The Role of USAID Private Sector in Uganda: How the Private Sector Supports Uganda’s Economic Growth.

By Ayuen Garang Ajok, Washington DC, USA

EXECUTIVE SUMMARY

March 30, 2016 (SSB) —- USAID is the United States Government agency that was formed by the U.S government to work on the eradication of extreme poverty and to enable resilient and democratic societies in order for those societies to realize their potential in the global economy. This paper analyzes the role USAID Private Sector plays in Uganda’s country development.

The USAID Mission indicates, “We partner to end extreme poverty and to promote resilient, democratic societies while advancing our security and prosperity.”[1] USAID’s Office of Economic Growth in Uganda works with Ugandan private sectors in order to promote development objectives in Uganda.

This analysis also explores the metrics for success USAID private sector programs uses to achieve economic growth in Uganda. In addition, this research looks at the role of the Ugandan government, with regard to the promotion of economic growth and country development and in other sectors of the economy, especially in agriculture. Finally, the paper considers contemporary challenges that derail economic activity in Uganda, particularly challenges related to infrastructure.

1. INTRODUCTION TO THE PROBLEM—CHALLENGES OF PRIVATE’S SECTOR DEVELOPMENT IN UGANDA

According to the World Bank, in the brief entitled Uganda Economic Update: Unleashing Uganda’s Regional Trade Potential, the author argues that it is difficult for Uganda to achieve its economic growth potential due to the fact that Uganda is a landlocked country. The author also states that Uganda’s status as a landlocked country has contributed as a constraint to Uganda’s economic development.[2] The World Bank also contends that Uganda is experiencing contemporary problems such as poor maintenance of roads, and cheaper railway and water transport options that are almost non-existent, since rail and water transport currently cater for only 10 percent of Uganda’s trade.[3] However, it is argued that Uganda has experienced major challenges to economic growth since its growth rate slowed to 3.4% and inflation soared in 2011 and 2012.[4]

Despite the challenges highlighted by the World Bank, the United States Agency for International Development (USAID) considers Uganda to be one of the fastest growing economies in Africa. Growth in the agriculture sector is seen as great potential to the country’s growth and this growth is viewed to be directing the country toward achieving one of the first Millennium Development Goal of halving poverty and hunger by 2015.[5] Although the country is on the path toward poverty reduction, Uganda still suffers contemporary problems of widespread poverty.[6] This paper will address challenges that affect the process of economic growth and development in Uganda.

2. DISCUSSION OF ROLE OF INSTITUTIONS IN PROMOTING PRIVATE SECTOR DEVELOPMENT

The United States Agency for International Development (USAID) was created on November 3, 1961 by the passage of Foreign Assistance Act of 1961. In the creation of USAID, President John F. Kennedy led the formation of the agency. President Kennedy believed that there was a need for the United States government to unite development into a single agency responsible for administering aid to foreign countries in order to promote social and economic development.[7] The goal of the agency was to work on eradication of extreme poverty and enable resilient, democratic societies in order to realize their potential.[8]

When the agency was formed, the United States development initiative to Uganda was started as development assistance when Uganda finally achieved its independence from British in 1962. The goal of this development initiative was for USAID to work in close collaboration with the government and the people of Uganda.[9] Since then, the USAID is currently investing in health, education and agriculture, especially in the areas benchmark USAID mission in Uganda.[10] The role of USAID private sector in Uganda is projected toward improving the agriculture sector of the economy by improving the agricultural value chain starting from marketing, supply, and credit information to basic needs for diversified production.[11] Another economic activity that USAID private sector supports is education. USAID supports education because the agency believes that education is significant to political, social and economic change, and that the demand for increased education is important.[12]

USAID‘s Bureau for Management provides centralized administrative functions. These services range from administrative services that include logistical, financial, operational program support, information technology, and procurement services for the agency. The administrative services are divided into different categories by function within the Agency. First, there is the Office of the Assistant Administrator, which is a centralized office, and it deals with management support for Agency operations worldwide and the Agency’s principal advisor for management and administration.[13]

