GOVERNMENT OF THE UNITED REPUBLIC OF TANZANIA
LOCAL GOVERNMENT REFORM PROGRAMME II
(DECENTRALISATION BY DEVOLUTION)
EXECUTIVE SUMMARY
JULY 2008 – JUNE 2013
DRAFT
PRIME MINISTER’S OFFICE
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT
26 January, 2009
1.
BACKGROUND
1.1
Introduction
The Government of Tanzania called for the formulation of a new, five-year
programme (2008-2013) focussed on Decentralisation by Devolution (D by D),
following the successful Local Government Reform Programme (LGRP) (1998-2008).
To date, LGRP has achieved, among other things, an increased awareness of local
government reform, enhanced capacities of local authorities and more people’s
participation in local development. However, more effort is required to achieve the
reform objectives. While the strategy for D by D is in place and supported at the
highest level by the government, it is not adequately embedded across Ministries,
Departments and Agencies (MDAs) and LGAs. The legislative framework is not yet D
by D compliant and there is need for further effective devolution of fiscal resources
and human resource management.
1.2
Key Issues
The Government, in close consultation with the Development Partners and the ECHO
forum of practitioners, identified the following eight key issues to be addressed under
the new Local Government Reform Programme II (Decentralisation by Devolution),
referred to as LGRP II (D by D):
Table 1.1 Overview of Key Issues for Decentralisation by Devolution (D by D)
Number Key Issue
1
Vision and commitment to a model/system of decentralisation at all levels
of the society
2
Leadership and management in LGAs
3
Capacity at all levels of local government
4
Capacity of the central agencies to lead, backstop and oversee
decentralisation
5
Enabling legislative framework for D by D
6
Demand side of accountability for service delivery and resources use
7
Alignment of resources allocation to strategic priorities at the levels of
central and sector ministries, RAs and LGAs
8
Accountability, monitoring and evaluation
The crucial issues have to do with achieving national leadership commitment to
embed and comply with D by D, enhancing capacity of respective authorities to lead,
promote, control, coordinate and monitor D by D, and increasing the capacity of
LGAs and LLGAs to make D by D work to generate measurable improvement of
economic development and service delivery.
These key issues were shared and discussed with many stakeholders, individually or
in groups. Group meetings were held with PMO-RALG, DPs, LGAs, RAs, CSOs and
practitioners. Individual meetings were held with the Minister of State, PMO-RALG,
Chief Secretary, RCU, central and sector ministries, ALAT and TASAF. The issues
inspired lively discussions which helped to identify and refine the challenges of LGR
and D by D. This process generated consensus among stakeholders at different
levels and created the logical basis for the formulation of programme objectives,
components and strategic initiatives.
The Strategic Perspective of Tanzania’s Vision of Decentralisation
1.3
The vision and characteristics of local governments identified at a 1996 national
conference on the vision for decentralisation, and promulgated in the 1998 Local
Government policy remain valid. The rationale for devolution remains to empower
citizens through empowering their local governments with the responsibility,
resources and capacity to deliver improved public services to the people in an
efficient and accountable manner.
1.4 The Main Achievements and Challenges of LGRP I (1998-2008)
The main achievements of LGR reforms during the last ten years are summarised as
follows:






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


Increased awareness on the meaning, vision, mission and objectives of Local
Government Reform particularly the whole issue of Decentralisation by
Devolution (D by D);
Increased people’s participation in planning and implementation of social
economic development initiatives;
Increased people’s participation in grass root civic elections;
Improved local government financial management as evidenced by increased
clean certificates issued by the Controller and Auditor General (ie, 62 clean
certificates were issued in 2004/05 as compared to 100 clean certificates
issued in 2006/2007);
Improved Local Government Authorities own sources revenue collection (ie,
LGAs collected TZS 49.3 billion in 2005/06 as compared to TZS 79.6 billion in
2007/08);
Introduction of a formula-based recurrent transfer system to Local Government
Authorities;
Introduction of formula-driven, performance-based development transfer
system known as the Local Government Capital Development Grant (LGCDG)
System;
Movement towards harmonization of central and sector laws to be in line with
the Government Policy of Decentralisation by Devolution;
Introduction and application of Opportunities and Obstacles to Development
(O & OD) planning methodology; and
Improved central and local relations.
