December 5, 2006
T
ANZANIA
O
WNERSHIP
1.
Partners have operational national development strategies a.
Coherent long-term vision with medium-term strategy derived from vision
1.
The National Vision 2025, formulated by the Government under the auspices of the Planning Commission and adopted in 1999, spells out Tanzania’s long-term development vision. It outlines five main attributes that Tanzania is expected to have attained by the year 2025, namely (i) a high quality livelihood; (ii) peace, stability and national unity; (iii) good governance; (iv) a well educated and learning society imbued with an ambition to develop; and (v) a competitive economy capable of producing sustainable growth and shared benefits. It envisages Tanzania’s graduation from a least developed into a middle income country, having eliminated abject poverty and maintaining a high economic growth rate of at least 8 percent per annum. The Vision
2025 furthermore identifies basic pillars for its successful implementation, including the need for a competitive development mindset as well as a culture of self-reliance in
Tanzanian society. It includes implementation guidelines, relating among others to the importance of undertaking reviews and reforms of existing laws and institutional structures as well as of people’s participation in preparing and implementing plans for their own development. Various strategies have subsequently been formulated in line with the National Vision 2025. In addition to the National Vision 2025, the
Revolutionary Government of Zanzibar has formulated a Zanzibar Vision 2020, which is
Zanzibar’s long-term plan for eradicating absolute poverty and attaining overall sustainable human development. Zanzibar Vision 2020 envisages that, by the year 2020,
Zanzibar will have eradicated abject poverty, developed a strong, diversified and competitive economy; it will have maintained peace, political stability, good governance and national unity. The Zanzibar Vision also elaborates a range of broad policy objectives.
2.
At the same time as it was preparing National Vision 2025, the Government developed a National Poverty Eradication Strategy (NPES) as a long-term strategy for poverty reduction. It is linked to the National Vision and provides a guiding framework for coordinating and supervising the formulation, implementation and evaluation of policies and strategies for poverty eradication in order to reduce absolute poverty by the year 2025. The NPES identifies areas of strategic interventions, relating to the creation of an enabling environment for poverty eradication. Objectives identified in the National
Vision and the NPES are largely compatible and continue to inform the policies of the
Fourth Phase Government of President Kikwete, who won the December 2005 elections and succeeded President Mkapa. Continued commitment to implementing the Vision together with the Millennium Development Goals (MDGs) was among others expressed in the CCM Party’s 2005 Election Manifesto.
3.
Tanzania’s first medium-term Poverty Reduction Strategy (PRS) was outlined in the Poverty Reduction Strategy Paper,
1
which was drawn up in 2000 in the context of the
1 The Government completed the PRS in October 2000 and PRS Progress Reports in August 2001, March
2003 and April 2004.
1

December 5, 2006 enhanced HIPC Initiative, covering an implementation period of three years from
2000/01 to 2002/03. Guided by Tanzania’s National Vision 2025 and the NPES, the PRS elaborated objectives and interventions for poverty reduction in seven priority sectors, namely (i) basic education, (ii) primary health, (iii) water, (iv) rural roads, (v) judiciary,
(vi) agriculture research and extension, and (vii) HIV/AIDS. Zanzibar formulated its own
Zanzibar Poverty Reduction Plan (ZPRP) for the implementation of the Zanzibar Vision
2020. The Plan had a three-year span, from 2002 to 2005, and focused on reducing income poverty, improving human capabilities, survival and social well-being, and containing extreme vulnerability through selected priority areas of health, water, agriculture, infrastructure, especially rural roads, HIV/AIDS and good governance.
4.
Following a comprehensive review of the first PRS and the publication of a third
PRS Progress Report in January 2004, the Government of Tanzania formulated the
National Strategy for Growth and Reduction of Poverty (NSGRP), also known under the
Swahili acronym MKUKUTA, as Tanzania’s second-generation PRS in order to continue moving toward the achievement of the objectives of the National Vision 2025 and the
MDGs. The MKUKUTA was approved by the Cabinet in February 2005 for implementation over five years (2005/06–09/10), starting in July 2005. Unlike the first
PRS, it adopts an outcome based rather than a priority sector oriented approach, focusing on three broad clusters: (i) growth and reduction of income poverty; (ii) improvement of quality of life and social well-being, and (iii) governance and accountability. The successor of the ZPRP, the Zanzibar Strategy for Growth and Reduction of Poverty
(ZSGRP), or MKUZA in Swahili, also adopts an outcome-based approach around three clusters: (i) growth and reduction of income poverty; (ii) social services and well being; and (iii) good governance and national unity. It emphasizes cross-sector collaboration and inter-sector linkages and synergies. The MKUZA will be implemented for four years, from 2006/07 to 2009/10, to coincide with the implementation cycle of the MKUKUTA.
