DECENTRALISATION AND POVERTY REDUCTION IN LUUKA DISTRICT, UGANDA BY KYOZIRA MARTHA BDS/44147/ 1.43/ DU A RESEARCH REPORT SUBM~rrED TO THE COLLEGE OF HUMANITIES AND SOCIAL SCIENCES IN PARTIAL FULFILlMENT FOR THE REQUIREMENTS OF THE AWARD OF BACHELOR OF DEVELOPMENT STUDIES OF KAMPALA INTERNATIONAL UNIVERSITY JUNE, 2018 DECLARATION I Kyozira Martha, declare that this research report is original and is a result of my personal efforts and it is to the best of my knowledge and has never been submitted to any higher institution of learning for the award of any qualification Signed ~ Name of the student: Kyozira Martha APPROVAL This is to certify that this research report under the topic; Decentralisation and Poverty Reduct~ uuka district, Uganda was carried out under my supervision. Signed (11 Name of the supervisor: Pr. Rwabuhihi Emmanuel Festus Date4~/d7E~/.~ DEDICAflON I dedicate this research report to my dear parents Mr. Kawanguzi David and Mrs. Kawanguzi Beatrice Namubya who worked hard to support me up on this research report and my studies in general, may God bless them abundantly. iii ACKNOWLEDGEMENT I thank the Almighty God for making it possible for me to complete this piece of work. Special thanks to Him for the knowledge, wisdom, courage and determination he has granted me. My special thanks go to the university members of Kampala International University, especially those under the department of Humanities of Social Sciences. I am particularly indebted to my supervisor Pr. Rwabuhihi Emmanuel 1-estus for his timeless guidance and correction in the conduct of this research report. He really Inspired, motivated and assisted me during the process of this work. Further thanks to the administration of Luuka district for their support in providing me with the data and to the authors whom I have used their references in coming up with this report. Also to respondents who sacrificed their time in giving me relevant information that backed my research. I am greatly Indebted to my friends such as Mwawala Rajab, Namulawa Mary, Mugoyo Yakin, Naigaga Phiona, Kawanguzi Samali, Mukama Eddy and Kananbi Martin for their support, care and courage during my study. I am so grateful my dear parents. May God Bless them abundantly. iv TABLE OF CONTENTS DECL.Dd~~D~rION . ,.. APPROVAL ii DEDICATION . ~ w TABLE OF CONTENTS v [.151 OF TABlES L.IS~T OF FIGUl~.ES ...... .. [.151 OF ~ x ft~85fR4*~Cr ....... xi CHPJ”TER ONE 1 INT1~ODtJC11ON 1 1.0 Introduction . 1 1.1 Baclcground of tiie stuch’ 1 1.1.1 Historical perspective 1 1.1.2 Conceptual perspective 3 1.1.3 Contextual perspective 4 1.2 Problem statement 4 1.3 Purpcse of the sttidy 5 1.4 Research obJecth~es 5 1.5 Research Questions 6 1.6 Scope of the study 6 1.6.1 Geographical scope 6 1.6.2 Content scope 6 1.6.3 Time scope 7 1.7 SIgnificance of the stuch, 7 Cl—LeJ’rER r~ivo 8 LITEF~LTIJR~E RE\IIE~I 8 2.0 Introduction 8 2.1 l)eflnitlon of Decentralization 8 V 2.2 Conceptual frarnewvorlc .10 2.3 Measuring l)ecentrallzation .10 2.4 Definition of poverty reduction . 11 2.5 Decentralization and poverty reduction 12 2.5.1 Political decentralization and poverty reduction 12 2.5.2 AdmInistrative decentralization and poverty reduction 13 2.5.3 FIscal decentralization and poverty reduction 15 ClIAPrER li—IREE 19 19 3.0 Introduction 19 3.1 Research Design 19 3.2 Target Population 19 3.3 Sample Size 20 3.4. SamplIng techniques 21 3.5. Data sources 21 3.5.1 PrImary data 21 3.5.2 Secondary data 21 3.6 Data collection Instrunients 21 3.6.1 QuestIonnaires 21 3.6.2 Interview guide 21 3.7. Data analysis and presentation 22 3.7.1 Data Editing 22 3.7.2 Data Cociing 22 3.7.3 Data analysis 22 3.7.4 Data presentation 22 3.8 EthIcal consideration 23 3.9 l.Jrriltations of the studs’ 23 Cl—Ia l’TER FOI.JR 24 PRESENTATION, INTERPRETATION AND ANALYSIS OF FINDINGS 24 4.0 Introcluction . 24 Vt 4.1 Bio data of respondents .24 4.1.1 Age bracket of respondents 24 4.1.2 Gender of respondents 25 4.1.3 Marital status 25 4.1.4 Level of education attained of respondents 26 4.2 Effect of political decentralization on poverty reduction in Luuka district 27 4,3 Effect of administrative decentralization on poverty reduction in Luuka district.29 4.4 Effect of fiscal decentralization on poverty reduction in Luuka district 32 CHAPTER FIVE 34 SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 34 5.0 Introduction 34 5.1 Summary of findings 34 5,1.1 Effect of political decentralisation on poverty reduction in Luuka district, Uganda 34 5.1.2 Effect of administrative decentralisation on poverty reduction in Luuka district, Uganda 36 5.1.3 Effect of fiscal decentralization on poverty reduction in Luuka district, Uganda 37 5.2 Conclusions of the study 38 5.3 Recommendations 39 5.4 Areas for future research 10 REFERENCES 41 APPENDICES 47 APPENDIX A:SELF ADMINISTERED QUESTIONNAIRE 17 APPENDIX B:INTERVIEW GUIDE 51 APPENDIX C:TIME FRAME 53 APPENDIX D:ACTUAL STUDY BUDGET 54 vH LIST OF TABLES Table 3.1: Population and sample size of respondents 20 Table 4.1: Age bracket of respondents 24 Table 4.2: Gender of respondents 25 Table 4.3: I’larltal status of respondents 25 Table 4.4: Level of education attained by respondents 26 Table 4.5: Effect of political decentralization on poverty reduction in Luuka district . 