Uganda has been implementing simultaneous economic and political reforms since 1986. The interaction between these two sets of reforms is considered in this report which argues that political liberalization has not had a significant influence on the progress of economic reform. The success of macroeconomic reforms is explained by a high level of government commitment, a competent economic policy team and high levels of donor assistance. However, the sustainability of reform depends on the ability of the government to take advantage of political reforms to broaden the process of policy dialogue through a more inclusive approach to decision making.