Report by Marian Muenchenbach and Anthony Ojok (2010) describing transition from emergency relief to development after 20 years of violent internal conflict in Kitgum, Uganda. Focus is on facilitating local economic recovery and market development in an humanitarian assistance programme. Authors adapted the EMMA toolkit to these ends.

1. Local Economy Support in Humanitarian Assistance
From Relief to Development in a Post-Conflict Environment
Northern Uganda, August 2010
Marina Muenchenbach and Anthony Ojok

2. Abstract
The research investigates to what extent Humanitarian Assistance Programs support Local Economy
during the transition phase from emergency to development and how best this support can be
strengthened by forming partnerships with Local Markets
and in coordination with Local Governments. The study
HA LE
addresses the context of conflict affected environments, in
this case Kitgum District in Northern Uganda which after
over 20 years of violent internal conflict is in the transition Common interest
LG
to development.
The author used ‘action research in partnership with concerned actors’ as methodology and conducted
the study with a Ugandan counterpart. The approach builds on the concept of co-generating knowledge
between ‘insiders’ and ‘outsiders’ on specific areas of interest. Insiders want to find solutions for practical
problems; outsiders want to generalize conclusions and recommendations.
Local stakeholders selected three areas in which they saw potential gains from an increased involvement
of Local Economy: the lack of agro input dealers in agriculture, the lack of spare parts dealers in rural
water supply and the low quality of construction works in infrastructure projects. Researchers and local
actors conducted sector specific series of workshops, market chain assessments and analysed
information collected through questionnaires.
The three sectors agriculture, rural water supply and construction show significant differences in their
appreciation of Local Economy Support as an objective. Further investigation revealed a distinction
between ‘service delivery’ programs and ‘livelihoods’ or ‘production’ oriented programs.
Food Security and Agricultural Livelihoods Programs define the creation of livelihoods for farmers as their
main objective and respond to the lack of capacity of beneficiaries with increased training (farmer field
schools, seed fairs, partnerships to support small agro input dealers). They have a good conceptual
understanding of market and value chains and use indirect responses (vouchers, provision of credit,
strengthening of market linkages etc) that build capacity of local economy.
Rural water supply programs are supposed to phase out soon after the end of the transition phase. Their
main objective is coverage of services: the water points. Attempts to analyse rural water supply as a
market are rather rare. However, a growing number of implementation programs contain research
elements concerning this issue and development oriented organisations show strong efforts to find
workable solutions for operation and maintenance addressing sustainability of investment.
Construction / Infrastructure does not exist as a Humanitarian Assistance program but is regarded as a
hardware component of service delivery programs - schools for education and clinics for public health. As
i

3. a consequence, there is limited room to think beyond implementing the required structure and the
potential of construction projects for Local Economy Development is underestimated.
National Recovery and Development Programs show similar tendencies. The Peace, Recovery and
Development Programme (PRDP) as the main funding mechanism for the reconstruction of the North of
Uganda distributes resources to ‘service delivery’ sectors (education, health, roads and water) without the
inclusion of agriculture. On the other extreme, the UNDP ‘District Development Program III’ which aims for
Local Governments ‘to move from service delivery to performing a pivotal role in Local Economy
Development’ defines agriculture as the only viable sector for economic development in Kitgum District.1
The distinction into ‘service delivery’ and ‘production’ overlooks two realities: (1) Service delivery and in
particular reconstruction programs provide significant income and employment opportunities and should
be seen as eligible economic sectors. (2) Reconstruction needs to address production parallel to service
delivery / infrastructure: If we increase the number of roads and boreholes and teacher’s houses or
classrooms, what will the road lead to? We will have a problem with maintenance of these very roads and
boreholes as long as the people don’t have money in their pockets (Interview with District Agricultural
Officer).
The author proposes response options and invites for further reflection in five areas:
(1) Reducing the discrepancy between ‘service delivery’ and ‘production’ programs to allow for both to
contain objectives of Local Economy Support (for example by defining the use of local material, labour
and services as by-objective to the core objective ‘construction and rehabilitation of schools).
(2) In the absence of a shelter cluster, coordinating construction / infrastructure as a specific working
group e.g. in the Early Recovery Cluster.
(3) Applying indirect response options (voucher systems, provision of credit, strengthening market
linkages and partnerships) as they are used in agriculture oriented programs to service delivery oriented
programs.
(4) Adding Action Research elements to ongoing assistance programs. They provide ideal opportunities to
gain practical solutions to current problems and generalized ideas for future policy changes.
(5) Defining program objectives based on constraints that have been identified through market mapping
(e.g. as an addition to a LogFrame). The mapping of market systems in which Humanitarian Assistance
programs operate enhances understanding of complexities and of identifying constraints and formulating
specific interventions in relation to these constraints.
1
According to the Kitgum District Draft LED strategy plan (2010)
ii

4. Preface and Acknowledgements
Anthony Ojok was my friend, translator and co-researcher. Without him I would not have done this
dissertation. Many thanks.
Kitgum ABC Engineering Works offered us office space and became our mentors and host family.
An infinite number of people in Kitgum, Gulu and Kampala actively participated in this research.
Ana provided a home in Kampala and gave me Yoga lessons and good food.
Maria was the first one to whom I explained the dissertation topic on a cold January morning in
Switzerland because I wanted to know if it made sense to somebody with common sense.
SDC and GTZ responded to first emails confirming that my research questions were valuable and
motivated me to go ahead.
My small and extended families in Oxford and Switzerland were continuously open to discussions.
Leda Stott was always accessible, always critical, always positive and always supportive and all at the
same time. Thank you, Leda.
Ingenious People: What would you do if your shoelaces were too short?
iii

5. Table of Contents
Abstract
Preface and Acknowledgements
1 CHAPTER ONE - INTRODUCTION......................................................................................................... 1
1.1 WHY THIS DISSERTATION? ..................................................................................................................... 1
1.2 BACKGROUND TO THE RESEARCH ........................................................................................................... 2
1.3 PROBLEM STATEMENT ........................................................................................................................... 2
1.4 RESEARCH AIM ..................................................................................................................................... 2
1.5 RESEARCH QUESTIONS .......................................................................................................................... 3
1.6 METHODOLOGY, FRAMEWORK AND STRUCTURE OF DISSERTATION......................................................... 3
2 CHAPTER TWO – RESEARCH METHODOLOGY................................................................................ 4
2.1 RESEARCH PROCESS .............................................................................................................................. 4
2.2 RESEARCH LIMITATIONS AND OPPORTUNITIES ....................................................................................... 5
2.3 ETHICAL CONSIDERATIONS .................................................................................................................... 5
2.4 STRUCTURES FOR TRANSPARENCY ......................................................................................................... 5
2.5 DISSEMINATION .................................................................................................................................... 5
3 CHAPTER THREE – RELEVANT STRANDS OF LITERATURE ......................................................... 6
3.1 DEFINITIONS OF HUMANITARIAN ASSISTANCE AND DEVELOPMENT ASSISTANCE ..................................... 6
3.2 SIX MAJOR AREAS OF POLICY AND RESEARCH LITERATURE RELEVANT TO THE DISSERTATION ................... 6
3.2.1 Assistance and its impact on conflict affected environments .............................................................. 7
3.2.2 Thinking in systems – Sustainable Livelihoods (SL)........................................................................... 7
3.2.3 Local Economy Development, Local Economy Recovery and the Early Recovery Cluster .................. 9
3.2.4 Direct versus indirect humanitarian response options....................................................................... 9
3.2.5 The poor are poor but they are many – Humanitarian Assistance and the informal sector ............... 10
3.3 PITFALLS OF LOCAL ECONOMY SUPPORT - WAR WINNERS AND SPOILERS ............................................. 10
4 CHAPTER FOUR - THE UGANDAN CONTEXT .................................................................................. 11
4.1 COUNTRY PROFILE – THE CONFLICT..................................................................................................... 11
4.1.1 Conflict, displacement and camp life .............................................................................................. 12
4.1.2 Returning, resettlement and development........................................................................................ 12
4.2 HUMANITARIAN AND DEVELOPMENT ASSISTANCE IN UGANDA ............................................................. 13
4.2.1 Development Assistance on National Level ..................................................................................... 13
4.2.2 Humanitarian Assistance in Northern Uganda................................................................................ 13
4.3 RESEARCH LOCATION KITGUM DISTRICT ............................................................................................. 14
4.3.1 Kitgum District Local Government - KDLG.................................................................................... 15
4.3.2 PRDP funding and distribution across sectors ................................................................................ 16
iv

