The World Bank in Uganda “ Working for a World Free of Poverty” Country Brief 2005 - 2006 Public Disclosure Authorized
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48954 Public Disclosure Authorized The World Bank in Uganda “ Working for a world free of poverty” Country Brief 2005 - 2006 Public Disclosure Authorized The World Bank Public Disclosure Authorized Rwenzori House 1 Lumumba Avenue, Kampala P.O.Box 4463, Telephone: 256 41 231061 www.worldbank.org/ug i Public Disclosure Authorized A Note about the Design Baskets are an integral part of Ugandan culture. The number of baskets of food carried to the market by a family is an indicator of the harvest level, with a bumper harvest filling many baskets. Families who are fairly well-to-do also carry more baskets from the market (indicating more purchases), and the bigger the basket, the greater the perception of prosperity. Baskets also serve ceremonial purposes in traditional Ugandan culture. For example, at the introduction of a groom to the bride’s family, the groom’s party comes with numerous baskets filled with gifts to offer to the bride’s family. In this context, baskets represent happiness, connectedness and a sense of sharing and belonging. Coincidentally, the World Bank logo reflects some aspects of the spherical woven design of the basket, and the two images complement each other throughout this document. Lastly, the Ugandan national colors are woven into the recurring basket image to emphasize the significance of the collaborative relationship between the Government of Uganda and the World Bank. A Note about the Design Baskets are an integral part of Ugandan culture. The number of baskets of food carried to the market by a family is an indicator of the harvest level, with a bumper harvest fi lling many baskets. Families who are fairly well-to-do also carry more baskets from the market (indicating more purchases), and the bigger the basket, the greater the perception of prosperity. Baskets also serve ceremonial purposes in traditional Ugandan culture. For example, at the introduction of a groom to the bride’s family, the groom’s party comes with numerous baskets fi lled with gifts to offer to the bride’s family. In this context, baskets represent happiness, connectedness and a sense of sharing and belonging. Coincidentally, the World Bank logo refl ects some aspects of the spherical woven design of the basket, and the two images complement each other throughout this document. Lastly, the Ugandan national colors are woven into the recurring basket image to emphasize the signifi cance of the collaborative relationship between the Government of Uganda and the World Bank. ii The World Bank in Uganda Country Brief 2005 - 2006 Table of Contents Abbreviations and acronyms ii The World Bank Group 1 Statement by the Country Director 3 Statement by the Country Manager 4 Uganda’s Fight against Poverty 5 Challenges to Growth and Poverty Reduction 8 The World Bank’s Vision 10 Mission Statement 10 World Bank’s Vision 11 A Partner in Uganda’s Development 12 Poverty Eradication Action Plan (Peap) 2004/05-2007/08 14 World Bank Total Commitments in FY 2005/06 16 Pillar 1: Economic Management 17 Pillar 2: Enhancing Production, Competitiveness and Income 19 Pillar 3: Security, Conflict Resolution and Disaster Management 44 Pillar 4: Governance 46 Pillar 5: Human Development 50 Other World Bank Supported Activities 53 Looking Ahead 56 The IFC and MIGA in Uganda 59 Uganda at a Glance 61 iii Abbreviations and Acronyms ADB African Development Bank MoFPED Ministry of Finance, Planning and Economic Development AIDS Acquired Immunodeficiency Syndrome MoES Ministry of Education and Sports ARTP II Agricultural Research and Training Project II MoGLSD Ministry of Gender, Labor, and Social Development CSO Civil Society Organization MoLG Ministry of Local Government DANIDA Danish International Development Assistance MoWHC Ministry of Works, Housing and Communications DFID Department for International Development NAADS National Agricultural Advisory Services EAC East African Community NARO National Agricultural Research Organization EATTF East Africa Trade and Transport Facilitation Project NARS National Agriculture Research System EFMP II Economic and Financial Management Project II NECDP Nutrition and Early Child Development Project EMCBP II Environmental Management Capacity Building Project II NEMA National Environmental Management Authority ERTP Energy for Rural Transformation Project NGO Non-Governmental Organization FY Fiscal Year NUSAF Northern Uganda Social Action Fund Project GDP Gross Domestic Product PAMSU Protected Areas Management and Sustainable Use Project GoU Government of Uganda PE Public Enterprise HIPC Heavily Indebted Poor Country Initiative PEAP Poverty Eradication Action Plan HIV Human Immunodeficiency Virus PMA