This paper is one of five country case studies which seek to answer the questions how, when and why does poverty get budget priority?

Uganda has recovered from the political chaos and economic collapse of the 1971-86 period. Economic growth in the 1990s has averaged nearly 7% per annum, stable macro-economic conditions have been maintained since 1992 despite external shocks, income poverty has fallen from 56% of the population in 1992 to 35%,and there is some evidence of improvements in access to basic economic and social services. Malnutrition has fallen. Though there are 1.7 million AIDs orphans and nearly 10% of the population are HIV positive, Uganda is unique in Africa in having achieved a significant reduction in HIV prevalence, with a halving of infection rates. Progress in poverty reduction has been uneven: poverty in the conflict affected North has increased since 1996, and the region accounts for nearly 40% of the poverty population.