6. 4.3.3 District Development Programme III – a move towards Local Economy Development LED ............ 16
4.3.4 Humanitarian Assistance and Development actors in Kitgum Town ................................................ 18
4.3.5 Local Economy actors in Kitgum Town........................................................................................... 18
5 CHAPTER FIVE – RESEARCH FINDINGS AND ANALYSIS.............................................................. 20
5.1 FIELD RESEARCH PROCESS AND METHODOLOGY .................................................................................. 20
5.1.1 Workshop methodology – Market Mapping..................................................................................... 21
5.1.2 Questionnaires............................................................................................................................... 23
5.2 HOW DID THE USE OF ACTION RESEARCH AS METHODOLOGY IMPACT ON RESULTS? ............................... 24
5.3 GENERAL FINDINGS............................................................................................................................. 26
5.4 SECTOR SPECIFIC FINDINGS ................................................................................................................. 30
5.4.1 Agriculture..................................................................................................................................... 30
5.4.1.1 Assessment of Agro Input Market..................................................................................................... 30
5.4.1.2 Workshop Agro Inputs and Market Linkages 28 July ...................................................................... 31
5.4.2 Rural Water Supply........................................................................................................................ 33
5.4.2.1 Workshop ‘Spare Parts for Hand Pumps’ SP4HP 23 June............................................................. 33
5.4.2.2 Assessment of SP4HP Market.......................................................................................................... 34
5.4.2.3 Lessons learnt from others................................................................................................................ 35
5.4.3 Construction .................................................................................................................................. 36
5.4.3.1 Test Group ......................................................................................................................................... 37
5.4.3.2 Analysis of questionnaires ................................................................................................................ 38
5.4.3.3 Workshop 22 July and Windows of Opportunity .............................................................................. 39
6 CHAPTER SIX - CONCLUSIONS AND RECOMMENDATIONS ........................................................ 41
6.1 CONCLUSIONS ..................................................................................................................................... 41
6.1.1 General Conclusions – Thinking in Systems.................................................................................... 41
6.1.2 Sector Specific Conclusions – Agriculture ahead of other sectors.................................................... 43
6.2 PROPOSALS AND QUESTIONS FOR FURTHER REFLECTION ...................................................................... 44
6.2.1 Humanitarian Assistance and Donor Community............................................................................ 44
6.2.2 Local Economy Actors.................................................................................................................... 49
6.2.3 Local Government.......................................................................................................................... 49
7 APPENDICES ........................................................................................................................................... 50
7.1 LIST OF MEETINGS AND INTERVIEWS_STATUS 31 AUGUST 2010............................................................. 50
7.2 SUMMARY OF QUESTIONNAIRE METHODOLOGY .................................................................................... 52
7.3 LIST OF ORIGINAL WORKSHOP REPORTS, ASSESSMENTS AND QUESTIONNAIRE ANALYSIS ......................... 53
8 BIBLIOGRAPHY...................................................................................................................................... 54
v

7. List of Boxes
BOX 1 DEVELOPMENT INDICATORS (WDR, 2009)......................................................................................... 13
BOX 2 PRDP BUDGET OVERVIEW (USAID, 2010) ........................................................................................ 13
BOX 3 PRDP FUNDING FOR ACHOLI DISTRICTS - FINANCIAL YEAR 2009 / 2010 ............................................ 16
BOX 4 WWW TABLE UGANDA CLUSTER ....................................................................................................... 18
BOX 5 CHRONOLOGICAL FIELD RESEARCH PROCESS ..................................................................................... 20
BOX 6 NUMBER OF CONDUCTED INTERVIEWS ................................................................................................ 21
BOX 7 RANKED CONSTRAINTS FOR MAIZE MARKET IN LED WORKSHOP ......................................................... 23
BOX 8 RANKING OF CONSTRAINTS IN SUPPORTING LOCAL ECONOMY - HUMANITARIAN ASSISTANCE............. 27
BOX 9 W HICH BENEFICIARIES? FROM ILO/CWGER GUIDELINES FOR LER .................................................. 27
BOX 10 ILO / CWGER, GUIDELINES FOR LOCAL ECONOMY RECOVERY ........................................................ 28
BOX 11 MEASURES THAT WOULD HELP AGRO INPUT DEALERS TO EXPAND BUSINESS ...................................... 30
BOX 12 SLIDES PROVIDED BY NASEKO SEED COMPANY – CHALLENGES AND MITIGATION MEASURES .............. 31
BOX 13 CONSTRAINTS AND RESPONSE OPTIONS AGRO INPUTS ....................................................................... 32
BOX 14 CONSTRAINTS IN SPARE PARTS SUPPLY CHAIN ................................................................................... 34
BOX 15 PROPOSED SMART RESPONSE OPTIONS FOR A CAPACITY SUPPORT PROJECT .................................. 39
BOX 16 SAMPLE FROM QUESTIONNAIRE FOR HUMANITARIAN ACTORS ............................................................ 52
List of Figures
FIGURE 1 CONCEPT OF EARLY RECOVERY (UNDP, 2006) ............................................................................. 2
FIGURE 2 CO-GENERATIVE LEARNING (EDEN AND LEVIN) ................................................................................ 4
FIGURE 3 COMPONENTS AND FLOW IN A LIVELIHOOD ....................................................................................... 7
FIGURE 4 SUSTAINABLE LIVELIHOODS CONCEPT ............................................................................................. 8
FIGURE 5 CRUNCH MODEL OF DISASTER RISK REDUCTION ............................................................................. 8
FIGURE 6 UGANDA IN AFRICA (MAP SOURCE)................................................................................................ 11
FIGURE 7 INTERNAL DISPLACEMENT MAP (UGANDA CLUSTER, 2009) ............................................................ 12
FIGURE 8 KITGUM DISTRICT .......................................................................................................................... 14
FIGURE 9 KAMPALA – JUBA (RED) AND KITGUM (BLUE).................................................................................. 14
FIGURE 10 ORGANIZATIONAL CHART KDLG .................................................................................................... 15
FIGURE 11 PRDP SECTORAL DISTRIBUTION KITGUM DISTRICT ........................................................................ 16
FIGURE 12 FUNDING ACC TO PRDP ................................................................................................................ 17
FIGURE 13 ANNUAL INCOME OF SERVICE SECTORS (LEBA)............................................................................. 17
FIGURE 14 VALUE CHAIN FOR MAIZE – LED WORKSHOP 19 JUNE 2010 ......................................................... 22
FIGURE 15 IMPORTANCE OVER COMPLEXITY .................................................................................................... 23
FIGURE 16 GOOGLE GROUP SET UP FOR RESEARCH ....................................................................................... 25
FIGURE 17 RANKING OF INDIRECT RESPONSES IN AGRICULTURE AND RURAL WATER SUPPLY.......................... 26
FIGURE 18 STAKEHOLDER ANALYSIS FOR INTENDED LED FORUM................................................................... 29
FIGURE 19 MARKET SUPPLY CHAIN SPARE PARTS FOR HAND PUMPS – 22 JULY 2010 .................................. 33
vi

