‘flif INFLUENCE OF OPERATION WEALTH CREATION ON HOUSEHOLD POVERTY REDUCTION IN SUBCOUNTY DISTRICT

NSUMBA BARNABAS 1163-06404-08150

A RESEARCH REPORT SUBMITTED TO THE FACULTY OF HUMANITIES AND SOCIAL SCIENCES IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF ABACHELORS DEGREE IN PUBLIC ADMINISTRATION AND MANAGEMENT OF INTERNATIONAL UNIVERSITY

SEPTEMBER, 2019

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“Exploring the Heights” DECLARATION

I Nsumba Barnabas , declare to the best of my knowledge that this research work entitled “The influence of operation wealth creation on household poverty reduction in Myanzi subcounty

Mubende District “, is original and has neither been presented to any University before for any degree award. Where I am indebted to the efforts of other scholars and professionals, due acknowledgement has been made.

Sign Date...~~1 QCic~, 10(9

NSUMBA BARNABAS 1163-06404-08150 APPROVAL

This is to certify that this research report entitled “The influence of operation wealth creation on household poverty reduction in Myanzi subcounty ” has been submitted to the

University’s Academic Board of Examiners with our approval as University Supervisors.

Name ) of the supervisor ilL

Date

Sign ~ DEDICATION

I affectionately dedicate this report to my beloved late Dad (Rest in peace), my mum, my wife my brothers without forgetting my sisters for all the moral support they rendered me by standing beside me in the stiff period ofmy studies and giving all the kind ofmoral support they gave me.

4 ACKNOWLEDGEMENTS

I would like to express my sincere appreciation to a number of individuals including my parents, brothers and sisters, children, wife and relatives, Lecturers, colleagues and others for their support in the various ways in the completion of my course and more specifically in the preparation of this research thesis.

I am very grateful to my supervisors Mr. Kamya Emmanuel and who contributed much towards this thesis writing and the time he rendered me during mak~n~ corrections and ensuring that this thesis is up to standard. May the Almighty bless you abundantly.

I would also like to thank my friends for the friendly encouragement they gave me too. Love you all and may almighty bless you all.

5 TABLE OFC )~

DECLARATION

APPROVAL U DEDICATION ACKNOWLEDGEMENTS iv LIST OF ABBREVIATIONS viii ABSTRACT ix CHAPTER ONE 1 1.0 Introduction 1 1.1 Background of the Study 2 1.1.1 Historical background 2 1.1.2 Contextual background 3 1.1.3 Conceptual background 5 1.1.4 Theoretical background 6 1.2 Problem statement 8 1.3.1 General Objective 9 1.3.2 Specific Objective 9 1.4 Research questions 10 1.5 Scope of the Study 10 1.5.1 Geographical Scope 10 1.5.2 Content Scope 10 1.5.3 Time Scope 11 1.6 Significance of the Study 11 CONCEPTUAL FRAMEWORK 13 CHAPTER TWO 15 LITERATURE REVIEW 15 2.0 Introduction 15 2.1 Theories that underpinned the research 15 2.2 Operation Wealth Creation and household Income 16 2.3 Operation Wealth Creation and improving the livelihood 19 2.4 Operation effects of Operation Wealth Creation progran 23 2.5 Conclusion 26 CHAPTER THREE 28 METHODOLOGY 28 3.1: Introduction 28 3.2: Research Design 28

6 3.3: Research Population.28 3.4: Sample Size 29 3.5: Sample Procedure 29 3.6: Sources of Data 30 3.6.1 Primary Data Sources 30 3.6.2 Secondary Data Sources 30 3.7 Data collection techniques 31 3.7.1 Questionnaire 31 3.7.2 Interview guide 31 3.8 Reliability 31 3.9 Validity 32 3.10 Measurement of Variable 32 3.11 Data Analysis 33 3.12 Limitations of the study 33 3.13 Ethical Consideration 34 CHAPTER FOUR 35 DATA PRESENTATION AND INTERPRETATION OF FINDINGS 35 4.0 Introduction 35 4.1 The Demographic characteristic of the respondents 35 Table 4.1: Gender of the respondent 35 Figure 4.1: Gender of the respondent 36 Table 4.2 Age Group 36 Figure 4.2: Age Group 37 Table 4.3: Marital Status 37 Figure 4.3: Marital Status 38 Table 4.4 Level of Education attained 38 Figure 4.4 Level of Education attained 39 Table 4.5 Number of Years Spent in Myanzi Sub county 39 Figure 4.5 Number of Years Spent in Myanzi Sub county 40 Overall regression model for the variables 41 ANOVA for Operation Wealth Creation and household Poverty reduction 42 CHAPTER FIVE 47 DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS 47 5.1 Introduction 47 5.2 Summary and Discussion of the findings 47 5.1.1 The Demographic characteristic of the respondents 47

7 5.1.2 Operation Wealth Creation and Household Poverty reduction 48 5.1.3 Operation Wealth Creation program and people’s life 49 5.1.4 Operation Wealth Creation the effects on poverty reduction 50 5.2 Conclusions 51 5.3 Recommendations 52 5.4 Future areas of research 53 REFERENCES 54 APPENDICES 60 APPENDIX II: WORK PLAN (GANTT CHART) 66 APPENDIX III: THESIS BUDGET 67

8 LIST OF ABBREVIATIONS AAMP Area Based Agricultural Modernization Policy

AHI African Highlands Initiative

ATAAS Agricultural Technology and Agribusiness Advisory Services

DLGs District Local Governments

MAAIF Ministry of Agriculture, Animal Industry and Fisheries

NAADS National Agricultural Advisory Services

OWC Operation wealth creation programme

PEAP Poverty Eradication Action Plan

PMA Program for Modernization of Agriculture

UPDF Uganda Peoples Defence Forces

9 ABSTRACT The main objective of the study was to find out the influence of Operation Wealth Creation on household poverty reduction in Myanzi Subcounty Mubende. The resaech was guided by three objectives that is; To examine the relationship between Operation Wealth Creation and household Poverty reduction in Myanzi Subcounty; To assess the performance of Operation Wealth Creation program in improving the livelihood of the people in Myanzi and to determine the challenges affecting the performance of Operation Wealth Creation programs in poverty reduction in Myanzi Sub county Mubende District. In this research, the researcher used Classical and Neoclassical to critically examine the significant relationship between operation wealth creation and poverty reduction. The research design in this study was a cross sectional design where both qualitative and quantitative methods were applied.

According the findings, the researcher distributed 44 questionnaires and out of this number, the return rate as only 91% indicating a satisfying return rate. This was indicated by 40 out of 44questionnaires distributed, This return rate was returned filled and it is what the researcher used to analyze the data needed to drive to the conclusion. Results in table 4.4 and figure 4.4 on the level of education of the respondents above indicated that 3(7.5%) were primary leavers, 6(15%) were of Ordinary level, 6(15%) had acquired advanced level of education, 6(15%) had diploma while 15(35.5%) had bachelor’s degree. From the findings therefore, majority of the respondents had advanced level education qualification.

In conclusion, it was stated agricultural financing is one of the most important factors to develop rural areas in developing countries. Payment of bank credit is a way of financing. In fact, facilitation of access to credit can raise amount of productive investment. Credit has a crucial role for elimination of farmer’ s financial constraints to invest in farm activities, increasing productivity and improving technologies. In recommendation, Increase awareness about the proposed changes to the Operation Wealth Creation (OWC) programme: Following the decision by government to reform the Operation Wealth Creation (OWC) model, Ugandan citizens are ignorant of the new developments in the Agriculture sector.

10 11 CHAPTER ONE

1.0 Introduction The study sought to the influence of operation wealth creation on household poverty reduction in Myanzi Sub county Mubende district. The independent variable in this study is Operation wealth creation where the researcher investigates the core options provided by this organisations in the efforts to fight poverty out of the country as Dependent variable is poverty reduction. From 2014, Uganda government embarked on the programme of distributing free agricultural inputs (seeds, seedlings, planting materials and breeding stock) to farmers known as Operation wealth creation programme (OWC).

According to Uganda’s Equal Opportunities Commission Report, (2016) Operation Wealth Creation is a program that intends at commercializing agriculture by expanding the household income and reducing poverty. The programme uses the Uganda peoples defense forces (UPDF) to distribute and supervise delivery of inputs. However, as reports have shown (for example Parliament Report on OWC, 2017; Equal Opportunities Commission Report, 2016, the programme is facing many challenges that hamper its smooth implementation. Poverty on the other hand can be measured in monetary terms based on the monthly (or annual) expenditure of a given individual (UBOS, 2016). That expenditure is then compared to a threshold called the poverty line. However, poverty is much more than the mere lack of money. It is also about deprivation in other important areas of wellbeing such as education, health, water, and housing.

This chapter however, cover the description and clear understanding of the role of Operation Wealth Creation towards poverty reduction. It covers the background of the study, the problem statement, the general objectives, the specific objectives, the scope, significance as well as the conceptual framework.

1.1 Background of the Study The researcher organized the subsection into four major sections. These included, historical, contextual, conceptual, as well as theoretical backgrounds.

12 1.1.1 Historical background Historically, the idea that some people are trapped in poverty while others have spells in poverty was a central element of most analysis (Hulme and Mckay, 2005). For example, officials and social commentators in eighteenth century France distinguished between the pauvreand the indigent. The former experienced seasonal poverty when crops failed or demand for casual agricultural labour was low. The latter were permanently poor because of ill health (physical and mental), accident, age or alcoholism. The central aim of policy was to support the pauvreways that would stop them from becoming indigent (Hulme and Mckay, 2005).

