Resource information
At an average above 6.0 percent per year
over the past two decades, Uganda' s growth rate was
impressive by all standards. In parallel, poverty declined
significantly, not only in urban areas, but also to some
extent within the rural areas. This combination was possible
because the key drivers of growth were labor-intensive
services sectors, some of which are agriculture based. In
fact, Uganda's growth process has reduced overall
poverty faster than what has been observed in many other
developing countries. This report addresses the issue from a
double perspective: sectoral and geographical. From a
sectoral perspective, it concludes that the agricultural
sector needs transformation because it remains the primary
employer; it is the country's main comparative
advantage and bedrock for industrialization. More broadly,
identifying sectors with potential will be important for
employment opportunities, which in turn will be largely
dependent on productivity levels and thus on the level of
education and skills of the labor force. From a geographical
perspective, transformation generally yields a concentration
of economic activities that leaves some locations lagging in
prosperity. This unbalanced growth needs to be supported
with appropriate economic integration policies that have
been analyzed in the report.