In addition, USAID was created to further America’s interests while improving lives in the developing world.[14] The agency “carries out U.S. foreign policy by promoting broad-scale human progress at the same time, it expands stable, free societies, creates markets and trade partners for the United States, and fosters good will abroad.”[15]From a theoretical perspective, Martha Nussbaum (2006) argues that institutions are important in promoting human capabilities. She further argues that institutions are fundamentally important in providing capabilities to less affluent citizens. In addition, when it comes to capacity building, states and institutions act to promote the welfare of society. Institutions provides public orders in order to protect less affluent and minorities from issues such as discrimination, equal access of power, providing basic human capabilities. [16]

3. MISSION OF USAID PRIVATE SECTOR UNIT IN UGANDA

USAID private sector units in Uganda have developed USAID/Uganda’s Country Development Cooperation Strategy (CDCS). The CDCS was developed in FY2011 and its goal derives from the country’s National Development Plan, which was established in 2010/11 – 2014/15. This National Development Plan was initiated by USAID to guide the government of Uganda toward economic development. This strategy was then adopted by the Government of Uganda and used as vision to “transform Ugandan society from a peasant to modern and prosperous country within 30 years”.[17]

USAID’s office of economic growth/private sector units has promoted a development strategy for Uganda for the next five years period. Some of these development initiatives that are supported by the Agency are considered Development Objectives (DOs), and some are Special Objectives (SOs).

DO1: Economic growth from agriculture and the natural resource base expanded in selected areas and population groups.

DO2: Democracy and governance systems strengthened and made more accountable.

DO3: Improved health and nutrition status in focus areas and population groups.

SpO1: Peace and security improved in Karamoja.

According to USAID Private Sector in Uganda, the goal of the development strategy was to create an inclusive economic growth strategy that would promote democracy and governance of resources in the country of Uganda.[18] Most important, it is argued that the development strategy in Uganda mainly focuses on improvement of local governance in Uganda.[19] USAID Private Sector Units in Uganda have specified that there are ways to deliver services in Uganda through strong partnerships local government. These partnerships are seen as the mechanisms that help services to be delivered effectively and efficiently without challenges.[20] The way that the mission breaks down its work is through different DOs. Different DOs are assigned to different objectives. DO2 was set up to work with other DOs in order to improve the performance of local government and help improve service delivery. However, Feed the Future (FTF) was considered by USAID as the centerpiece of DO1 in which this objective was stated to focus on economic growth and natural resources management.[21] The goal of Feed the Future according to USAID and its mission in Uganda is to promote educational change through literacy promotion in selected districts in Uganda. The reason that this initiative was viewed to important was that evidence shows that literacy was linked to health and especially to family planning.[22]

The USAID development strategy in Uganda was changed by the agency when the organization projected population growth and was made aware of previously untapped oil reserves in the country. The agency found that population growth and the discovery of oil reserves in Uganda would be a game- changing trend in the development of Uganda’s economy.[23] USAID and the government of Uganda also tried to work on development agenda collectively in trying to reallocated resources to family planning and refocused the environment program in order to contribute to an interagency effort to assist the Government of Uganda (GOU) with the implications of oil production.[24]

According to USAID/Uganda, over 78 percent of Uganda’s youth are youngest in the world, so that makes Uganda’s youth the youngest world’s population below the age of 30.[25] According to the data, approximately eight million of population are youth aged 15-30, which makes it the highest country with youth population. Also, Uganda is reported to have the highest youth unemployment rates in Sub-Saharan Africa (SSA).[26] Most important, the country is also viewed to be confronting a lot of challenges economically. The authors argues that it is difficult for the government of Uganda to meet its youth’s needs today and their challenges tomorrow as its population continues to grow at a rate of 3.2 percent annually.[27]

