PARISH

DEVELOPMENT ISER
MODEL
Facilitating Social Justice

INITIATIVE FOR SOCIAL AND ECONOMIC RIGHTS

5 THINGS GOVERNMENT MUST

IMMEDIATELY ADDRESS
 ISER Facilitating Social Justice PARISH DEVELOPMENT MODEL: 5 THINGS GOVERNMENT MUST IMMEDIATELY ADDRESS
INITIATIVE FOR SOCIAL AND ECONOMIC RIGHTS

1. BACKGROUND/ INTRODUCTION recognition from government regarding

the role that targeted interventions could
For many years, the current government has play in driving inclusive growth and at
made strides at eradicating poverty. Right the same time achieve a just recovery
from the 1980’s, it embarked on several from COVID - 19. The World Bank within
economic and social programs to uplift the her State of Economic Inclusion report4 2021,
incomes of the poorest and consequently has described economic inclusion as a
improve their living standards. These bundle of coordinated, multidimensional
included the Poverty Eradication Action interventions that support individuals,
Plan; Rural Farmers Scheme in the early households and communities so they can
1990s; Entandikwa in the run-up to 1996; raise their incomes and build their assets.
Bona Bagaggawale in 2007; Operation Such programs have been broken into three
Wealth Creation; the Youth Livelihood entry points namely: - social safety nets;
Programme; to the now current Emyooga livelihoods and jobs; and financial inclusion.
program which was introduced in October
of 2020. The Parish Development Model, which is
government’s latest program speaks majorly
Despite all these efforts, poverty and to financial inclusion. Through this pillar,
inequality still remain high. The country’s government aims to bring the remaining 39
growth rate over the five years’ percent of Ugandan households from
pre-pandemic has averaged 5 percent1 but subsistence into the monetary economy.
much of this growth has been “jobless”.
Unemployment levels have remained stuck Subsistence households have been defined
at 9 percent2 with much of the reported as those engaged in production of goods
growth being from those sectors that and services whose returns are only enough
employ the smallest population share. And or even unable to meet the basic
yet even for the few employed citizens, requirements/ needs. Estimates by the
many can barely afford to live. Out of every 2019/20 national household survey put
ten households, four3 still aren’t able to this figure at 3.5 million households.
sustain their day to day needs like food, Through the PDM, government now aims
water, housing and healthcare. to provide sustainable livelihoods for all
these households.
By way of various “economic inclusion”
programs, there now seems to be more

1 World Bank, World Development Indicators Database, https://databank.worldbank.org/source/world-

development-indicators
2 2019/20 Uganda National Household Survey; Uganda Bureau of Statistics
3 Based on the latest figure for subsistence households according to the 2019/20 national household survey:
Households in the subsistence economy have been defined by the Uganda Bureau of Statistics as those that
are unable to meet their basic needs regardless of whether they were engaged in any economic activity.
4 https://www.peiglobal.org/resources/state-economic-inclusion-report-2021-potential-scale-overview
(last accessed 12 July 2022).

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 ISER Facilitating Social Justice PARISH DEVELOPMENT MODEL: 5 THINGS GOVERNMENT MUST IMMEDIATELY ADDRESS
INITIATIVE FOR SOCIAL AND ECONOMIC RIGHTS

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 ISER Facilitating Social Justice PARISH DEVELOPMENT MODEL: 5 THINGS GOVERNMENT MUST IMMEDIATELY ADDRESS
INITIATIVE FOR SOCIAL AND ECONOMIC RIGHTS

2. KEY FACTS ABOUT THE PARISH DEVELOPMENT MODEL

Started in 2021/22, the Parish Development Model (PDM) has been identified as a strategy
for organizing and delivering public and private sector interventions for wealth creation and
employment generation at the parish level as the lowest economic planning unit. This is in
line with the National Development Plan III whose thematic focus is “sustainable
industrialization for inclusive growth, employment and wealth creation.”5

Government has observed that implementation of the PDM marks a major milestone in
Uganda's development journey in three main ways:

• It accelerates implementation of Area-Based Commodity Development

planning which is vital for realizing the quantity and quality of agricultural
production required for agro - industrialization and export development.
• It extends the whole-of-government approach for development to the parish
level in a consolidated manner as opposed to working in silos.
• It localizes Vision 2O4O and the National Development Plan for effective
measurement and management of development interventions.

