Across several social and economic dimensions Uganda scores relatively well in sub-Saharan Africa in terms of gender gaps. Yet, despite a progressive institutional framework, women continue facing higher poverty and vulnerability, lower education opportunities, and obstacles to acquiring productive assets. While existing social protection and economic (i.e. poverty-reducing) programs do not show gender exclusion given the need to close the remaining gaps in opportunities and outcomes consideration could be given to strengthening direct gender targeting and increasing programmatic support.
Uganda is prone to natural disasters that climate change is making more frequent and impactful. Besides the direct damages to lives and livelihoods, the effects of disasters, such as floods and droughts, extend to the wider economy. As recognized by the Third National Development Plan, climate adaptation and preparedness are essential to ensure the resilience of the population and the economy to extreme weather events. Debt-Investment-Growth-Natural-Disasters (DIGNAD) model simulations underscore that building adaptation infrastructure can reduce by two thirds the GDP losses at the trough triggered by a disruptive disaster and almost halve the resulting fiscal gap. Given the financial challenges posed by scaling up adaptation, international support—and scaling up capacity to access donor funds—is required to meet ambitious adaptation plans.
Finance & Development, March 2020
25th Anniversary Year
Aggregate economic performance in sub-Saharan Africa during the past decade has remained unsatisfactory, in contrast to robust performance of developing countries elsewhere. Both domestic and external factors have contributed to this disappointing overall performance. The external environment, characterized by sharp declines in world commodity prices and substantial losses in the terms of trade, has been generally unfavorable. For many countries, the effects of these adverse external developments have been compounded by unfavorable weather. Also, virtually all countries in the region have been confronted with deep-rooted developmental constraints—rapid population growth, low human capital development, and inadequate infrastructure—which have constituted major impediments to private sector development and the supply response of the economies in general. In addition, ethnic conflicts, political instability, adverse security conditions, and protracted civil wars have aggravated the economic performance of several countries. Furthermore, governance concerns have been compounded by the legacy of repressive regimes in several African countries, as well as by bloated and inefficient public administrations, ineffective judicial systems, and complex administrative and institutional frameworks. Finally, the inappropriate economic policies pursued by several countries have also contributed to the weak aggregate economic performance.