A Dollar a Day :: Aid in Uganda
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Case Study #5: International Aid in Uganda

While it is still classified by the United Nations as one of the ‘least developed countries’ (LDCs), Uganda is a showcase for the success of official development aid in a sub-Saharan African country. Though it still has many problems and challenges, such as violent conflicts in the North of the country, Uganda has seen many improvements over the last few decades, especially during the 1990s.

In Uganda, due in many parts to the significant amount of aid directed there, primary education enrollment is at 90%. Unlike many of its neighboring countries, Uganda has also managed to cut HIV/AIDS rates from 18% of adults to around 6% over the last 15 years (in a large part, because of internationally funded HIV/AIDS awareness campaigns). Access to clean water has increased 8% over just four years (2000-2003), and extreme poverty has fallen from 56% to 38% over the 1990s. All of these are tremendous achievements when compared to many other African countries.

Ugandan Flag

Ugandan flag.

The Ugandan economy has also taken off – over the 1990s its growth rate was around 5.8% each year. Aid has had an especially large effect in this area. Agriculture takes up 40% of the Gross National Product, and provides employment for 83% of the population. Activities in Uganda, such as one run by USAID (the government agency in charge of managing the allocation of development aid from the United States), to educate farmers about better planting and harvesting techniques have resulted in a huge increase in production. In some cases, farmers who had harvested 1.7 metric tons per hectare of crops such as maize before the program managed to harvest 3 metric tons after the program. In turn, this increased output has helped farmers improve their standard of living. Wilson Chemusto, a farmer who benefited from the USAID program, was able to build a new house, install solar panels, and purchase more land to farm with his increased yields.

Uganda receives aid from a variety of different sources, mainly the International Development Association and OECD countries. In 2003, Uganda received a total of $977 million in assistance. $320 million (33% of total aid) came from the IDA, and $191 million (20%) came from the United States. Britain was third in aid to Uganda, supplying $106 million (11%). Most of this aid was directed toward health, education, and program assistance.

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Sources

OECD: Recipient Aid Charts. 2004.

USAID: Sub-Saharan Africa: Uganda. 2006.

World Bank: Uganda: Country Brief. 2006.

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