Everything should be situated at the Parish level and is anchored in seven pillars. These
pillars will be implemented by both public and private sector institutions at the central
and local government levels. These are listed below.

Production,
Processing Infrastructure
and Marketing and Financial Social
(Value Chain Economic Inclusion Services
Development) Services

Community
Data (Community Governance & Mindset
Information Administration Change
System)

5 Ministerial Statement on the Parish Model, https://parliamentwatch.ug/wp-content/uploads/2021/07/

Ministerial-Stamen-on-the-Parish-Develop-Model.pdf (last accessed 12 July 2022).

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 ISER Facilitating Social Justice PARISH DEVELOPMENT MODEL: 5 THINGS GOVERNMENT MUST IMMEDIATELY ADDRESS
INITIATIVE FOR SOCIAL AND ECONOMIC RIGHTS

Pillar Key Fact

Financial Inclusion Communities will be organized into business oriented

groups for them to receive credit from government.
Funds to these groups will be drawn from the Parish
revolving fund.

Applicants are required to be engaged in the

production/storage/value addition/ buying and selling
of any of the recommended agricultural production
lines.

Interested members won’t have to pay any membership

or administration fees.

The annual interest charged will be (a five-year average

inflation rate +1%). So the 2021/22 interest rate will be
6%.

The maximum duration for recovery of funds will be

3 years.

All payments will be made through digital means and

all funds will be channeled directly from the treasury to
the Parish SACCOs.

Members of each Parish group shall co-guarantee one

another for purposes of ensuring successful
implementation of their project. The guarantees shall
be by each individual in the group and enforceable
individually or severally.

30 percent of the parish revolving fund will go to

women; 30 percent to youths; 10 percent to persons
with disability; 10 percent to the elderly; and lastly 20
percent to men and others that don’t fall in the above
special categories.

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INITIATIVE FOR SOCIAL AND ECONOMIC RIGHTS

Production, storage, processing For each district, they’ll identify 2 priority agricultural
and marketing commodities that should be promoted and branded. So
all resources channeled under the revolving fund will be
channeled towards production of the identified
commodities.

Social Services This pillar shall consolidate delivery of social services at

the grass-root level.

Focus will be on primary healthcare, education, access

to clean water, transport and communication.

Relevant MDAs shall identify and transfer resources to

local Governments to enable them establish the best
social services.

Infrastructure and Economic Focus is on providing community roads; community

Services local markets; power; safe water; Internet and ICT
infrastructure at the parish level.

Community Data (Community This pillar shall involve community profiling and data
Information System) collection to inform Government planning and delivery
of targeted interventions.

Governance & Administration This pillar is responsible for implementation aspects of

the PDM.

Adoption of the PDM will extend to the parish level the

whole-of-government approach to development and
governance (program-based budgeting and delivery).

The parish chief will be responsible for implementing

government policies and programs in his/her area of
jurisdiction.

Mindset Change This pillar will focus on adoption of the right way of
thinking and focus will be to enhance financial literacy
for households; reduce negative cultural practices; and
reinforce positive beliefs and norms.

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 ISER Facilitating Social Justice PARISH DEVELOPMENT MODEL: 5 THINGS GOVERNMENT MUST IMMEDIATELY ADDRESS
INITIATIVE FOR SOCIAL AND ECONOMIC RIGHTS