Uganda is one of the 56 states in Africa. It is a land locked country neighboring South Sudan in the North, Democratic Republic of Congo (DRC) and Rwanda in the West, Tanzania in the South and Kenya in the East. It is part of the East African Community (UBOS, 2016). Uganda has many potential resources for development such as land, which is self-renewing, generally no need to add artificial fertilizers. Many lakes and their products like water, fish, and rainfall formation, with Lake Victoria being 68,l00sqkm thus being the 2nd biggest lake in the world. Equally are rivers and their products with river Nile; 6,700km long. There are varied natural features like mountains, rift valleys, and forests with high implications on tourism, There are also several foods of different types and high nutritional value, medicinal plants, and animals as well as high bio-diversity and favorable climate. Although Uganda is among the Sub-Saharan African countries that registered the highest rates of poverty reduction, the country remains among the poorest in the world. According to a 2016 poverty assessment report, poverty in Uganda reduced significantly between 2006 and 2013. The number of Ugandans living below the poverty line declined from 31.1 percent in 2006 to 19.7 percent in 2013, but the actual situation in Uganda remains alarming.

According to the Uganda’s 2016 Poverty Assessment report, Uganda has reduced monetary poverty at a very rapid rate. The proportion of the Ugandan population living below the national poverty line declined from 3 1.1% in 2006 to 19.7% in 2013. Similarly, the country was one of the fastest in Sub-Saharan Africa to reduce the share of its population living on $1.90 PPP per day or less, from 53.2% in 2006 to 34.6% in 2013. Nonetheless, Uganda remains one of the poorest nations in the world and is still lagging behind in several important non-monetary areas

13 like sanitation, access to electricity, education (completion and progression), child nutrition, unethical conduct and ecological injustices.

1.1.2 Contextual background The success of the poverty reduction through wealth creation strategy depends on both market and government “morality. In Uganda like many other African countries, agriculture forms the backbone of the economy and close to 80% of all households in the country are involved in agriculture (UBOS, 2016). The sector contributes to over 70% of export earnings (World Bank, 2016) and accounted for 26% of GDP in 2013/2014 (MAAIF, 2015c). However, agriculture in Uganda is largely dominated by smaliholder farmers who occupy the majority of the land and produce most of the crop and livestock products. They compose 85% of the total population in agriculture (Balya, 2016). Masaba (2014) identifies some of the challenges to agricultural development in Uganda as high costs and limited access to improved farm inputs and production technology, lack of access to agricultural credit facilities and inadequate agricultural extension services.

Additionally, Wandulu (2004) asserts that input use by smaliholders in Uganda is among the lowest in the world far lower even than the African average. For instance, fertilizer use is at an average of 1kg of nutrients per hectare well below the recommended standard of 200kg by Abuja declaration of 2006 (DRT, 2012). Another serious challenge facing agriculture in Uganda is financing. While the agriculture sector received on average 4 percent of the government of Uganda financed budget in the early 1980s, the sector has rarely received more than 3 percentl of the budget in any year since 199 1/92 (Smith et.al, 2007). In some years, the share has been below 2% although donor financing raises the allocation substantially but it has never exceeded 5 percent (DRT. 2012). Distribution of agricultural inputs in Uganda is done using various approaches: public private partnership arrangements, community procurement like under National agricultural advisory services (NAADS), and Ministry of agriculture, animal industry and fisheries (MAAIF) through provision of seedlings; and the private sector and cooperatives (MFPED, 2014b).

From 2014, Uganda government embarked on the programme of distributing free agricultural inputs (seeds, seedlings, planting materials and breeding stock) to farmers known as Operation wealth creation programme (OWC) with the main goal of commercializing agriculture by

14 creating wealth at household level and reducing poverty. The programme uses the army, the Uganda peoples defence forces (UPDF) to distribute and supervise delivery of inputs. However, as reports have shown (e.g. Parliament Report on OWC, 2017; Equal Opportunities Commission Report, 2016 e.t.c) the programme is facing many challenges that hamper its smooth implementation.

OWC emerged as a result of restructuring the previous programme - NAADS. In 2001 government established the NAADS programme. It was established by an act of parliament (NAADS Act, 2001) to specifically address constraints to agricultural development including lack of access to agricultural information, knowledge and improved technology among rural poor farmers (Mugasi, 2017; MFPED, 2015). NAADS was also meant to promote the development of farmer organisations and empower them to procure advisory services, manage linkage with marketing partners and conduct demand driven monitoring and evaluation of the advisory services and their impact (Benin et. al, 2007:1).

Since wealth as we have defined it is the stock of all assets that can contribute to well-being, increasing well-being is almost synonymous with increasing wealth. Indeed, Arrow et al. (2010) proved that an increase in the concept of comprehensive wealth is necessary and sufficient for an increase in intergenerational well-being. This follows from using “shadow prices” on each asset to measure the value of comprehensive wealth. Our definition avoids this nearly tautological implication by allowing for the possibility that investments in assets may not increase the well being of some (or any) people.

1.1.3 Conceptual background People experience poverty in Uganda in many forms. Uganda’s “poverty profile” has much in common with many other poor African countries, but some important differences give it the potential for rapid development if successful political and economic programs can be implemented and sustained (Perl, A., 2009).

Poverty in Uganda results from low productivity rather than inequality, since it has a relatively favorable land distribution, but few large-scale businesses and farms (UBOS, 2016). Thus the poorest 20 percent earn 8.5 percent of incomes while the top 10 percent earn 27.2 percent, as opposed to 2.4 percent and 45.6 percent in Kenya. Most people are small farmers using hand

15 tools, unimproved seeds and almost no other inputs. Less than 5 percent use no land for farming, but 62 percent of households possessed less than I hectare of land, and a further 25 percent

1.1.4 Theoretical background

In this research, Classical theory is employed to examine the nature and poverty and assess the wide the implication in the region. Classical traditions view individuals as largely responsible for their own destiny, choosing in effect to become poor (e.g. by forming lone-parent families), The concept of ‘sub-cultures of poverty’ implies that deficiencies may continue over time, owing for example to lack of appropriate role models, and that state aid should be limited to changing individual capabilities and attitudes (i.e. the laissez-faire tradition).

According to Farkas, G. (1996), Neoclassical theories are more wide ranging and recognize reasons for poverty beyond individuals’ control. These include lack of social as well as private assets; market failures that exclude the poor from credit markets and cause certain adverse choices to be rational; barriers to education; immigrant status; poor health and advanced age; and barriers to employment for lone-parent families.

Looking at the classical and neoclassical approaches together, their main advantages reside in the use of (quantifiable) monetary units to measure poverty and the readiness with which policy prescriptions can be put into practice. They also highlight the influence of incentives on individual behavior as well as the relationship between productivity and income, Criticism of these approaches highlights their overemphasis on the individual (without, for instance, taking into account links with the community) and the focus on purely material means to eradicate poverty.

According to Koolwal, (2014), Poverty declined during the post-war boom in the most successful of these countries, but these gains were seriously compromised by the financial, fiscal and balance of payments crises that emerged when the boom ended in the 1 970s. This restored the credibility of neoclassical economic theory, which linked state control to monopoly power and information overload, and thus to economic inefficiency and oppression. Its primary concern was growth rather than equality, but it also attributed poverty to irrational economic policies and the rents created by state monopolies, rather than private ownership and competitive markets.

16 These views were dominant by the early 1980s and were spread across the globe in the form of the structural adjustment programs (SAPs) forced onto most LDCs by economic crises.

This theoretical and policy revolution culminated with the communist collapse in 1989 and the market-driven transformations that followed. Thus, poverty is now addressed in a policy environment that rejects state controls and gives priority to economic efficiency and monetary stability over full employment and welfare rights. Neoclassical theorists prioritize efficiency and price stability, but they also claim that competitive markets deliver equity as well as growth. They argue that liberalization will reduce the global and national inequalities created by protectionism in developing countries, as well as the rigidities, price distortions and monopoly rents stemming from state intervention in LDCs (Pen, A., 2009). They claim that free trade will shift industry from high- to low-wage countries, and that rational prices and free markets will increase the rate of profit and incentive to invest, thus increasing employment and, in the long run, wages. They attribute growth and poverty reduction in formerly poor Asian countries to the export opportunities created by lower global tariffs and to their emphasis on private ownership and market forces (Karyeija, G. K., 2010).

The World Bank and International Monetary Fund (the International Financial Institutions, or IFIs) are now taking this liberal agenda into the poorest countries, whose welfare depends greatly on their success. While they claim that they will reduce poverty, their critics contend that such a liberal approach cannot combine redistribution with stability and growth. This article evaluates these claims by considering the relatively successful Uganda program. It looks at the nature and causes of poverty in Uganda, the impact of recent policies and the implications of recent attempts to develop a focused poverty strategy.

1.2 Problem statement Operation Wealth Creation is a developmental project that President Museveni introduced and piloted2 from July 2013 to create a system that facilitates effective national socio-economic transformation with a focus on raising household incomes for poverty eradication and sustainable wealth creation (http://portal.defence.go.ug). As such, OWC has no clear legal status and its operations are funded by money budgeted under NAADS, a statutory body created by an Act of Parliament (Semujju, 2017).

