UGANDA: One in three below poverty line

NAIROBI, 30 July (IRIN) - One in three people continued to live below the poverty line in Uganda in 2002, despite progress made in recent years which has lifted over four million Ugandans out of impoverishment, says a new report issued on Wednesday by the UN's Economic Commission for Africa (ECA).

"Sound macroeconomic management" generated higher growth and enabled Uganda to raise the living standards of much of its population, according to the Economic Report on Africa 2003. However, these improvements were made in central and western Uganda, whereas the north, disadvantaged by remoteness, conflict, unfavourable agro-climatic conditions, the displacement of about a million people, and a lack of investment, remained significantly poorer than the rest of the country.

Defence spending had risen to 5.3 percent of GDP in 2001/2002, from 4.2 percent in the previous three years, the study noted. "The growth in the defence budget - especially the spending over and above the budget - is raising concerns for some donors," it added.

Despite the vast inequalities in the distribution of wealth and resources along geographical and urban-rural lines, Uganda had made progress in a number of areas on a national level, the ECA reported. Infant mortality had declined from 88 per 1,000 births in 1995 to 81 in 2000, full immunisation coverage of one-year olds had risen from 66 percent in 1995 to over 90 percent in 2002, and access to health care was up to 80 percent in 2001.

But most social indicators remained below average compared to countries like Ghana, Kenya and Zimbabwe, despite substantial increases in public spending on basic services, the report added.

The average life expectancy in Uganda is only 44, lower than the sub-Saharan average of almost 48.7, while national adult literacy rates are 67 percent.

The Economic Report on Africa 2003 examines how Africa can achieve growth rates necessary to attain the Millennium Development Goals, aimed at improving the welfare of the world's poorest people. In addition to a general examination of the performance of African nations, it includes an in-depth study of seven countries, including Uganda. The others are Mauritius, Rwanda, Ghana, Gabon, Egypt and Mozambique.

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