It is argued by the authors that the youth population in the near future will dominate future social and economic development needs of the country. The authors also state that it is significant for the Ugandan Government and USAID to understand the needs of youth and challenges that are facing them, and that it is important for Uganda to address these challenges in order to ensure that development assistance is effectively structured to support the progress of the youth in the country.[28]

Similarly, the author specified that USAID is currently conducting a youth assessment in the country in order to inform the Mission how to effectively address this issue under the entire CDCS. Furthermore, it is stated that the U.S government has increasingly recognizes that large numbers of youth, are not productive in the country because they do not have skills or knowledge due to lack of training. Because of lack of skills and training, these youth are not earning a living and this could pose a potential threat to national security and stability in the country. In addition, USAID private sectors argues that if youth needs are met, these youth could easily play productive roles in their communities, economies, and government, and if their needs are not met, they may remain highly vulnerable to many of the broader problems facing them in the society.[29]

When USAID proposed its development objectives in Uganda, the goal was to address the issues of poverty and economic growth in the country. As it is indicated in the article by USAID “prosperity is derived from economic growth.”[30] The author states that a prosperous country is a country where growth is broadly distributed.[31] The development objective activity that was designed as a pilot project by USAID’s mission in Uganda was to pursue broad-based growth by working comprehensively in specific agricultural value chains, on projects that address nutrition and the vulnerable, and on the environmental aspects of two additional drivers of growth: oil industry and ecotourism. This broad-based growth was deliberately designed to increase nutrition, that focus of intermediate result (IR), in which the element of prosperity and a driver of increased growth and productivity would be achieved if they were implemented effectively, and this was seen by development practitioners as a tool to improve nutrition and livelihoods for the vulnerable, and focus on environmental aspects of two environmentally sensitive, high growth industries.[32]

According to USAID report, it is stated the country of Uganda is going through a lot of challenges in terms of development. These challenges includes decline in “soil fertility, over-exploitation of fish stocks; uncertain land rights, inadequate institutional coordination and linkages, negative consequences of climate change, and degradation of the natural resource base, among others.”[33] However, it is specified that USAID’s goal in terms of these challenges was to focus on how to increase rural incomes and livelihoods, household food and nutrition security, agricultural factor productivity, and developing markets and value chains for agricultural products.[34] The author stated that although these challenges are identified, there is no budget allocated for addressing these development challenges.[35]

The country of Uganda is considered a landlocked country in East Africa region, although it borders South Sudan, Democratic Republic of Congo, Kenya, Rwanda, and Tanzania. Most importantly, Uganda shares Lake Victoria with Kenya and Tanzania. The country of Uganda has an estimated population of 35.6 million and an estimated population growth of around 3.2% per year, making it one of the fastest growing populations in the world. Around 85% of the population lives in rural areas, depending mostly on subsistence farming.[36]

USAID’s country development strategy is seen as an opportunity to address conflict triggered by land, ethnic and cultural diversity, oil, and also to promote peace gains in the Lord Resistant Army (LRA) affected area. On the other hand, the significance of mitigating the conflicts was to foster peace in the selected districts where issue of land conflict is seen as a contemporary problem. This conflict mitigation mechanism was also viewed as a tool of bring in accountable and accessible institutions for land administration and dispute resolution, strengthened land management administration, strengthened coordination between administrative land management units, local council courts and Magistrate courts, and traditional land dispute resolution mechanisms, and an increased level of awareness on land rights alongside awareness of redress for land conflict.[37]

The author argues that the reason USAID and its mission in Uganda developed this strategy was to support the Government of Uganda in efforts to improve democratic governance and accountability, service delivery in order for this activity to be more equitable and efficient, and also for the agency to help in building the capacities of Uganda‘s local governments and increasing political space at the local level. Moreover, the USAID under it Intermediate Results came up with agenda that was aimed to promote civil society participation in order to increase transparency and accountability of leaders, civil servants and legislators, and promote dialogue and consensus building in order to make citizens active and informed stakeholders in the governance process.[38]