5.
To fast track progress toward achieving the National Vision 2025, in 2005 the
Government completed a Tanzania Mini-Tiger Plan 2020, which fed into the
MKUKUTA. The Mini-Tiger Plan aims at fostering competitiveness of Tanzanian products on the global markets and promoting exports, including through the creation of
Special Economic Zones. The Government also prepared a range of sector policies and strategies for, among others, agriculture, education, health, water, roads and HIV/AIDS, to guide implementation of the first PRS. These sector policies and strategies underpin the implementation of the MKUKUTA. b.
Country specific development targets with holistic, balanced, and well sequenced strategy
6.
The objectives identified in the PRS/ZPRP and the MKUKUTA/MKUZA respond to country needs and are coherent with the MDGs. The MKUKUTA and the
MKUZA ambitiously set their achievement for 2010, building on significant progress toward meeting the MDGs for universal primary education, income poverty, malnutrition, child mortality and gender inequality in primary education. Under each cluster, the MKUKUTA and the MKUZA identify goals, operational targets and cluster strategies/activities.
7.
The MKUKUTA and the MKUZA are helping the Government strengthen a comprehensive approach to development; greater efforts are needed to improve prioritization and articulate a clear growth strategy. Compared to their predecessors, they
2

December 5, 2006 put greater emphasis on the importance of broad-based and equitable economic growth for poverty reduction as well as governance. Their outcome-based approach has allowed for greater collaboration among all sectors and stakeholders as well as for mainstreaming cross-cutting issues, such as gender, environment, HIV/AIDS and employment.
8.
Tanzania’s harmonization and rationalization agenda is embedded in the country’s national poverty reduction framework. The first PRS as well as the
MKUKUTA call for rationalization and realignment of Development Partner support to reflect Development Partner priorities within the framework of the Government budget.
This is to ensure maximum progress toward poverty reduction and improved predictability of the budget. c.
Capacity and resources for implementation
9.
To translate medium-term development objectives into short-term action,
Ministries, Departments and Agencies, Regions and Local Government Authorities prepare three-year Strategic Plans with agency strategies, objectives and targets linked to
PRS priorities and currently to MKUKUTA cluster strategies and performance indicators.
Three-year Medium-Term Expenditure Frameworks (MTEFs) serve as expenditure management tools and specify activities and budgets for implementing Strategic Plans.
The PRS/ZPRP and currently the MKUKUTA/MKUZA are thus linked to the budget through a three-year rolling MTEF as well as participatory Public Expenditure Reviews
(PERs).
10.
After a shift from a priority-sector-based to an outcome-oriented medium-term strategy, efforts are underway to fully align existing strategies, policies and plans with the
MKUKUTA. In the budget process, this is being facilitated by the installation of the
Strategic Budget Allocation System (SBAS) in all Ministries, Departments and Agencies and Regions. The SBAS is a software tool for strategically allocating resources, which allows for linking agency budgets to specific MKUKUTA targets and cluster strategies.
In addition, PER working groups have been organized around the three clusters of the
MKUKUTA. At the local government level, the Government has developed a database, the Local Government Planning and Reporting Database (PlanRep), to allow Local
Government Authorities to formulate MTEF plans and budgets linked to the MKUKUTA and monitor their expenditure and implementation. Despite substantial progress, capacity in planning, strategic resource allocation and budget management needs, however, further strengthening. Timeliness of outturn data is a key issue undermining progress.
11.
A large share of resources for the implementation of the PRS and currently the
MKUKUTA has been provided through Official Development Assistance (ODA).
External resources have been funding around 40 percent of the national budget, whereby approximately 80 percent of the development budget has been financed by ODA.
Increased spending on PRS priorities has in particular been facilitated by the rise of budget support in absolute terms, from TShs283,770 million in FY2001/02 to
TShs405,047 million in FY2003/04, which has increased the level of discretionary resources available to the Government. d.
Participation of national stakeholders in strategy formulation and implementation
12.
Tanzania’s development vision and poverty reduction strategies have been formulated through broadly participatory processes, involving a wide range of
3

December 5, 2006 stakeholders. Participation in the preparation of the National Vision 2025 took place through various methods including symposia, interviews and meetings which brought together people from various social settings in society. The mass media was also closely involved through publishing special articles and features in newspapers, debates and discussions in radio and television programs. The National Vision 2025 also emphasizes the importance of people’s participation in preparing and implementing plans for their own development as well as for putting in place an appropriate framework for coordinating and evaluating the implementation of the National Vision.
