‘flif INFLUENCE OF OPERATION WEALTH CREATION ON HOUSEHOLD POVERTY REDUCTION IN MYANZI SUBCOUNTY MUBENDE 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 KAMPALA INTERNATIONAL UNIVERSITY SEPTEMBER, 2019 1 IV’S Tel: +256 (0) 382 277 030 * Fax: +256 (0) 41 501 974 INTERNATIONAL E-maiL: [email protected] * Website: http://www.kiu.ac.ug I IJ KA” PALA Ggaba Road, Kansanga* P0 BOX 20000 KampaLa, Uganda _________________ 1_i N I ~lE RS IT”Y’ COLLEGE OF HUMANITIES AND SOCIAL SCIENCES DEPARTMENT OF POLITICAL AND ADMINISTRATIVE STUDIES Name of candidate N 5~M~SY~ ~~Nfl ~IJ—S Registration No 0 ~i ci~ ISO Department ~ 1~i~fttJ ~t~j ~-th~1 J~J~ii ~ ci~~-~1 Programmes~ ~ ‘~ ... kie&41 C~e&~ ~ui~ 1. Title and problem formulation/objectives statement and definition/articulation/English Language -20% /~ 2. Organisation of material and logical presentation/sequence •-5% / ~&i-f 3. Methodology used in data collection -10% f 0’~ 4. Analysis of issues -10% / O~ 5. Content and Relevance to course program subject -10% / ~ 6. Application and /or theoretical linkage -15% / ~Z_ 7. Findings/ observation/comments -15% 8. Conclusion/Limitation -10%) ~ 9. Suggestion/or recommendation -5% / 01.4 Internal examiner’s Name Marks:...~~~ Signature~ Tel:..~~~U~( oUM DateS External examiner’s NameS Marks Signature Tel’ DateS “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 Mubende District” 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).