It was identified by the agency that there was lack of local government participation in some districts in Uganda, and these local governments lack the capacity to increase their agricultural value chain in order to promoting the development objectives that were geared toward country’s development. It was also noted that in Uganda, conflict emerged in a variety of forms, but most of these problems were predominantly related to land, which threatens to surpass incremental improvements in democratic governance processes.[39]

When USAID noted that were constantly conflict that arose in land, USAID Private Sector came up with two hypotheses in land development. One of the development hypothesis was to supports improved capacity for effective planning for peace and recovery, in which there would be a transition land issues would be resolve quickly in order to realize peace. The second was to hypothesis was to support effective peace and reconciliation processes, such as mechanisms to deal with land disputes, however, this was seen as a way of reducing causes and consequences of conflict.[40]

In Uganda’s economy, agriculture is perceived to be the main contributor to the country’s economy. Agriculture contributes to the country’s economic growth, food and nutrition security, income and employment. The growth the comes from agriculture contributes more than 20 percent of Gross Domestic Product (GDP) to Uganda economy, which accounts for 48 percent of exports and provides a large proportion of the raw materials for industry.[41]

In the economic activities in the country of Uganda, it is quantified that roughly 70 percent of all smallholder farmers in the country are women, and most importantly, these women are stated to have been contributing 70 percent of overall agriculture GDP into the market economy in Uganda. They produce 90 percent of Uganda’s total food output and 50 percent of the total cash crop production.[42]

According to USAID’s Feed the Future initiative, it has been classified that USAID has had a long history of support to nutrition programs in Uganda. The role that FTF play is significantly important to Uganda development. FTF provides supports in trying to increase the focus on malnutrition within the health sector, and also linked agriculture to other health sectors in trying to diversified their nutrition status in the country and improves the health of children and vulnerable population.[43] However, the agency success in the past was considered to be effective due to the agency leadership in micronutrient interventions pioneered toward food fortification and in micronutrient supplementation.[44] Under the PEPFAR program, USAID has also supported the local production of ready to use therapeutic foods (RUTF) in the management of severe malnutrition, community-level assessment of under nutrition as part of comprehensive care for people living with HIV/AIDS, and support to orphans and vulnerable children.[45]

According to the USAID/Uganda, it is stated that the country of Uganda has experience economic growth with the rate of 6 to 7 percent growth over the last five years. This growth was experience due to inclusive market-based reforms and sound economic policies in the country.[46] Although the data stated that the poverty line in the country has fallen by 23 percent from 56 percent in the year 1992, millions of Ugandans still remain in dire poverty. The author argues that there are many factors that hampered economic growth in Uganda, and these factors range from undeveloped transportation and electricity networks, low agricultural productivity, lack of transparency, and regulatory challenges, including corruption, which keep business costs high and hinder investment, economic growth and job creation.[47]

Although private sector development in Uganda is regarded as the mechanism of achieving economic growth that has been hampered, there are constraints in place that makes it problematic for USAID to achieve its objectives in Uganda. Lack of capital available to potential entrepreneurs and investors, undeveloped infrastructure, and a weak enabling environment for business, makes it difficult for the USAID/Uganda to achieve such objectives to promote investments in agriculture and to increase trade and develop the private sector. Most importantly, USAID stills works with the Government of Uganda and other development partners to enhance private sector competitiveness and increase investment in roads and other infrastructure.[48]

4. DISCUSSION OF DEVELOPMENT OBJECTIVES AND PROGRAMS TO ACHIEVE OBJECTIVES

Based on the analysis of the literature review, the methodology for this research project is aimed at analyzing the role USAID Private Sector plays in the prosperity of Uganda’s economy and development. In this methodology we identified the results-based approach used by USAID’s private sector and the intervention framework that was used to in order to achieve the objectives projected by USAID’s Private Sector unit in Uganda.

