Download or read book Financing Uganda'S Poverty Reduction Strategy written by Mwanza Nkusu and published by International Monetary Fund. This book was released on 2004-09 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Uganda's market-friendly development strategy and poverty reduction agenda have attracted large financial inflows, including aid. During 2000-02, concerns about a possible aid-induced Dutch disease were heightened by widening macroeconomic imbalances and an upward trend in the real effective exchange rate (REER). This paper shows that the REER remained broadly stable during a 10-year period and nontraditional exports increased remarkably, contrary to the predictions of the Dutch disease model. Also, economic growth was strong. This good performance is attributed to sound macroeconomic policies and important structural reforms, which have allowed an increased use of available production factors.