The main challenges remaining at the end of LGRP (1998-2008) are the following:

Lack of common vision and commitment to a model of decentralisation by
devolution. Although the vision for Local Government Reform is clearly stated




in the Local Government Reform Agenda 1996–2000, the Local Government
Reform has been frustrated by lack of common vision and commitment to a
model and system of local Government Reform. There remains some
reluctance from central government institutions to devolve powers, functions
and resources to Local Government Authorities;
Lack of consistent policy and legal framework which is D by D compliant.
Although some progress has been achieved to harmonize policies and laws
with D by D, there remains a need to ensure a consistent policy and legal
framework to further support the D by D reform process;
Disproportional distribution of financial resources between Central and Local
Government. Although ‘resources should follow functions’, the allocation of
resources between Central and Local Government is not aligned with
functions as evidenced in 2008/09 budget where LGA receive less than twenty
percent (20%) of the total government budget;
Inadequate capacity of LGAs and LLGAs to effectively implement the Local
Government Reforms; and
Inadequate capacity of Central agencies to lead, backstop and oversee the
Local Government Reform.
The LGRP II (D by D) is structured to build upon these accomplishments and to
address these challenges. The primary focus of LGRP II (D by D) will be to further
strengthen the LGAs so that they can seize the opportunities of the more enabling
institutional and organisational environment to make a difference to socio-economic
development, public service delivery and poverty reduction in their areas jurisdiction.
In addition, LGRP II (D by D) will shift strategic attention to ensuring that the higher
level LGAs enable and support lower level LGAs and communities to more effectively
participate in development initiatives.
1.5
Other public sector reforms and sector development programmes.
The Government has launched comprehensive public sector reforms, which include
the LGRP, PSRP, PFMRP, LSRP, BEST and NACSAP. These programmes are all
focused on improving public sector performance, and especially public service
delivery, and efficiency, effectiveness and accountability for the use of public
resources. In addition, the Government is implementing a variety of sectordevelopment programmes (SDPs) to promote socio-economic development, public
service delivery improvements and poverty reduction interventions. GOT’s
comprehensive approach to public sector reforms necessarily gives rise to risks of
overlaps and contradictory interventions, but also opportunities for synergies (see
Table 1.2 below). Ensuring effective coordination of the reform programmes and the
SDPs is imperative.
By nature there are similarities between LGRP II (D by D) with PFMRP in areas of
fiscal decentralisation, financial management and planning; with PSRP in areas of
human resource management and organisational development; with LSRP in legal
issues; with NACSAP in governance issues; and with all in monitoring and
evaluation. During formulation of LGRP II (D by D) concrete areas of possible overlap
and synergy with other reforms were identified and discussed with responsible
ministries, where there was agreement to clearly identify divisions of responsibility in
cooperation arrangements or service agreements.
Table 1.2:
Overlaps in Cross-Sectoral Reform Interventions Targeting for Public
Service Delivery Improvements
Level of Intervention for
Service Delivery
Improvements
Nature of interventions
Intervening Crosssectoral reforms
1. Policies, strategies and
institutions
New policies, strategies
and institutional
arrangements for public
service delivery
PSRP, PFMRP,
LGRP, LSRP,
NACSAP, BEST,
SDPs
2. Systems and organisations
New organisational
structures and
mechanisms
New management systems
PSRP, PFMRP,
LGRP, SDPs
3. Processes
Physical infrastructure
Inputs (including
personnel, finances, etc.)
Use of the inputs
SDPs, PSRP,
PFMRP, LGRP, BEST
4. Accountability, and M&E
Accounting for use of
resources and results
Monitoring and evaluation
of results
PSRP, PFMRP,
LGRP, SDPs
1.6
The LGRP II (D by D) Vision
The Local Government Reform Programme II (D by D) vision is to ensure
“Autonomous and empowered LGAs as the primary and
accountable lead actors of socio-economic development,
public service delivery and poverty reduction in their areas of
jurisdiction.”