HOW THE PARISH MODEL WILL BE KEY CONCERNS

FINANCED
1. Insufficient attention is paid to
For the current financial year 2021/22, each Public Social Services within the
parish shall receive Shs. 17million for the Parish Development Model
Parish revolving fund. Government has
planned to have this increased to Shs. 100 Although noted under the guidelines that
million starting 2022/23 financial year MDAs are mandated to plan for delivery of
implying a total allocation Shs 1.05 trillion the social services pillar with the intention to
within that year. This same amount will be bring these services to the grassroots, the
injected into the revolving fund for four line Ministries responsible have not expressly
consecutive years. It is worth noting that noted what they will do in that regard. As per
funding has only been planned exclusively existing policy, every parish should have a
for the Parish Revolving Fund, and MDA’s government school and a health facility
will have to plan for and mainstream within 5km reach. Many do not and without
the other pillars within their respective access to such critical public social services,
budgets. money provided under the revolving fund
risks being spent by recipients to cover
The Parish Model generally is a step in the pressing home needs than rather invested as
right direction as it stipulates a course of intended. Hence despite mentioning public
action that could directly uplift the services as a key pillar within the guidelines,
livelihoods of the poor by tapping into those there still seems many questions as to how
areas with the greatest potential. It is this will be actualized. When assessing
interesting to note that financial support will MDA’s budgets, will the Ministry of Finance
now target the entire agricultural appraise their compliance to this directive?
value-chain than rather focus at only the Will there be a requirement for a particular
input stage. percentage/portion of MDA’s budget to go
to public social services at parish level? How
But like many of its predecessors, the will the authorities ensure that parish chiefs
program risks missing its intended objective are involving communities in drafting
if a number of gaps are left unaddressed. parish-level budgets? All these are questions
that will need to be answered.

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 ISER Facilitating Social Justice PARISH DEVELOPMENT MODEL: 5 THINGS GOVERNMENT MUST IMMEDIATELY ADDRESS
INITIATIVE FOR SOCIAL AND ECONOMIC RIGHTS

2. The current distribution plan is inequitable given differences in the size of

parishes

As currently planned, each parish will receive UShs 17 million in financial year 2021/22 and
another UShs 100 million starting 2022/23 financial year for four more years. A key point of
concern is that while distributing these funds, consideration hasn’t been made for the
number of households within each Parish. This will likely see many lesser populated regions
receive far larger allocations compared to those with more households. The differences can
be quite stark. A case in point is Kiboga district that will receive UShs 4 billion, to cater to a
41,300 households. This when compared to Masaka (UShs 3.9 billion) is much bigger and yet
Masaka harbors double the number of households in Kiboga. Moreover, a district could have
less people but with more concentrated in a few parishes. Leaving out such key criteria could
see less populated areas benefit more rendering the distribution inequitable.

Allocations under the Parish Model for the 2022/23 FY

Kiboga, 4.0,
41300

Masaka, 3.9,
89000

Series Description: District, allocation in billions Shs, no. of households

Data Source: Uganda Bureau of Statistics, 2021 statistical abstract

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 ISER Facilitating Social Justice PARISH DEVELOPMENT MODEL: 5 THINGS GOVERNMENT MUST IMMEDIATELY ADDRESS
INITIATIVE FOR SOCIAL AND ECONOMIC RIGHTS

While government may not have data on number of villages, only a handful of the
areas of need within parishes, it should have people had heard about it.7 Key leaders that
data on parish sizes, which would enable could have aided in its dissemination like
better targeting than providing 100 million Local Council representatives are only
shillings per parish. learning about it. There are some steps
being taken to raise awareness, for example
Moreover, as the money allocated for within the last few weeks, women leaders in
2021/22 was distributed, in Bududa district, Mityana district were being mobilized to
while each Parish should have received UShs learn about the PDM, which is a good step
17 million, because only 54 out of 160 forward. We are also now seeing Members of
parishes had been budgeted for by the Parliament, Ministers and KCCA interacting
Finance ministry, each ended up receiving with communities on the model. However,
UShs 7 million as the district then decided to much of the sensitization focuses on the
precisely divide the money allocated money to be received under the financial
amongst all parishes.6 inclusion pillar, with limited or no mention of
the other pillars. Many did not, for example
know the link between social services and
3. There are no guarantees of
the Parish model.
meaningful citizen participation in
developing parish plans and The implementation guidelines for the
budget Parish Model have stipulated that the parish
Given that subnational plans and budgets action plans, budgets and reports will be
will now emanate from the Parish, it is prepared, coordinated and managed by the
important that citizens together with their Parish Chief together with the Parish
local leaders are granted the opportunity to Development Committee. There hasn’t been
take part in identifying their community any mention however as to how citizens
needs. The Parish model although shall be mobilized to feed into this process.
considered bottom up was top down in its This then risks having much of their
design process in that communities learnt community needs left out. Community
about it after it was launched rather than participation and ownership will be key to
inform its formulation. In February this year ensuring the functionality of the revolving
when the President launched the Parish fund. Some people do not know that the
model, it was the first time for many money will have to be paid back with some
especially in rural areas to substantively hear interest.
about it besides noting it as a campaign
promise. At the end of April 2022, in a

6 Parish Model Programme Starts Amid Hitches In Some Parts Of The Country, NTV news 24 June 2022 https://
www.ntv.co.ug/ug/news/parish-model-progamme-starts-amid-hitches-in-some-parts-of-the-country-
3859232 (last accessed 12 July 2022).
7 ISER interviews with different stakeholders, April 2022.
8 Ibid.

