1

Presentation by the Ministry of Finance and Economic Affairs

Dar es Salaam, Tanzania

TANZANIA AID COORDINATION

2

Presentation outline

1. Development Assistance and Aid Relations in Tanzania2. Tanzania Assistance Strategy3. The Joint Assistance Strategy for Tanzania (JAST)-

Why JAST?4. What is JAST?5. Objectives of JAST6. Roles of Actors in JAST implementation7. JAST main features/principles8. How is JAST implemented9. JAST Action Plan10. JAST Monitoring and Evaluation11. Conclusion

25th August , 2009

1. Development Assistance and Aid Relations in Tanzania

Development Assistance is an important source of public finance for development in Tanzania.

For the last five years aid has accounted for 34 – 40 percent of the National Budget.

26 DPs are active in various sectors of the economy.

325th August, 2009

4

Development Assistance and Aid Relations in Tanzania

(Cont)

The presence of large number of DPs presented some challenges:

Multiple procedures, missions and reporting requirements leading to high transaction cost and pressure on the GoT.

Inadequate Government ownership in aid management.

25th August, 2009

Government Response In mid 1994 an Independent Group of advisors in development

cooperation management was commissioned Evaluate GoT-DPs aid relationship problems Recommend a set of solutions/ actions

GoT and DPs agreed to take actions based on the report recommendations National Ownership and Government leadership of the

Development process GoT to raise the effectiveness of aid and its own resources in

facilitating both sustained growth and poverty reduction Greater transparency and accountability in the use of public

resources (incl. external resource management) Independent monitoring and evaluation followed in 1997, 1999,

& 2000 Formulation of the Tanzania Assistance Strategy (TAS) as a

medium term framework to guide Development Cooperation between GoT and DPs

5

25th August, 2009

6

2. Tanzania Assistance Strategy GoT and DPs roles were redefined in the Tanzania Assistance Strategy

(TAS) launched in June 2002 National Ownership and Government leadership of the Development

process GOT to raise the effectiveness of aid and its own resources in

facilitating both sustained growth and poverty reduction Greater transparency and accountability in the use of public

resources GOT to strengthen Public Financial Management System including

the Budget Management process

25th August, 2009

Tanzania Assistance Strategy (Cont) TAS implementation - 2002/03 – 2004/05 TAS sought to ensure that external resources are

transparently and effectively delivered, managed, and accounted for, with the view to speed up achievement of the national development goals

TAS Priorities Predictability of External Resources Integration of external resources into the Government

budget and Exchequer system Harmonization and rationalization of processes Capacity building for external resource management and

aid coordination

725th August, 2009

8

3. Progress under TAS Public financial management systems, accountability and

management of public resources improved; Predictability and integration of external

resources(particularly GBS) into exchequer systems improved;

DPs increasingly aligned their activities with national systems and processes;

Improved aid coordination – move to GBS strengthened Government ownership and leadership over resource allocation;

Improved relationship in development cooperation;

25th August, 2009

9

3. Progress under TAS, cont. Instituting a period of “quiet time” – interaction

between the GOT and DPs are minimized to allow sufficient time for budget preparation and approval

Institutionalization of an Independent Monitoring Group (IMG) Very influential in guiding improvements in partnership

relations and aid effectiveness, provided inputs into implementation of TAS and the formulation of JAST

Provides a valuable addition to internal monitoring by GOT and DPs, as it offers an independent view and places DPs under the same degree of scrutiny to which they subject the Government

Facilitates mutual accountability

25th August, 2009

10

4. The Joint Assistance Strategy for Tanzania (JAST)

4.1. Background to the development of JASTDespite progress made under the TAS the following challenges persisted: National ownership is still limited at all levels of Government; Parallel systems and un-harmonized practices for delivering,

managing, monitoring and evaluating development assistance continued to exist and transaction costs remained high;

Provision of off-budget financing, most notably with projects persisted and undermined the national budget management efforts;

Need for a strategy that meets demands of the new PRS – NSGRP/ZSGRP (MKUKUTA/MKUZA) was evident ;

There was also need to fully adopt all principles of aid effectiveness to the Tanzanian context in line with international commitments (Monterrey 2002, Rome 2003, Marrakech 2004, Paris 2005).

25th August, 2009

11

5. What is JAST? JAST is a national medium-term framework for managing

development cooperation between URT and DPs so as to achieve national development goals as outlined in the NSGRP / ZSGRP and in line with Vision 2025 / Zanzibar Vision 2020

JAST was approved by the Cabinet of the RGoZ and URT in June 2006 and October 2006, respectively as the Government strategy for managing development cooperation with DPs

JAST was officially launched in December 2006, and 19 DPs signed an MOU with the Government committing their respective countries and agencies to the JAST objectives, commitments and principles

25th August, 2009

12

6. Objectives of JAST

Overall objective is to make development cooperation more effective for achieving national development and poverty reduction goals and in particular contributing to achieving sustainable results under NSGRP/ZSGRP

Intermediate objective is to build an effective development partnership in line with national and international commitments to aid effectiveness by: Strengthening national ownership and Government leadership Alignment of DP support to Government priorities, systems, procedures

and structures Harmonising GOT and DP processes Managing resources for development results Ensuring mutual accountability of GOT and DPs, and Strengthening domestic accountability

25th August, 2009

13

7. Roles of actors in implementing JAST

7.1. Government

At the respective levels assumes leadership role over managing the development process i.e. identification, implementation, monitoring and evaluation of development activities

Enhance its capacity to effectively manage the development partnership and facilitate capacity development among non-state actors (NSAs)