17 The overall goal of OWC is to enhance household participation in commercial agricultural production through community mobilization, equitable and timely distribution of inputs and facilitation of agricultural production chains (OWC, 2015). Focus was also put on reduction of subsistence farming by embarking on serious national socio-economic transformation of the countly. The target beneficiaries are all farming households in addition to civilian veterans (MAAIF, Standing orders of procedure for OWC, 201 5a). However, the specific target is the 68% of the farmers in the subsistence economy (Angina, 2017). OWC programme basically distributes free agricultural inputs to farmers in the District Local Governments(DLGs). However, as Govere et. al (2009) note massive involvement of government in distribution of inputs may not be sustainable because of limited government budgets and the disruption of the growth of the private sector. They also add that there are other inherent inefficiencies that may lead to input distribution delays, limited choice of inputs, lack of quality assurance (thus poor quality) and the misallocation of scarce resources due to poor targeting and leakages. According to the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF), standing orders of procedure for OWC (2015a), DLGs are responsible for selection of beneficiaries, This should be done in a participatory process at the parish level at the beginning of every season at meetings presided over by the sub county chiefs, facilitated by agricultural technical officers and addressed by OWC officers. The study therefore seeks to find out the influence of Operation Wealth creation on household poverty reduction in Uganda.

1.3 Objective of the Study

1,3.1 General Objective. The main objective of the study was to find out the influence of Operation Wealth Creation on household poverty reduction in Myanzi Subcounty Mubende.

1.3.2 Specific Objective This study specifically seeks to:

I. To examine the relationship between Operation Wealth Creation and household Poverty reduction in Myanzi Subcounty. II. To assess the performance of Operation Wealth Creation program in improving the livelihood of the people in Myanzi.

18 Ill. To determine the challenges affecting the performance of Operation Wealth Creation programs in poverty reduction in Myanzi Sub county Mubende District.

1.4 Research questions I. What is the relationship between Operation Wealth Creation and household Poverty reduction in Myanzi Subcounty? IL What is the performance of Operation Wealth Creation Program in improving the livelihood of the people in Myanzi? 111. What are the challenges affecting the performance of Operation Wealth Creation programs in poverty reduction in Myanzi Sub county Mubende District?

1.5 Scope of the Study

1.5.1 Geographical Scope The study was earned out in Myanzi Sub County. Myanzi is in Mubende District on the —Mubende Road, approximately 17 kilometers (11 miles), by road, west of Mityana, the nearest large town. The coordinates of Myanzi are 0°26l5.0~N, 31°54’38.011E (Latitude: 0.437501; Longitude: 31.910547). The town sits at an average elevation of 1,206 meters (3,957 ft) above sea level. The sub county is well known as predominantly growing crops including Maize, Beans, coffee (Coronal and Robust coffee). The increasing number of farmers in this region influenced the researcher to carry out research from this place.

1.5.2 Content Scope The main aim of this study was to establish the influence of Operation Wealth Creation on household poverty reduction in Myanzi Sub County. It examined the relationship between Operation Wealth Creation and household Poverty reduction, assess the performance of Operation Wealth Creation program in improving the livelihood of people, as well as determining the challenges affecting the performance of Operation Wealth Creation programs in poverty reduction in Myanzi Sub county Mubende District. In this case, the research considered two variables where the independent variable was the influence Operation Wealth Creation and the dependent variable was Household Poverty Reduction. These will be the clear drivers of the entire research.

1.5.3 Time Scope

19 The study was can-ied out within the period between March to September 2019. However, the results and content to be discussed looked at achievements of Operation Wealth Creation for the past 5 years since its establishment in 2013 to 2018. This period was selected due to prevailing OWC activities that extremely extended to most of the regions in Uganda during this period.

1.6 Significance of the Study The findings of the study were expected to be useful to several categories of people/organizations in the following ways;

The findings could be useful to the to the policy makers who are involved in designing Operation Wealth Creation programs policies especially those who are working at the Secretariat as well as policy makers who are operating at district and Sub county levels.

Similarly, it was envisaged that the findings could be useful to implementers of Operation Wealth Creation programs at the grass root levels such as Sub County Chiefs, Local councilors and district officials in the production department in sensitizing and mobilizing the farmers on how to address their agricultural problems.

The study findings were also to be useful to the farmers to devise means by use of researched knowledge provided by the research to eradicate poverty through improved productivity of crops and livestock, efficiency, marketing as well as addressing other problems such limited knowledge of the farmers, poor farming methods and dependency on nature. The findings from the study are expected to help farmers reap maximum benefits from the Operation Wealth Creation programs.

It could also be used in providing the basic knowledge to the coordinators of NGOs such as African Highlands Initiative (AHI). Area Based Agricultural Modernization Policy (AAMP) and other agencies involved in agricultural production.

The main output of this study was the research report which could help the researcher to obtain the award of a Degree in Bachelor of Public Administration of Kampala International University.

20 CONCEPTUAL FRAMEWORK

A conceptual framework according to Onen (2005), is an an Vi i cal tool with several variations

and contexts. it can be applied in different categories of worl:~ \Hre an overall picture is needed. It is used to make conceptual distinctions and organize ~ ~rong conceptual frameworks capture something real and do this in a way that is easy to r ~~~hcr and apply.

9p~~ion Wealth Creation v~~nld Poverty Reduction Increasing market oriented

agriculture ______o Buying from farmers directly Establishing producing I Job creation boards J Life planning skills Greater use of post-harvest

______technology Commercial marketing of Empowering farmers commodities

o Support on~farrn opportunities

o Provide loans to farmers

Agriculture modernization

o Commercialization of agriculture

o Providing equipment }

Source: Onen (2005) and modified by the researcher

Operation Wealth Creation appears to be having more ~nec~s in promoting adoption of improved varieties of crops and some other yield enhane~cc v~hnologies than in promoting improved soil fertility management. This raises concern a~ sustainability of productivity increases that may occur, since such increases ma~ lead to a ~cnid soil nutrient mining unless comparable success in promoting improved soil fbrtility m~:~~nt is achieved. Continued

21 emphasis on improving the market environment, promoting adoption of more remunerative crop enterprises, and applied agronomic research identifying more effective ways to profitably combine inorganic and organic soil fertility measures in different crop systems can help to address this problem. Shortage of capital and credit facilities was often cited by farmers as a critical constraint facing them, in addition to scarcity of agricultural inputs, lack of adequate farmland, unfavorable weather patterns and problems of pests and diseases. These emphasize that the quality of advisory services is not the only important factor influencing technology adoption and productivity, and the need for complementary progress in other areas, especially development of the rural financial system.

22 CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction In this chapter the researcher looked at related literature basing on other researchers and in reference to the stated specific objectives of the study. In this chapter again, the researcher looks at the theories that have been cited to analyses the prevailing strategies to enhance house hold income and alleviate poverty through wealth creation programs

2.1 Theories that underpinned the research

Classical and Neoclassical

According to classical theory of 1856-1915, Classical traditions view individuals as largely responsible for their own destiny, choosing in effect to become poor (e.g. by forming lone-parent families), The concept of ‘sub-cultures of poverty’ implies that deficiencies may continue over time, owing for example to lack of appropriate role models, and that state aid should be limited to changing individual capabilities and attitudes (i.e. the laissez-faire tradition).

According to Farkas, G. (1996), Neoclassical theories are more-wide ranging and recognize reasons for poverty beyond individuals’ control. These include lack of social as well as private assets; market failures that exclude the poor fi’om credit markets and cause certain adverse choices to be rational; barriers to education; immigrant status; poor health and advanced age; and baniers to employment for lone-parent families.

Looking at the classical and neoclassical approaches together, their main advantages reside in the use of (quantifiable) monetary units to measure poverty and the readiness with which policy prescriptions can be put into practice. ‘They also highlight the influence of incentives on individual behavior as well as the relationship between productivity and income. Criticism of these approaches highlights their overemphasis on the individual (without, for instance, taking into account links with the community) and the focus on purely material means to eradicate poverty.

23 In a Cato Journal article, economists Gwartney and McCaleb (1985) argue that the years of the war on poverty actually increased poverty (adjusted for noncash transfers) among working age adults in spite of unprecedented increases in welfare expenditures. They conclude that “the application of simple economic theory” suggests that the problem lies in the war on poverty programs: They [welfare prograrnsj have introduced a perverse incentive structure, one that penalizes self-improvement and protects individuals against the consequences of their own bad choices. (Gwartney and McCaleb, 1985: 7) This and similar arguments that cast the poor as a “moral hazard” also hold that “the problem of poverty continues to fester not because we are failing to do enough, but because we are doing too much that is counterproductive” (Gwartney and McCaleb 1985:15). Their economic model would solve poverty by assuring that the penalty of poverty was great enough that none would choose it (and welfare would be restricted to the truly disabled or otherwise unable to work).

2.2 Operation Wealth Creation and household Income Promoting adoption ofnew crops “Alternative Crops and Cultivars for New Opportunities” is one of the Programme Entities/Projects of the Crop and Grassland Service of the Plant Production and Protection Division of OWC. There are about 150 crop species which have already received attention from breeders and commerce and have evolved through human intervention into widely cultivated species. Of these, 10-15 produce half of the world’s food and materials. This evolution is, understandably, led by the nations with the most resources and is basically for their own and more stable high input and often subsidized systems (Jam et al., 2009).. New technologies in emerging crops, cultivars, protected agriculture and cropping systems need to be made available to and tested in developing countries, where farmers have a need for stabilization of their specific agro-environments, particularly through establishment of suitable species and high-value cultivars with food, feed, fuel, fibre and pharmacological potential. The identification of alternative crops and improved technologies would aim at providing a comparative advantage within a given agro-ecological and socio-economic context. Sustainable intensification of agriculture without further degradation of natural resources remains a challenge.

