Country Report Uganda February 2011

Economic policy: More funds are released for Northern Uganda

In a move whose timing is not unrelated to the imminence of the presidential and parliamentary elections, the government plans to release USh7.1bn (US$3.1m) in February as part of the second phase of the Northern Uganda Social Action Fund. The fund forms part of the broader Peace, Recovery and Development Plan to promote the rehabilitation of northern Uganda, which was terrorised by the rebel Lord's Resistance Army for 20 years. The scheme directs funds to sub-counties in 30 districts, and gives community leaders the authority to identify suitable local projects to qualify for financing. It aims to support more than 10,000 projects by 2014. However, the scheme has been dogged by allegations of corruption: the second phase was launched in February 2010 amid accusations that some of the US$100m provided during the first phase had gone missing (March 2010, Economic policy). The World Bank announced plans to set up an office in the region to monitor the second phase of the programme, and disbursement of funds will be suspended to any district where corruption is discovered unless sufficient action is taken.

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