An evaluation of the implementation of decentralization of the World Bank's operations of poverty reduction in Uganda

Continued debates on economic development, poverty eradication and the growing skeptism concerning the paradigms proposed through many decades, has led to a continued search for a paradigm that would, finally, resolve the issue of pervasive poverty in the Sub-Saharan Africa. Having implemented decentralization within government entities without any significant contribution to poverty eradication, the focus has now turned to the development agencies themselves. What are the inefficiencies in these agencies which if addressed might enable them deliver development aid more efficiently thus, providing more resources for development from being lost in the attrition of overheads? It is, therefore, argued that decentralization of development agencies will improve the efficiency and effectiveness of IFIs in delivering development aid. At the same time, decentralization reforms have been proposed as a response to the failures of highly centralized states (or organizations in this case). Empirical evidence, strongly, suggests that physical proximity and more "face-time", promotes better results-on-the-ground, delivered by staff who are better attuned to local conditions and have a better understanding of the client and their development agenda. But, will decentralization alone solve the issue of pervasive poverty? This research recognises that the factors affecting poverty are diverse and intricate and isolating just one part of the puzzle is not enough. Nevertheless, it is argues that decentralization, has a positive impact on poverty reduction thus, this study presents both practical and theoretical considerations from which policy measures can be derived. This thesis focused on establishing how the World Bank, changed its strategies through the implementation of decentralization of its operations as proposed in the ‗Strategic Compact‘, renewed the way it worked in order to maintain its relevance in the development world. The World Bank President, James Wolfensohn, proposed the Compact as a solution to the organization‘s self diagnosis that it was in distress, in a state of possible decline and was not fulfilling its mission of poverty eradication. This research, using Uganda Country Office as a case study, undertook, mainly, a qualitative review of the overall strategy of decentralization and its implementation organization wide and specifically, in Uganda. The research examined how the implementation of the strategy impacted on poverty trends in Uganda. This research found that the decentralization strategy was, fundamentally, the right one to deliver better results of the Bank‘s mission of ‗fighting poverty for lasting results‘ and its vision of ‗A World Free of Poverty‘. Contrary to the popular notion that the World Bank has been, largely ineffective in the delivery of its mission and its decentralization strategy just another one of its 'shams‘, this research established that the implementation of the strategy, although not having a direct or causal relationship, did have positive impact on poverty alleviation in Uganda. This study, therefore, makes a case for decentralization of donor organizations as a means of better delivery of the poverty eradication agenda in the developing world. The benefits though hard to measure in monetary terms are, nevertheless, real in terms of faster and better quality engagement with the clients which in turn, result into better delivery of services and programmes