jas consultative meeting, 28 april 2006, golden tulip hotel, dar es salaam

JAS Consultative Meeting, 28 April 2006, Golden Tulip Hotel, Dar es Salaam

Joint Assistance Strategy

Presentation by Commissioner for External Finance Hussein Khatib, Ministry of Finance and Economic Affairs, Zanzibar

28 April 2006 JAS Consultative Meeting 2

Presentation Outline

1. Introduction – Why do we need a JAS?

2. JAS development process

3. What is JAS?

4. JAS key issues

5. Conclusion



Tanzania has made substantial progress in improving aid effectiveness and strengthening national ownership during the implementation of the Tanzania Assistance Strategy (TAS) from 2002/03 to 2004/05 particular focus on Aid predictability Integration of external resources in GOT budget system Harmonisation and rationalisation of processes Capacity building for aid coordination and external resource

management



But despite progress made under TAS, … GOT ownership needs further strengthening Still high transaction costs in aid delivery and management

– parallel systems and procedures for delivering, managing, monitoring and evaluating development assistance

– multiple missions, meetings and analytical studies– provision of off-budget financing, most notably for projects

Need for a strategy that meets demands of the new PRS – National Strategy for Growth and Reduction of Poverty (NSGRP / MKUKUTA) and the Zanzibar Strategy for Growth and Reduction of Poverty (ZSGRP / MKUZA)

Need for a more comprehensive framework than the TAS to fully reflect all principles of aid effectiveness in line with international commitments (Monterrey 2002, Rome 2003, Marrakech 2004, Paris 2005) – adapted to the Tanzanian context



Idea to align all DP strategies to one Government-led Joint Assistance Strategy emerged in TAS process in 2003/04 resulting from a joint GOT-DP study on rationalisation / harmonisation of processes

GOT set up a JAS Sector Group; DPs set up JAS Core Group

Idea was taken further in GOT-DP consultations formulation of a JAS Concept Paper December 2004 - sent to MDAs, DPs and non-state actors (NSAs) for comments

JAS Consultative Meeting with domestic and international stakeholders in April 2005

1st draft JAS Document prepared by GOT in May 2005 circulated for comments to MDAs, LGAs, Tanzanian Embassies, DPs and a large number of non-state actors



Comments incorporated into 2nd draft JAS Document in November 2005 discussed at JAS Retreat with MDAs (DPPs) in November 2005

Comments from JAS Retreat incorporated into 3rd draft JAS Document JAS Consultation with Permanent Secretaries in February 2006

JAS Consultation with Parliamentarians in February 2006

Comments from PS and Parliamentarians incorporated into revised 3rd draft JAS Document – to be discussed at this JAS Consultative Meeting

JAS Consultation with Principal Secretaries and with DPPs of Zanzibar in April 2006


3. What is JAS?

National medium-term framework (renewable 5-year cycle) for managing development co-operation between GOT and DPs so as to achieve national development and poverty reduction goals

JAS to be implemented at all levels of GOT in existing national, sector and local processes

DPs to adopt the JAS to guide their development co-operation with GOT bilateral agreements and country assistance strategies (CAS) to be brought in line with JAS throughout the JAS process

Overall objective: achieving results on NSGRP / ZSGRP and other national development and poverty reduction programmes

Intermediate objectives: aid effectiveness by strengthening national ownership, alignment, harmonisation, managing for results, mutual and domestic accountability


4. JAS key issues - Alignment

GOT will align all national and sector policies, strategies and programmes as well as plans of MDAs, Regions and LGAs with the NSGRP/ZSGRP and harmonise them around the national budget process

GOT will continue to strengthen the linkage between the NSGRP/ZSGRP and the national budget

DPs will fully align their support with the NSGRP/ZSGRP and other national as well as sector strategies, policies and programmes and local government plans

DPs will harmonise their processes around the NSGRP / ZSGRP and the national budget and will follow the GOT calendar of processes, including the specified ‘quiet time’


4. JAS key issues - Capacity development

GOT will further develop the capacity at all of its levels (MDAs, Regions and LGAs) to formulate, implement, monitor and evaluate policies,

strategies, plans, programmes and projects, produce and implement strategic budgets, appropriately and timely account for their activities,

expenditures and results, deliver high-quality, timely and effective public services, meaningfully engage in dialogue

It will do so among others through continuing existing reforms and programmes, e.g. PSRP, PFMRP, LGRP, LSRP, NACSAP

GOT will also support capacity development of Parliamentarians, Councillors, politicians, and non-state actors


4. JAS key issues - Capacity development (2)

DPs will support GOT efforts to develop sustainable capacity by responding to national capacity needs with financial and technical assistance to the GOT and to non-state actors

DPs will increasingly rely on GOT systems and structures to deliver and manage their assistance to the GOT, including working towards eliminating parallel PIUs over the medium-term

DPs will provide technical assistance as a means to facilitate sustainable capacity development

