Urban Governance and Poverty Reduction in Uganda: Lessons from Foreign Aid Regime of Local Government Development Program

Abstract

Government of Uganda implemented the Local Government Development Program (LGDP) between 2000 and 2009 with support from multi-lateral and bi-lateral agencies. Unlike previous policies such as Structural Adjustment Programs (SAP’s) and Liberalization Policies, LGDP was designed to address poverty following a participatory approach. The participatory approach involved improvement of service delivery where local communities identified, prioritized and implemented development projects. This approach ensured demand-driven service delivery with a performance assessment strategy through multi-level budget framework meetings organized to prioritize and evaluate the project outcomes. LGDP aligned with the overarching Poverty Eradication Action Plan policy by improving services delivery within the mandate of Local Governments. The services included health, education, street lighting, water supply, drainage, waste collection among others as provided for by the Local Governments Act. Funding was provided as Conditional and non-conditional grants released in each financial year for two grouped items of Local Development Grants (LDG) and Capacity Building Grants (CBG). This paper examines the fundamentals of participatory local development planning conceived as a people-centered approach in decision-making and how it contributed to development in Uganda. The paper also critiques the implications of LGDP upon aid withdrawal and its implications on locally generated mobilization of resources for sustainability.

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