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Is There a Place for Virtual Poverty Funds in Pro-Poor Public Spending Reform? Lessons from Uganda's PAF

Author

Listed:
  • Tim Williamson

    (Research Officer in the Centre for Aid and Public Expenditure, Overseas Development Institute, London)

  • Sudharshan Canagarajah

Abstract

Various developing countries with weak public expenditure management systems are establishing virtual poverty funds (VPFs), drawing on the experience of Uganda's Poverty Action Fund. As a mechanism for tagging and tracking the performance of specific poverty-reducing expenditures in the budget, a VPF can be useful. However, this article argues that such devices should be treated from the outset as transitional, and as part of wider processes of strengthening public expenditure management; otherwise, they can seriously distort public expenditure allocations and management systems, potentially undermining growth. Emphasis needs to be placed on identifying the right balance of expenditures in the entire budget; improving the effectiveness and efficiency of existing allocations; and developing better public-sector policies for promoting pro-poor private sector growth. Copyright Overseas Development Institute, 2003.

Suggested Citation

  • Tim Williamson & Sudharshan Canagarajah, 2003. "Is There a Place for Virtual Poverty Funds in Pro-Poor Public Spending Reform? Lessons from Uganda's PAF," Development Policy Review, Overseas Development Institute, vol. 21, pages 449-480, July.
    • Handle: RePEc:bla:devpol:v:21:y:2003:i::p:449-480
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    Cited by:

    1. Kappel, Robert & Lay, Jann & Steiner, Susan, 2004. "The Missing Links - Uganda's Economic Reforms and Pro-Poor Growth," Open Access Publications from Kiel Institute for the World Economy 3840, Kiel Institute for the World Economy (IfW Kiel).
    2. Tankari, Mahamadou & Badiane, Ousmane & Montaud, Jean-Marc, 2013. "When social goals meet economic goals: the double dividend of extending access to healthcare for farmers in Uganda," Conference papers 332430, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. repec:zbw:ifwkie:3715 is not listed on IDEAS
    4. Kappel, Robert & Lay, Jann & Steiner, Susan, 2005. "Uganda: No more pro-poor growth?," Open Access Publications from Kiel Institute for the World Economy 3504, Kiel Institute for the World Economy (IfW Kiel).
    5. Peter Miovic, 2004. "Poverty Reduction Support Credits in Uganda : Results of a Stocktaking Study," World Bank Publications - Reports 15673, The World Bank Group.
    6. Jean-Marc Montaud & Mahamadou Roufahi Tankari, 2013. "When social goals meet economic goals: the double dividend of extending free access to healthcare in Uganda," Working Papers hal-01880339, HAL.
    7. Asante, Augustine Danso & Zwi, Anthony Barry & Ho, Maria Theresa, 2006. "Equity in resource allocation for health: A comparative study of the Ashanti and Northern Regions of Ghana," Health Policy, Elsevier, vol. 78(2-3), pages 135-148, October.
    8. Jean-Marc Montaud & Mahamadou Roufahi Tankari, 2013. "When social goals meet economic goals: the double dividend of extending free access to healthcare in Uganda," Working Papers hal-01880339, HAL.
    9. Edward Batte Sennoga & John Mary Matovu, 2013. "Public Spending Composition in Uganda and its Implications for Growth and Poverty Reduction," Public Finance Review, , vol. 41(2), pages 227-247, March.

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