Use ofmodern agriculture technology

24 Increasing agricultural productivity is critical to meet expected rising demand and, as such, it is instructive to examine recent performance in cases of modern agricultural technologies (Challa, 2013), Agricultural technologies include all kinds of improved techniques and practices which affect the growth of agricultural output (Jam et al., 2009). According to Loevinsohn et al. (2013) the most common areas of technology development and promotion for crops include new varieties and management regimes; soil as well as soil fertility management; weed and pest management; irrigation and water management. By virtue of improved input/output relationships, new technology tends to raise output and reduces average cost of production which in turn results in substantial gains in farm income (ChalIa, 2013). Adopters of improved technologies increase their productions, leading to constant socio-economic development. Adoption of improved agricultural technologies has been associated with: higher earnings and lower poverty; improved nutritional status; lower staple food prices; increased employment opportunities as well as earnings for landless laborers (Kasirye, 2010). Adoption of improved technologies is believed to be a major factor in the success of the green revolution experienced by Asian countries (Ravallion and Chen, 2004; Kasirye, 2010). On the other hand, non-adopters can hardly maintain their marginal livelihood with socio-economic stagnation leading to deprivation (Jam et al., 2009).

Greater use ofpost-harvest technology

Postharvest handling is the stage of crop production immediately following harvest, including cooling, cleaning, sorting and packing. The postharvest requirements of pulses are diverse and include threshing, storage, and cleaning, whether by traditional or advanced methods. The post harvesting is divided into seven stages that involve: harvesting, threshing, drying, storage, processing, and packaging and transportation (Challa, 2013). Drying is a particularly important postharvest operation for safe storage, processing, and preservation of pulses. Pulses are harvested at higher moisture; therefore, drying of pulses to a safe moisture level is critical for improving the storage ability of pulses. Pulses are more difficult to store than cereals, and they suffer much greater damage from insects and microorganisms.

Commercial marketing of commodities

25 A commodity marketing system encompasses all the participants in the production, processing and marketing of an undifferentiated or unbranded farm product (such as cereals), including farm input suppliers, farmers, storage operators, processors, wholesalers and retailers involved in the flow of the commodity from initial inputs to the final consumer. The commodity marketing system also includes all the institutions and arrangements that effect and coordinate the successive stages of a commodity flow such as the government and its parastatals, trade associations, cooperatives, financial partners, transport groups and educational organisations related to the commodity (Challa, 2013). The commodity system framework includes the major linkages that hold the system together such as transportation, contractual coordination, vertical integration, joint ventures, tripartite marketing arrangements, and financial arrangements. The systems approach emphasizes the interdependence and inter relatedness of all aspects of agribusiness, namely: from farm input supply to the growing, assembling, storage, processing, distribution and ultimate consumption of the product.

2.3 Operation Wealth Creation and improving the livelihood Increasing market-oriented agriculture

The global changes of rapid population growth, urbanization and market liberalization, impact directly on farming making it more market-oriented and competitive. These trends have an effect on farmers who need to develop their management skills and competencies to cope with this changing farming environment. For farmers to be better managers and to run their businesses for profit, they need assistance from extension workers. For many extension workers, however, business management is often a challenge as their experience and practice has largely been focused on agricultural production and technology transfer. To provide support it is critical that extension workers understand some of the concepts and practices of farm business management as applied to their day-to-day extension work (Jam et al., 2009).

The changes in farming caused by the changes in the world’s economy have wide implications for extension workers. Farmers increasingly find themselves making fundamental decisions about the nature of their farming activities. For many farmers — especially small-scale farmers — farming has been about producing food for their families. But now, as the world around them changes and requires them to have cash, these farmers are faced with the need to become more entrepreneurial and market-oriented and run their farms as businesses. To make this transition

26 they need more than technical solutions to production questions. They need information about markets, farm management and finance (Challa, 2013).. They need to develop their capacity as entrepreneurs. They need the knowledge and skills to manage competitive and profitable farming, including managing input, managing production and managing marketing. All of these changes for farmers imply changes for extension workers. To support ‘entrepreneurial farmers’ extension workers need to acquire this same knowledge and skills.

Empowering ftzrmei~

Agricultural extension is perceived as the primary mechanism through which farmers expand their ability to adopt and adapt new technologies and ideas. The use of Information and Communication Technology like videos in extension is being fronted as an alternative to the conventional Face-to-face extension approach (F2FEA). A comparison of effectiveness of the Video-mediated extension approach (VMEA) and F2FEA among rice farmers in two challenges the independent use of the two approaches. A cross-sectional survey of two non-equivalent groups subjected to VMEA in Karnwenge and F2FEA in Hoima districts was conducted with 196 farmers (Jam et al,, 2009).. The results indicate greater potential for integration of VMEA and F2FEA as the two are complementary in the various stages of the farmer learning framework developed. VMEA is significantly better in awareness creation and sharing of knowledge and experiences while the F2FEA is significantly better at enhancing knowledge acquisition and retention and application. The relative strengths of VMEA and F2FEA can best be harnessed through integration of the approaches. The integration will not solve the problem of large farmer to extension ratio common in developing countries but will rather make the extension workers more effective, The integration however calls for rethinking of institutional arrangement, roles of the extension worker, and pragmatic retooling of the extension worker to embrace social learning principles that empower farmers to be more self directed learners and innovators (Tao & Zhu, 2013).

Agriculture modernization

27 Agricultural modernization implicates an increase in the efficiency of natural resources utilization, further development of the agrarian sphere, perfection of production process organization, and active implementation of innovative technologies, it is recognized that innovative development and improvement of the agrarian production process requires great financial expenses and production resources (Tao & Zhu, 2013). One of the aims of improving technologies is to increase agricultural productivity, which has been the world’s primary means of assuring that the needs of a growing population don’t outstrip the ability of humanity to supply food. Over the past 50 years, productivity growth in agriculture has allowed food to become more abundant and cheaper. A broad concept of agricultural productivity is total factor productivity (TFP). TFP takes into account all of the land, labor, capital, and material resources employed in farm production, and compares them with the total amount of crop and livestock output (Fuglie, 2015). A significant part of the agricultural modernization process in Latin America is due to the generation of support and compensation policies in the agricultural and livestock sector aimed at family agriculture (FA), given the importance of FA for social equilibrium and the improvement of quality of life in rural communities.

Eradicating poverty

There have been a number of initiatives to strengthen the planning process in recent years. This includes major consultative exercises concerning Uganda’s long-term goals and objectives, such as Vision 2025, describing national aspirations, and the 1997 Poverty Eradication Action Plan as a national planning framework to guide detailed medium-term sector plans, district plans, and the budget process. In turn, detailed sector-wide plans and investment programmes have reached varying stages of completion, set within an overall medium-ten-n expenditure framework. A programme of strengthening district capacity to prepare medium term expenditure frameworks is also underway (Jam et al., 2009).

The modern approach to planning involves ensuring that the right framework has been established to enable effective programming, implementation and monitoring. The most important point to note is that these elements interact in an ongoing process. Uganda’s over arching national planning document is the Poverty Eradication Action Plan, signaling poverty eradication as the fundamental goal of the Government. The PEAP is not a blueprint for sector

28 activities. It provides a framework for the development of detailed sector plans and investment programmes. Implementation of the PEAP demands sector-wide programming to determine sector objectives, outputs and outcomes expected from sector expenditures, and the activities which the expenditures will fund in order to achieve the desired outputs and outcomes (Fugue, 2015).

2.4 Operation effects of Operation Wealth Creation programs Pests and diseases

Pests, diseases and weeds are a constant risk for primary producers, as they can have a serious impact on agricultural production and market access. The department provides information on the prevention, management and treatment of these pests, diseases and weeds. Pest control is the regulation or management of a species defined as a pest, a member of the animal kingdom that impacts adversely on human activities. The human response depends on the importance of the damage done, and will range from tolerance, through deterrence and management, to attempts to completely eradicate the pest. Pest control measures may be performed as part of an integrated pest management strategy. In agriculture, pests are kept at bay by cultural , chemical and biological means (Fugue, 2015).. Ploughing and cultivation of the soil before sowing reduces the pest burden and there is a modern trend to limit the use of pesticides as far as possible. This can be achieved by monitoring the crop, only applying insecticides when necessary, and by growing varieties and crops which are resistant to pests. Where possible, biological means are used, encouraging the natural enemies of the pests and introducing suitable predators or parasites (Sadoulet, 2015).

Shortage ofcapital and credit fricilities Accrding to Kyotalimye, M. (2011), Agricultural credit plays an important role in agricultural development. Agricultural household models suggest that farm credit is not only necessitated by the limitations of self-finance, but also by uncertainty pertaining to the level of output and the time lag between inputs and output (De Janvry and Sadoulet, 2015). Recent studies show the growth rate of investment in agriculture is less than other economic sector. Agricultural financing is one of the most important factors to develop rural areas in developing countries. Payment of bank credit is a way of financing. In fact, facilitation of access to credit can raise amount of productive investment. Credit has a crucial role for elimination of farmer’s financial

29 constraints to invest in farm activities, increasing productivity and improving technologies. Generally, credit accessibility is important for improvement of quality and quantity of farm products so, that it can increase farmer’ s income and avoid from rural migration. On the other hand, some policy makers believe that payment of credit with low interest rate to farmers can support them against some results of development policies that threat their welfare (Ghorbani, 2016).