8. FIGURE 20 CONSTRAINTS FOR EXPANDING SP4HP BUSINESS, QUESTIONNAIRE ............................................. 34
FIGURE 21 SUPPORT FOR EXPANDING SP4HP BUSINESS, QUESTIONNAIRE .................................................... 35
FIGURE 22 VALUE CHAIN FOR QUALITY CONSTRUCTION WORKS – TEST GROUP 22 JUNE ............................... 37
FIGURE 23 CONSTRAINTS FOR PRODUCING QUALITY CONSTRUCTION WORKS – QUESTIONNAIRE RESULT ........ 38
FIGURE 24 POPULATION AFFECTED BY DISASTER ............................................................................................ 45
FIGURE 25 DISRUPTION OF MARKET CHAINS ................................................................................................... 45
FIGURE 26 DIRECT RESPONSE TYPE HA ......................................................................................................... 46
FIGURE 27 PROBLEMATIC EXIT STRATEGY ...................................................................................................... 46
FIGURE 28 INDIRECT RESPONSE TYPE HA ...................................................................................................... 47
FIGURE 29 RE-BUILDING MARKET CHAIN .......................................................................................................... 47
FIGURE 30 PROPOSED LED FORUM STRUCTURE............................................................................................ 48
List of Pictures
The cover page picture was taken in Kidepo National Park by a former colleague
PICTURE 1 KITGUM MAIN STREET (AUTHOR, 2010) ........................................................................................ 15
PICTURE 2 KITGUM AERIAL MAP...................................................................................................................... 18
PICTURE 3 MAIZE MARKET MAPPING DURING LED WORKSHOP 19 JUNE 2010................................................. 21
PICTURE 4 CONSTRAINTS – LED WORKSHOP .................................................................................................. 22
PICTURE 5 PARTICIPANTS RANKING CONSTRAINTS .......................................................................................... 22
PICTURE 6 MEETING SP4HP 22 JUNE 2010................................................................................................... 24
PICTURE 7 OFFICE LOCATION.......................................................................................................................... 25
PICTURE 8 KITGUM AGRO INPUT DEALER ........................................................................................................ 30
PICTURE 9 AGRO INPUT AND MARKET LINKAGES MEETING 28 JULY ................................................................ 31
PICTURE 10 RESULTS FROM MARKET LINKAGES WORKING GROUP IN AGRO MEETING 28 JULY ..................... 32
PICTURE 11 PRESENTATION OF GROUP RESULTS, SP4HP 22 JULY.............................................................. 34
PICTURE 12 TEST GROUP MAPPING QUALITY OF CONSTRUCTION W ORKS.................................................... 37
PICTURE 13 PRESENTATION OF RESULTS FORM WORKING GROUP, CONSTRUCTION WORKSHOP 22 JULY ..... 39
vii

9. Abbreviations and Acronyms
AFD Agence française de développement
ALNAP Active Learning Network for Accountability and Performance in
APSEDEC Acholi Private Sector Development Company Limited.
BMZ Bundesministerium fuer Zusammenarbeit / Federal Ministry for
CAO Chief Administrative Officer
CWGER Cluster Working Group on Early Recovery
DAO District Agricultural Officer
DCED Donor Committee for Enterprise Development
DCO District Commercial Officer
DDP District Development Programme
DE District Engineer
DLG District Local Government
DWO District Water Officer
EU European Union
FAO Food and Agriculture Organisation
FIAS Foreign Investment Advisory Service
GoU Government of Uganda.
GTZ Deutsche Gesellschaft für Technische Zusammenarbeit
HA Humanitarian Assistance
HDI Human Development Index
HIPC Highly Indebted Poor Countries
HIV/AIDS Human Immune-deficiency Virus/Acquired Immunodeficiency syndrome
HSM Holy Spirit Movement
ICG International Crisis Group
ICG International Crisis Group
IDP Internally Displaced Person
INGO International Non-Governmental Organization
IRC International Rescue Committee
IRIN OCHA news network
KDLG Kitgum District Local Government
LC Local Council
LE Local Economy
LEAD Livelihood Enterprises and Agricultural Development
LEBA Local Economy Business Assessment
LED Local Economy Development
LG Local Government
LLDC Land Locked Developing Countries
LRA Lord’s Resistance Army
MDG Millennium Development Goal
MoH Ministry of Health
MoLG Ministry of Local Government
MTN Mobile Telephone network
MTN Mobile Telephone Network
NAADS National Agricultural Advisory Services
viii

10. NGO Non-Governmental Organization
NRA National Resistance Army
NRC Norwegian Refugee Council
NRM National Resistance Movement
NUMAT Northern Ugandan Malaria Aids and Tuberculosis Project
NUSAF Northern Uganda Social Action Fund
NUTI Northern Ugandan Transition Initiative
NUWATER Northern Uganda Water
PEAP Poverty Eradication Action Plan
PRDP Peace Recovery and Development Programme
RDC Resident District Commissioner
SDC Swiss Department for Cooperation
ToR Terms of Reference
UBOS Uganda Bureau of Statistics
UGX Uganda Shillings
UN United Nations
UNCTAD United Nations Conference on Trade and Development
UNDP United Nations Development Program
UNHCR United Nations High Commissioner for Refugees
UNICEF United Nations Children Fund
UNOCHA United Nations Office for the Coordination of Humanitarian Affairs
USAID United States Agency for International Development
UTL Uganda Telecom Limited
WASH Water, Sanitation and Hygiene
WATSAN Water and Sanitation
WDR World Development Report
WFP World Food Programme
WHO World Health Organization
ix

11. 1 Chapter One - Introduction
1.1 Why this dissertation?
***
“When I pass the courtyard of our compound to go for lunch, our supplier for pipes - Jimmy - lingers
unhappily at the gate gazing at me with this look of “Can you talk to me – I have a problem”. I am not in
the mood but I like Jimmy and he is the first one who has supplied us with exactly the material that we
needed. He has a friend in Kampala whom he can apparently call and ask to send samples. The samples
arrive with the public bus; he picks them up and brings them to the hospital where we are trying to
renovate the entire sanitation system. We look at the sample, sometimes try it out practically, decide and
give an order.
It is really convenient to have Jimmy, because he is quick and sharp. He has a shop –at the bus park -
which he calls HALF PIPE; but I think that it is not a REAL shop yet.
So I go and ask Jimmy what is wrong and it turns out that he is waiting for our administrator who said that
he cannot pay Jimmy because he has no bank account and our organisation cannot pay such amounts in
cash. His implicit question to me is if – as the project manager for the rehabilitation works in the hospital - I
can go and do something about it, talk to the administrator.
I find the administrator whom I also like in his office explaining to me what I knew already: that Jimmy
doesn’t have a bank account and that we cannot pay such large sums in cash. What would happen if
everybody would do that? What would be the administrative costs and security risks implied?
Although I know that my arguments lie outside our formal administrative and logistical rules and
procedures I explain that we need Jimmy if we want to keep our deadlines in implementing the program
and if we want to keep up high quality work. That buying through our own logistical channels takes instead
of 3 days at least 3 weeks if not 3 months, that we do rarely get what we asked for - leave alone samples -
that we had such a good success lately in the hospital, which helped improve the image of our
organization in public etc.
Although my talk does not fit into above mentioned logistical rules and procedures it does somehow
impress. Jimmy will wait another 3 hours but he will get his money and we will get his pipes – this time.
The last sentence of the administrator was that this was THE LAST TIME I am doing this.”
***
This is one out of numerous stories that the author encountered in her decade of work for Humanitarian
Assistance in various organisations in various countries, contexts and continents. It is not easy to
purchase locally, use local contractors or hire local workers.
The author agrees that sanitation systems, water networks, schools and health clinics have to be built as
quickly and cost efficiently as possible. But should it not also be important who builds them and how?
Could money and resources that are needed anyhow not at the same time support local economy?
The motivation for this dissertation is to search for potentials for change so that Humanitarian Assistance
is designed and implemented in a way that it achieves maximum positive outcomes in both provision of
“conventional” humanitarian objectives like safe water and functioning health systems and in parallel
provision of “new” objectives like support of local economy towards sustainable profit-oriented
development.
What needs to change to make all happy: to help Jimmy to earn money by selling pipes, to allow the
administrator to follow rules and procedures, to give the rehabilitation project manager the material she
asked for and to provide the hospital with a functional sanitation system?
1