Partner with Small and Commercial Farmers and the Government of Uganda: In order to initiate the Private Sector Development in Uganda there is a need for contracted small farmers and commercial farmers to perform agriculture value chain interventions that is facilitated through economic development and that would led to an increase economic opportunities in the country. USAID needs to work with Government of Uganda in order to identify what services are necessary to incorporate-based goals of economic growth in the country. This methodological approach would be the most beneficial for promoting economic growth in the country of Uganda. Based on the challenges that USAID is confronting, especially in terms of achieving their objectivity, involving the private sectors in Uganda, small farmers, commercial farmers, and the government of Uganda, there is a need for economic intervention put in place so that USAID’s Private Sector Units to achieve their Development Objectives (DOs).

O’Neill (1996) articulates that institutions in any nations or states should have some sort of obligations and duties to meet the needs of their citizens. The role of the state as an institution is to work effectively and promote the wellbeing of all people. In order for duties and obligations to be applied efficiently and effectively, they must be an agent that could guide them.[49] However, the data that use in this paper was collected was obtain with the help of google scholars, books, agency published information, and also through USAID database.

In the article entitled Employment Policies for Uganda, Konrad-Adenauer-Stiftung (2011) stated that the labor force in Uganda comprises of person ranged between the ages of 14 to 64. It is indicated in the literature that some of these people are employed, some are self-employed and some are indeed unemployed. Konrad-Adenauer-Stiftung (2011) states that the current labor force in Uganda is about 9.8 million people age 14-64 years old. Within the labor force 53% are female, about 75% of the labor force are below 40 years. Also, 85% of the labor force are considered to be based in rural areas, in which about 30% are illiterate. [50]

Because of the labor issues in Uganda, President Yoweri Museveni stated in his speech that, “the Employment Policy addresses critical challenges facing the country such as the attainment of full employment, coupled with decent work and equitable economic growth. He added that fast growth in opportunities for permanent employment in the private sector remains the most effective route to sustainable poverty eradication. The main thrust of the policy is, therefore, in the generation of productive and decent jobs for Ugandans.” [51]

Additionally, one of the key elements that the author discussed in this article is the criticism of labor policy in Uganda. The author addressed in his article that the failure to set a minimum wage for all workers across the country is a very complex problem. In many scenarios, Konrad-Adenauer-Stiftung (2011) argued that in the absence of a minimum wages, many youth in employment are getting frustrated and, therefore, opting to quit their jobs because they are incurring high costs but are not paid sums commensurate to the amount of work that they do. [52]

The analysis in this paper explained why USAID’s Development Objectives were viewed as essential and what derailed the process of achieving these objectives. Most important, I looked at the role of the Ugandan government in the process of working to employ economic intervention in the private sector within the country. Nussbaum (2006) argues that institutions are important when it comes to promoting human capabilities and promoting the welfare of society in order to promote the economic wellbeing of society. [53] When we examine the role that Ugandan government has played to promote economic wellbeing in Uganda, it is difficult to measure. The fact that the government of Uganda experiences economic difficulties explains why it is difficult for the country to provide support in the private sector in the country. The country of Uganda experience many factors such as undeveloped transportation and electricity networks, low agricultural productivity, lack of transparency, and corruption.[54]

This deliberately support Nussbaum (2006) point about the role of institution[55] and as we examined in the analysis, Uganda did not play a key important role in promoting investment opportunities in the private sector and in agriculture sector of the economy. The fact that the government of Uganda failed to address such challenges, hindered economic activities in the country and made it hard for the country to create jobs that would promote economic growth in the country.[56]

When once read the role of institution and development in developing countries, Nussbaum (2006) explained it very well that inclusive policies are important for economic growth and development. Interestingly, based on the analysis, it was found that the reason USAID did not achieve some of their Development Objectives (DOs) was because of lack of local government participation in some districts in Uganda. It was also found that the local government did not take the lead to increase awareness and failed to increase the political space in engaging both the private sector and local communities due to lack of implementation from private sector and local communities in order to work together to achieve their common goal of poverty reduction mechanism.[57]