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While theoretically power seems to be brought to the people

through the parish development model, in reality it seems to be top
down. It is worth mentioning that too often, economic-
development planning happens to communities rather than with
them. Yet to achieve an economy in which the benefits are shared,
leaders would need to take an approach that is fully rooted in the
human perspective, directly engaging diverse voices and giving
decision- making authority to the communities they seek to
empower. This would be in line with the spirit of Article 176 of the
Constitution which provides for decentralization “to ensure
people’s participation and democratic control in decision
making.”

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 ISER Facilitating Social Justice PARISH DEVELOPMENT MODEL: 5 THINGS GOVERNMENT MUST IMMEDIATELY ADDRESS
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4. Administrative and staff costs short of the required accountability

aren’t adequately catered for measures to safeguard the program’s
execution and do not further stipulate the
One of the major barriers to the success of roles to be played by key stakeholders such
previous livelihood programs – including as the legislative arm of Government.
Emyooga, has been the failure to Parliament has asked for a policy framework
adequately plan for the administrative but we are yet to see one. Government
costs necessary to keep them running. In the had rejected this arguing that the program
case of the Emyooga program, legislators, was in line with the Constitution and
while presenting their reports9 on the does not need a separate policy. However,
implementation of the program within their this could be argued for most programs.
different constituencies across the country, It is increasingly clear that Uganda’s
noted that, its structuring had overlooked development model will be anchored in
the impact of administrative costs with the Parish Development Model. A clear legal
some SACCOs charging beneficiary groups or policy framework to guide this model
between UShs 1.5 million to 2 million to would strengthen accountability and help
cover costs like setting up offices. This in ensure government achieves the intended
essence lessened the funds available for development gains.
on-ward lending.

In the case of the Parish Development 6. The implementation gaps in the

Model, Government did set aside UShs 17 PDM guidelines expose the
billion and UShs 29 billion to meet program to the risk of Corruption
administrative and staff costs respectively
within the 2021/22 financial year. As It is worth noting that for a long time, many
concerns this FY 2022/23, much of the economic programs meant for livelihood
discourse has centered on the UShs 100 support have become insolvent as funds
million per parish that is to be channeled channeled into them have gone missing,
through the revolving fund. It is not clear including monies for the most recent
how administrative costs will be catered for Presidential Initiative on Wealth and Job
this financial year. Creation “Emyooga.” This was because
accountability mechanisms were not
5. There is no policy framework to sufficiently built within these programs.
guide the Parish Development It is not clear government has learnt
Model’s lessons from this to prevent the likely
recurrence of corruption. For example
To date, there is no legal or policy framework the lack of clear criteria has resulted in
to guide implementation of the Parish reports that leaders are asking people for
Model except for the guidelines that bribes, in order to be considered first for the
Government has put in place. These are funds.10

9 Parliament, https://www.parliament.go.ug/cmis/views/1ae4d375-2c38-4747-91fe-81f4f407dfd2%253B1.0
(last accessed 12 July 2022).