Lead, guide and coordinate dialogue processes

Account for use of public funds and for development results including JAST outcomes to domestic stakeholders

25th August, 2009

14

7. Roles of actors in implementing JAST, cont.

7.2. Parliamentarians, Councillors Parliamentarians and Councillors at their respective levels oversees

GOT activities and holds GOT to account for public spending and its performance in achieving development results domestic accountability

Politicians shape and reflect public opinion on development and aid effectiveness; influence development policy formulation and implementation

7.3. Development Partners Support national development priorities and processes Support and facilitate further development of existing capacities Provide financial and technical assistance and advice in policy Engage in dialogue on the basis of an agreed division of labour and

mutual accountability

25th August, 2009

15

7. Roles of actors in implementing JAST, cont.

7.4. Local communities Participate in identifying, planning, implementing, monitoring and

evaluating local development activities Contribute own resources to development activities Engage in local level stakeholder dialogue, especially with LGAs Participate in monitoring the quantity and quality of public services

7.5. Private sector Involved in planning, implementing, monitoring development activities Engine of economic growth facilitate expansion of domestic resource

base help reduce aid dependence Engage in policy dialogue with GOT and DPs and participate in

performance monitoring

25th August, 2009

16

7. Roles of actors in implementing JAST, cont.

7.6. Civil society organisations (CBOs, NGOs, faith-based organisations)

Participate in mobilizing and enhancing community participation and resource contribution in development activities

Participate in development activities i.e. reviewing, evaluating and monitoring development strategies, programmes and projects

Provide feedback on development issues and JAST results to the public Advocate for development and aid effectiveness, disseminate relevant

information to the public, stimulate public debate, help to shape public opinion and raise understanding on these issues

7.7. Media Informs the public of GOT and DP activities and of development related

issues Reports on citizens’ views Thus facilitates transparency and domestic accountability as well as

capacity development among society

25th August, 2009

17

8. JAST main features/principles National ownership – JAST creates conditions for DPs to step

back, allowing domestic stakeholders to participate more fully in the development process

Mutual and domestic accountability – Clarifying roles, rights and responsibilities of GOT, DPs and NSAs, & creating conditions for their realisation.

Aid modalities and scaling up of ODA – General Budget Support, the GOT preferred modality. Basket funds to be used where appropriate. Projects to be used for large scale infrastructure investment, piloting and emergency assistance

Alignment & Harmonization – Using and strengthening national processes, systems, procedures, etc. (Budget, exchequer & accounting, procurement, etc.)

25th August, 2009

18

8. JAST main features/principles, cont. Capacity development – Build sustainable capacity

for development (MKUKUTA/MKUZA implementation) - Use of core reforms, national monitoring systems, TA complement capacity building and be demand driven, managed within GOT structure, etc.

Division of labour – rationalize engagement, use of comparative/competitive advantage, increased use of delegation arrangements

Dialogue – create a structure for improved dialogue with all relevant stakeholders, at all levels and processes, and in particular on governance and accountability

JAST action plan and monitoring framework – operationalizing the JAST

25th August, 2009

19

9. How is JAST implemented?

JAST is implemented by the entire Government i.e. MDAs, Regions and LGAs

19 DPs signed the MOU officially adopting the JAST as their guiding framework for development cooperation with the GOT

JAST is implemented in the existing and ongoing national processes, Government structures and systems, as well as reforms

No separate annual cycle of dialogue between the GOT and DPs JAST document contains commitments for the GOT and DPs based

on its objectives– translated into activities/ actions JAST implementation is overseen by the GOT-DPs Working Group

(MOFEA, URT-Chair, RGOZ-Co-Chair, PO-PSM, PMO-RALG, MOHSW, MAFSC, MOJCA, MOEVT-RGoZ, & TASAF; Switzerland-Chair, Sweden, EC, WB, & UN-System)

25th August, 2009

10. JAST ACTION PLAN Specifies concrete actions to be undertaken by the Government

and DPs lists a range of monitoring indicators for assessing progress in

achieving JAST commitments and objectives Organized under 5 JAST objectives Arranged into GoT and DPs commitments to implement the

principles of the Paris Declaration The action plan for 2008/09 focused on four priority areas: (i)

Dialogue Structure (ii) Division of Labour among DPs (iii) development of the Technical Assistance Policy and (iv) Strengthening Aid Management Database

Priority actions of the Accra Agenda for Action (AAA) are also sufficiently addressed in the JAST Action Plan

2025th August, 2009

11. Where we are on implementation

The dialogue structure has already been approved and operationalized

Division of labour among DPs has already been agreed between the Government and Development Partners

A draft Technical Assistance Policy is in place

The Aid Management Platform (AMP); a web based aid management tool will be launched in September 2009

21

22

11. JAST Monitoring and Evaluation

Take two forms:1. Joint JAST review by GOT and DPs in consultation

with NSAs Annual JAST review, using existing processes (NSGRP/ZPRP,

PER, GBS, sector reviews, etc.) and information generated therein to the greatest extent possible – output: JAST annual implementation report

Comprehensive mid-term (2009) and final review (2011) – output: mid-term and final review reports.

2. Independent Monitoring Group (IMG) Mid-term and final assessment of JAST with a view to

facilitating mutual accountability – output: IMG report

25th August, 2009

23

12. Conclusion JAST implementation is a responsibility of all MDAs,

LGAs and DPs It is therefore important for all MDAs, LGAs,

Parliamentarians, DPs and other stakeholders to have good understanding of the objectives and key principles of the JAST.

We need to speak in one language as far as development cooperation management is concerned

25th August, 2009

24

THANK YOU

25th August, 2009