ADAPTION AND DISTRESS IN THE URBAN-ECONOMY - A STUDY OF KAMPALA HOUSEHOLDS

Though Uganda underwent fairly rapid economic growth after independence in 1962, the civil strife and external shocks of the 1970s and 1980s led to rapid decline. The impacts on Kampala households reflect, in many ways, those on the rest of the country and have led to: extensive diversification of incomes, mainly to reduce the risks perceived in today's unstable environment; a decrease in the share of wages in total incomes, compensated by allowances of various types; increased engagement in informal sector activities and even farming in the urban sector. The main tasks of economic management are twofold: to stabilize wage employment and to ameliorate the social misery caused by the decline. The limited resource base and the continued external disturbances make the prospects for sustained recovery precarious.