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Monitoring the implementation of the PRSP: the Uganda experience
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| 2. Funding for the PEAP |
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When Uganda qualified as the first country to benefit from the Highly Indebted Poor Country's (HIPCs)
Initiative sponsored by the World Bank and IMF to reduce the debt burden of Third World Countries,
Government of Uganda committed itself to spend the money in the priority areas in the
Poverty Eradication Action Plan (PEAP).1 For this purpose Government established a Poverty Action Fund (PAF) in the Financial Year 1997/98 as a mechanism for mobilizing savings from debt relief and donors for investment in the social sector for poverty eradication. The HIPC debt relief initiative, donor contributions, and the government of Uganda's own resources finance PAF.
The PAF provides funding to the Poverty Eradication Action Plan priority areas that are directly poverty
focused through:
- Increasing the ability of the poor to raise incomes, or
- Improving the quality of life of the poor, and
- Ensuring that the impact of the programmes are direct
To this effect, PAF provides funding to the following programme areas
- o Primary education
- Primary health care
- Water and sanitation development
- Rural feeder roads maintenance
- Agriculture extension
- Micro finance/restocking programmes
Others include:
- Control of HIV/AIDS
- Pilot schemes for adult literacy and enhancing efficiency in the judiciary system (clearing of case backlog)
Footnote:
- The PEAP focuses on public actions on the eradication of poverty. The four key pillars of PEAP are:
- Creating an environment for enabling sustainable economic growth and transformation
- Promoting good governance and security
- Raising the incomes of the poor people
- Improving the quality of life of the poor
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