Scarcity ofagricultural inputs Agricultural input subsidies were a major feature of agricultural development policies in rural economies from the 1960s to 1980s. The theoretical case for agricultural subsidies is based on their promotion of agricultural productivity by making investment in new technologies more attractive to smallholder farmers If market failures mean that farmers’ private input costs are higher than true social or economic costs then a subsidy can generate a positive overall net economic return. However, there have been concerns related to inefficiency, leakages, and diversion of subsidized inputs (Sadoulet, 2015). Despite these concerns there is resurgent interest in input subsidies in Africa, with new ‘smart’ input subsidies, particularly for staples, being viewed as one means of achieving food security and pro-poor growth as well as replenishing soil fertility. The theoretical underpinnings of ‘smart’ agricultural input subsidies, their pros and cons, and their roles in agricultural development in low income countries (Sadoulet, 2015). Agricultural inputs are defined as products permitted for use in organic farming. These include feedstuffs, fertilizers and pennitted plant protection products as well as cleaning agents and additives used in food production. Despite these changes in the policy and operating environment, many prevailing beliefs about input use remain rooted in ideas formed 10—20 years ago, before the onset of what seems to be an African agricultural renaissance (Creswell, J. W., 2014). Most knowledge of modern input use is currently derived from macro-level statistics, which cannot capture within-country heterogeneity and are prone to issues of data reliability (Jerven. 2013), or from studies using small or purposively chosen samples, which may not be reliably scalable for informing national- or multinational-level policy priorities. In spite of myriad studies focusing on some specific facet of modern input use in SSA, our understanding of the current input landscape at the country and continent level remains inadequate for guiding the next generation of agricultural policies and investments in the region,

30 Lack ofadequate frirmiand

The needless expansion of farmland has become one of the biggest threats to the planet’s ecological health. To protect wildlife habitats, developing countries must increase the productivity of existing acreage by encouraging more sustainable farming practices (Sadoulet, 2015). Throughout the developing world, farmers are expanding areas of cultivation in an endless quest for fertile soil, In the process, critical wildlife habitats are being destroyed at an alarming rate. According to the Food and Agriculture Organization of the United Nations (FAO), if current trends hold, by 2050 the world’s arable land will increase by some 70 million hectares, and much of the new farmland will be on areas that are currently forested. The risk is greatest in South America and Sub-Saharan Africa, where population growth and food demand will hit tropical woodlands particularly hard.

Uq/~tvorab1e weather pattern

Weather, consciously or unconsciously, affects the daily choices you make. It helps to determine whether you dress to stay warm or cool, enjoy outside activities or stay inside — or evacuate to a safe place during extreme weather conditions. It can have both immediate and delayed effects on health, food production and general well-being. Don’t confuse climate and weather as the same phenomena, because they’re not. Climate represents averaged weather conditions over several years, while weather is something that can change every single day in every single location around the world (Sadoulet, 2015). Weather and climate play a big role in the fruits and vegetables people eat. With limited growing seasons in some parts of the country, certain foods and vegetables are simply not growable and must be shipped from other states or countries.

Weather patterns also impact the ocean — more than people realize — and can affect fish populations, the fisherman who harvest them and the people who consume them. Flood or drought conditions, as well as severe cold snaps and freezes, can wipe out entire crops.

2.5 Conclusion In this chapter the researcher looked at related literature basing on other researchers and in reference to the stated specific objectives of the study. The chapter also analyzed the theories that have been cited to analyses the prevailing strategies to enhance house hold income and alleviate poverty through wealth creation programs. This chapter develops the theoretical

31 underpinnings of ‘smart’ agricultural input subsidies, their pros and cons, and their roles in agricultural development in low income countries (Sadoulet, 2015). Agricultural inputs are defined as products permitted for use in organic farming. These include feedstuffs, fertilizers and permitted plant protection products as well as cleaning agents and additives used in food production.

32 CHAPTER THREE

METHODOLOGY

3.1: Introduction This chapter focused on the methodology of this study and underline deeply eight section of the study methodology as presented; - Research Design, second talked about research Population, third section focused on sample size, fourth section concentrated on sample procedure, fifth section talked about data research instrument, the sixth section focused on reliability and validity others looked at ethical consideration and limitations.

3.2: Research Design Research design refers to the choice of specific methods of data collection and analysis. The design is a general plan about what was done to answer the research question. The research design in this study was a cross sectional design where both qualitative and quantitative methods were applied. The design provided strengths that offset the weaknesses of both quantitative and qualitative research. Thus, by using both types of research, the strengths of each approach made up for the weaknesses of the other, The mixed method research design determined strategies, tools and methods that will be related to data collection and analysis.

3.3: Research Population A research population is also known as a well-defined collection of individuals or objects known to have similar characteristics Yin, R. K. (2009). All individuals or objects within a certain population usually have a common, binding characteristic or trait. In this research it will include farmers in Myanzi Sub county, Mubende District. It is from this population that this research got its sample and primary data which will make the target population of 44 respondents.

3.4: Sample Size

The sample size of this study was 44 respondents. To obtain this the researcher will apply Sloven’s theory.

N 12 = 1+Ne~

33 Where N= target population n=S ample population e2~ desire margin of error is 0.052

50 1±50(O.05)2 44

Therefore, the sample size of this study was 44 respondents.

3.5: Sample Procedure According to Sekaran (2003), sampling is the process of choosing the research units of the target population, which are to be included in the study. The samples used in the study was selected using purposive sampling which is a function of non- probability sampling. Under purposive sampling technique, the researchers purposely chose who, in their opinion are thought to be relevant to the research topic. In this case, the judgment of the researcher was more important than obtaining a probability sample. The process of sampling in this case involved purposive identification of the respondents.

3.6: Sources of Data

3.6.1 Primary Data Sources Primary data refers to data collected by a researcher to address the specific needs of his/her study. It involves using either quantitative and qualitative methods or a combination of both to gather first-hand information on a subject of study (Dawson, 2002, Ahiadeke, 2008). In this study, primary data was collected from Myanzi Sub County, Mubende District. Here, data was gathered using a semi-structured questionnaire consisted of both open-ended and closed ended questions. An interview guide was used to collect data from the key Informants.

3.6.2 Secondary Data Sources Apart from gathering first hand data, this study also reviewed a lot of secondary data in order to have a broader understanding of the topic. Secondary data, according to Ahiadeke (2008), refers to data which has been collected by other people for a different purpose but which have significance for the present study. It involved using information from studies others have conducted on the subject of study (Dawson, 2002). Secondary data was collected from the following sources; governmental statistical sources (census data, and other national data), book,

34 previous research studies Private sector, journals, internet search, records of staff and customers of Myanzi, Mubende district

3.7 Data collection techniques

3.7.1 Questionnaire Questionnaire is “a technique of data collection in which each person is asked to respond to the same set of questions in a predetermined order” (sounders et al., 2013). Questionnaire techniques was adapted in collecting primary data since it could provide an efficient way of collecting responses from a large sample size. The questions were then slightly modified by using expert opinions to adapt to the local context, Researcher selected questionnaire as it could have the following advantages: first, it could provide efficient way for collecting responses from a large sample size. Second, it could require less skills and sensitively than semi-structures and in-depth interviews (Sounders et al., 2016). The questionnaires were responded to by Farmers from Myanzi Sub County, Mubende District, business people and others selected at random.

3.7.2 Interview guide With interview guides the researcher gathered information through verbal interaction with the Key informants. Carrying out verbal interaction with the respondents enhanced and created conversation between the researcher and the respondent. This method further created an explanatory atmosphere to obtain information.

3.8 Reliability Reliability is defined as the extent to which a questionnaire, test, observation or any measurement procedure produces the same results on repeated trials (Miller, 2002). Reliability of measure is an indication of stability and consistency with which the instruments measures the concept and help to assess the “goodness” of a measure (Sekaran, 2005). Furthermore, the reliability of measures indicates the extent to which it is without bias (error free) and hence ensures consistent measurement across time and across various items in the instrument,

3.9 Validity Validity refers to the extent to which data collection method accurately measures what it intended to measure or to the extent to which research findings are about what they are claimed to be about (Saunders et al., 2009). The development of a content valid instrument is typically

35 achieved by a rational analysis of the instrument. Specifically, the researcher reviewed all of the items for readability, clarity and comprehensiveness and come to some level of agreement as to which items shall be included in the final instrument.

3.10 Measurement of Variable For the researcher to measure the independent and dependent variables, a 5 scale Likert Scale was used as demonstrated in the table below;

No. Mean range Interpretation —

1 1.0 - 1.8 Strongly agree 2 1.8-2.6 Agree

3 2.6 - 3.4 Neural

4 3.4 - 4.2

5 4.2—5.0 Strongly disagree

3.11 Data Analysis Data was edited, coded and entered into a computer. Data analysis was done through using Statistical Package for Social Scientists (SPSS) version. Descriptive statistics such as frequencies and percentages were used to analyze data. Tables, figures and pie-charts were also generated for easy interpretation of the data in order to come up with conclusions and recommendations. In addition, descriptions was used by looking and reviewing documents to understand attitude opinions, beliefs, social behavior, what people think, what they have done to solve their problems and their views towards success.

