Cuts threatened to Uganda aid funds

By David Cronin

Date: 23/09/04

THE European Commission is contemplating cutting development aid to Uganda in protest at how its government has diverted funds for vital services to the military.

The EU executive is perturbed by reports that President Yoweri Museveni's government has used more than one-fifth of its social services budget in the past few years to finance Operation Iron Fist, its offensive against the Lord's Resistance Army (LRA) in northern Uganda.

Jean-Charles Ellerman-Kingombe, the Commission's spokesman on development, said EU aid to the east African state is being reassessed.

He confirmed that it is possible that the Commission will follow the example of the UK government, which decided to block €14.6 million of aid earmarked for Uganda in 2003-04 because of concerns about Kampala's military spending.

At nearly €220m, Uganda's military spending last year was equivalent to 2.4% of its gross domestic product, while 95% of the population lives on less than €2 per day. Its defence expenditure is proportionately higher than that of many EU member states.

Relief agency Christian Aid said the Commission would be right to withhold budgetary assistance to Uganda because it feels Museveni has no interest in seeking a political solution to the 17-year-old conflict in northern Uganda.

"The deep-rooted problems in the north are not going to be solved by bombing the hell out of people," said Christian Aid spokeswoman Judith Melby. "Because Uganda is so dependent on donor money, it is really incumbent on donor governments to use their leverage to say 'let's get down to business and have a political settlement'."

The director of the UN's internal displacement division, Dennis McNamara, said that 1.6m people have been uprooted by fighting between the government and the LRA. This is more than the number of people made homeless by the violence in Sudan's Darfur region, which has received more international attention.

Uganda has accused Sudan of supporting the LRA, led by Christian fundamentalist Joseph Krony. Deo Rwabita, Uganda's Brussels envoy, argued that rather than cutting aid to Kampala, the Commission should seek to use its influence with Sudan to have Krony apprehended. "When the war is completed, defence expenditure will be reduced considerably," he said.

Uganda has been allocated €363m from the EU in 2000-05.

The European Commission is contemplating cutting development aid to Uganda in protest at how its government has diverted funds for vital services to the military.