This report examines the outcomes of economic reform in Uganda and defines issues that Uganda must address in medium- and long-term strategies for poverty reduction. With a per capita income of approximately $220, Uganda is one of the poorest countries in the world. Its economy and social indicators bear the marks of nearly 15 years of political turmoil and economic decline. Serious educational and health problems include low levels of educational attainment and adult literacy, high rates of child mortality and malnutrition, the AIDS epidemic, and high incidence of malaria and tuberculosis. Since 1987, the government has been implementing an economic reform program that aims to promote prudent fiscal and monetary management, improve incentives to the private sector, reform the regulatory framework, and develop human capital through investment in education and health. Specifically, this report examines how growth benefits are distributed among people and the extent to which growth promotes provision of public social services such as education. The report first analyzes the medium-term macroeconomic policy agenda and structural and institutional reforms, with the objective of sustaining and strengthening stability. It then reviews the prospects for rapid and broad-based economic growth focusing on issues related to private investment, export development, infrastructure, and human resources. The latter includes a discussion of public policies and services in health and education. The appendices include an analysis of the status and changes in poverty during the adjustment period, including rural-urban differences, macroeconomic projects, and detailed statistical data from the 1991 Population and Housing Census. Contains 59 references, 34 data tables and figures, and a map of Uganda. (LP)