Abstract
Eight years of reconciliation, policy reform, and economic recovery have now followed 20 years of dictatorship, corruption, civil war, and economic decline in Uganda. This stems from the interaction between a government which has created a benign environment for development, and donors who have provided generous support conditional on compliance with a standard package of structural adjustment policies involving changes in macro-economic management. These include the removal of price distortions on foreign exchange, capital, and essential commodities, improved fiscal and financial discipline, the reduction of marketing monopolies and state controls, and civil service reform. Government has set up participatory political structures at national and local levels, restored law and order, and taken many of the unpopular decisions required to enforce the changes demanded by adjustment policy.

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