13.
The preparation of the first PRS included consultations within the Government, with Parliamentarians, Development Partners, as well as zonal workshops with representatives of the poor at the village level. Implementation, monitoring and evaluation of the first PRS have involved a wide range of stakeholders from the
Government at all levels, Development Partners, civil society organizations (CSOs), research institutes and the private sector. Annual Poverty Policy Weeks as well as PERs have served as the main fora for national dialogue among all stakeholders. Technical working groups for the Poverty Monitoring System have included members from
Government, Development Partners, CSOs and research institutes. At the regional and district levels, multi-stakeholder dialogue takes place under Regional Consultative
Committees (RCCs) and District Advisory Committees (DACs) respectively. Specific fora for consultation with the private sector are the Tanzania National Business Council
(TNBC), the Zanzibar Business Council and special task forces such as the Tax Task
Force.
14.
The formulation of the MKUKUTA was undertaken through a highly consultative process, drawing on an extensive review of the first PRS and involving Government at all levels, Parliamentarians, Development Partners, CSOs and the general public.
Consultations led by the Government included internal consultations, consultations with other stakeholders and the Poverty Policy Week 2004. Other stakeholder meetings were led by the Association of Local Authorities of Tanzania (ALAT) and CSOs. Consultation methods included telephone, television, radio programs and leaflets.
15.
The Vice President’s Office (VPO) was the focal point for assembling and processing views expressed during all consultations. Under the administration elected in
December 2005, the department which deals with poverty has been moved from the VPO to the Ministry of Planning, Economy and Empowerment (MPEE) created to replace the
President’s Office for Planning and Privatization.
16.
The National Assembly approves the annual budget, with the MTEF attached as a background document. For the 2005/06 budget, the Finance and Economic Committee and Sector Committees of the National Assembly examined preliminary budget estimates and made recommendations which were incorporated in the final budget. The Ministry of
Finance regularly presents government accounts to the National Assembly as required by the 2001 Public Finance Act. The National Assembly is not required by the Constitution to approve development plans.
A
LIGNMENT
2.
Reliable country systems
17.
Progress has been made in strengthening public financial management. There is a computerized Integrated Financial Management System (IFMS) for recording, managing
4

December 5, 2006 and controlling expenditures. It prevents Accounting Officers from spending more than the budgeted amount. The IFMS has been installed in all Ministries, Departments and
Agencies, Sub-Treasuries and Regions as well as in 85 Councils. Work is underway to extend the IFMS to another 37 Councils. Implementation in these 37 Councils is expected to start in January 2007. The IFMS has permitted the introduction of standardized coding for resource and expenditure items, which allows for accurate and instant expenditure tracking. It can produce automatic expenditure reports. The introduction of the IFMS has enabled the Government to greatly enhance transparency, control, timely release and accountability of public finances, including of those external resources that are captured in the Exchequer, the national accounting system. This in turn has enabled the
Government to more easily monitor and evaluate performance of public resources in supporting national development and poverty reduction goals. Challenges, however, remain in accounting and financial reporting, in particular at the local government level.
To address them, the Government is implementing a Public Financial Management
Reform Program. To improve financial reporting, International Public Sector Accounting
Standards (IPSAS) have been adopted for the preparation of financial statements since
2004/05. The 2005 World Bank Country Policy and Institutional Assessment (CPIA) performance criterion that assesses the quality of budgetary and financial management places Tanzania at 4.5 on a scale of 1 (very weak) to 6 (very strong).
18.
The Controller and Auditor General, Tanzania’s Supreme Audit Institution, is appointed by the President and reports to him. The President is constitutionally required to submit audit reports to Parliament. The Controller and Auditor General has been empowered to conduct value for money audits to complement compliance audits conducted by the National Audit Office.
19.
An important step towards further strengthening national procurement systems has been taken with the implementation of the Public Procurement Act Nr. 21 (2004) of the United Republic of Tanzania and the Procurement and Disposal of Public Assets Act
Nr. 9 (2005) of the Revolutionary Government of Zanzibar. Additional steps include the establishment of a Public Procurement Regulatory Authority (PPRA) and a Public
Procurement Appeals Authority (PPA). Implementation of the new Acts and the functioning of the newly established institutions need, however, further support in order to become fully effective.
20.
