1. Local Government Development Program and Poverty Reduction in Uganda: Lessons from Aid Policies Shuaib Lwasa Department of Geography Makerere University Tel: 256 41 531261 (off) 256 77 461727 Lwasa_s@arts.mak.ac.ug

2. Contents of presentation  Introduction  The Urbanizing poverty  Local Government Development Programme (LGDP)  Participatory planning and poverty eradication  Lessons learned  Conclusions

3. Introduction  Poverty eradication is still leading on Uganda’s development and political agenda  It is pursued at different levels from national, sub- national and local levels  Various policies and strategies implemented but outcomes yet to be inclusive and comprehensive  Interventions focused on rural areas but there is increasing concentration of poverty in urban areas

4. Projected Urban Population versus Rural Population If not addressed, poverty is to worsen in urban areas

5. Introduction  In Uganda decentralization and foreign aid has shifted poverty reduction strategies from top-down to bottom-up  This is through Local Government Development Program (LGDP) which is a demand and performance driven process  Main ingredients; actors, identification of needs, prioritization and investment in projects at various levels  Important; MD target of halving urban population with out sanitation in urban areas

6. Administrative Structure and LGDP Implementation Village (LC 1) Parish Sub county Council District Council Village (LC 1) Ministry of Local Government Filtering of Priority Needs Transfers, Mentoring and Supervision Transfers Assessment

7. Research Issues and Methodology  Research focused on assessing how LGDP and the development planning processes is addressing the needs and priorities of urban communities in poverty reduction  Methodology –comparative analysis of four study sites in Kampala, employed participatory methods

8. Poverty analysis frameworks Poverty Understanding Measurement Intervention Response to market Incentives; individual, circumstances Structuralist Theory; Societal institutions Good Governance; Power to decide, Responsibility and obligations Rural-Urban Divide; Economic equilibrium Origin-Destination; Rural-urban Migration Urbanizing poverty Which policies, programs address poverty using comprehensive framework of analysis?

9. Local Government Development Programme (LGDP)  Background –Government programme that is multi-lateral funded –Launched in 2000 for three years and now LGDP III up to 2008 –In support of the decentralization policy implementation –Involves development planning that is participatory from lower level administrative units  Approach –Local Development Grants and Capacity Building Grants –Budget conferences –Bottom – up filtering of needs, priorities of investment projects –Private sector led project implementation through public procurement process –Community participation in identification, financing and implementation?? –Programme cost is US $ 88.9m and US $ 52.5m is for direct investment in the LGs.

10. Investment areas under LGDP  Projects include; –Water supply –Sanitation facilities –Education facilities and financing –Construction of roads –Drainage installation –Street lighting –Waste management facilities –Health infrastructure and financing

11. Indicative Figures for Kampala for FY 2004/05 Source: Three Year District Development Plan 2005/2008

12. Bottom – up filtering Transfers Priority Scale Macro- Meso- Micro- Zone meeting PDC City/Division Council Household Community Household

13. Messages from Beneficiaries  ‘Our School’ versus their school  Management committees for sustainability  Double-edged investment projects  Phasing resource demanding projects is good solution  Information flow improved

14. Lessons learned  Beyond talk; participatory approaches have and can work; enhancement required  Governance and responsibility changes of LGs coming with Aid applauded  A new dimension of cumulative effect of aid policies  Private sector practices; market values versus contract values –Employment generation for local communities not prioritized  Resources for sustainability  Principle of good governance still not well embraced by authorities; e.g. changes in priorities  Requirement: Capacity building for LGs (beyond performance monitoring) especially for long-range planning

15. Conclusions  Eradicating poverty is challenging due to the nature of poverty and its dynamism  LGDP in Uganda providing some of the solutions to poverty reduction strategies  Participation of communities and consultations has enabled informed decision making  LGDP and people-centered approaches need to be institutionalized for sustenance of results  Strategic necessary to provide a framework for short term investments

16. Thank you