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Country report of Uganda on the situation of children in residential care in anticipation of the Second International Conference on Children and Residential Care: New Strategies for a New Millennium, to be held in Stockholm 12 – 15 May 2003. There is an urgent need to address the problem of the increase in the number of children in residential care because of poverty, war and the insecurity of households. Residential care should be used as a last resort and only for very short periods of time while other community options are being sought. A new attitude by the management of residential homes that advocates establishing strong links between institutions and families/communities should be a way forward in the new millennium. Sustained monitoring and evaluation mechanisms have to be established or revitalised in all government frameworks to ensure that there will be fewer children in residential care and that alternative forms of care will be given priority.