Uganda: “Angry Donors Threaten Aid Cut”

From The Observer in Kampala: “Angry Donors Threaten Aid Cut”.

The World Bank Country Director, speaking “on behalf of the donors” funding 30 percent of Uganda’s budget, spoke to key government ministers at an event at which Museveni was expected to attend, after the media was asked to leave. While praising economic progress, she said that the donor group was upset by the failure to make serious progress against corruption to the point of evaluating punitive measures. She also noted the threat posed by high population growth, at 3.2% leading to propulation projections of 100 million by 2050.

Related story at The Standard from Nairobi and The Guardian.

In 2005 The New Vision reported on a confidential World Bank report coauthored by Dr. Joel Barkan, Senior African Governance Advisor.

The reports adds, “Since the Bank cannot weight in explicitly on Uganda’s political process, this is the only mechanism at its disposal [lowering aid levels] to signal its concern. Conversely, the continued provision of high levels of budget support, especially when such support can be diverted into classified budgets and used for political purposes, indirectly involves the Bank in the political process”.

“To continue budgetary support at present levels risks embarrassment to the Bank, especially after it has been warned, not only by this report, but in what is common knowledge and discourse among leading members of the diplomatic community in Kampala,” the report says.

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