How Inclusive are the Local Economic Impacts of Social Protection in Uganda?

Abstract Inclusive growth and development are essential for the sustainability of poverty reduction and growth. Social protection has been promoted as part of the inclusive growth and development agenda by emphasising the positive impacts of social transfers on people’s participation in economic processes. However, the focus on the positive economic impacts of social transfers has led to the neglect of concerns regarding inequality of opportunity. Taking the case of Uganda’s Senior Citizens Grant, this paper critically assesses how inclusive the impacts of social transfers are on economic processes. This is done by examining the extent to which local economic structures interplay with the impacts of the Grant. Based on a qualitative case study design, the analysis reveals that the scheme has unwittingly reinforced spatial patterns of economic exclusion and disadvantage. Recipients in remote areas are more likely to stay or fall back into poverty compared to people in integrated areas. For social transfers to contribute to inclusive growth and development for all, it will be vital to invest in complementary development interventions in economically disadvantaged areas.