27 Table 4.6: Effect of administrative decentralization on poverty reduction in Luuka district . 29 Table 4.7: Effect of fiscal decentralization on poverty reduction in Luuka distrlct.32 viii LIST OF FIGURES Figure 2.1: Conceptua’ framework of decentralization and poverty reduction ...... 10 ix LIST OF ACRONYMS $ US dollar % Percent E East e.g. For example etc et cetera GDP Growth Domestic Product KM Kilometre LCV Local Council Five N North SPSS Statistical Package for Social Sciences UN United Nations UN United Nations UNDP United Nations Development Programme US United States of America x ABSTRACT The study was about decentralisatlon on poverty reduction In Luuka distdc4 Uganda The study was based on the following three objectives; (I) to examine the effect of political decentralisatlon on poverty reduction; (iQ to establish the effect of administrative decentralisatlon on poverty reduction; and (iIQ to examine the effect of fiscal decentralization on poverty reduction in Luuka distzlct Uganda The study employed descriptive research design and methodology used was both qualltative and quantitativa The study used a total population of 120 and a sample size of 92 respondents were considered for the study whereas the questionnaire was used as the research instrument In regard to effect ofpolitical decentrallsation on poverty reduction in Luuka district Uganda; it was revealed by the majority of the respondents; 50% who strongly disagreed that the political power of the poor in Luuka district plays an important role in affecting their levels of living; majority 4750% disagreed that the poor people in Luuka district are given opportunity to participation In the election process at all levels of the district; 58.75% agreed that the civil conflicts are associated with the rise in poverty in Luuka clistfict 4L25% disagreed that people of Luuka district are well represented which enable the poor to have better access to special needs; 42.50% who strongly th~agreed that decentralization in Luuka district prevents violent conflicts and war and facilitates in overcoming them to absolutely reduce povertyt In regard to effect of administrative decentrallsation on poverty reduction in Luuka distric4 Uganda; majority 56.25% disagreed that decentralization in Luuka district redistributes authority and responsibility for resources among different levels ofgovernment 43.75% dIsagreed that In order to be effective for poverty reduction, decentrah~ation of Luuka district establishes accountabillty structures; 41.25% agreed that elected officials in Luuka district are accountable to Its citizens; 42.5% strongly agreed that the local government of Luuka district strengthens poor peoples’ organizations within communities and through cross-community networks; and 36.25% and 46.25% respectively agreed or strongly agreed that national anti-poverty programs have been established in Luuka district to transfer resources to the poor. In regard to effect of fiscal decentralization on poverty reduction in Luuka distric4 Uganda; majority 36.25% and 43.75%, respectiVely agreed or strongly agreed that fiscal decentralization of Luuka district helps In generation and redistribution of income to reduce poverty; 3825% and 33.75% respectively disagreed and strongly disagreed that decentralization of Luuka district promotes good governance that improves on reducing pgvertyq 43.75% strongly disagreed that the decentralization and better governance improve local services and outcomes that are related to the wellbeing of the poor which reduces poverty; 375% strongly disagreed that decentralization of Luuka district improves the prioritization ofbudget allocation; ofprograms favouring the poor; 42.5% agreed that economic instability tends to affect Luuka district due to the lack financial cushions and personal assets. It was concluded that poverty is closely linked to political factors such as access to power and resources and the accountable and transparent management of local affairs. It was recommended Autonomous elected subnational governments should be estabiishea~ district should redistribute authority responsibility and resources among different levels of government xi CHAPTER ONE I NTRO D U CTIO N i~O Introduction This chapter presents the background of study, problem statement, purpose of the study, research objectives, and research questions, scope of the study and significance of the study.