Action is being taken to address corruption. A National Anti-Corruption Strategy and Action Plan, launched in 1999, has empowered line ministries to fight corruption within the respective sectors. A Prevention of Corruption Bureau, a semiautonomous agency under the supervision of the President’s Office, coordinates anti-corruption activities. This has translated into some improvement in the perceived effect of corruption on government action. For example, Tanzania ranks 93 rd
of 163 in
Transparency International’s 2006 Corruption Perceptions Index; in a range from 0
(highly corrupt) to 10 (highly clean), it receives a score of 2.9; in 1998, it received a score of 1.9.
3.
Aid flows are aligned on national priorities a.
Government leadership of coordination
21.
Government leadership has been enhanced through a Tanzania Assistance
Strategy (TAS), which was implemented from 2002/03 to 2004/05. The TAS was a
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December 5, 2006 national medium-term framework for managing external resources and guiding development cooperation to achieve the national development and poverty reduction goals as articulated in the National Vision 2025, the NPES and the PRS. A joint TAS
Secretariat and a TAS/Harmonization Group, both chaired by the Ministry of Finance, were initially scheduled to meet on a quarterly and monthly basis respectively to guide its implementation. Their meetings however became less regular over time, as TAS related issues have been sufficiently addressed in other processes, including PERs and general budget support. In addition, the functions of the TAS Secretariat have increasingly been integrated in a newly created Aid Coordination Section in the External Finance
Department of the Ministry of Finance. The degree of integration of the TAS process into existing Government operations and structures varies at the sector, regional and local levels. This is partly due to awareness and capacity constraints as well as difficulties in changing practices across both Government and Development Partners.
22.
The TAS has been succeeded by a Joint Assistance Strategy for Tanzania (JAST) for 2006-10. The JAST is Tanzania’s new medium-term framework for managing development cooperation between the Government and Development Partners. It has been developed under strong government leadership through a broad consultative process; the Ministry of Finance led extensive consultations with Ministries, Departments and Agencies, the Revolutionary Government of Zanzibar, Parliament, Development
Partners and non-state actors. Regular dialogue on JAST implementation is planned through a JAS Working Group, which is expected to meet quarterly. The group will be supported by a JAST Secretariat, hosted by the Ministry of Finance.
23.
Regular dialogue between the Government and Development Partners takes place through PERs, MKUKUTA/MKUZA, budget support and sector review processes. With the adoption of the MKUKUTA, PER working groups are expected to be restructured in line with MKUKUTA clusters. A Government/Development Partner Development
Cooperation Forum, with the Chief Secretary representing Government, was reinstated in
2005 to address the lack of systematic high-level policy dialogue, although it has not yet been meeting regularly.
24.
Dialogue and coordination among Development Partners is facilitated by a formalized Development Partners Group (DPG). The DPG succeeded an informal local
Development Assistance Committee (DAC) in 2004. It is chaired by two DPG Cofacilitators: a permanent facilitator, the UN Resident Coordinator, and a rotating bilateral facilitator. It meets once a month and deals with overall development partnership issues, including the JAST and the MKUKUTA/MKUZA. In addition, several DPG sector and thematic working groups have been established. DPG membership is open to any bilateral or multilateral partner that provides development assistance to the United
Republic of Tanzania. It currently includes 35 members: Belgium (Embassy of Belgium and BTC), Canada, Denmark, DFID/UK, EC, Finland, France, Germany (Embassy of
Germany, KfW, GTZ), Italy, Ireland, Japan (Embassy of Japan and JICA), Korea,
Netherlands, Norway, Spain, Sweden, Switzerland, USA/USAID, IMF, AfDB, World
Bank, UNICEF, WFP, FAO, UNHCR, UNFPA, ILO, UNESCO, WHO, UNAIDS,
UNIDO, UNDP, IFAD, UN-habitat and UNDCF. Exchange of information is facilitated through a DPG website.
2
The DPG coordinates, among others, Development Partner participation in the Development Cooperation Forum. Dialogue around general budget
2 http://www.tzdpg.or.tz/
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December 5, 2006 support is facilitated through a Poverty Reduction Budget Support (PRBS) group. The
PRBS group is chaired by a troika composed of the current, out-going and incoming chairs.
25.
Consultative Group (CG) meetings were held in country from 1997 until the last
CG in December 2002. Given the well-established coordination framework and continuous dialogue between government and external partners, another CG is not planned. b.
Partners’ assistance strategy alignment
26.
Under the Government’s leadership, Development Partner strategies are aligning with the MKUKUTA. The five major external partners are the World Bank, the UK, the
EC, Japan and the Netherlands, accounting for approximately 75 percent of gross ODA in
2003-04. Net ODA accounted for 16.2 percent of GNI in 2004.