Another problem that hindered the process of private sector development was land related conflict in the Uganda. The government of Uganda failed to address some of the pressing conflict with regard to land tenure in the country. Therefore, this issue of land policy became a threat among different communities, which in turn became threats to the improvement of democratic governance in Uganda.[58]

O’Neill (1996) argues that government as an institution is very important because as an agent it is supposed to promote the wellbeing of all people, and for the government institution to come up with inclusive economic institution and applied it to all level of government so that it is easy for private sector to creates rules that are more efficient and effective to be implement by the agents that work for the cause of promoting human development[59]

When analyzed O’Neill argument, her arguments does makes sense in development perspective. If the government of Uganda were to take the lead in its country development initiatives, USAID private sector unit in the office of economic growth wouldn’t have been going through these challenges in terms of implementation process. Most importantly, it is stated in the literature that there contemporary problems when it comes for implementation processes in Uganda. The issue of uncertain land rights, inadequate institutional coordination and linkages, negative consequences of climate change, and degradation of the natural resource base, among others are seen as confronting challenges by USAID in Uganda”[60] In the analysis of Uganda’s labor market, the economic growth in the country was found to be relatively very low comparably to other African nations. The Foreign Direct Investment (FDI) was found to be very high in Uganda. In addition, in 2012, it was also found that the nation of Uganda had improved in its economic situations from inflation. Although Uganda is considered the youngest and fastest growing population in the continent, it is argued that many young people in Uganda are entering the labor market each year, with limited job creation in the formal sector, which in many cases allowed many people to end up in the informal employment^[61].

In the article entitled Employment Policies for Uganda, Konrad-Adenauer-Stiftung (2011) stated that the labor force in Uganda comprises of person ranged between the ages of 14 to 64. It is indicated in the literature that some of these people are employed, some are self-employed and some are unemployed. Konrad-Adenauer-Stiftung (2011) indicates that the current labor force in Uganda is about 9.8 million people age 14-64 years old. Within the labor force 53% are female, about 75% of the labor force are below 40 years. Also, 85% of the labor force are considered to be based in rural areas, in which about 30% are illiterate. ^[62]

Because of the labor issues in Uganda, President Yoweri Museveni stated in his speech that, “the Employment Policy addresses critical challenges facing the country such as the attainment of full employment, coupled with decent work and equitable economic growth. He added that fast growth in opportunities for permanent employment in the private sector remains the most effective route to sustainable poverty eradication. The main thrust of the policy is, therefore, in the generation of productive and decent jobs for Ugandans.” ^[63] The World Bank reports suggested that in order for the country of Uganda to economic growth that would lead to economic development, Uganda must address and implement programs that would go beyond poor maintenance of roads and explore the cheaper railway and water transport options that are almost non-existent, since rail and water transport currently cater for only 10 percent of Uganda’s trade.[64]

 5. RECOMMENDATIONS & CONCLUSION

Based on my analysis USAID’s country strategy; there are several recommendations that USAID/Uganda should take into consideration. First, USAID and the Uganda government must create programs in attracting investors into Uganda since Uganda is perceived as one of the fastest growing economies in Africa. Since Uganda’s economy is based on agriculture, it is important for the government of Uganda to increase agriculture value chain sector in economy, which would allow USAID’s private sector unit to make an intervention with other stakeholders in the economy. Therefore, the following recommendations may help in improving the economy in Uganda:

