This report provides a short summary ofthe recent history of the seed industry. Although theinformal seed system still accounts for an estimated 85percent of planted seed, the formal sector has beentransformed in 20 years from control by a monopolyparastatal to competition among 23 registered companies,with at least 5 or 6 being serious players. Significantly,the relief seed industry that dominated and distorted theformal seed trade during the Northern Uganda conflict haswithered away, leaving room for a sustainable, market-drivenseed industry to develop. Fundamentally, however, the keyinstitutions in the sector and the legal framework are notfit for purpose and are a significant drag on the industry.This report sketches the roles and contribution ofstakeholder organizations such as the Uganda Seed TradeAssociation, the Uganda National Farmers Federation, and theUganda National Agrolnput Dealers Association. It outlinesthe support provided by major donors, the United StatesAgency for International Development (USAID), the DanishInternational Development Agency (Danida), the Alliance fora Green Revolution in Africa (AGRA), the NetherlandsEmbassy, the Food and Agriculture Organization (FAO), andthe East Africa Community (EAC) Secretariat, over 15 years.After spelling out the issues in the sector, the reportlooks at the political economy literature for insights tohelp explain the near paralysis in the regulatoryinstitutions. The dominant role of the National ResistanceMovement (NRM) in decision making is described, as is theregime's use of inflationary patronage.