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7. There is yet any serious safe guards rightfully excluded. Local Council courts
by Government to preserve the which fall under administration of justice
sustainability of numerous revolving structures would lie here. Moreover, access
funds to justice is a key barrier many people face
and the Chief Justice has called for courts at
On account of the UShs 100 million that each parish level.
will be injected into each Parish SACCO
for four consecutive years, Government
envisions the revolving fund to become 9. Need for more clarity on the interest
self-sustaining with earlier borrowers Rate
eventually returning loan funds along with
The Guidelines state the interest rate will
interest for this to lent out to other groups.
vary. While in 2021/22, it was set to be 6 %, it
will be determined each year taking into
The guidelines state that members of
account a five-year average inflation rate
each Parish Group shall co-guarantee one
plus 1%. It is not clear what happens when
another for purposes of ensuring successful
the inflation rate is high. For example, this
implementation of their approved project
year, the inflation rate will be higher,
and that the guarantees shall be by each
averaging 7.4% according to the July Bank
individual in the group and will be
of Uganda Monetary Policy statement.
enforceable individually or severally.
A better model would be to set 6% as the
However, there is yet any mention of how
interest rate ceiling.
such enforcement shall be carried out. The
lack of a clear enforcement mechanism risks
these monies getting abused by their 10. Criteria to determine who can benefit
recipients and an eventual collapse of the
There is lack of clarity around how Parish
revolving fund.
chiefs will be determining who can and can’t
benefit. For example, we have received
.
8. Lack of Remedial Mechanisms reports of people in villages being excluded
despite being relatively impoverished
There is also no remedial mechanism built
simply because they have relatives who
within the model of the program. This
work in Kampala. Clear criteria to determine
should follow under pillar 6: Governance
who can benefit would reduce this
and Administration. While the PDM Policy
arbitrariness. The criteria could be publicly
Committee will be in place, it will assess the
posted alongside beneficiaries to curb the
program overall and report to cabinet on
risk of corruption. There is also no clarity on
challenges. Neither the PDM Technical
maximum that can be borrowed by any
committee, nor any structure within the
household or group so it could result in only
program is tasked with ensuring access to
a few beneficiaries exhausting the money or
remedy. Yet there are already complaints
even foster corruption.
from people questioning whether they were

10 Tugume Godfrey, Rubanda Chiefs Ask For Bribes to Dispense Parish Development Model, CHIMPREPORTS,
June 28,2022, https://chimpreports.com/rubanda-chief-ask-for-bribes-to-disperse-parish-development-
model- money/, last accessed 12 July 2022.

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RECOMMENDATIONS
The Parish Development Model can play a key role in driving socio-economic transformation
for the country’s poorest individuals. However, it could, like many well-intentioned
government programs fall short of achieving its intended objective if the above identified
gaps are not addressed.

Below we propose five ways the Parish Development Model could be improved in order to
enhance its capacity to meet it intended objectives:
1. Ensure adequate financing and equitable distribution of the PDM funds.
1.1 Put a cap on funds to be borrowed by each household. This would enable as many
groups as possible to benefit in any one given year and reduce the risk of corruption.
1.2 Establish clear criteria on who can benefit.
1.3 The Ministry of Local Government should work with Uganda Bureau of Statistics in the
coming financial year 2022/23 to support data collection efforts at the Parish level. Such
disaggregated data should guide any new regional allocations in the years that follow.
Resources should therefore be allocated to this effort. A clear database will enable
transparency, better targeting and value for money.
1.4 Put a cap on interest rates charged under the revolving fund
1.5 Ensure adequate financing for administrative costs including monitoring and evaluation.
2. Develop a policy to guide implementation of the PDM. The policy should cover
clear accountability mechanisms and access to remedy.
3. Put in place a comprehensive framework for accountability.
3.1 Clear mechanisms should be put in place to disincentive corruption amongst both the
recipients and those administering funds under the financial inclusion pillar. One
example is that funds could be distributed based on households than rather collective
groups as it seems more plausible to enforce recovery of funds on individual households
than on collective groups.
3.2 Regular monitoring and sensitization are key to avoid pitfalls of prior programs like
Emyooga.
3.3 Devise a structure to ensure timely and comprehensive accountability for disbursed
funds. For example, there should be accountability for the 17 million allocated per parish
in the 2021/22.
3.4 Ensure access to information. Post list of beneficiaries in public spaces in communities.

4. Increase investment in Public Services and access to justice at Parish level and all
MDAs must account for how they have aligned their budgets to realize this.

5. Ensure meaningful citizen participation.

5.1 Regulation should be put in place to secure meaningful citizen participation in the
development of parish plans and budgets.

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 ISER Facilitating Social Justice

INITIATIVE FOR SOCIAL AND ECONOMIC RIGHTS

Initiative for Social and Economic Rights (ISER)

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