Poverty and Inequality Dynamics in Uganda: Insights from the Uganda National Panel Surveys 2005/6 and 2009/10

Poverty and Inequality Dynamics in Uganda: Insights from the Uganda National Panel Surveys 2005/6 and 2009/10

While Uganda has made significant efforts in reducing the proportion of individuals and households living below the absolute poverty line, nearly 10% of household continue to live in chronic poverty with significant differences across geographical areas. Changes in the nature and patterns of poverty dynamics in Uganda require government to move away from universal poverty reduction interventions that continue to treat the poor as a homogenous group. This paper examines the drivers of income inequality and finds that education remains the key determinant in this regard. At the same time, income differences between regions are narrowing suggesting regional convergence on average income. While government's fiscal targeting of the lagging and rural areas may explain this convergence, other development challenges are emerging which require further refinement of current fiscal targeting. Access to public extension programs and community infrastructure needs to be evenly distributed across regions and target all types of households.

Date:	2012-09-01
Authors:	Sarah Ssewanyana & Ibrahim Kasirye

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• Published Sep 1, 2012