12. 1.2 Background to the research
Objectives of Humanitarian Assistance are “to save lives, alleviate suffering and maintain human dignity
during and in the aftermath of man-made crises and natural disasters, as well as to prevent and
strengthen preparedness for the occurrence of
such situations” (IPB, 2003). Development
Assistance which follows Humanitarian Assistance
is more economy-centred.
Coordination of Humanitarian actors was improved
by the creation of the UN cluster system in 2005.
The Early Recovery Cluster has the specific
responsibility for promotion of long-term
development (UNDP, 2006)
Despite considerable progress, Humanitarian
Assistance and Development Assistance still
appear “disjointed” with a sharp change in
objectives from the humanitarian to the
development phase. By focusing on
“humanitarian” objectives actors may run the risk
to create prolonged dependency or even hinder
independent sustainable development.
Figure 1 Concept of Early Recovery (UNDP, 2006)
1.3 Problem Statement
The importance of Local Economy Support in Humanitarian Assistance - specifically in the context of
conflict affected environments – is acknowledged by the Donor community and concerned actors.
However, up to date there is a lack of practical concepts that allow efficient implementation of stipulated
policies.
1.4 Research Aim
The research aims to investigate to what extent LE
HA
Humanitarian Assistance (HA) Programs during the
transition phase from emergency to development currently
support Local Economy and how best can this support can
Common interest
be strengthened by forming partnerships with Local
Markets and in coordination with Local Governments (LG). LG
The research specifically addresses the context of conflict
affected environments. The author chose Northern Uganda because of her knowledge of location and
regional context based on former assignments as Water and Habitat Project Manager for an International
Humanitarian Organisation. Northern Uganda after over 20 years of violent internal conflict is in the
transition to development and security conditions are favourable to conduct an individual research.
The dissertation compares the three sectors Agriculture, Rural Water Supply and Construction. These
sectors were chosen during an initial sourcing of interest by humanitarian actors on site.
2

13. 1.5 Research Questions
Local Economy Support in Humanitarian Assistance
1.6 Methodology, Framework and Structure of Dissertation
The research was conducted as ‘Action Research in Partnerships’. The author critically analyses pros and
cons of the approach. More than a mere methodology, ‘Action research in Partnerships’ moves to the
centre of the investigation and the analysis of its applicability becomes a research objective.
The study was carried out with a Ugandan counterpart in order to provide the author - and the study - with
a cultural understanding of the context and to make sure that capacity was built and knowledge remained
in country. The field research from June to August included individual briefings, interviews, practical
brainstorming and workshops and the distribution and analysis of questionnaires. Overall the research
was well perceived by local actors. The turn-up for workshops was surprising.
The dissertation is structured into 6 chapters. Chapter one introduces the research. Chapter two describes
the methodology in detail. Relevant strands of literature are presented and analysed in chapter 3. Chapter
four describes the Ugandan context both nationally and locally. The last chapters present detailed study
findings (chapter five) and formulate conclusions, proposals and questions for further reflection (chapter
six).
3

14. 2 Chapter Two – Research Methodology
Due to the restriction in financial resources and time of an individual dissertation the author chose an
exploratory approach which looks in detail into research issues, ‘scooping’ for potential opportunities and
proposing areas of further research.
The research was carried out as ‘action research in partnership with concerned actors’. This methodology
builds on the Scandinavian model of Participatory Action Research which is based on the concept of co-
generating knowledge between insiders and outsiders on a specific topic of interest (Eden and Levin as
cited in Reason and Bradbury, 1991).
However, in addition to and by further developing this approach the author chose taking a standpoint
towards the various actors in the context of the research as partners as opposed to mere participants.
One difference lies in the fact that the term ‘participatory’ is commonly used for an approach in which the
researcher controls the research but invites the ‘to be researched’ population to participate.
In her decision to use action research in partnerships, the author attempts to fortify the role of the
‘insiders’ (the people involved in the research) from participants to partners that co-decide about research
aim and research question in order to
make the expected result of the
investigation relevant to their reality.
Consequently, the author travelled to
Uganda in April and visited together
with her Ugandan counterpart 13
organisations essentially asking them:
‘This is my idea and this is the way I
want to do it. Does it interest you?
What interests you and how would
you make use of it? Do you have any
specific issues related to Local
Economy that can be investigated
with the model of co-generative
learning?’ This initial visit confirmed
interest of actors and defined three
topics that informed the selection of
three economic sectors (agriculture,
rural water supply and construction).
Figure 2 Co-generative learning (Eden and Levin)
2.1 Research Process
The research process developed in four steps:
Sourcing of interests
An initial sourcing of interests identified issues that fell into three different economic sectors: (1) agro
inputs and market linkages (agriculture), (2) supply chain of spare parts for hand pumps (rural water
supply) and (3) quality of construction works and capacity of local contractors (construction).
Workshops and Brainstorming Ideas
In June and July, researchers conducted a series of workshop dedicated to sector specific issues
(agriculture, rural water supply and construction). Workshop facilitation drew on Value Chain and Market
Chain Mapping and Analysis tools to raise awareness for systemic thinking.
Data Collection and Analysis from Questionnaires
Questionnaires specific to actor groups Humanitarian Assistance and Local Economy were developed,
piloted and distributed. After analysis of data, results were immediately disseminated to participants.
4

15. Study closure
Researchers developed and formulated conclusions and recommendations.
2.2 Research Limitations and Opportunities
Geographically the research was located only in one location (Kitgum). Kitgum is one of five Acholi
districts of Northern Uganda. Results are valid for the specific location and indicative for generalization.
Though, issues that came up through this scooping exercise help to identify ‘where to look for’ or are
topics for further research.2
The opportunity of the research lies in its practical approach involving existing real actors and its potential
to produce applicable concepts and tools that have been developed and agreed by a forum of concerned
actors.
The author is aware of the pros and cons of Action Research and has therefore defined the critical
analysis of the methodology as a research objective.
2.3 Ethical Considerations
Due to the practical aspect of the research and to the fact that researchers were ‘in the middle of things’,
expectations were raised in partners that the research would help their immediate needs. There was an
underlying attempt to confuse action research with a funded project. Another question was what would
happen after the research.
The majority of actors were extensively briefed with tailor made power point presentations in which
researchers specifically underlined the fact that they were not implementing a project.
Mitigation of described threats was attempted through the inclusion of the Ugandan Counterpart (he will
remain working in the context) and the continuous inclusion and briefing of the ‘host’ business company
(which availed office space to the researchers). Research documentation (reports of workshops,
assessments and questionnaire analyses) was disseminated on a continuous basis. Documents crucial to
the continuation of initiatives will remain on site with mentioned host company.
2.4 Structures for Transparency
It is the author’s conviction that a research belongs to the people ‘that are being researched’ and not to
the researcher herself. It was therefore necessary to define structures for transparency.
The researchers created an open forum with a series of continuous workshops where the decision for
critical issues was taken together. Analyses of questionnaire data were continuously disseminated.
All participants were invited to join a google group set up for the research where results were displayed
electronically.
2.5 Dissemination
The question of dissemination was given high priority in the research preparation. Dissertation outlines
had been sent at initial stages, during early preparation in January 2010 and again in May 2010 to various
donors and Humanitarian Organisations in order to ask for their interest and inputs.
Dissemination is therefore planned for two different audiences: to participants involved (because it is their
research) and for donors and humanitarian organisations on a European and/or international level.
2
Concerning the regional context of Northern Uganda / Southern Sudan, the research could be expanded across the Acholi and
Karamoja regions or across the country border into Sudan.
5