1.7
The LGRP II (D by D) Overall Programme Goal
The Local Government Reform Programme II (D by D), together with other
programmes, will contribute to the
“Accelerated and equitable socio-economic development,
public service delivery and poverty reduction across the
country.”
1.8
The LGRP II (D by D) Overall Programme Purpose
The Local Government Reform Programme II (D by D) overall purpose is
“To achieve devolution of Government role and functions, and
to that end transform LGAs to competent strategic leaders and
coordinators of socio-economic development, accountable and
transparent service delivery and poverty reduction
interventions in their areas of jurisdiction.”
1.9
The LGRP II (D by D) Strategic Objectives
The strategic objectives of the LGRP II (D by D) are:
1. To eliminate the policy, institutional, legal, organisational and operational
bottlenecks to the realisation of D by D policy at all levels of government;
2. To build LGA capacity to be efficient and effective organisations as the
primary, inclusive and accountable lead actors in the planning,
implementation and delivery of basic social services, socio-economic
development and poverty reduction interventions in their areas of
jurisdiction;
3. To enhance the participation and demand for accountability and integrity by
citizens for efficient and effective use of public resources, delivery of public
services and poverty reduction; and
4. To achieve timely, efficient and effective implementation of LGRP II (D by
D).
The above strategic objectives provide the basis for the identification of the LGRP II
(D by D) programme components, which are summarised hereafter.
1.10 Programme components
The programme is divided in four components; some further subdivided into subcomponents (see Table 1.3).
Table 1.3
Framework of components and sub-components
Component
Sub-component
1. Enabling environment for D by D
1.1 Institutionalisation of D by D in
government operations
1.2 Decentralisation of human resources
1.3 Fiscal decentralisation
1.4 Legislative framework
2. Capacity development of LGAs1
2.1 Leadership and management
development in LGAs
2.2 Organisational and HR development
2.3 Financial management systems
2.4 Planning, monitoring and evaluation
2.5 Information and Communication
Technology (ICT) applications in LGAs
3. Enhanced citizen participation
and accountability
4. Programme management and
accountability
1.11 Overview of LGRP II (D by D) Implementation Plan
LGRP II (D by D) is fully mainstreamed in the government. The management is
embedded in PMO-RALG and linked to other MDAs as shown in Figure 1.1. The
architecture of the programme management, indicating the implementing roles,
functions, responsibilities and reporting relations, is shown in Figure 1.2.
1
LGAs in this framework covers both higher and lower levels of local government
Figure 1.1 Technical management and coordination of the programme
Chief Secretary
RCU
PMO
Permanent Secretary PMO-RALG
Programme Coordinator
MOFEA
PO-PSM
DPS
Programme management
Component 1 & 4 coordinator
MOJCA
Sector MDAs
Chief
accountant
DAP
Internal
auditor
IEC unit
IEC manager
Procurement
officer
DRA
Inter-regional TA
coordinator
DMIS
Sub-component
2.5 manager
DSC
Sub-component
1.1 manager
Assistant DLG
LGA Finance
Sub-component
1.3 & 2.3 manager
DLG
Component 2 &
3 coordinator
Assistant DLG
LGA HR
Sub-component
1.2 & 2.2 manager
DPP
Sub-component
2.4 and M&E
manager
Assistant DLG
Governance
Component 3
manager
DOD
Sub-component
2.1 manager
DLS
Sub-component
1.4 manager
Figure 1.2 Architecture of programme management
Implementation
roles & functions
Responsibilities & reporting relationships
Cabinet
Policy and
strategic
coordination
IMTC
Chief Secretary
Policy and
strategy
leadership
Cabinet
Secretary
Programme
Implementation
Coordination
Committee (PICC)
Chair: PS PMO
Overall
implementation
coordination
Implementation
at the centre
Regional
backstopping
and coordination
of centre and
LGAs
Implementation
management
LGA level
RCU
Central
MDAs
Central –
Local
Dialogue
Platform
PMO-RALG
implementation
management team
PS (chair) +
component managers
Regional Secretariats
Implementation
Support Team
LGAs
(CRTs)
Basket fund
management
subcommittee
Sector
MDAs
Thematic
Interministerial
Task Teams
2
COMPONENTS DESCRIPTION
2.1
Overview of Component 1: Enabling Environment for D by D
The outcome of Component 1 is an “enabling institutional and political
environment framework to empower LGAs through D by D”.