3.12 Limitations of the study

Limitations which were faced by the researcher include;

i) Unwillingness to fill the questionnaires; some respondents were unwilling to share Information about their leaders, supervisors, benefactors, workrnates and the service system. The researcher however explained to the respondents that the research is purely academic research and confidentiality of the information was upheld.

36 ii) Interpretation of the questions affect the meaning because some respondents may get difficulty in interpreting the questions correctly especially with the respondents that do not know English. However, the researcher hired research assistants who translated the research questionnaires to the respondents and here, the respondents was able to understand the meaning of the questions.

3.13 Ethical Consideration The researcher conducted this study in reference to the ethics and in this research the collected data was used for academic purpose and the researcher made sure that the research opinion does not include other interested but only research and must give fair consideration. Also, this research intended to enhance morals of the farmers and other interested people without bias. Every step intended to be sympathetic through rational and transparency method over all research information to be obtained.

37 CHAPTER FOUR

DATA PRESENTATION AND INTERPRETATION OF FINDINGS

4.0 Introduction This chapter presents the findings of the study, which were analyzed from the data obtained from the field as regards the effectiveness and accuracy of the questionnaires returned. According the findings, the researcher distributed 44 questionnaires and out of this number, the return rate as only 91 % indicating a satisfying return rate. This was indicated by 40 out of 44questionnaires distributed. This return rate was returned filled and it is what the researcher used to analyze the data needed to drive to the conclusion.

4.1 The Demographic characteristic of the respondents

This was characterized by the Gender of the respondents, Age, Marital Status, education level; the period spent in service. The inforn-iation obtained was as indicated in tables below;.-

Table 4.1: Gender of the respondent Frequency Percent Valid Percent —Cumulative Percent • Male 30 75.0% 50 Valid Female 10 25% 25.0% 100.0 ~ Total 44 100% 100.0% Source: Primary Data, 2019

Figure 4.1: Gender of the respondent

~jEast1 :~1.,

25 — 30

10

.... ,...... ~ =....., ...... ~. Th~v~aie Source: Primary data, 2019

38 As indicated in the table 4.1 and figure 4.1 above, results about gender of the respondents showed that out of four respondents who participated in the research, 30(75%) were Male and 10(25%) were female. This indicated that the research was dominated by male respondents. The implication of this is that, male residents in Myanzi are the most individuals involved in Wealth creation and as well were the majority interviewed.

Table 4.2 Age Group Frequency Percent Valid Percent Cumulative Percent

21-30 Years 10 25% 25% 25.0

3 1-40 Years 20 50% 50% 75 Vah4150~ 7 17.5% 17.5% 92.5 d over 50 Years 3 7.5% 7.5% 100.0

Total 40 100.0% 100.0%

Source: Primary data, 2019

Figure 4.2: Age Group

21~30 Years 3i~40 Years 41~50 years aver 50 years 25

7fl 20

IS

10

7 5 3 0 0 0.2 0.4 0.6 0.8 1 1.2 Source: Primary data, 2019 From the findings in table 4.2 and figure 4.2 above on age of the respondents, 10(25%) were 21- 30 years, 20(50%) were between 3 1-40 years, 7(17.5%) were between 4 1-50 Years, 3(7.5%) were above 50 years. This indicated that the dominant respondents were between 31-40 years of

39 age, followed by those between 2 1-30 years, the 41-50 years and as well minority were 50 years and above.

Table 4.3: Marital Status Frequency Percent Valid Percent Cumulative Percent

Single 15 37.5% 37.5% 37.5 Married 12 30% 30% 67.5 Valid Divorced 9 22.5% 22.5% 90 Separated 4 10% 10% 100.0 Total 40 100.0% 100.0%

Source: Primary Data, 2019

Figure 4.3: Marital Status

15

12

9

4 r1 L! I

51~ rried ~)Ivorcec~

Source: Primary Data, 2019

Findings in table 4.3 and figure 4.3 above about marital status of the respondents, 15(37.5%) were single, 12 (30%) were married, 9(22.5%) were divorced while 4(10%) were separated. This showed that majority of the respondents who participated in this research were single followed by those who were married, then divorced and lastly few were separated.

Table 4.4 Level of Education attained

40 Frequency Percent Valid Cumulative Percent Percent Primary level 3 7.5% 7.5% 7.5 Ordinary level 6 15% l5% 22.5

Val~c~ 6 15% 15% 37.5 d Diploma 10 25% 25% 62.5

Bachelors 15 37.5% 37.5% 100 Total 40 100.0% 100.0%

Source: Primary Data, 2019

Figure 4.4 Level of Education attained

Marrital status

Source: Primary data, 2019

Results in table 4,4 and figure 4.4 on the level of education of the respondents above indicated that 3(7.5%) were primary leavers, 6(15%) were of Ordinary level, 6(15%) had acquired advanced level of education, 6(15%) had diploma while 15(35.5%) had bachelor’s degree. From the findings therefore, majority of the respondents had advanced level education qualification. Table 4.5 Number of Years Spent in Mvanzi Sub count

41 Less than 1 Year 4 10% 10% 10 1-2 Years 5 12.5% 12.5% 22.5

Vah 2-4 years 3 7.5% 7.5% 30 d 4-6 Years 15 37.5% 37.5% 67.5

Over 6 Years 13 32.5% 32.5% 100 Total 40 100.0% 100.0% ~ Source: Primary data, 2019

Figure 4.5 Number of Years Spent in Myanzi Sub county

Over 6 Years

4~6 Years

~-4 years

i.~2 Years

ti

6 8 10 12 16

Findings in table above on the number of years spent in Myanzi Sub county, 4(10) had spent less than 1 year, 5(12.5%) had spent between 1-2 years, 3(7.5%) had spent 2-4 years, 15(37.5%) had spent between 4-6 years while 13(32.5%) had spent over 4-6 years in Myanzi Sub County. The findings in this case indicated that the research was dominated by respondents who had spent 6 and above years.

4.2 The relationship between Operation Wealth Creation and household Poverty reduction. In order to determine the relationship between Operation Wealth Creation and household Poverty reduction, a Pearson’s conelation was used as in table below; -

42 Correlations

Operation Wealth Creation household Poverty reduction Operation Wealth Pearson 1 Creation Correlation Sig. (2-tailed) .125 N 40 40 household Poverty Pearson 880 1 reduction Correlation Sig. (2-tailed) .125 N 40 40 Correlation is significant at the 0.01 level (2-tailed).

The table above was to determine the relationship between Operation Wealth Creation and household Poverty reduction. From the findings, a strong and linear relationship with significant statistical correlation of (r=0.880, p

4.2.4 Regression Model To further confirm the relationships obtained in the relationship analysis using Pearson correlation given in the tables as indicated above, the researcher carried out regression analysis not only to determine the relationship between the variables, but also predict the influence/effect of one variable from another.

Overall regression model for the variables Overall Model Parameter

The table below presents the overall model parameters (Beta values) and the significance of these values that tell about the individual contribution of the variables in the Fit Model for operation Wealth Creation and poverty reduction.

Table 4.12: Model summary and the Overall Model Parameter

43 Square R Square the Estimate R F dfl df2 Sig. F Change Square Change

1 ~559a .313 .244 .22628 .101 13.539 3 10 .000 a. Predictors: (Constant), operation wealth creation and poverty reduction.

Overall Model Parameter

Model Unstandardized Coefficients Standardized Coefficients B Std. Error Beta Std. Error t Sig. (Constant) 1.963 .188 10.418 .000 Operation wealth creation .055 .106 .058 .113 .516 .606

a. Dependent Variable poverty reduction Source: Primary Data, 2019

Table 4.17 shows that values of R and R2 for the model that has been derived for Operation Wealth Creation and household Poverty reduction., for these data R=0.3 18 and R2~0. 101. With this R value represents a simple correlation between operation wealth creation and household Poverty reduction. The value of R2 (0.093) shows that Household poverty reduction is through effective wealth creation opportunities promoted by operation wealth creation in the area.

ANOVA for Operation Wealth Creation and household Poverty reduction. Table 4.13: Presents the variance for the independent and dependent variables

~— Sum of Squares df Mean Square F Sig.

- Regression 54.254 3 18.085 13.539 000 Residual 484.863 363 1.336 Total 539.117 366 ~ Source: Primary data

From the table above, the results indicated that there was statistically a significant relationship between operation wealth creation and Household poverty reduction. This is shown in the “significant” column indicating a positive significant relationship with values less than 0.05.

44 43 ~ performance of Operation Wealth Creation program in improving the livelihood of the people Responses~ N Mean Std.

Deviation ~--OWC programme basically distributes free agricultural 40 3.84 0.867 inputs to farmers in the DLGs. The inputs include cash crops such as coffee, tea, citrus, mangoes, pineapples and apples. OWC focuses on food security crops such as maize, 40 3.76 0.670 beans, livestock and a smaller range of enterprises The OWC in our community has Promoted adoption of 40 3.77 0.758 new crops which has increased agriculture outputs The use of modern agriculture technology allows farmers 40 3.77 0.758 tp commercialize agriculture Weak infrastructure including roads, power, water for 40 3.89 0.704 production and storage facilities have been improved due to OWC Commercial marketing of commodities has enabled 40 3,77 0.758 farmers and other entrepreneurs to sale their communities to a ready market.