• Work with Educational Institutions in Uganda: Partnering with education institutions in the country would likely increase participation in the economy, especially in areas around private sector development and in agriculture value chain.
• Expand Participation in Agriculture and in Infrastructure and Collaborate With All Sectors in The Economy: Consider increasing population growth in the country, especially among youth. USAID’s private sector and the government of Uganda needs to come up with an initiative were jobs are created for youth in agriculture sector and in the area around infrastructure would increase the number of participants and therefore this would increase growth in the economy and more jobs would be created for the youth so that unemployment rate would be reduced. If agricultural production in the country is taken seriously, more jobs would be created and the country would increase its exports and GDP, leading to economic growth. This may be reached through a number of strategies, including:
• Partner with small and commercial farmers in the country: Around the country there are small farmers and commercial farmers that would partner with non-profits and government organizations that would provide farmers would fertilizers that are not counterfeit in quality. For example, Makere University in Kampala has faculty of agriculture who can teach small farmers and commercial farmers how to increase their yields and harvest. This initiative would be successful for USAID and Ugandan government to partner with Makere University in order to implement this project.
• Look for Volunteer Graduate Students at the Higher Education Institutions: Employing the use of volunteers who are willing to train small farmers and commercial farmers in Uganda would help reduce the burden from USAID. These volunteers would be paid small stipends in order to increase their productivity in terms of giving farmers input would help them increase their yields. Volunteers may also come from the government, community and from civil society organizations. This alternative may need additional research but could allow USAID/ Uganda to save on the additional costs of employing additional staff..
• Promote Peace Initiative in Uganda: In order for USAID and government of Uganda to achieve their objectives, they must promote peace initiative such that sustainable development would be possible. Also U.S. government must work together with the government of Uganda, so that they all can bring peace and stability to the fragile regions in Uganda, especially to the Karamoja  Although USAID/Uganda private sector units is confronting a lot of difficulties in achieving most of their objectives, USAID is working on improving democratic governance and accountability in order to deliver services that will improve relationship and economics growth in Uganda. USAID and the Ugandan government need to create mechanisms and forge good relationship with local governments and this would help mitigating the level of economic development in Uganda at large. USAID has recognized these standards, however due to the complexity of governance and lack of infrastructure in the country, affect the level of economic development and growth in the country. In order for economic growth to increase, there must be reforms in political institutions, economies policies must be reformed, and development goals need to be implemented by the government whether locally, nationally, along with USAID partnership.
• The Government of Uganda should reform its economic policies and employment policies: The governments of Uganda should reform it institutional framework so that they are more inclusive. The government of Uganda should address existing issues that many of their employees, employers face in the labor market. As we have seen there are great number of people unemployed in Uganda therefore that equates that there are a lot unemployed individuals in the informal sectors. Rest of the labor forces are in the rural areas. In this case, I highly recommend for Uganda to revisit its labor laws and implement policies that will mitigate some of the existing problems in the labor market. In addition, I would recommend to the country of Uganda to develop a system of soft infrastructure that would encourage economic development and strong labor relations in those countries. This should put Uganda in place strong institutions and regulations that would mandate issues concerning collective bargaining and labor union problems that occurs to be address efficiently through dialogue and tripartite agreements.

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Ayuen Garang Ajok, the author, studied Master of Public Administration (2015), majoring in Economics and Financial Policy, at Cornell University in the USA. He can be reached through his Email: aga46@cornell.edu

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References:

The World Bank: http://www.worldbank.org/en/news/feature/2013/02/14/uganda-economic-update

USAID: http://www.usaid.gov/uganda/agriculture-and-food-security

USAID: http://www.usaid.gov/who-we-are/usaid-history

http://www.usaid.gov/history-11

http://www.usaid.gov/who-we-are/usaid-history

http://www.usaid.gov/who-we-are/mission-vision-values

http://usaidlearninglab.org/sites/default/files/resource/files/Attachment_J.17-_USAID-Uganda_CDCS_2011-2012_PMP.pdf

http://www.usaid.gov/sites/default/files/documents/1860/Uganda_Country_Development_Cooperation_Strategy_2011-2015.pdf

http://pdf.usaid.gov/pdf_docs/Pnady157.pdf

http://www.feedthefuture.gov/sites/default/files/country/strategies/files/UgandaFTFMulti-YearStrategy.pdf

http://www.encapafrica.org/documents/biofor/Uganda%20ETOA%20Final%20Report%5B1%5D.pdf

http://www.iceida.is/media/pdf/Uganda-CSP-2014-2017.pdf

http://www.feedthefuture.gov/sites/default/files/country/strategies/files/UgandaFTFMulti-YearStrategy.pdf

http://www.usaid.gov/uganda/economic-growth-and-trade

Martha C. Nussbaum, Frontiers of Justice: Disability, Nationality, Species Membership, Cambridge: The Belknap Press of Harvard University Press, 2006.

