Abstract:

Uganda's Economic Recovery Programme (ERP) introduced in 1987 by the National
Resistance Movement (NRM) government has as its chief objectives economic stabilisa-ion
and development by means of structural reform. Both multilateral and bilateral dcnor
assistance (including the IDA's Agricultural Sector Adjustment Credit) have supported the
programme and have contributed to its success so far. The high rates of inflation evident in
the late 1980s have fallen from over 200% to less than 50% a year by late 1992, while the
exchange rate has remained stable (at about USh1,200/USS) for the twelve months up to the
end of December 1992. Security conditions continued to improve during 1992 in northern and
north-eastern Uganda. Inflation rates are targeted to reach 10% by 1994/95 while real rates
of growth of gross domestic product are targeted at 5% a year up to that year. Structural
reform in a proposed mixed Ugandan economy is aimed at promoting greater involvement of
the private sector in the production of goods and services. It has advanced through the
liberalisation of trade, the abolition of most parastatal monopolies, and incipient reform of the
co-operative movement. Both economic stabilisation and structural reform have had a di:ect
impact on government's agricultural strategy over the last few years.