16. 3 Chapter Three – Relevant Strands of Literature
Humanitarian Assistance is usually not or not yet associated with Local Economy. For long the inclusion of
the private sector has been exclusively reserved for development issues. However, there is a growing
amount of literature that indicates a significant move away from this ‘old’ paradigm.
After a brief definition of Humanitarian Assistance and Development Assistance as concepts, the following
chapters will outline five major areas of current policy and research relevant to the dissertation.
3.1 Definitions of Humanitarian Assistance and Development Assistance
Humanitarian Assistance and Development Assistance are associates working towards a common long-
term goal but operating under different mandates and in different phases.
Humanitarian Assistance operates in exceptional cases, after man-made crises or after natural disasters.
Its mandate is humanitarian in the sense that it provides relief to alleviate suffering of affected populations
regardless of their race, religion or nationality. Humanitarian Assistance is a multifaceted body composed
of Donors, UN agencies, International NGOs, National NGOs, the Red Cross and Red Crescent
Movement and various other actors (ALNAP, 2010).
Development assistance is a long-term endeavour of donor countries and developing countries to achieve
sustainable global economic development and to reach Millennium Development Goals (UN, 2010).
In an attempt to improve development assistance, Ministers of developed and developing countries and
heads of multilateral and bilateral development institutions, agreed in Paris on principles that should
increase assistance effectiveness (OECD, 2005). The ‘Paris Declaration’ underlines the partnership
aspect between developing countries and donor countries. It postulates ownership of partner countries
exercising effective leadership over their development policies, alignment of donor support on partner
countries’ national development strategies and harmonisation of donors’ actions.
3.2 Six major areas of policy and research literature relevant to the dissertation
The research builds in many ways on a variety of existing policy and research literature. The author
grouped them into five categories according to their relation to the research.
1 Assistance and its impact on conflict affected environments
2 Thinking in systems – Sustainable Livelihoods
3 LED, LER, LES and the Early Recovery Cluster
4 Direct versus indirect response – voucher systems
5 The poor are poor but they are many
The following paragraphs critically analyse available
literature and describe their connection and relevance to the
dissertation.
6

17. 3.2.1 Assistance and its impact on conflict affected environments
When international assistance is given in the context of violent conflict, it becomes a part of that context
and thus also of the conflict. (Anderson M.B, 1999)
One of the first groundbreaking scholars in this field was Mary B. Anderson. Her well known volume Do
No Harm – How Aid can support peace or war summarizes findings and conclusions from the Local
Capacities for Peace Project. Based on intensive field research from Tajikistan, Lebanon, Burundi, India
and Somalia she convincingly demonstrates that assistance given during conflict cannot remain separate
from the conflict it operates in.
Recent years have seen emerging consensus within the donor community on the importance of Private
Sector Development in fragile and conflict-affected states. The Donor Committee for Enterprise
Development (DCED) stipulates the emergence of a new paradigm of early engagement with the private
sector as opposed to the ‘old’ paradigm where the private sector was only considered in the development
phase after humanitarian aid and reconstruction (DCED, 2008).
The SEEP network published a compilation of solicited case studies from market development
practitioners working in crisis environments. Market Development in Crisis-Affected Environments:
describes 13 case studies submitted from areas affected around the globe (SEEP, 2007). Based on the
research, SEEP stipulates that it is possible—and recommended—to engage in market development
almost immediately after a crisis.
Although agencies seek to be neutral, their aid can unwillingly either reinforce conflict or help reduce
tensions. This is specifically true for economic impacts resulting from assistance. For an IDP population
like the one in Northern Uganda, which has been deprived for decades of their livelihoods and sources of
income, it is of utmost importance if they perceive financial resources to remain within their local area or if
they perceive donor money to be spent elsewhere in the country or across country borders.
Anderson and SEEP challenge one of the ‘myths’ in humanitarian assistance: that organisations cannot
engage in local economy support due to reasons of impartiality. In fact by – wrongly – assuming that the
organisation remains impartial by not engaging with local economy, the opposite may be true.
3.2.2 Thinking in systems – Sustainable Livelihoods (SL)
The evolution of the Sustainable Livelihoods concept constituted another major paradigm shift in
Humanitarian Assistance.
Chambers and Conway (1991) define the concept
of Sustainable Livelihood.
A livelihood comprises people, their capabilities
and their means of living…A livelihood is
environmentally sustainable, when it maintains or
enhances local or global assets on which livelihood
depends. It is socially sustainable when it can cope
with and recover from stresses and shocks, and
provide for future generations.
An objective as it would typically be formulated in a
WASH program (Water Sanitation and Hygiene)
reads ‘Improve access to safe, reliable and
affordable water supply’. This often results in
defining outputs instead of outcomes: 50 water
collection points established, 30 boreholes drilled
etc.
Figure 3 Components and flow in a livelihood
7

18. A ‘Food Security and Sustainable Livelihoods’ program would for example define an objective like ‘Protect
and/or restore endangered livelihoods, and promote restoration of the local economy through local
purchases’3 Because the term ‘livelihood’ signifies a ‘system’ composed of various elements, the concept
is more conducive to formulating outcomes (self-sustainability increased) and not outputs (100 MT of
maize seeds distributed).
Another aspect of the Sustainable Livelihoods concept was the notion vulnerability or social sustainability
(coping with stresses and shocks).
Figure 4 Sustainable Livelihoods concept
Understanding vulnerabilities provided the key for the formulation of current Disaster Risk Reduction
(DRR) policies. Recent policy defines risk as proportional to the product of hazard and vulnerability and
inversely proportional to the capacity to cope: R = (H * V) / C
Whereas former disaster risk reduction was technology-centred and focused on mitigation of hazards, the
new model calls for reducing vulnerability by strengthening livelihoods (Tearfund, 2005).
The problem with the SL concept
lies in the fact that it is often
reserved for agriculture and food
security related programs and that it
focuses on rural areas. In fact there
is no reason why programs of other
sectors or of urban based problems
should not be understood as related
to livelihoods.
The concept was explained in detail
because it will play a role in
explaining sector differences
between agriculture, water supply
and construction.
Figure 5 Crunch Model of Disaster
Risk Reduction
3
Original quotes form the mid term evaluation of the Consolidated Appeal 2010 for occupied Palestinian Territories.
8

19. 3.2.3 Local Economy Development, Local Economy Recovery and the Early Recovery Cluster
Like Private Sector Development (PSD), the term Local Economy Development (LED) is used by
development actors and appears rarely in the humanitarian sector. However, the creation of the Early
Recovery Cluster in the UN cluster system with the specific task to ‘promote early steps that enable long-
term development’ signifies a significant shift in thinking within the humanitarian assistance community.
The Cluster Working Group of Early Recovery (CWGER) and the International Labour Organisation (ILO)
have developed Guidelines for Local Economy Recovery (2010), where LER can be understood as an
early contribution of the Humanitarian Assistance community towards Local Economy Development.
The use of the term Local Economy Support in the dissertation acknowledges the fact that Humanitarian
Assistance can sometimes only support Local Economy without having the opportunity to enter into
development of LE.
The World Bank (WB) defines LED as:
The purpose of local economic development (LED) is to build up the economic capacity of a local area
to improve its economic future and the quality of life for all. It is a process by which public, business and
non-governmental sector partners work collectively to create better conditions for economic growth and
employment generation (Swinburn, 2006)
LED initiatives seemed to be positively perceived by the African community. LEDNA as the Local
Economy Development Network for Africa acts as an active and important hub for various types of LED
initiatives.
From an economic perspective, Local Economic Development (LED) attempts to build on the relative
economic advantage or the competitive economic advantage of a specific area. In the context of
decentralisation is signifies economic development in districts led by local governments as opposed to
central governments.
The author suggests that LED can be regarded as a potential methodology to provide (cautiously planned)
support for specific localities or local economies as positive drivers for alleviation of tensions or conflicts
between different regions, as this would be the case in Uganda between the North and South.
3.2.4 Direct versus indirect humanitarian response options
When a crisis reduces the purchasing power of households but not the supply of commodities,
practitioners are experimenting with “demand” subsidies, as opposed to “supply” subsidies. This usually
implies providing cash or vouchers to crisis-affected populations in order to re-establish demand due to
lost income, hence re-linking supply chains, rather than proving in-kind relief supplies.
The SEEP network suggests that in above described manner, Market-Integrated Relief (MIR) is beginning
to narrow the gap between relief and development activities in the area of commodity provision (SEEP,
2007).
Tools like Emergency Market Mapping and Analysis (EMMA), launched in March 2010 and widely used
e.g. in Myanmar, Haiti and currently Pakistan (Flooding) is a system of mapping and analysing market
chains in order to propose indirect humanitarian response options based on identified constraints (Albu,
2010). Indirect response options attempt to repair damaged linkages and clear bottlenecks and by so
doing strengthen and re-build systems of Sustainable Livelihoods.
In the food and agricultural sector, the donor community formulates the use of modern approaches of
vouchers and cash injections. The recent European Commission (EC) Communication on Humanitarian
Food Assistance advocates innovative responses such as using cash transfers and vouchers instead of
in-kind assistance.
Indeed, we believe that in many cases, when food is available in the region, cash transfers work better
than direct food distribution because they link the fight against today’s hunger with support for long-
term food security. (Unpublished EC assessment document received through private email)
9

