A Country Environmental Analysis (CEA)is a World Bank analytical tool used to integrateenvironmental issues into development assistance strategies,programs, and projects. To that end, the CEA synthesizesenvironmental issues, highlights the environmental andeconomic implications of development policies, and evaluatesthe country's environmental management capacity. It iscomposed of three analytical building blocks: theidentification of environment-development priority issues, ageneral analysis of environmental institutions andgovernance, and detailed analyses of the priority issues orsectors identified in the first analytical building block.It then examines the findings of this diagnostic process inlight of the engagement of the Bank and other developmentpartners (DPs) in the country's environment and naturalresources (ENR) sectors. At this stage, potential Bank ENRinterventions can be identified. This CEA for Uganda adheresto the CEA analytical framework so described. Section Ibegins by setting the general economic and environmentcontext in Uganda. It then looks more closely at theeconomic value of Uganda's natural resources, in termsof both stock (asset) values, and flow (income) values.Section two is dedicated to an analysis of environmentalmanagement institutions and environmental governance.Environmental management in Uganda is decentralized,consequently much of the analysis focuses on thefunctionality of local institutions. Section three iscomposed of the three focus natural resource sectors:forestry, wetlands, and fisheries. Basic data andinformation for each of the sectors were obtained from therespective responsible ministries and agencies. In the caseof forestry and wetlands, recent and ongoing work providedadditional insights into management issues. Finally, sectionfour is about Uganda moving forward to improve ENRgovernance. It summarizes the challenges and constraints toenvironmental management and governance that were identifiedin section three, and proposes actions to start improving governance.