Access to Rural Non-Farm Livelihoods - Natural Resources Institute

district money was unaccounted for as a result of “wilful mismanagement”. Danida
suspended all further funding until those responsible were dismissed, and in addition insisted
that a portion (approximately 15 – 20% of the total) of the missing money be repaid to them
by the district administration. They have also pursued the case in court, but at the time of
writing it was still pending.
Danida’s quick response in cutting off funding was widely seen to be appropriate, or even
commendable, despite throwing the whole of the RDDP off schedule, but the insistence that a
portion of the money be repaid has been criticised in that it punished the innocent, who could
little afford it, instead of the guilty. In retrospect it can be concluded that too much money
was going too fast into a system with too few checks and balances, and that personal trust, as
opposed to administrative control, played too much of a role. However, there remains
concern that the enormous improvements made since 1998 are associated more with the
characteristics and backgrounds of the new officers and political leaders who came in
following the scandal, than with new systems.
Overall the evaluation found that reconstruction has promoted economic growth 21 ,
particularly in the Kalisizo-Kyotera-Rakai “urban corridor”, and that the sectoral
interventions in education and health have been positive, allowing the district to benefit
maximally from UPE, and reducing the prevalence of HIV and the incidence of AIDS. It
advises the programme to complete the physical infrastructure projects (roads and schools) it
has started, and to develop capacity within the district to maintain them, and then to move
from reconstruction to development, completing capacity building at the LCV and LCIII
levels and in key service delivery departments, addressing capacity problems in partner
institutions, such as financial service providers, and enhancing the capacity of both district
administrators and partner institutions to develop strategic relationships. It also suggested that
more efforts be targeted at ensuring that benefits reach all in district, including the poor and
the vulnerable, and commended the original pledge for 15 – 20 years of support.
1.9 Economy
1.9.1 Crop production
The district’s economy is very heavily based on agriculture – 70% of households rely on
subsistence agriculture as their main source of livelihood, with a further 8% relying on paid
farm labour, and another 6% on market oriented agriculture. Furthermore, all parts of the
economy are tied to the agricultural calendar, as this affects farmers’ abilities to buy products
and services. Similarly, agricultural booms and slumps also affect the rest of the economy –
the boom in coffee prices in 1995/6 caused a knock-on boom in the construction industry as
soon as the crop was sold 22 . However, households tend to try to spread risk, and in general,
21 Of interest with respect to this study is the statement by Shepherd (2000a):
“General interventions such as the road programme have helped all physically to access services and
helped development agencies reach remote areas. They also helped Rakai households to take
advantage of market opportunities to sell crops, livestock and sell their labour to the extent that the
market was buoyant. What is missing is an understanding that many households face barriers to
accessing services, constraints to producing or selling in the market which prevent them from taking
much advantage from the improved national economy and reconstructed district roads.”
(original emphasis)
22 Large numbers of coffee farming households also invested in mabati (corrugated iron sheet) roofs that year,
hence their relative abundance today.
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