3
Alignment is being further strengthened through the JAST. The JAST is not expected to merge country assistance strategies of individual partners into a single strategy. Individual country assistance strategies will rather be brought in line with the JAST principles.
27.
In response to the MKUKUTA and the JAST and in consultation with the
Government, Development Partners have developed a Joint Program Document which has been adopted as a DPG document and reflects the planned support from 31 DPG members.
4
The document contains a joint country analysis describing Tanzania’s development achievements and challenges, as well as details on DPG planned support and aid effectiveness commitments to Tanzania over the 4 remaining years of
MKUKUTA implementation, FY06/07-09/10. For many Development Partners, the Joint
Program Document will provide a common framework in which individual development assistance agency programs will be embedded. Some Development Partners will use it as a core element of their own program documents. Others may use it as a reference document. The preparation of the Joint Program Document has been a joint effort: 12 different Development Partners and 40 plus people have contributed different inputs, and all the DPG sector working groups have been involved in reviewing and redrafting specific sections. The work has been guided by a Steering Group with representatives from 10 Development Partners. c.
Partnership organization
28.
A number of Development Partners have decentralized decision-making to their country offices to facilitate participation in the PRBS group, PER working groups and sector and thematic groups engaged in sector dialogue such as sector reviews in education, health, HIV/AIDS and water. Many of the 35 DPG members have decentralized responsibility for their programs. For example, DFID, the EC, Denmark and USAID country offices are responsible for design, management and implementation of the programs they support. The World Bank program is managed by a Country
Director based in Dar es Salaam. Task managers for a number of sectors, including
3 See OECD/DAC Aid Statistics at http://www.oecd.org/dataoecd/24/21/1882894.gif
4 Belgium, Canada, Denmark, European Commission, Finland, France, Germany, Ireland, Japan,
Netherlands, Norway, Sweden, Switzerland, United Kingdom, United States, United Nations (UNDP,
UNICEF, ILO, IFAD, UNFPA, UNIDO, UNCDF, WFP, UNHCR, FAO, UNESCO, WHO, UN-Habitat),
African Development Bank, International Monetary Fund, and World Bank. (4 Development Partners did not provide their aid projections: Italy, Korea, Spain and UNAIDS)
7

December 5, 2006 private sector development, education, health, HIV/AIDS, energy, water, agriculture, forestry, roads and public sector reform are also based in Dar es Salaam.
4.
Strengthen capacity by coordinated support
Coherent and coordinated capacity support
29.
The Government has been implementing a number of cross-cutting coordinated capacity development programs, including a Public Sector Reform Program, the Public
Financial Management Reform Program, a Legal Sector Reform Program and a Local
Government Reform Program. Coordinated capacity development initiatives are also underway to strengthen the public expenditure review process, the poverty monitoring system and the business environment. In addition, various sector programs include capacity development components, including in health, education, agriculture and
HIV/AIDS. Coordination is organized through basket fund arrangements, a SWAp in the health sector and other frameworks for Government-Development Partner dialogue, joint planning and reviews. Government capacity to effectively lead and manage coordinated programs needs, however, further strengthening. Moreover, there is the need to strengthen the linkages among different programs and their full alignment with national processes and strategies, in particular the MKUKUTA and the MKUZA.
30.
Tanzania aims to make more effective use of technical cooperation for capacity development in line with national capacity needs. This includes strengthening
Government ownership and leadership in the procurement and management of technical assistance, which is expected to be addressed during the implementation of the JAST.
The Government also plans to formulate a national technical assistance policy to provide further guidance on the effective use of technical cooperation for capacity development.
5.
Use of country systems
31.
Forty percent of ODA is provided through direct budget support, thus relying on country fiduciary systems. Most basket funds also rely on country fiduciary systems, and some Development Partners are making efforts to increase reliance on national systems and procedures for project support. However, Development Partners’ regulatory constraints and remaining weaknesses in national financial reporting, auditing, procurement systems and institutions pose a challenge to greater use of national fiduciary systems. To facilitate the use of country systems, besides implementing a Public
Financial Management Reform Program, the Government has provided training to
Development Partners on how to channel external resources through the Government
Exchequer system. Capacity constraints in national procurement could be further mitigated by the reduction of separate Development Partner procurement procedures, as this would free capacity to concentrate on national procedures. To facilitate this process, some Development Partners are reviewing their regulations to move toward greater reliance on national systems. Where national procurement systems are used,
Development Partners apply additional safeguard measures, such as reviewing advance requests from national executing agencies, annual work/procurement plans and financial reports, and reserving the right to initiate independent reviews.