Plan for the Modernization of Agriculture IBRD International Bank for Reconstruction and Development PRSC Poverty Reduction Support Credit ICSID International Centre for Settlement of Investment Disputes PSCP II Private Sector Competitiveness Project II ICT Information and Communications Technologies PS-PEP Public Service Performance Enhancement Program IDA International Development Association RSISTAP Road Sector Institutional Support Technical Assistance Project IFC International Finance Corporation R&D Research and Development LG Local Government REA Rural Electrification Agency LGDP II Local Government Development Program II RTFP Regional Trade and Facilitation Project LVEMP Lake Victoria Environmental Management Project S&T Science and Technology MAP Multi-Country HIV/AIDS Program SMEs Small and Medium Enterprises MDG Millennium Development Goals SMMRP Sustainable Management of Mineral Resources Project MDRI Multi-lateral Debt Relief Initiative UBoS Uganda Bureau of Statistics MFI Micro-finance Institution UIA Uganda Investment Authority MIGA Multilateral Investment Guarantee Agency UJAS Uganda Joint Assistance Strategy MSI Millennium Science Initiative USAID United States Agency for International Development MoEMD Ministry of Energy and Mineral Development iv The World Bank Group Today the Bank’s mission is to fight poverty and improve the living standards of people in the developing world. rne Hoel A The World Bank is an international organization comprised of 184 member countries (shareholders) that are jointly responsible for the institution’s financing and policy formulation. The World Bank Group is composed of 5 independent but closely associated institutions: The International Bank for Reconstruction and Development (IBRD); The International Development Association (IDA); The International Finance Corporation (IFC); The Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). The term “World Bank” refers specifically to two of the five, IBRD and IDA. Since the founding of the World Bank Group in 1944 to reconstruct war torn Europe, its primary mission has been economic development. Today the Bank’s mission is to fight poverty and improve the living standards of people in the developing world. To this end, the Bank provides loans, credits, grants, knowledge, policy advice and technical assistance to low and middle income countries. With these instruments, the Bank supports its client countries’ efforts in making investments, building capacity and forging partnerships in the public and private sectors to achieve sustainable economic growth and development. For more information about the World Bank Group see www.worldbank.org, or visit our Public Information Centre at the World Bank, Lumumba Avenue, Kampala. Phone: 256 41 231 061. 1 The International Bank The International The International Finance The Multilateral The International Centre for for Reconstruction and Development Association Corporation (IFC) Investment Guarantee Settlement of Investment Development (IBRD) (IDA) Agency (MIGA) Disputes (ICSID) • www.worldbank.org • www.worldbank.org/ida • www.ifc.org • www.miga.org • www.worldbank.org/icsid • Established 1945, 184 • Established 1960, 165 • Established 1956, 178 • Established 1988, 165 • Established 1966, 142 Member Countries Member Countries Member Countries Member Countries Member Countries • Cumulative lending: • Cumulative commitments: • Committed portfolio: • Cumulative guarantees • Total cases registered: $407.4 billion $161 billion $24.6 billion (includes issued: $14.7 billion 184 • Fiscal 2005 lending: • Fiscal 2005 lending: $5.3 billion in syndicated (Amounts include funds • Fiscal 2004 cases $13.6 billion for 118 $8.7 billion for 160 loans) leveraged through registered: 25 new operations in 37 new operations in 66 • Fiscal 2005 commitments: the Cooperative countries countries $5.4 billion for 236 Underwriting Program) projects in 67 countries • Fiscal 2005 guarantees issued: $1.2 billion With the largest country In contrast to the IBRD, IDA The IFC was established MIGA encourages foreign ICSID helps encourage membership and the targets the world’s poorest to promote economic investment in developing foreign investment by broadest mission, IBRD countries with low per capita development through the countries by providing providing international aims to reduce poverty in income. These countries have private sector. The aim is to guarantees against facilities for conciliation little or no capacity to borrow possible losses caused by middle-income and credit- invest in private enterprises and arbitration of money on the international noncommercial risks such worthy poorer countries by providing equity, long- investment disputes, financial markets, because as currency inconvertibility, by providing them with of the high interest rates term loans,