The DDP III Joint Programme Outcome(s):

1. Local Government (LG) capacity for effective LED governance developed (local economic governance);

2. Local business environment enhanced (locality development)

3. Business and market development services to stimulate demand provided (enterprise development);

4. LED at National Level enhanced; (v) Gender equity in LED strengthened (vi) Access to Justice at the Local level strengthened.

5. Gender equity in LED strengthened

6. Access to Justice at the Local level strengthened.

This is a US$ 10,360,000 programme spanning 4 years and for the first time in the Region, the Government through its Local Government Sector Investment Plan is providing more than half the total resources for investment.

The evaluation of the DDP II among others noted that:

• The Local Councils continue to depend on national transfers and direct donor support for the bulk of their development resources (90%);

• Local resource mobilisation has been quite frustrating because the local economies in most cases are weak. Investment is low thus unemployment surging;

• The capacity of the Local Councils to support in activating and managing local economies was very limited hence increasing local revenues became a disincentive for local investment;

• While the gender issues required strengthening at the Local level for it to be sustained the justice intervention demanded a further piloting at the higher levels of the Local Councils Courts for it to work as a complete system.

The DDP III thus responded to these established concerns with planned specific support to the Local Authorities to manage investments and create the necessary environment to support the initiation, running, management and growth of local business initiatives through the use of local resources and opportunities, skills, and access to relevant information.

• Uganda is one of the first countries of entry by UNCDF in this Region and beside isolated interventions UNCDF has been supporting the Government of Uganda in implementing its decentralization policy through the DDP-Pilot (1998-2001). This led to the development and implementation of a national decentralisation policy, the institution of a Local Development fund for supporting infrastructure and service delivery by Local Councils and the establishment of a reliable Public Expenditure Management process for Uganda at both national and local council levels. The DDP I which was piloted in 12 districts was adopted and up-scaled by the World Bank under the Local Government Development Programme (2002-2007) and covered the whole country.

• The DDP II (2001-2007) focused on consolidating the achieved capacity from DDP I thus focusing on building the capacity of the Local Councils for participatory development planning, budgeting, resource mobilisation and accountability, and implementation. It also highlighted on gender and the establishment of local justice to conflict and ensure peace for development. The DDP II administratively came to an end in October 2007 against the planned ending for December 2005. The necessary extension was to respond to some observations made by the End of Project evaluation report that included ensuring smooth completion of pending activities. However, the UNCDF and UNDP together with the Government of Uganda, taking cognizance of the gains from DDP II saw the need to develop a third phase for the decentralization programme in Uganda thus commissioned the development of a Concept Paper in 2004 and reviewed it in 2006.

• Ministry of Finance Planning and Economic Development

• Ministry of Local Government

• The total budget is covering 15 districts and thus in the implementation process more funds could be mobilised to gradually expand the spatial coverage.

• The UNCDF in Uganda is at the moment chairing the Decentralisation Donor Working Group, which comprises key donors/development partners in this sector and members are working together with the government in implementing the Local Government Sector Investment Plan (LGSIP).

• There has been a request from the Regional Service Centre, which is a response to the Government of Uganda, to support UNDP Uganda to develop a Government and Local Development programme for the 22 disadvantaged districts in Northern Uganda. There is a scheduled first meeting on this in September 2008 with UNDP Uganda.

• Uganda through the sponsorship of the Austrian Cooperation has been hosting the Regional Local Economic Development Consultation which the United Cities and Local Governments of Africa (UCLGA) through its LED Network of Africa has officially participated and declared to join as a technical partner. At the moment practical research work are in the process of being commissioned.