32.
Use of national fiduciary systems does not necessarily imply full use of country systems. ODA can be disbursed through the national budget but nevertheless be subject to separate reporting and audit requirements of Development Partners. Government
8

December 5, 2006 agencies may, for example, have to prepare separate reports for Development Partners in addition to the financial reports to the Government.
6.
Strengthen capacity by avoiding parallel implementation structures
PIUs progressively phased out
33.
By signing up to the JAST, Development Partners have made a commitment to avoid the establishment of parallel Project Implementation Units (PIUs) and gradually phase out existing PIUs to the greatest extent possible. Instead, projects and programs implementation is to be integrated into national structures. This in turn needs to be complemented by additional measures to further develop Government capacity to manage and implement projects and programs. Implementation of the JAST is expected to address the phasing out of PIUs and strengthening national implementation capacity.
7.
Aid is more predictable
Disbursements aligned with annual budgetary framework
34.
Development Partners routinely provide the Ministry of Finance with information on their ODA commitments and projections for the upcoming financial year, which starts on July 1, around September. Data are circulated to implementing Ministries,
Departments and Agencies and Regions and, after their review, serve as an input into the preparation of the MTEF and the national budget estimates. Commitments to budget support and basket funds are reconfirmed by Development Partners in March.
35.
Budget support is fully aligned with the national budget cycle; because disbursements are not bound to the fulfillment of in-year requirements, the Government can budget it with greater certainty than other aid modalities. Gaps remain between actual disbursements and commitments for development assistance delivered through individual projects. Challenges to address this issue include project planning and implementation which are not aligned with the Government budget calendar; dependence of disbursements on implementation progress and in-year performance assessments; and
Development Partners’ different financial years or different financial planning cycles.
Furthermore, parallel systems make it difficult for Ministries, Departments and Agencies and Regions to obtain full information on expected assistance flows, verify and include project aid in their plans and budgets and account for it. As Development Partners make greater use of national public financial management systems for project implementation, disbursements are expected to be better captured in the budget. Also, as part of the preparation of the Joint Program Document within the framework of the JAST,
Development Partners are exploring mechanisms to provide higher quality disbursement forecasts to the Government at the beginning of the national budget cycle.
8.
Aid is untied
36.
No baseline survey on the percentage of untied aid has yet been undertaken in
Tanzania. As the Government and Development Partners are making efforts to increase reliance on national systems and procedures, untied aid may increase.
H ARMONIZATION
9.
Use of common arrangements or procedures
37.
The implementation of the first PRS was supported by general budget support provided by 11 bilateral partners and the EC through a Poverty Reduction Budget
9

December 5, 2006
Support (PRBS) facility, a PRSC co-financed by the World Bank and KfW, and a
Structural Adjustment Loan/Poverty Reduction Support Loan from the AfDB. In 2002,
PRBS and PRSC partners together with the Government agreed on a Partnership
Framework Memorandum Governing Budget Support for Poverty Reduction as the common instrument to support the PRS through the government budget. This aligned the
PRBS and the PRSC around a common three-year Performance Assessment Framework
(PAF), a results-oriented matrix of agreed actions and indicators including a timeframe for reaching targets based on the PRS goals. In January 2006, the Government and all 14
General Budget Support Partners signed a new Partnership Framework Memorandum
Governing General Budget Support. The Partnership Framework includes a rationalized
PAF drawn from the MKUKUTA clusters and indicators, building on national processes such as PERs and sector reviews. Budget support reviews have been streamlined and reduced to one annual review in line with the national budget cycle.
38.
Development Partners also channel approximately 15 percent of their assistance through common arrangements and procedures, including pooled and basket funds. For example, CIDA, Denmark, Germany, Ireland, the Netherlands, Switzerland, UNFPA and the World Bank support the health SWAp through joint financing. Belgium, the EC,
CIDA, Finland, France, Ireland, the Netherlands, Norway and SIDA have jointly supported the Primary Education Development Program through an education sector basket fund. In 2005, the EC shifted its support for the program to general budget support. The World Bank has supported the program through sector budget support.
Development Partners also support the Local Government Reform Program through a basket fund, with joint-annual reviews and common monitoring framework. Other basket funds are in place to support a number of Government programs and activities, including the Public Service Reform Program, the Public Financial Management Reform Program,
PERs, a Poverty Monitoring Master Plan and a program for Business Environment
Strengthening in Tanzania.
10.
Encouraging shared analysis a. Joint missions
39.
