Contribution of Human Capital on Poverty Reduction in Rural Areas of Uganda. A Case of Kisoro District

Purpose: The study was about the contribution of human capital on poverty reduction in rural areas of Uganda taking Kisoro district as a case study. In Uganda, poverty in rural areas had remained a challenge as depicted by 31 percent of population below poverty line as of financial year 2016/2017 (UBOS, 2018) having risen from 22.8 percent in financial year 2012/2013 (MoFPED, 2014). In Kisoro district, poverty was high as manifested by low household access to electricity (7.6%), piped water (33.7 %), high illiteracy levels, food insecurity, poor housing conditions where 84.6% of households lived in semi- permanent dwelling units (UBOS, 2017). The purpose of the study was to examine how human capital could contribute to poverty reduction in rural areas of Uganda taking in Kisoro district as a case study. Methodology: The study was carried out in Kisoro district on 391 respondents against the targeted 400 which represented 97.8 % response rate. The respondents included farmers, district technical staff, business entrepreneurs, agricultural industrialists, political, religious and opinion leaders. The study triangulated both quantitative and qualitative approaches and a cross- sectional survey was used. Data collection methods used included: survey, interviews, observations and review of primary and secondary documents; while the tools used were self-administered questionnaires, interview guide, interview schedule, observation plan and its checklist, a camera and a recorder. Findings: Education could significantly ensure rural poverty reduction in Kisoro district, with a positive and significant relationship between them (r = 0.415, p< 0.05). Education also explained 23.2% of the contribution on rural poverty reduction.Training had a significant effect on rural poverty reduction in Kisoro district with a positive and significant relationship between them (r = 0.267, p< 0.05). Training also explained 9.1% contribution to rural poverty reduction. There was significant relationship between human capital and rural poverty reduction in Kisoro district. It was concluded that human capital had a great contribution towards poverty reduction in rural areas. Unique Contribution to Theory, Practice and Policy: The study recommended that; public education, research and development, science and technology and enabling policies could sustainably be promoted for enhanced productivity, poverty reduction and development.