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In spite of serious external shocks and political destabilisation in part of the country, Uganda has remained a good economic performer since the late 1980s, with over a decade of high per capita growth in excess of three per cent. This study concludes that Uganda's medium to long-term success will depend on the achievements in institutional reforms, including raising the quality of the civil service, curbing corruption and implementing an effective regulatory framework. This is important as a poorly functioning public sector is both unable to uphold the rule of law, thus losing the public goodwill necessary for implementing new measures, and a burden on the private sector as it implies increased transaction costs. There is a widespread domestic and international concern that the civil strife in the Great Lakes Region might lead Uganda and its neighbours from the path of economic reform back to socio-economic instability.