The DPG prepares a mission calendar which is posted on the DPG website to facilitate coordination of Development Partner missions. The Government has requested
Development Partners to minimize interactions with the Government between April and
August each year. This “quiet time” is meant to allow the Government sufficient time for finalizing the national budget and attending parliamentary budget sessions.
40.
Approximately 500 missions visit the country annually, with few of them carried out jointly. Development Partners are making some efforts to reduce missions and increase the number of missions conducted jointly through greater coordination through
DPG sector and thematic working groups. In addition, greater reliance on national fora for policy consultation and dialogue, including PERs, MKUKTA and sector reviews, is also expected to contribute to increased joint missions. b. Analytical partnership
41.
Building on enhanced dialogue between the Government and Development
Partners at the national and sector level and use of common implementation arrangements, Development Partners have made progressive efforts to undertake more joint and coordinated country analytic work. In the context of the national PER process
10

December 5, 2006 and following the Government request for one assessment for one process, since 2004/05 external public expenditure management and fiduciary risk assessments, which were previously carried out independently by Development Partners, have been combined into a single instrument, the Public Expenditure and Financial Accountability Review
(PEFAR). Some Development Partners have also taken action to promote enhanced country partnership. For example, UN agencies no longer undertake country analytic work associated with a Country Cooperation Framework. The UN Development
Assistance Framework relies on data and studies underpinning the MKUKUTA and the
MKUZA as well as the Government’s Poverty and Human Development Report. Under the JAST, coordination of analytical work is expected to improve further through a more effective division of labor among Development Partners. The DPG Joint Program
Document provides a common analytic framework that can be used by Development
Partners for their country assistance strategies. Development Partners have posted 33 documents on the Country Analytic Work website as of October 2006.
5
M
ANAGING FOR RESULTS
11.
Results oriented frameworks a.
Quality of development information
42.
The quality and availability of poverty-related data is increasing, but needs to be further strengthened. The most recent Household Budget Survey was conducted in
2000/01, and another one is planned for 2006/07. A Participatory Poverty Assessment was carried out throughout the country in 2002 to gather views from the grassroots level on efforts and challenges encountered in the fight against poverty. A Population and
Housing Census was last conducted in 2002, an Agriculture Survey in 2003 and a
Demographic and Health Survey in 2004. Development information feeds into a
Tanzania Socio-Economic Database (TSED), developed in 2001 and managed by the
National Bureau of Statistics. The Government is addressing the need for systematic and regular surveys and the need to build capacity to generate and use statistical data for policy, planning and decision-making through the development of a Tanzania Statistical
Master Plan (TSMP). The TSMP will also evaluate financial and technical assistance needs. The National Bureau of Statistics and the Office of the Chief Government
Statistician in Zanzibar are currently preparing the TSMP. As part of the preparation of the TSMP, line ministries and other Government agencies are required to prepare their own Statistical Master Plans. Many external partners have encouraged the Government to increase the independence of the National Bureau of Statistics. b.
Stakeholder access to development information
43.
Information on government policies is easily available, and action is being taken to strengthen access to it. Vision 2025, the MKUKUTA, the National Poverty Eradication
Strategy, the PRS and Progress Reports are posted on several official government and national websites, including a Poverty Monitoring website and a Tanzania Online website, a joint Government-UNDP initiative.
6 Development information is also published in Poverty and Human Development Reports for 2002 and 2005. Monthly reports on government finance are prepared for use within government institutions, and
5 http://www.countryanalyticwork.net
6 http://www.tanzania.go.tz/economyf.html
; http://www.mof.go.tz
; http://www.povertymonitoring.go.tz/ ; http://www.esrftz.org/about.asp
.
11

December 5, 2006 made also available on request. Local authorities publish information on collected revenues and allocation of funds in local newspapers and notice boards at local council headquarters.
44.
Information on PRS implementation and MKUKUTA formulation has been disseminated, mainly through printed media. To broaden dissemination through national and local TV and radio, the Government is implementing a MKUKUTA Communication
Strategy, launched in 2005. The Strategy identifies actions to inform stakeholders on
MKUKUTA implementation, including simplifying and disseminating data and information through videos, brochures and posters targeted to particular audiences, regular briefings for media representatives and talk and phone-in shows on radio and TV.
The Government prepared a cartoon version of the MKUKUTA in Swahili. It had translated simplified versions of the PRS and the 2001 Progress Report into Swahili and is translating the full MKUKUTA. c.
Coordinated country-level monitoring and evaluation
45.