Onora O’Neill, Towards Justice and Virtue, Cambridge: Cambridge University Press, 1996.

http://www.encapafrica.org/documents/biofor/Uganda%20ETOA%20Final%20Report%5B1%5D.pdf

Ugandan-Labour Market Profile 2013.

http://www.ulandssekretariatet.dk/sites/default/files/uploads/public/PDF/LMP/uganda_2013_final_web.pdf

Employment Policies for Uganda: Young Leaders Perspectives: A study Conducted By The Young Leaders Think Tank For Policy Alternatives. December 2011

http://www.kas.de/wf/doc/kas_29797-1522-2-30.pdf?111221152350

Employment Policies for Uganda: Young Leaders Perspectives

A study Conducted By The Young Leaders Think Tank For Policy Alternatives

December 2011

http://www.kas.de/wf/doc/kas_29797-1522-2-30.pdf?111221152350

[1] http://www.usaid.gov/who-we-are/mission-vision-values

[2] http://www.worldbank.org/en/news/feature/2013/02/14/uganda-economic-update

[3] http://www.worldbank.org/en/news/feature/2013/02/14/uganda-economic-update

[4] http://www.worldbank.org/en/news/feature/2013/02/14/uganda-economic-update

[5] http://www.usaid.gov/uganda/agriculture-and-food-security

[6] http://www.usaid.gov/uganda/agriculture-and-food-security

[7] http://www.usaid.gov/who-we-are/usaid-history

[8] http://www.usaid.gov/who-we-are/usaid-history

[9] http://www.usaid.gov/history-11

[10] http://www.usaid.gov/history-11

[11] http://www.usaid.gov/history-11

[12] http://www.usaid.gov/history-11

[13] http://www.usaid.gov/who-we-are/usaid-history

[14] http://www.usaid.gov/who-we-are/mission-vision-values

[15] http://www.usaid.gov/who-we-are/mission-vision-values

[16] Martha C. Nussbaum, Frontiers of Justice: Disability, Nationality, Species Membership, Cambridge: The Belknap Press of Harvard University Press, 2006.

[17] http://usaidlearninglab.org/sites/default/files/resource/files/Attachment_J.17-_USAID-Uganda_CDCS_2011-2012_PMP.pdf

[18]http://www.usaid.gov/sites/default/files/documents/1860/Uganda_Country_Development_Cooperation_Strategy_2011-2015.pdf

[19]http://www.usaid.gov/sites/default/files/documents/1860/Uganda_Country_Development_Cooperation_Strategy_2011-2015.pdf

[20]http://www.usaid.gov/sites/default/files/documents/1860/Uganda_Country_Development_Cooperation_Strategy_2011-2015.pdf

[21]http://www.usaid.gov/sites/default/files/documents/1860/Uganda_Country_Development_Cooperation_Strategy_2011-2015.pdf

[22]http://www.usaid.gov/sites/default/files/documents/1860/Uganda_Country_Development_Cooperation_Strategy_2011-2015.pdf

[23]http://www.usaid.gov/sites/default/files/documents/1860/Uganda_Country_Development_Cooperation_Strategy_2011-2015.pdf

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[59] Onora O’Neill, Towards Justice and Virtue, Cambridge: Cambridge University Press, 1996.

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December 2011

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[64] http://www.worldbank.org/en/news/feature/2013/02/14/uganda-economic-update

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