Cost-benefit analysis for identifying institutional capacity building priorities in LDCs: an application to Uganda

CDP Background Paper No. 30

By Namsuk Kim and Roland Mollerus

Institutional constraints prevent the Least Developed Countries from fully utilizing the trade-related International Support Measures provided by development partners. A cost-benefit analysis has been developed as a methodology to identify institutional constraints and prioritize support measures comparing benefits with costs, based on survey data.

Applied in Uganda, it identified critical institutional constraints: limited knowledge on how to access most of the assistance; inadequate institutional arrangements; ineffective communications regarding the use of support measures. International support measures related to sanitary and phytosanitary issues, among others, are expected to increase the trade value in Uganda.

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