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21. Fiscal Policy, Growth and Poverty Reduction in Uganda

Author:
Steve Kayizzi-Mugerwa
Publication Date:
03-2002
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
After more than a decade of economic decline and civil war, Uganda was able to return to economic growth thanks to the policies pursued by Museveni's National Resistance Movement which elicited considerable donor support. They include macroeconomic reforms, public sector restructuring, privatisation and decentralization, all with emphasis on poverty reduction. The government recognises that fiscal policy is the key to success and much effort has, in the past decade, gone towards fiscal reforms and the improvement of institutional capacities. Still, in a country with limited finances and a thin tax base the competition for resources has been stiff. While the government has been able to embark on initiatives such as universal primary education, thanks to an improved revenue base and donor support, the decentralization drive is hindered by serious fiscal constraints at the local level.
Topic:
Development, Government, and Political Economy
Political Geography:
Uganda and Africa

22. Explaining Leakage of Public Funds

Author:
Ritva Reinikka and Jakob Svensson
Publication Date:
12-2001
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Using panel data from an unique survey of public primary schools in Uganda we assess the degree of leakage of public funds in education. The survey data reveal that on average, during the period 1991-95, schools received only 13 percent of what the central government contributed to the schools' non-wage expenditures. The bulk of the allocated spending was either used by public officials for purposes unrelated to education or captured for private gain (leakage). Moreover we find that resource flows and leakages are endogenous to school characteristics. Rather than being passive recipients of flows from government, schools use their bargaining power vis-à-vis other parts of government to secure greater shares of funding. Resources are therefore not necessarily allocated according to the rules underlying government budget decisions, with potential equity and efficiency implications.
Topic:
Education, Government, and Human Welfare
Political Geography:
Uganda and Africa