Valid N (listwise5 —______Source: Primary Data, 2019 The table above, determined the performance of Operation Wealth Creation program in improving the livelihood of the people where, statement about whether OWC programme basically distributes free agricultural inputs to farmers in the DLGs. The inputs include cash crops such as coffee, tea, citrus, mangoes, pineapples and apples the mean difference was 3.84 and Standard Deviation was 0.867.

The second statement tested to find out whether OWC focuses on food security crops such as maize, beans, livestock and a smaller range of enterprises. Here the mean difference was 3.76 and standard deviation was 0.670.

45 The researcher also tested to find out whether the OWC in the community could Promote adoption of new crops which has increased agriculture outputs, the mean difference was 3.77 with 0.758 standard deviation

With the use of modern agriculture technology allows farmers to commercialize agriculture, the mean difference was 3.77 and standard deviation was 0.758

For Weak infrastructure including roads, power, water for production and storage facilities that have been improved in the community due to OWC, the mean difference was 3.89 and standard deviation was 0.704

The last statement was to find out whether Commercial marketing of commodities has enabled farmers and other entrepreneurs to sale their communities to a ready market. Here the mean difference was 3.77 and standard deviation was 0.758

46 4.4 The challenges affecting the performance of Operation Wealth Creation programs in poverty reduction. The third objective was to find out the challenges affecting the performance of operation wealth creation programs in poverty reduction. The results obtained were as indicated the table below;

Responses N Mean Std. Deviation In our community Beneficiaries connive with suppliers and sign 40 3.83 0.521 for technologies without a receipt in exchange for money. In our community there is duplication of input supply activities 40 3.73 0.821 by different organizations e.g politicians, religious leaders, and agencies Inadequate policy framework and regulation in Agriculture. For 40 3.97 0.556 instance, the Policy on the regulation of counterfeits and saboteurs is not in place. In our community, there are conmen who ask people for money 40 3.96 0.582 claiming to be working for operation Wealth Creation. In our community, some OWC officers have generally not been 40 3.90 0.410 effectively involved in the input distribution process. In our community Extension workers have been recruited and 40 3.93 0.488 facilitated but are not visible on the ground. Some chief administrative officers (CAOs) are too busy and they 40 3.97 0.5 56 hand over their roles to junior officers who are easily intimidated by politicians. Valid N (listwise) Source: Primary Data, 2019

Respondents were asked to determine whether in the community, Beneficiaries connive with suppliers and sign for technologies without a receipt in exchange for money. The results indicated that respondents agreed with mean difference of 3.83 and standard deviation 0.521.

47 The second statement was to justify the concept that, in the community there is duplication of input suppiy activities by different organizations e.g politicians, religious leaders, and agencies. Here, the mean was 3.73 and standard deviation was 0.82 1.

Another statement tested was to determine whether, there is inadequate policy framework and regulation in Agriculture in the community. For instance, the Policy on the regulation of counterfeits and saboteurs is not in place. The respondents agreed with the statement which was evidenced by a mean difference of 3. 97and standard deviation of 0.556

The respondents also stated that, in their community, there are conmen who ask people for money claiming to be working for operation Wealth Creation evidenced by a mean difference of 3.96 and standard deviation of 0.582

Also, respondents were asked to determine whether, in their community, some OWC officers have generally not been effectively involved in the input distribution process. The respondents agreed with a mean difference of 3.90 and standard deviation of 0.4 10.

Others stated that in their community Extension workers have been recruited and facilitated but are not visible on the ground with mean difference of 3.93 and standard deviation of 0.488

The last statement identified whether, some chief administrative officers (CAO5) are too busy and they hand over their roles to junior officers who are easily intimidated by politicians. Here the mean difference was 3.97 and standard deviation was 0.5 56

48 CHAPTER FIVE

DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

This chapter summarize the findings of the study as they are presented in chapter four, he further recommends and conclude in relation to the specific objectives. The researcher discussed the

findings in relation to literature and the research objectives it is discussed below; -

5.2 Summary and Discussion of the findings

5.1.1 The Demographic characteristic of the respondents

This was characterized by the Gender of the respondents, Age, Marital Status, education level; the period spent in service. As indicated in the table 4.1 and figure 4,1, results about gender of the respondents showed that out of four respondents who participated in the research, 30(75%) were Male and 10(25%) were female. This indicated that the research was dominated by male respondents. The implication of this is that, male residents in Myanzi are the most individuals involved in Wealth creation and as well were the majority interviewed.

On the case of age of the respondents, 10(25%) were 21-30 years, 20(50%) were between 3 1-40 years, 7(17.5%) were between 4 1-50 Years, 3(7.5%) were above 50 years. This indicated that the dominant respondents were between 3 1-40 years of age, followed by those between 21-30 years, the 4 1-50 years and as well minority were 50 years and above. From the findings, majority of the respondents who participated in this research were single followed by those who were married, then divorced and lastly few were separated. This was indicate by 15(37.5%) out of the total number of respondents.

Results in table 4.4 and figure 4.4 on the level of education of the respondents above indicated that 3(7.5%) were primary leavers, 6(15%) were of Ordinary level, 6(15%) had acquired advanced level of education, 6(15%) had diploma while 15(35.5%) had bachelor’s degree. From the findings therefore, majority of the respondents had advanced level education qualification. Findings about the number of years spent in Myanzi Sub county, 4(10) had spent less than I year, 5(12.5%) had spent between 1-2 years, 3(7.5%) had spent 2-4 years, 15(37.5%) had spent

49 between 4-6 years while 13(32.5%) had spent over 4-6 years in Myanzi Sub County. The findings in this case indicated that the research was dominated by respondents who had spent 6 and above years.

5.1.2 Operation Wealth Creation and Household Poverty reduction. The first objective was to determine relationship between Operation Wealth Creation and household Poverty reduction. In order to determine the relationship between Operation Wealth Creation and household Poverty reduction, a Pearson’s correlation. From the findings, a strong and linear relationship with significant statistical correlation of (r=0.880, p

5.1.3 Operation Wealth Creation program and people’s life The second objective the performance of Operation Wealth Creation program in improving the livelihood of the people and statement about whether OWC programme basically distributes free agricultural inputs to farmers in the DLGs. The inputs include cash crops such as coffee, tea, citrus, mangoes, pineapples and apples the mean difference was 3.84 and Standard Deviation was 0.867. The second statement tested ~o find out whether OWC focuses on •food security crops such as maize, beans, livestock and a smaller range of enterprises. Here the mean difference was 3.76 and standard deviation was 0.670. The researcher also tested to find out whether the OWC in the

50 community could Promote adoption of new crops which has increased agriculture outputs, the mean difference was 3.77 with 0.758 standard deviation. With the use of modern agriculture technology allows farmers to commercialize agriculture, the mean difference was 3.77 and standard deviation was 0.758. For Weak infrastructure including roads, power, water for production and storage facilities that have been improved in the community due to OWC, the mean difference was 3.89 and standard deviation was 0.704. The last statement was to find out whether Commercial marketing of commodities has enabled farmers and other entrepreneurs to sale their communities to a ready market. Here the mean difference was 3.77 and standard deviation was 0.758.

The findings here the findings were in agreement with Jam et al., (2009) who stated that, the changes in farming caused by the changes in the world’s economy have wide implications for extension workers. Farmers increasingly find themselves making fundamental decisions about the nature of their farming activities. For many farmers — especially small-scale farmers — farming has been about producing food for their families. But now, as the world around them changes and requires them to have cash, these farmers are faced with the need to become more entrepreneurial and market-oriented and run their farms as businesses. Challa, 2013 added that, to make this transition they need more than technical solutions to production questions. They need information about markets, farm management and finance (

5.1.4 Operation Wealth Creation the effects on poverty reduction. The third objective was to find out the challenges affecting the performance of operation wealth creation programs in poverty reduction. Respondents were asked to determine whether in the community, Beneficiaries connive with suppliers and sign for technologies without a receipt in exchange for money. The results indicated that respondents agreed with mean difference of 3.83 and standard deviation 0.521. The second statement was to justify the concept that, in the community there is duplication of input supply activities by different organizations e.g politicians, religious leaders, and agencies. Here, the mean was 3.73 and standard deviation was 0.821. Another statement tested was to determine whether, there is inadequate policy framework and regulation in Agriculture in the community. For instance, the Policy on the regulation of counterfeits and saboteurs is not in place. The respondents agreed with the statement which was evidenced by a mean difference of 3.97and standard deviation of 0.556. The respondents also

51 stated that, in their community, there are conmen who ask people for money claiming to be working for operation Wealth Creation evidenced by a mean difference of 3.96 and standard deviation of 0.582. Also, respondents were asked to determine whether, in their community, some OWC officers have generally not been effectively involved in the input distribution process. The respondents agreed with a mean difference of 3.90 and standard deviation of 0.410. Others stated that in their community Extension workers have been recruited and facilitated but are not visible on the ground with mean difference of 3.93 and standard deviation of 0.48 8. The last statement identified whether, some chief administrative officers (CAOs) are too busy and they hand over their roles to junior officers who are easily intimidated by politicians. Here the mean difference was 3.97 and standard deviation was 0.556. According to Fugue, (2015), Pests, diseases and weeds are a constant risk for primary producers, as they can have a serious impact on agricultural production and market access. The department provides information on the prevention, management and treatment of these pests, diseases and weeds. In agriculture, pests are kept at bay by cultural, chemical and biological means.

