This paper analyzes the long-run economic and social impact of family planning policies in Uganda. In the analysis of this, we extend MAMS (Maquette for MDG Simulations; a CGE model for development strategy analysis) in terms of its treatment of demography. Our results indicate that, by reducing extremely high fertility rates, family planning measures significantly improve welfare. This conclusion holds under a wide range of assumptions regarding costs of family planning and under alternative government uses of the resulting increase in fiscal space – we permit the space to be used to reduce either foreign (aid) or domestic receipts (from taxes or borrowing) while keeping spending policies unchanged. Methodologically, our analysis suggests that integration of demographic and economywide models offer an indispensable perspective on the impact of family planning on economic development