Component 1 concern strategic initiatives focused on the national level and
involving various central and sector ministries. The Deputy Permanent Secretary
(PMO-RALG) will be coordinating this component, which will require strong
coordination with the RCU in the office of the Chief Secretary, PO-PSM and
MOFEA. The Chief Technical Advisor, who is the overall adviser to the PS
(PMO-RALG) on the programme management, will also be the main adviser on
this component.
The component is subdivided into four sub-components: (1) institutionalisation of
D by D in government operations and the systemic sub-components of (2) HRM
decentralisation, (3) fiscal decentralisation and (4) legislative development. They
are described in more detail in the next sections.
An overview of the sub-components of component 1 and their respective
outcomes are given in Table 2.1.
Table 2.1
Sub-components and Outcomes of Component 1
Sub-component
1.1 Institutionalisation of D by D
in government operations
Outcomes
1. Most politicians at all levels of central and
local government and government officers
from the level of Assistant Directors and
above, are committed to the vision and
system of D by D
2. Predominant proportion of the budgets of
the sector programmes are managed by
LGAs; Increased flow of resources from
ministerial budgets to LGAs; D by D
mainstreamed in policies, laws and
regulations emanating from the target
MDAs
3. Absence of contradictions in the policies
and strategies of D by D and other crosssectoral reform programmes
4. MDAs informed on service delivery and
poverty reduction trends in LGAs’ areas of
jurisdiction
5. Effective implementation of
institutionalisation of D by D in government
operations
1.2 Decentralisation of human
resources
1. All MDAs’ roles, functions, structures,
staffing patterns and budgets reflect D by D
policy
2. LGAs control their establishment, PEbudgets and management of HR
3. Effective implementation of
decentralisation of human resources
Sub-component
1.3 Fiscal decentralisation
Outcomes
1. Enhanced and more reliable flow of funds
to LGAs and LLGAs; raised proportion of
the block grant in the intergovernmental
transfers; agreement on sharing of revenue
sources between central and local
government
2. Intergovernmental transfers are efficient,
equitable, transparent and aligned with
policy priorities
3. An integrated and more
sustainable/reliable LG grant system
4. Enhanced local revenue
5. Alternative sources for financing
infrastructures and services by LGAs
6. Effective implementation of fiscal
decentralisation
1.4 Legislative framework
1. Legislative framework progressively
enabling D by D
2. D by D enshrined in the Constitution
3. Enhanced access to justice, safety and
security at local levels
4. National policy and legal frameworks
embedded in LGAs by effective by-law
making and enforcement
2.2
Overview of Component 2: Capacity Development of LGAs
The outcome of component 2 is: “LGAs empowered and having capacity to
effectively lead and coordinate socio-economic development, public
service delivery and poverty reduction in their areas of jurisdiction.”
Component 2 concerns all aspects of capacity development of Local Government
Authorities, at higher and lower levels. A total of 22 strategic initiatives have been
formulated.
Table 2.2
Sub-Components and Outcomes of Component 2
Sub-component
Outcomes
2.1 Leadership and management
development in LGAs
1. More resourceful and effective political
leadership
2. Empowered councillors
3. Empowered LLGAs
4. More effective management of the LGAs
5. High standards of ethics and integrity are
observed by staff and leaders
2.2 Organisational and HR
development
1. Enhanced technical capacity of LGA
personnel
2. Improved service delivery in LGAs
3. Enhanced technical capacity of LGA
personnel; enhanced relevant structures
4. Reduced inequity in technical personnel
deployment between LGAs
5. Staff performance improved for quality
service delivery
Sanctions and rewards
6. Improved performance of council staff
7. Improved HRM
8. Proper allocation of LGA staff and value
for money in PE
9. More effective and efficient leadership
mgt of LGAs
2.3 Financial management
systems
1. Improved financial management and
accountability by LGAs
2. Enhanced local revenue
3. More efficient accounting and financial
management performance
2.4 Planning, monitoring and
evaluation
1. Strategic use of resources
2. Improved planning, M&E and
accountability by LLGAs
3. Effective implementation of LGA
planning, monitoring and evaluation
2.5 Information and
Communication Technology
(ICT) applications in LGAs
1. Improvements in LGAs performance and
service delivery associated with ICT
applications
2. Effective implementation of ICT initiatives
2.3
Overview of Component 3: Enhanced Citizen Participation and
Accountability
The outcome of Component 3 is that: “citizens at all levels will cost-effectively
participate and demand transparency and accountability for allocation and
use of public resources, and in planning and delivery of public services,
socioeconomic development and poverty reduction.”