20. 3.2.5 The poor are poor but they are many – Humanitarian Assistance and the informal sector
When asked why they do not engage more with local economic actors, Humanitarian Assistance
organisations often claim that these are not capable to function efficiently in the delivery process of relief
operations. Constraint often refer to informality of actors e.g. non existing bank accounts.
However, if local ‘poor’ and informal economic actors were regarded as part of the target population then
including them into relief delivery processes and thereby enhancing their livelihoods would already be part
of achieving program objectives.
Prahalad and Hart (2001) argue that the perception that the bottom of the pyramid (BoP) does not contain
viable market participants fails to see the growing importance of the informal economy among the poor
(estimated to account for 40 to 60 percent of economic activity in developing countries).
The International Labour Organisation (ILO), the World Trade Organisation (WTO) and the Organisation
for Economic Co-operation and Development (OECD) have highlighted that ‘promoting pro-poor growth’ is
one of their core objectives. The Department for International Development (DFID) and the Swiss Agency
for Development and Cooperation (SDC) developed the guideline for ‘Making Markets Work for the Poor
(M4P)’. The Growing Sustainable Business (GSB) initiative coordinated by UNDP grew out of the 2002
Global Compact Policy Dialogue on Business and Sustainable Development. (UNDP, 2010)
Interestingly, above quoted documents do not propose described policies to the humanitarian assistance
community. However and although non-profit, Humanitarian Assistance has a huge impact on the
economy, is often one of the first possibilities to earn a living and can be a main driver for economic
recovery.
3.3 Pitfalls of Local Economy Support - War Winners and Spoilers
Local Economy Support has so far been described as a positive endeavour for poor people worthwhile to
be supported. However supporting Local Economy has many pitfalls and can create potential conflict
situations. It is undisputed that the contracting of local services has a conflict -sensitive and even
dangerous side. Due to lack of knowledge about the local context the support can easily be directed
towards a specific religious, tribal, regional, political group. (Killik et al, 2005)
From her own experience the author remembers many situations where corruption or tensions between
different groups created critical situations. HA organisations do have a responsibility to make detailed
stakeholder assessments and follow a conflict-sensitive approach in their operations.
However, it is not a solution to ignore local economic actors. Assistance will always have an impact on
economy. So much money is suddenly available that assistance - through its sheer presence - is prone to
create conflicts. One of the latest cases of massive Humanitarian Assistance is unfolding in Haiti after an
earthquake on 12 January. The total Consolidated Appeal (CAP) of the Humanitarian Community for 2010
added up to 1.4 Billion USD. This is 20% of Haiti’s GDP.
The author proposes to actively support local economy in the sense of building livelihoods but to be aware
of the pitfalls and dangers to this attempt. There is a variety of literature that can be referred to while
attempting to mitigate risks through cautions stakeholder assessments. (Ramsbotham et al, 2005).
10

21. 4 Chapter Four - The Ugandan Context
Figure 6 Uganda in Africa (Map source)
4.1 Country Profile – the Conflict
Uganda belongs to the group of Land Locked Developing Countries LLDC. The UN has recognized this
group as among the most disadvantaged countries facing severe challenges to growth and development.
(UNCTAD, 2010). It is also in the middle of a conflict-ridden region bordering the Democratic Republic of
Congo, Sudan, Rwanda, Kenya and Tanzania.
Uganda gained independence from Great Britain in 1962. Several decades of political unrest and
4
widespread violence followed (IRIN, 2007) . The Northern part of Uganda has experienced intermittent
insecurity since the coup led by Idi Amin Dada in 1970, which toppled the first post independence
government.
In 1986, President Yoweri Museveni wrested power through a military coup after a five-year guerrilla war.
He abolished political parties, blaming them for the country's decades of turmoil. After 10 years of military
rule in a non-party system, he was elected in 1996 following the formation of a new constitution. In 2005,
the government held a referendum in which the public voted overwhelmingly to return the country to a
multiparty system. Museveni remains Uganda's leader for the last 24 years, having won a controversial
third term in office in February 2006 and running for a fourth term in the coming election due in February
2011.
4
Mamdani (1976) offers an analysis of Politics and Class Formation in Uganda, underlining the importance of the colony for the
British Metropole as a supplier of agricultural produce, cotton in particular.
I am directed by the Governor to state that…Natives to be informed that three courses are open, cotton, labour for Government,
labour for planters. Only one thing that cannot be permitted (is) to...be of no use to themselves or the country. (Telegram of
Chief Secretary to the P.C. Western Province, 1924; in report of the Ormsby-Gore commission, 1925)
Mamdani claims that specifically the northern part of Uganda was perceived as a labour reservoir for the cash crop economy of the
South which in turn represented a raw material reserve for the British government. The impoverishment of the North became a
precondition for the relative development of the South.
Field research in the framework of the dissertation indicates that agriculture is partly over-emphasized as the sole sector for
economic development. This may correlate to the fact that Uganda was per definition declared ‘agricultural produce supplier’ in its
early history.
11

22. 4.1.1 Conflict, displacement and camp life
Since 1987, the year after the Museveni
government came to power, Northern
Uganda has been the scene of a violent
conflict. A rebel insurgency started as the
Holy Spirit Movement by Alice Lakwena
and was later taken over by Joseph Kony
with his infamous Lord’s Resistance Army.
According to IRIN, the Humanitarian News
and Analysis project of UN-OCHA, the
conflict in Northern Uganda has forced
some 1.7 million people - close to 90
percent of the region's population - to leave
their homes to ‘the relative safety’ of about
200 camps for internally displaced persons.
(IRIN, 2007).
The majority of the population of Northern
Uganda holds the view that the government
forced them into camps, giving the entire
population - most notably the districts of
Gulu, Kitgum and Pader – the ultimatum to
leave their homes to provide room for
counterinsurgency operations against
rebels in 2001.
Figure 7 Internal displacement map
(Uganda Cluster, 2009)
The displaced population claims that the camps did not provide means for survival and lacked the
possibility of farming, resulting in severe malnutrition and making the population entirely dependent on
humanitarian aid.
The Utrecht University Centre for Conflict Studies in collaboration with Makerere University and Gulu
University conducted an analysis of Communities’ and Humanitarian Actors’ Perspectives on Socio-
Cultural Dynamics in the Acholi and Lango Entry Points (2009).
It was the day after I was abducted that the government told people to return back to the camps and
that they gave them an ultimatum of 24 hours, after which they started to shell the village. This was
somewhere around September 2001. (Interview with a youth member and formerly abducted; code G-
interview 6).
The majority of the Northern population maintained or increased their hostility against the government –
despite suffering caused by the cruel behaviour of the LRA including abduction of a high number of
children to become child soldiers.
4.1.2 Returning, resettlement and development
In 2006, the Government of Uganda and the Lord’s Resistance Army (LRA) signed a formal cessation of
hostilities agreement during Juba peace talks under the auspices of the South Sudan government (ICG,
2006). With the return of some calm, people started returning home to their original villages and resuming
subsistence farming for meeting their consumption needs and small scale economic activities5.
Since 2009 and as the population attempts to resettle, humanitarian organizations began scaling down
operations in Northern Uganda.
5
As of June 2020, an estimated 90% of the population has returned home.
12

