Statement by Bassary Touré at the meeting of November 16, 2000

86845 International Bank for Reconstruction and Development International Development Association International Finance Corporation Multilateral Investment Guarantee Agency FOR OFFICIAL USE ONLY CONFIDENTIAL EDS2000-379 November 15, 2000 04:47:47 PM Statement by Mr. Bassary Touré, Executive Director Date of Meeting: November 16, 2000 UGANDA: Country Assistance Strategy I welcome the opportunity to discuss the CAS for Uganda, and congratulate the staff on producing a comprehensive and thoughtful paper, which clearly spells out the numerous challenges, and actions that lie ahead in Uganda’s development agenda. I also welcome the fact that this is a joint IDA/IFC effort putting together a very informative and focused CAS with clear targets and objectives. Economic performance: Uganda was in very bad shape some years ago. Needless to describe that situation here, being very well spelled out in the paper. But, over the last several years, Uganda’s economic performance has been positive and conducive to further improvement. From shambles, the country is back to an impressive track record and has a strong commitment to sound macroeconomic policies, promoting growth and effective poverty reduction strategy with extensive public participation, increasing transparency, promoting good governance and fighting corruption and bribery. Progress has been achieved in many areas in term of reforms as stated in the document, and Figures 1 and 2 at page 1 in the document are eloquent with regard to growth rate and control of inflation for example. The Government’s program supported by the IMF PRGF has been satisfactorily implemented and significant progress is noticeable on the structural front. I commend the Ugandan Government for its strong commitment to macroeconomic stability and fiscal discipline in order to provide the basis for broad-based economic growth, poverty reduction objectives and good governance. The Government’s agenda and strategy:  The Government’s aim is to transform the economy by implementing structural reforms and orienting social policies and expenditures programs towards poverty reduction. The Government has undertaken and successfully implemented a series of relevant actions in terms of poverty reduction, namely the poverty eradication action plan (PEAP), the poverty actions fund (PAF), the medium-term expenditure framework (MTEF), the plan for modernizing agriculture (PMA), within a broad participation of civil society and a monitorable and accountable poverty reduction strategy. To fight and reduce poverty, Uganda’s Government intends to vigorously pursue significant actions in well-targeted areas by focusing on literacy improvement and education quality, primary health care, reducing infant mortality and HIV prevalence, safe drinking water and sanitation, rural roads development etc. It will indeed strongly tackle the absolute poverty by actions generating income to poor households, create conditions for further economic growth and for structural transformation, emphasizing also on private sector role, and ensure transparency and good governance. The Bank Group assistance strategy: This CAS, which builds on the 1997 CAS by incorporating its lessons and conclusions, aims mainly at supporting Uganda’s economic transformation and poverty reduction strategy contained in the Government’s poverty eradication action plan (PEAP) and PRSP. It builds on gains and complements previously undertaken actions in order to maximize results, taking fully into account the daunting challenges for Uganda to overcome poverty. Hence, poverty focus remains at the core of this CAS developed in participatory manner and which defined clear objectives in consistency with the country’s macroeconomic, structural and social policies with targeted investments to poverty reduction, private sector development and institutional capacity building. Also, IFC’s involvement in reinforcing IDA activities and the Government’s actions is critical to the role of the private sector in the transformation of the economy. Therefore, my answer to the two questions asked in paragraph 7 of the Executive Summary, is yes, the proposed Bank Group strategy is in line with the Government’s agenda and strategy, thus aiming at addressing development challenges facing Uganda through appropriate instruments. Finally, to achieve the main goal of the Government’s development agenda and the Bank Group’s CAS in supporting Uganda’s economic transformation and reducing poverty, I would underline the critical importance of a close coordination between the Bank Group staff with the authorities and other partners to ensure effectiveness. I wish the Government and the people of Uganda full success in their endeavors.