Financing Uganda's Poverty Reduction Strategy: Is Aid Causing More Pain Than Gain?

 
Author/Editor: Nkusu, Mwanza
 
Publication Date: September 01, 2004
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: Uganda's market-friendly development strategy and poverty reduction agenda have attracted large financial inflows, including aid. During 2000-02, concerns about a possible aid-induced Dutch disease were heightened by widening macroeconomic imbalances and an upward trend in the real effective exchange rate (REER). This paper shows that the REER remained broadly stable during a 10-year period and nontraditional exports increased remarkably, contrary to the predictions of the Dutch disease model. Also, economic growth was strong. This good performance is attributed to sound macroeconomic policies and important structural reforms, which have allowed an increased use of available production factors.
 
Series: Working Paper No. 04/170
Subject(s): Development assistance | Uganda | Poverty reduction | Exchange rates | Economic growth

Author's Keyword(s): Foreign aid | exchange rates | economic growth | and poverty
 
English
Publication Date: September 01, 2004
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA1702004 Pages: 29
Price:
US$15.00 (Academic Rate:
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