23. 4.2 Humanitarian and Development Assistance in Uganda
4.2.1 Development Assistance on National Level
With a Human Development Index of 0.514 Uganda ranks 157 out of 182 countries. The Human
Development Index (HDI) is a comparative measure of life expectancy, literacy, education and standards
of living for countries worldwide. In comparison the HDI of the UK is 0.947 (World Bank, 2009).
The Government of Uganda (GoU) launched
the Poverty Eradication Action Plan PEAP as
the country’s development framework in
1997 and revised it in 2000 and 2004. It is
grouped under five ‘pillars’: (1) Economic
management, (2) Production,
competitiveness and incomes (3) Security,
conflict-resolution and disaster-management
(4) Good governance and (5) Human
development. (GoU, 2004)
Uganda has always received high amounts
of Development Assistance. It also was the
first country to qualify for the Highly Indebted
Poor Countries (HIPC) debt relief initiative in
1998.
Box 1 Development Indicators (WDR, 2009)
4.2.2 Humanitarian Assistance in Northern Uganda
Since 2007, Humanitarian Assistance in Northern Uganda is provided under the Peace, Recovery and
Development Plan (PRDP). The PRDP is a program agreed to by the Government of Uganda and the
Donor community specifically meant to stabilise and promote recovery of conflict affected districts during a
three years period.
All stakeholders are expected to align their programmes to this framework. Development partners
supporting recovery and development should contribute to the implementation of the PRDP. The overall
cost is estimated to be near $600 million USD. 30 % should be provided by GoU through sectoral and line
Ministry allocations.
Many Humanitarian Assistance
actors have been and still are
present in Northern Uganda. At
the time of writing, Development
Assistance like USAID and the EU
implement a significant amount of
programs.
The World Bank has pledged 100
Million US $ for the second
Northern Ugandan Social Action
Fund (NUSAF2) program.
Box 2 PRDP budget overview (USAID, 2010)
13

24. 4.3 Research Location Kitgum District
Figure 8 Kitgum District
Since the relative peace and start of the reconstruction phase in Southern Sudan, the North of Uganda, so
far disadvantaged due its geographical distance
from the South has attained an advantaged position
due to its closeness to Sudan.
A new tarmac road leads from Kampala via Gulu to
Juba, the capital of Southern Sudan. From Gulu to
Kitgum it is 3 hours of dirt roads. Kitgum would
receive an enormous economic boost if it received a
tarmac road leading into Sudan.
Kitgum district has a population of 365’000. 67.7 %
of Households are employed in the agricultural
sector, 40% earn their income from commercial
agriculture, 16.8% sell labour; 14.8% are employed
in the Civil / Public service. (LEBA, 2010)
In 2002, Kitgum was one of three Acholi Districts:
Kitgum, Pader and Gulu. Since 2009 Kitgum (initially
consisting of Lamwo and Chua counties) has been
divided into Kitgum and Lamwo districts. Following
most program and funding figures the research
refers to the old Kitgum district encompassing both
Lamwo and Chua.
Figure 9 Kampala – Juba (red) and Kitgum (blue)
14

25. Picture 1 Kitgum Main Street (Author, 2010)
4.3.1 Kitgum District Local Government - KDLG
District Local Governments in Uganda are arranged in an administrative and a political part. The Chief
Administrative Officer (CAO) heads the administrative part, the Chairman Local Councillor Level 5 (LC5)6
the political part. On arrival for field research in June 2010, the researchers presented the study in tailor
made presentations to Vice Chairman LC5, assistant CAO, District Commercial Officer, District
Agricultural Officer, District Engineer and District Water Officer.
DAO, DCO and DWO later became very active and main participants in the brainstorming and workshops
part of the research for their respective sectors (agriculture, rural water supply). This was less the case for
the District Engineer (construction).
Chief
Administrative
Officer CAO
Assistant CAO
Distric District Works District Health District Education others
Agricultural Commercial District Engineer Officer Officer
Officer Officer
Roads, Water and
Mechanics etc Sanitation DWO
Figure 10 Organizational chart KDLG
6
Administrative levels are district (LC5), county, sub-county (LC3), parish and village (LC1).
15

26. 4.3.2 PRDP funding and distribution across sectors
The PRDP is the main vehicle for the reconstruction of the North. According to official figures (Daily
monitor, June 2010), Kitgum received 5.1% and Acholi region 21.1 % of the total PRDP amount.
PRDP Financial Year 2009 / 2010
District Allocations in 1000 UGS
Education Health Roads Water Total % of PRDP
Amuru 1'592'735 1'068'219 345'059 39'400 3'045'413 4.00%
Gulu 1'801'780 1'568'908 446'957 930'565 4'748'210 6.20%
Kitgum 1'609'744 591'819 1'325'009 376'519 3'903'091 5.10%
Pader 2'172'338 1'381'939 368'878 463'167 4'386'322 5.70%
PRDP total Acholi Region 7'176'597 4'610'885 2'485'903 1'809'651 16'083'036 21.10%
PRDP total 28'711'691 23'188'917 16'533'859 7'934'685 76'369'153 100%
Box 3 PRDP funding for Acholi Districts - financial year 2009 / 2010
PRDP positions refer to four sectors: Education (35%), Health (16%), Roads (40%) and Water (9%)
(Percentages for Kitgum). The striking element of Box 4 is the fact that agriculture (production) is not
represented in the PRDP although information gained through field research gives the impression as if the
main thrust of assistance were directed towards agriculture. Researchers asked this question to
Government Officials and will refer to the issue under findings in chapter five.
In Uganda, District Local Governments
have to out-contract services above 1 Mill
UGX (500 USD). Therefore PRDP projects
are tendered i.e. will be implemented by
the private sector. In a selection process, a
service commission avails contracts to
service providers / contractors who
predominantly are Local Economic Actors.
Based on the official list of contracts,
infrastructure components in the
respective departments, e.g. construction
of schools in Education, construction of
clinics in Health make up 84% of the total
budget.
Figure 11 PRDP sectoral distribution Kitgum District
4.3.3 District Development Programme III – a move towards Local Economy Development LED
Parallel and in addition to the PRDP, Kitgum is one of five districts currently piloting best practises for
Local Economy Development under the District Development Programme DDP III, which is funded by
UNDP and UNCDF to be implemented by the Ministry of Local Government (MoLG) in 15 Districts.
The intended output of the program is “clarifying and strengthening the role of Local Governments for LED
promotion through coordination of the actions of other LED promotion actors and intervening in a focused
manner towards enhancing the local business environment through the provision of economic
infrastructure and streamlining the regulatory environment”. (UNDP, 2008)
As a first step, MoLG conducted a Local Economy Business Assessment. The LEBA report is based on
data from the Uganda Bureau of Statistics (UBOS) census 2002 updated with statistical data from
16

27. Humanitarian Assistance and original market surveys. LEBA looks at Agriculture, Industry, Commerce and
Services7. The assessment recommends the agricultural sector for Local Economy Development.
Kitgum’s Draft Strategy Plan for Local Economy Development contains the mission statement: ‘To
stimulate local economic development in Agriculture, Agro processing and service sector by facilitating
Private Public Partnerships’. (LED team KDLG, 2010)
Although agriculture undoubtedly presents the main livelihood potential it is surprising that LEBA and the
Draft Strategy Plan consider only the agricultural sector for Local Economy Development. Here we have
the opposite of the picture presented by the PRDP sector distribution:
Components of total PRDP
Annual income per sector according to LEBA
non- Industry
Construction
infrastruc 31%
0%
ture
16%
infrastruc Services
56% Trade
ture
84% 13%
Figure 12 Funding acc to PRDP
Figure 13 Annual income of service sectors (LEBA)
The Peace, Recovery and Development Plan for Northern Uganda (PRDP) provides funding only to
‘services’ (schools, roads, clinics, water points) not to production (agriculture). And, 84% of this funding is
spent on construction / infrastructure projects. On the other hand the UNDP / UNCTAD District
Development Program evaluate the construction sector as virtually non-existent and assess only
agriculture (production) as a viable sector for Local Economy Development.
In an interview with the Ministry of Local Government on 12 July 2010, the DDPIII Program Coordinator
told the researchers that he ‘could never bring himself to look at construction or manufacturing as sector
… for me they are not ends in itself but just for supporting agriculture and can therefore not be regarded
as sectors’.
These results presented a riddle to the researchers and posed below formulated questions which the
researchers posed to District Officials of the Local Government. Answers will be analysed as findings in
chapter 5.
Why is agriculture not included in the PRDP? Do we have the right information?
Why – if 67% of the population receive their income through agriculture - is the sector not
represented?
Why – if 84% of the PRDP money flows into infrastructure / construction is this sector not regarded
as a viable sector for economic development?
7
For construction which falls under services the report states that ‘there was no updated data on construction in the district’. The
District Engineer in a short interview on 30 June 2010 confirmed that he did not possess data. This may be due to the fact that
construction was not included in the cluster system and the humanitarian community could therefore not contribute statistical data.
17

