the Comprehensive Development Framework approach and directly links the PEAP/PRSP and Bank Group’s assistance program in Uganda.