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Uganda is one of the poor country in African continent
which have a higher poverty rate, insecurity, inequality and low GDP growth
rate. Poverty rate is one of a significant issue that has blocked Uganda from
developing since 1990s. In 1997, the government of Uganda has created Poverty
Eradication Action Plan (PEAP) in order to address the poverty issue inside the
country. This plan was to erase the poverty rate, increase the living standard
of the whole country to above poverty line. Since the PEAP faced new challenges,
the first revision of the PEAP took places in 2000 (World Bank, 2005). The
government of Uganda is lacking of capability to resolve the problem. The World
Bank, as an international organization, has developed a new loan program called
The Poverty Reduction Support Credit (PRSC). This program was designed to
support the implementation of Poverty Eradication Action plan in Uganda and
established about 10 series of the project whose mandate was approximately 1
year for each of the project. For instance, the first poverty reduction support
credit (PRSC1) project was established on May 31, 2001, yet it was closed after
implementing the project for 1 year. Continuously, the poverty reduction
support credit 10 (PRSC10) was established on March 14, 2013 which was the
latest project of the World Bank that provided loans and funds to operate in
Uganda. Along with those loan, however, it needs a consent from Uganda
government on a specific condition in order to supply those funds. The World
Bank condition wants Uganda government to regulate service, utility and market
(Warren & Rick, 2002).

            Uganda has put up efforts
and increases its commitment in dealing with poverty issue. It is not
impossible to solve poverty issue, yet it will need more time implementing
policies to erase poverty within a country. Uganda faced social instability and
weak institution. The PEAP is a first program of Uganda that addressing the
poverty issue starting from 1997. Although PEAP has been established to work on
poverty issue, it did not process well in the country. Uganda economy is in a
poor condition which government cannot save its own money to spend on the
development and to reduce the poverty rate inside the country. However, World
Bank has become a major actor to push Uganda up above the poverty line. The
Poverty Reduction Support Credit (PRSC), which was established by the World
Bank, has provided new loan and grant to Uganda, totally around US$ 100
million, in its latest projects in order to reform and decrease theirs poverty
rate within the country (World Bank, n.d). World Bank only imposed policy along
with the condition in which manage Uganda to regulate service, utility and
market. Uganda faced many implications regarding to the policy that was imposed
by the World Bank. The policy has caused significant effect on Uganda insecurity
and socio-economic challenges. The government of Uganda is still weak and
anarchy that is hard regulate the policy on sector that was imposed by the
World Bank. Those policies have led to civil disorder and corruption inside
Uganda. The agriculture sector which is the primary sector for the whole
country did not contribute well to the Uganda society. Moreover, others sector
of Uganda did not work properly which is hard to boost up the economic growth
rate of the country. Uganda also lacks of infrastructure for transportation
inside the country. The PRSC with PEAP, however, has helped Uganda to restore
peace and stability within the country which led to reduction in small amount
of poverty each year from the first started of implementing project which was
counted as a remarkable story in African continent (World Bank Group, 2016).

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