This Project was initiated two years ago with three main objectives: (i) fundamentally, to carry out a coherent set of applied research studies of important economic development problems of the East African countries; (ii) to contribute East African readings and research experience to university teaching of economics; and (iii) to assist the East African Governments in using economic research for development planning. Organisationally, the Project is simply a group of economists working on related topics under the leadership of the director, Professor P. G. Clark. The group forms the economics section of the East African Institute of Social Research (which has similar sections for sociology and anthropology and for political science); the Institute in turn is the social sciences research department of Makerere University College. The four-year project is now in mid-course, and it can be fairly said that at least some progress has been made toward all three objectives.