Uganda Action Plan (PEAP) in order to address the

Topic: BusinessAccounting
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Last updated: September 4, 2019

Uganda is one of the poor country in African continentwhich have a higher poverty rate, insecurity, inequality and low GDP growthrate. Poverty rate is one of a significant issue that has blocked Uganda fromdeveloping since 1990s. In 1997, the government of Uganda has created PovertyEradication Action Plan (PEAP) in order to address the poverty issue inside thecountry.

This plan was to erase the poverty rate, increase the living standardof the whole country to above poverty line. Since the PEAP faced new challenges,the first revision of the PEAP took places in 2000 (World Bank, 2005). Thegovernment of Uganda is lacking of capability to resolve the problem. The WorldBank, as an international organization, has developed a new loan program calledThe Poverty Reduction Support Credit (PRSC). This program was designed tosupport the implementation of Poverty Eradication Action plan in Uganda andestablished about 10 series of the project whose mandate was approximately 1year for each of the project.

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For instance, the first poverty reduction supportcredit (PRSC1) project was established on May 31, 2001, yet it was closed afterimplementing the project for 1 year. Continuously, the poverty reductionsupport credit 10 (PRSC10) was established on March 14, 2013 which was thelatest project of the World Bank that provided loans and funds to operate inUganda. Along with those loan, however, it needs a consent from Ugandagovernment on a specific condition in order to supply those funds. The WorldBank condition wants Uganda government to regulate service, utility and market(Warren & Rick, 2002).             Uganda has put up effortsand increases its commitment in dealing with poverty issue.

It is notimpossible to solve poverty issue, yet it will need more time implementingpolicies to erase poverty within a country. Uganda faced social instability andweak institution. The PEAP is a first program of Uganda that addressing thepoverty issue starting from 1997. Although PEAP has been established to work onpoverty issue, it did not process well in the country. Uganda economy is in apoor condition which government cannot save its own money to spend on thedevelopment and to reduce the poverty rate inside the country. However, WorldBank has become a major actor to push Uganda up above the poverty line.

ThePoverty Reduction Support Credit (PRSC), which was established by the WorldBank, has provided new loan and grant to Uganda, totally around US$ 100million, in its latest projects in order to reform and decrease theirs povertyrate within the country (World Bank, n.d). World Bank only imposed policy alongwith the condition in which manage Uganda to regulate service, utility andmarket. Uganda faced many implications regarding to the policy that was imposedby the World Bank. The policy has caused significant effect on Uganda insecurityand socio-economic challenges. The government of Uganda is still weak andanarchy that is hard regulate the policy on sector that was imposed by theWorld Bank. Those policies have led to civil disorder and corruption insideUganda.

The agriculture sector which is the primary sector for the wholecountry did not contribute well to the Uganda society. Moreover, others sectorof Uganda did not work properly which is hard to boost up the economic growthrate of the country. Uganda also lacks of infrastructure for transportationinside the country. The PRSC with PEAP, however, has helped Uganda to restorepeace and stability within the country which led to reduction in small amountof poverty each year from the first started of implementing project which wascounted as a remarkable story in African continent (World Bank Group, 2016).

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