Component 3 concerns the next level where D by D is to be implemented: the
interaction between the LGAs and their citizens. The component addresses
citizen participation in planning, M&E and the demand side of accountability. An
overview of components 3 and its outcomes is given in Table 2.3.
Table 2.3
Outcomes of Component 3
Component
3. Enhanced citizen participation
and accountability
Outcomes
1. Accelerated and more balanced
development in the LGAs' areas of
jurisdiction
2. Enhanced participation in planning and
monitoring of local development and
demanding accountability
3. Enhanced participation of citizens at
LLGA; enhanced accountability at LLGA
4. Enhanced transparency and downward
accountability by LGAs
5. Improved access to information at LGA
level
6. Enhanced downward accountability by
LGAs
7. Effective implementation of governance
issues
2.4
Overview of Component 4: Programme Management and
Accountability
The outcome of Component 4 is “effective implementation of the Local
Government Reform Programme II (D by D) at all levels.”
Component 4 concerns specific initiatives required for the management of the
programme. It is intended to strengthen the capacities of key actors (managers)
in D by D, at national, regional and LGA level. It also addresses issues of
harmonisation and mainstreaming. An overview of component 4 and its
outcomes is given in Table 2.4.
Table 2.4
Outcomes of Component 4
Component
4. Programme management and
accountability
Outcomes
1. Strengthened strategic leadership of D by
D
2. Sector policies, guidelines, programmes
and support to LGAs are D by D
compliant
3. PMO-RALG has got the capacity to
implement the programme; improved
performance of the institutions
4. RS has got the capacity to support LGAs
to implement the programme and improve
service delivery
5. Sufficient proportion of DPs' funds
channelled through the Basket Fund;
more DPs' funds planned and budget for
in a programmatic framework; PMORALG effectively implementing the
programme
6. Most government officers from the level
of Assistant Directors and above
acknowledge and are committed to the
vision and system of D by D; enhanced
appreciation of D by D by the citizens
7. Diversity agenda articulated and
mainstreamed (with priority on gender
issues)
8. Efficient and effective programme
management at LGA level
9. Programme outputs and intermediate
outcomes achieved efficiently, effectively
and on timely basis
10. Effective programme management and
accountability
3
SUMMARY PROGRAMME BUDGET AND FUNDING
3.1
Indicative Programme Budget
The finer outputs, detailed activities and inputs, and unit costs of the inputs for
the Local Government Reform Programme II (Decentralisation by Devolution)
have been determined and a budget for the programme has been developed. A
summary programme budget is illustrated in Table 3.1 below.
Table 3.1 Summary Programme Budget by Component and Sub-component: 2008 –
2013.
Budget (TZS)
per subcomponent
Component
Sub-component
1. Enabling
environment for D by D
1.1 Institutionalisation of D by D
in government operations
2,195,220,000
1.2 Decentralisation of human
resources
2,470,000,000
Budget (TZS)
per
component
1.3 Fiscal decentralisation
11,310,587,800
1.4 Legislative framework
2,895,680,000
2. Capacity
Development of LGAs
2.1 Leadership & Management
development in LGAs
4,374,530,000
2.2 Organisational & HR
Development
6,290,010,000
2.3 Financial Management
18,871,487,800
15,902,851,667
2.4 Planning, Monitoring and
Evaluation
1,625,870,000
2.5 Information Communication
Technology
2,579,388,000
30,772,649,667
3. Enhanced Citizen
participation and
accountability
4,219,084,000
4,219,084,000
4. Programme
Management and
accountability
12,775,855,000
12,775,855,000
Total Budget
3.2
Programme Funding
66,639,076,467
The programme funding will be through the GOT development budget. It is
anticipated that DPs, especially those already supporting the LGRP and other
decentralisation and local government capacity building interventions will support
this Government programme.