For the first PRS, a Poverty Monitoring System (PMS) was in place to measure progress in implementing the PRS against a range of indicators. A Poverty Monitoring
Master Plan, formulated in 2001, provided the framework for monitoring and evaluating the PRS. Information was obtained through periodic surveys and censuses, routine data collected by central, regional and local government offices, and special studies. Work in these areas was supported by a Surveys and Census Technical Working Group chaired by the National Bureau of Statistics, a Routine Data System Technical Working Group and a
Dissemination, Sensitization and Advocacy Technical Working Group, consisting of
Government, Development Partner and CSO representatives. The PMS was managed by a National Poverty Monitoring Steering Committee. Strengthening of the PMS has been supported by several Development Partners through a basket fund and project support.
46.
Progress in implementing the first PRS was documented in three annual PRS
Progress Reports. The Reports and the data generated by the PMS on education, health, income, poverty, water and roads as well as information on non-income poverty informed the preparation of the MKUKUTA. To cater to the needs of the outcome-based
MKUKUTA, the Government has revised the PMS and prepared a MKUKUTA
Monitoring Master Plan that would build on sectoral monitoring and evaluation systems.
M
UTUAL ACCOUNTABILITY
Development effectiveness assessment frameworks
47.
Tanzania’s efforts to enhance aid effectiveness and strengthen national ownership and Government leadership in the development process were guided from 2002/03 until
2004/05 by the Tanzania Assistance Strategy (TAS).
The TAS outlined 13 ‘best practices’ in development cooperation and identified an Action Plan focusing on four priority areas: (i) increasing aid predictability; (ii) integrating external resources in the
Government budget and Exchequer system; (iii) harmonizing and rationalizing
Government and Development Partner processes; and (iv) strengthening capacity for external resource management and aid coordination. Progress in implementing the 13
‘best practices’ and the four priority areas was monitored and evaluated on a continuous basis by the Government and Development Partners under the guidance of the joint TAS
Secretariat , whereby existing national processes (PRS, PER, general budget support) and sector processes (quarterly sector review meetings) served as fora for dialogue and
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December 5, 2006 information generation. Findings have been reported in publicly available annual TAS
Implementation Reports.
48.
The JAST, the successor of the TAS as Tanzania’s new framework for managing development co-operation, is more comprehensive than the TAS in promoting aid effectiveness, in line with the principles of ownership, alignment, harmonization, managing for results and domestic and mutual accountability included in the Paris
Declaration on Aid Effectiveness, which Tanzania endorsed. The JAST includes an
Action Plan and a Monitoring Framework with jointly agreed indicators and targets.
JAST indicators also draw on the Paris Declaration indicators, adapted to country context. The Government and Development Partners, in consultation with non-state actors, will undertake joint annual reviews of the JAST to assess their performance against JAST indicators. The reviews will be coordinated by a joint JAST Working
Group and will use to the greatest extent possible existing processes for dialogue and information generation. Results of the assessment will be published in annual JAST
Progress Reports.
49.
There is also an Independent Monitoring Group (IMG) which has evaluated
Government and Development Partner relations biennially since 2002. The IMG consists of local and international consultants. A local independent think-tank, the Economic and
Social Research Foundation, coordinates the work of the IMG. The IMG builds on external assessments of Tanzania’s development partnership undertaken by independent advisors in 1994/95, 1997, 1999 and 2000. The Group’s findings and recommendations have been discussed openly and widely in various national dialogue fora and have been published in IMG Reports. IMG recommendations and high-level commitment to strengthen development partnership helped establish the Development Cooperation
Forum. The IMG’s second assessment, conducted in 2004/05, served as an important input into the final TAS Review. It also provided a useful input into the development of the JAST. The IMG has played an important role in stimulating dialogue on development co-operation among the Government, Development Partners and non-state actors and has helped to enhance mutual accountability between the Government and Development
Partners. It is expected that the IMG will play a significant role in assessing progress in implementing the JAST through independent performance assessments mid-term and at the end of a five-year JAST cycle.
13

December 5, 2006
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Related websites
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INTOSAI: Mandates of SAIs http://www.intosaiitaudit.org/mandates/
Ministry of Finance http://www.mof.go.tz/index.php?option=com_frontpage&Itemid=1
Tanzania Development Partners Group (DPG) http://www.tzdpg.or.tz/
Transparency International: Corruption Perception Indexes http://www.transparency.org/policy_research/surveys_indices/cpi
World Bank Country Policy and Institutional Assessment (CPIA) http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/IDA/0,,contentMDK:2093360
0~pagePK:51236175~piPK:437394~theSitePK:73154,00.html
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