28. 4.3.4 Humanitarian Assistance and Development actors in Kitgum Town
The Uganda Cluster website lists 39 Humanitarian organisations working in Kitgum District grouped into
six clusters in August 2009. The cluster system has since been abolished and has been replaced by
sectoral meetings headed and organised by the Kitgum District Local Government.
At the time of the research, some
HA had scaled down operations or
closed.
USAID was present with sub-offices
of Northern Ugandan Transition
Initiative (NUTI), Northern Ugandan
Malaria Aids and Tuberculosis
Project (NUMAT), Northern Uganda
Water (NUWATER) and Livelihoods
and Enterprises for Agricultural
Development (LEAD).
Box 4 WWW table Uganda Cluster
4.3.5 Local Economy actors in Kitgum Town
Picture 2 Kitgum Aerial Map
47% of all business enterprises sampled by LEBA are located in urban areas, 16% in peri-urban areas
and only 37% in rural areas. (LEBA Assessment 2010). Kitgum town has a relatively small Local Economy
environment. In the framework of the dissertation, researchers were in contact with agro input dealers,
construction contractors, timber and metal fabrication workshops and hardware shops (who also sell
spare parts for hand pumps).
The district has four radio stations and three Mobile telephone operators are MTN, Zain, UTL and Orange
and one post office. Financial institutions in Kitgum town comprise four commercial banks and one Micro
Finance Institution.
18

29. ‘TLA free zone’8: Monica and Collin want to start a bakery
***
***
8
PLEASE REMEMBER THAT THIS MEETING IS AN ACRONYM FREE ZONE - SO PLEASE LEAVE YOUR TLA'S *(THREE
LETTER ABBREVIATIONS) AT THE DOOR !! From an invitation for the Haiti Logistics Civil Military Coordination Meeting Friday 7
May 2010 sent by haiti.logs-bounces@logcluster.org on behalf of uncmcoordhaiti
19

30. 5 Chapter Five – Research Findings and Analysis
The following chapters serve two purposes. Firstly, they describe per sector the process of workshops and
assessments in relation to what ‘insiders’ or local actors had wanted to know: How can we improve with
SMART9 response options identified issues of lack of agro input dealers, lack of Sp4HP and lack of quality
of construction works?
Secondly, researchers - as ‘outsiders’ - interpret processes and results in search of answers to questions
in the framework of the research: Local Economy Support in Humanitarian Assistance: Where are we
now? How can we improve? How did the use of Action Research as methodology impact on results?
For the sake of the dissertation the author chose to present findings in the following sequence: (1) Action
Research as methodology, (2) general findings related to Local Economy Support and (3) sector related
findings to Local Economy Support. ‘Insiders’ may be more interested in sector related chapters. The
learning process of researchers developed iteratively. For the reader the first chapters may appear as
summaries of findings that are detailed in following chapters. For better orientation, Chapter 5.1 gives an
overview over the field research process.
5.1 Field Research Process and Methodology
‘Insiders’ or local actors had chosen three issues of interest: agro input and market linkages (agriculture),
supply chain of spare parts for hand pumps - SP4HP (rural water supply) and quality of construction works
- QoCW (construction). This provided the framework to the field research from June to August 2010.
Box 5 Chronological field research process
9
Specific, Measurable, Attainable, Realistic, Time bound
20

31. Researchers and local actors conducted series of workshops separately for each of the three sectors.
During workshops participants mapped the system in which they were operating in the form of a market
supply chain or a value chain10. Based on the mapping they identified constraints pertaining to the system
and formulated potential response options. For further clarification, researchers conducted two detailed
assessments of agro input dealers and SP4HP dealers and suppliers.
During the last three weeks of field work and after the
Type of Actor Count of Organisation
“brainstorming and workshops” part of the research, actor
groups HA and LE were given questionnaires in which they Donor 6
could formulate their positions, interests, constraints and HA 16
recommendations regarding LES in HA. Local Government KDLG 11
actors were interviewed.
LE 11
Researchers conducted 49 formal and numerous informal
LED 3
meetings / interviews: 22 with HA actors (6 meetings with
donors), 11 with the Kitgum District Local Government (KDLG) MoLG 1
and one with the Ministry of Local Government. Meetings with Training school 1
Local Economy actors were often informal.
Grand Total 49
Box 6 Number of conducted interviews
5.1.1 Workshop methodology – Market Mapping
In a public meeting on 18 June the District LED team presented the draft LED strategy plan for Kitgum
District to external actors (humanitarian assistance, financial institutions, agro processing associations
etc). Researchers were asked to outline their research in form of a power point presentation. The
presentation contained slides explaining the use of market mapping. Subsequently, the LED team
requested the researchers to carry out a workshop on the use of the tool taking the maize market as an
example.
The following paragraphs explain the methodology of market mapping as it was used in the research with
the help of a.m. workshop as an example. The logic remained the same throughout the research process
although the tool was continuously adapted according to sector specific contents.
Participants formed two groups and
were given the following task and
lead question:
(1) Task: Map the market for maize
that describes demand and supply
and identify bottlenecks. Brainstorm
for improving the existing situation:
List and rank bottlenecks and
formulate potential response options
based on identified constraints. (2)
Lead Question: How to promote the
development of the maize market
from subsistence into commercial for
economic growth?
Picture 3 Maize market
mapping during LED workshop 19
June 2010
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A supply chain links commodities from their point of origin to their point of consumption. In a value chain a product passes through
various activities that all add value to the product. Following these definitions the author uses the term market supply chain if a
consumer needs a good and the term value chain if a producer wants to sell a good. In this regard, quality of construction works is a
value chain problematic. Agro inputs and spare parts are treated as supply chains, consumers are in need to be supplied.
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32. Groups received colour coded cards representing value chain actors (yellow), support services (green)
and regulatory environment (red). As a first step they should define actors in the chain by writing their
names on cards and then linking them. In a second step they should add support services and key
infrastructure and in a third step map the regulatory environment.
Subsequently each individual of the group was asked to identify his or her perceived biggest bottleneck /
problem / constraint in the system by putting a red X on it. The group then wrote all identified constraints
on a flip chart paper.
After groups had presented their results to each other, they ranked identified constraints.
Picture 4 Constraints – LED workshop
Picture 5 Participants ranking constraints
Groups had identified the following market system:
Figure 14 Value Chain for maize – LED workshop 19 June 2010
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33. Ranking identified a list of main constraints
Ranking Constraint
1 Absence of a seed agency or Agro Input Retailer (seeds, tools, chemicals, fertilizers)
2 Poor trunk road network
3 Certification
4 Processors
5 Warehousing
Box 7 Ranked constraints for maize market in LED workshop
After the ranking, actors were asked to identify three constraints on which they wanted to focus for finding
SMART response options. The guidance was to pick first issues that were important but achievable in
terms of complexity (see Figure 15).
The process up to this point should make participants aware of the system in which they operate in order
to understand constraints in their complexity. Ultimately it prepared the ground for formulating response
options to identified issues.
Participants understood the tool quickly. Using it created animated and participatory discussion.
Participants commented that now they could ‘see the problem clearly’.
Interestingly, in this first workshop
participants stopped when it came to
formulating response options and instead
started a discussion if it really was maize
that should be supported as a crop. The key
question had not been sufficiently defined
and agreed as a common interest in order to
allow participants to agree on potential
response interventions. A good example for
the researches to think well about the
questions that they would formulate in their
research related workshops to follow!
Figure 15 Importance over complexity
5.1.2 Questionnaires
Towards the end of the study researchers distributed questionnaires to HA organisations and LE actors. A
questionnaire had also been designed for the Local Government. In contrast to the other two groups Local
Government partners felt more comfortable in interviews.
Appendix 2 contains a detailed summary of questionnaire methodology.
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