It is anticipated that most of the funding from the DPs will be channelled through
a basket fund.
3.3
Financial Management, Accountability and Audit
Existing government structures and systems will be used to record and account
for LGRP II (D by D) funds. More specifically, the Government’s well established
public financial management systems (i.e. applicable financial laws, rules and
procedures in terms of accounting & reporting, planning & budgeting, internal &
external auditing, and disbursement) will be used to account for project funds.
The National Audit Office (NAO) will audit LGRP II Basket Fund Account and
annual financial statements. In addition, during the project implementation
(supervision missions), the Government jointly with Development Partners will
review various LGA and MDAs annual audit reports to monitor the quality of the
financial management systems in the respective institutions having access to
LGRP II (D by D) funding.
4
PROGRAMME EVALUATION AND ACCOUNTABILITY
4.1
Overall Accountability and Reporting Arrangements
The LGRP II (D by D) implementation will be accountable and under the
reporting arrangements as provided for all public sector reform programmes
under the Public Sector Reform Programme II (PRSP II). Quarterly programme
implementation progress and monitoring reports will be submitted by the PS
(PMO-RALG) to the Chief Secretary and tabled at the subsequent IMTC for
review and discussion.
At programme implementation levels, the main accountability and reporting
features will include:




The PS, PMO-RALG will submit quarterly programme implementation
progress and accountability reports to the Programme Steering Committee
RSs’ quarterly reports to PS, PMO-RALG will include specifics of
implementation progress and accountability on LGRP II (D by D).
LGAs’ quarterly reports to RSs will include specifics of implementation
progress and accountability on LGRP II (D by D).
Feedback to communities and service providers.
4.2
Monitoring and Evaluation (M&E) Framework
As established in the PSRP M&E overall framework, the LGRP II (D by D) will be
systematically monitored on three levels: Output, Outcome and Impact. The
LGRP II (D by D) M&E framework will build on ongoing data collection,
benchmarking at the LGA and LLGA levels, and quality assurance of capacity
building/training and other HR systems. Special priority will be given to
strengthening capacity with respect to analysis, quality reporting, and
dissemination of findings at local, regional and central level with state and nonstate actors.
The LGRP II (D by D) programme logic is mapped into a results chain consisting
of inputs, activities (or processes), outputs, outcomes, and impact. As such,
organisationally, it describes the causal changes envisioned to take place within
PMO-RALG, other MDAs partners, regional secretariats and local governments.
The validity of the programme goal and purposes will be tested via periodic, midterm and end of programme evaluations. The implementation of the strategic
initiatives and activities for M&E as planned in the programme management
component of the programme will build on this results framework.
5
RISKS AND MITIGATION
The LGRP II (D by D) has identified a number of possible risks and risk mitigation
measures linked to the Programme Development Goal and to the Programme
Component Results.
Possible risks to the Programme Development Goal relate to the possible lack of
central level political commitment to sustain the D by D reforms; lack of MDA
ownership and commitment to D by D implementation, and possible weak
coordination of cross-sectoral reforms. Possible risks for the Programme
Component Results include the lack of knowledge and commitment of LGA
leaders to strengthen LGA autonomy and improve local capacity, delays in
building internal PMO-RALG capacity and culture to champion the reforms;
ineffective integration of TA to support PMO-RALG; ineffective allocation of
programme resources, lack of commitment and capacity at LGA level, and lack of
incentives to attract and retain HR capacity to sustain the reforms.
Risk mitigation measures have been identified for each of these possible risks
aimed at mobilizing and strengthening commitment, building central and local
capacity, initiating proper incentives, improving accountability and strengthening
cross sector, interministerial and central-local coordination. It is expected that
these various risk mitigation measures should enable the Government to
successfully implement the LGRP II (D by D) reforms and realize the intended
results in improved services and poverty reduction.