5.2 Conclusions In conclusion, it should be recalled that, there have been a number of initiatives to strengthen the planning process in recent years. This includes major consultative exercises concerning Uganda’s long-term goals and objectives, such as Vision 2025, describing national aspirations, and the 1997 Poverty Eradication Action Plan as a national planning framework to guide detailed medium-tern-i sector plans, district plans, and the budget process. In turn, detailed sector-wide plans and investment programmes have reached varying stages of completion, set within an overall medium-term expenditure framework. A programme of strengthening district capacity to prepare medium term expenditure frameworks is also underway.

Lastly, Agricultural financing is one of the most important factors to develop rural areas in developing countries. Payment of bank credit is a way of financing. In fact, facilitation of access to credit can raise amount of productive investment. Credit has a crucial role for elimination of farmef s financial constraints to invest in farm activities, increasing productivity and improving technologies. Generally, credit accessibility is important for improvement of quality and quantity of farm products so, that it can increase farmer’s income and avoid from rural migration. On the

52 other hand, some policy makers believe that payment of credit with low interest rate to farmers can support them against some results of development policies that threat their welfare.

5.3 Recommendations o Increase awareness about the proposed changes to the Operation Wealth Creation (OWC) programme: Following the decision by government to reform the Operation Wealth Creation (OWC) model, Ugandan citizens are ignorant of the new developments in the Agriculture sector. Consequently, the Ministry of Agriculture and Operation Wealth Creation (OWC) Secretariat should embark on a country wide awareness drive to educate the population about the new Operation Wealth Creation (OWC) programme.

o Address governance issues in the agricultural sector: Broader governance issues like weak institutions, poor leadership, corruption and misuse of funds in the agricultural sector require urgent attention, and need to be addressed because they have a direct impact on the effectiveness of agricultural programmes.

o Promote Partnerships for Knowledge Application to the Agricultural Sector: The partnership between the UPDF, CAES and MAAIF was recognised as positive.It was recommended that formal partnerships, based on the application of research and knowledge should be further pursued. Universities and think-tanks have a lot to offer in the effective application of knowledge. For example CAES has started a food technology and business centre which promotes value addition and encourages Ugandans to reduce reliance on imported food.

o Increase Funding to the Agriculture sector: The agriculture sector is the backbone of the economy and receives one of the smallest budget allocations approximately 3% annually. Participants pointed out that the corruption and misuse of funds in the agriculture sector has led to underachievement and absence of value for money. Therefore funds allocated to the agriculture sector should be used in a transparent and effective manner to transform the sector

5.4 Future areas of research. The researcher recommended that, though much of the areas to improve in order to enhance improvement in in wealth creation in regions, there is a need to study the implementation methods and looking keenly who mostly benefit from this program. This will help the

53 stakeholder especially the government to work hardly to maintain he through and effective services to be provided by these programs.

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58 APPENDICES APPENDIX I: QUESTIONNAIRE TO ASSESS THE INFLUENCE OF OPERATION WEALTH CREATION ON HOUSEHOLD POVERTY REDUCTION IN UGANDA. A CASE OF MYANZI SUBCOUNTY MUBENDE DISTRICT Dear respondent,

My name is Nsurnba Barnabas, I am a student of Kampala International University pursuing a bachelor’s degree in Public administration. I am carrying out the study on “the influence of operation wealth creation on household poverty reduction in Uganda. A case of Myanzi Sub County Mubende District”. This research is mainly for academic purposes and will not be used elsewhere but for partial fulfillment of the award of a degree in human resource management. Your contribution towards this research will be highly appreciated.

SECTION A DEMOGRAPHIC CHARACTERISTICS OF THE RESPONDENTS Tick in the appropriate box (1) Gender of the respondent

(a)Male L (b) Female

2. Age Group

21 —30 yrs L~J

31 --40yrs I 41—5Oyrs Over 50 yrs

3. Marital status

Single I

Married LJ Divorced Separated Others specify

59 4. Level of education attained Primary level Ordinary level Advanced level

Diploma I I

Bachelors’ Degree 1_ Others specify

5. Number of years spent in Myanzi

Less than 1 year

1-2 years

2-4 years

4 -6 years

Over 6 years

SECTION B: THE RELATIONSHIP BETWEEN OPERATION WEALTH CREATION AND HOUSEHOLD POVERTY REDUCTION In the section select whether you agree, disagree, whether you are not sure of strongly disagree. The 5 Likert scaling represents a follows. lStrongly Agree (SA), 2= Agree (A), 3 Not Sure (NS), 4= Disagree (DA) and SStrongly Disagree (SD) Please indicate the degree to which you agree with the SA A NS DA SD following statements. Tick the scale 1 2 3 4 5 OWC programme basically distributes free agricultural inputs to farmers in the DLGs. The inputs include cash crops such as coffee, tea, citrus, mangoes, pineapples and apples.

OWC focuses on food security crops such as maize, beans, livestock and a smaller range of enterprises

The OWC in our community has Promoted adoption of new crops which has increased agriculture outputs

60 The use of modern agriculture technology allow farmers tp commercialize agriculture Weak infrastructure including roads, power, water for production and storage facilities have been improved due to OWC Commercial marketing of commodities has enabled farmers and other entrepreneurs to sale their communities to a ready market.

SECTION C: THE PERFORMANCE OF OPERATION WEALTH CREATION PROGRAM IN IMPROVING THE LIVELIHOOD OF THE PEOPLE In the this section select whether you agree, disagree, whether you are not sure of strongly disagree. The 5 Likert scaling represents a follows. lStrongly Agree(SA), 2= Agree(A), 3= Not Sure(NS), 4= Disagree(DA) and 5Strongly Disagree(SD)

SA A NS DA SD 1 2 3 4 5 Creating a ~ enhanced effectiveness of the agriculture sector. Starting to identify and address the various gaps that exist in the sector including through targeted interventions, which are bringing positive results.

-_ Connecting with and mobilizing a significant proportion of the population working in the sector and raised expectations as to what can be achieved. Begmmng to mobilize the various stakeholders and are starting to streamline their engagement to create a more effective sector.

61 SECTION D: THE CHALLENGES AFFECrfING THE PERFORMANCE OF OPERATION WEALTH CREATION PROGRAMS IN POVERTY REDUCTION

In the section select whether you agree, disagree, whether you are not sure of strongly disagree. The 5 Likert scaling represents a follows. lStrongly Agree(SA), 2= Agree(A), 3= Not Sure(NS), 4= Disagree(DA) and 5Strongly Disagree(SD)

Please indicate the degree~iic~yo~eeitktk~ SA A NS DA SD following statements. Tick the scale 1 2 3 4 5 In our community Beneficiaries connive with suppliers and sign for technologies without a receipt in exchange for money. In our community there is duplication of input supply activities by different organizations e.g politicians, religious leaders, and agencies Inadequate policy framework and regulation in Agriculture. For instance, the Policy on the regulation of counterfeits and saboteurs is not in place. mm~ty,th1~mei1wh~skpeoplefor money claiming to be working for operation Wealth Creation. In our community, some OWC officers have generally not been effectively involved in the input distribution process. In our ~ and facilitated but are not visible on the ground. Some chief administrative officers (CAOs) are too busy and they hand over their roles to junior officers who are easily intimidated by politicians.

Thank you for your time

62 APPENDIX II: WORK PLAN (GANTT CHART) Taskname W W W W W W W W W W 1 2 3 4 5 6 7 8 9 10 Sending of topic title and objectives Preparation of chapter one Addressing of the supervisor’s comments from the chapter one Preparation chapter two Addressing of the supervisor’s comments from the chapter two Preparation of chapter three Responding of the supervisor’s comments from the chapter two Submission of the proposal(three ~rs)___ Correcting and solving of the comments from the proposal

63 APPENDIX 111: THESIS BUDGET No. Items Amount ugx

01 Equipment 74,000

02 Stationary 74,000

03 Printing facilaties 444,000

04 Enternet facilities 222,000

05 Research fee 370,000

06 Photocopy cost 37,000

07 Telephone Expences 148,000

08 Transportation 185,000

09 Other cost 296,000

Total Budget cost 1,776,000

64 APPENDIX IV: MAP OF THE STUDY ARE

65 APPENDIX V: A TABLE TO DETERMINE THE SAMPLE SIZE Sample Size8 Determination8 8 Confidence = Confidence = ~0/ Fopulatiori Degree of 4ccuia~Marqin of Error Degree of ~ccur~’, Margin of Error Size

_____ (.05 0.0~5 LOIS 0.01 [ DM5 0.035 0.025 0.01 10 10 10 10 10 10 10 10 10 20 19 20 20 20 19 20 20 20 30 28 29 29 30 29 29 30 50 44 47 48 50 47 48 49 50 75 63 69 72 74 67 71 73 75 100 80 89 94 99 87 93 96 150 108 126 137 148 122 135 142 149 200 132 160 177 196 154 174 186 198 250 152 190 215 244 182 211 229 246 300 169 217 251 291 207 246 270 295 400 196 265 318 384 250 309 348 391 500 217 ~06 377 475 285 365 421 485 600 234 340 432 565 315 416 490 579 700 248 370 481 653 341 462 554 672 800 260 396 526 739 363 503 615 763 000 269 ~19 568 823 382 541 672 854 1,000 278 440 606 906 399 575 727 943 1,200 291 474 674 1067 427 636 827 1119 1~500 306 515 759 1297 460 712 959 1376 2~000 322 563 869 1655 498 808 1141 1785

66