TA to the GOT will be demand-driven, increasingly untied from the source of financial assistance and procured under GOT leadership

Untying TA means that TA is not part of a funding conditionality and that the GOT can freely decide on its source


4. JAS key issues - Capacity development (3)

TA personnel management will be led by the GOT and will be increasingly integrated in the regular GOT administrative system while relevant GOT structures and mechanisms to coordinate and manage TA resources will be strengthened in the process

GOT will formulate a TA policy in close co-operation with DPs, which outlines the objectives and guidelines for using TA


4. JAS key issues – Division of labour

GOT will work towards a more effective division of labour, co-operation and coordination among and between MDAs, Regions and LGAs with clear roles and responsibilities

GOT will assign lead GOT agencies / enhance the effectiveness of existing lead agencies at sector, cross-cutting/thematic and cluster levels to take a supervisory and coordinating role as well as of other involved agencies to undertake joint planning, budgeting and implementation

DPs will rationalise the number of sectors or cross-cutting/thematic areas that they engage in

The number of DPs that are ‘active’ in a sector or thematic area will be limited to an appropriate level, depending on the needs and capacity of the sector/thematic area


4. JAS key issues – Division of labour (2)

Each sector/thematic area will have ‘active Partners’ that engage in dialogue with the relevant GOT agencies, undertake joint reviews, missions, meetings, etc.

One of the ‘active Partners’ takes the lead in coordinating other DPs in a sector/thematic area (also

possible to have different ‘lead Partners’ for different sub-sectors), and

acts as focal point in communication with GOT

Responsibility can also be delegated within a sector/thematic area to different ‘active Partners’ for administering or carrying out specific tasks (e.g. analytical work)



DPs outside a particular sector/thematic area assume the role of ‘delegating Partners’, who can nevertheless contribute financial assistance to the

sector/thematic area, which is administered by the ‘active Partners’,

are represented in dialogue with GOT through ‘active/lead Partners’, and

are kept informed on dialogue issues by ‘active/lead Partners’

Use of concept of comparative and competitive advantage for selection of the areas of focus for individual DPs and their roles as lead or delegating partners



Comparative advantage looks at sectors/thematic areas in which a DP is most effective in relation to all other areas in which it is or could be engaged (focus within a DP agency across different sectors/thematic areas)

Competitive advantage looks at a DP’s performance in a sector/thematic area compared to other DPs (focus across different DPs within one sector/thematic area)

Assessment is primarily based on a DP’s established international and field office expertise, based on past successful experience

Other criteria may be taken into consideration, e.g. appropriate total number of DPs in a sector/thematic area, DP organisational capacity, established relationships, etc.

DPs’ funding capacity or geographical areas of interest do not matter as selection criteria



Selection process and timeframe: GOT will first determine sector and thematic area

classification in line with NSGRP/ZSGRP/PER and establish own MDA membership in the respective sectors/thematic areas – work on this is still in progress

DPs will continue their baseline study of current division of labour and propose new division of labour in line with this classification

GOT (relevant MDAs in a particular sector/thematic area in consultation with LGAs) will review DPs proposal and agree with DPs on new division of labour including assignment of lead Partner roles


4. JAS key issues – Aid modalities

DPs will increasingly move to GBS, which is the GOT’s preferred aid modality

Basket funds will be used where it is seen appropriate by the GOT and significant transaction cost savings are possible, particularly in protecting public reforms and/or thematic areas which are not yet mainstreamed in normal GOT activities

Already existing basket funds that do not meet these criteria will be utilized as much as possible as a transition measure to GBS

Direct project funds to the GOT will be utilized for large-scale infrastructure investment, for piloting and for emergency aid

They will also continue to be used to support non-state actors

Existing direct project funds that do not fit in these categories will be phased out over the medium-term


4. JAS key issues – Aid modalities (2)

Principles for using basket and project funds: Support national, sector and local priorities, strategies,

plans and programmes, and be based on the GOT’s request to undertake such activities outside GBS;

Be integrated in the national budget process; Operate within GOT structures, systems, regulations and

procedures and be consistent with achieving sustainability, complementarity, low transaction costs and local ownership;

Be designed and implemented under the same conditions as other Government funded activities;

Follow the proper GOT process for project and programme approval


4. JAS key issues – Aid commitments and disbursements

DPs will report to the GOT according to the agreed timetable through the annual PER process the full amount of funds (incl. funds to non-state actors) committed over the three-year MTEF period, with minimum year-to-year variations in the rolling three-year MTEF commitments

All aid disbursements to the GOT will be made through the GOT Exchequer system, whereby the GOT will ensure timely provision of funds from receiving to spending agencies

All disbursements made to the Government and to non-state actors will be reported by DPs to the GOT on a quarterly basis


4. JAS key issues – Procurement

DPs will work towards providing untied development assistance to the GOT

GOT procurement systems will be used to manage procurements in accordance with the Public Procurement Act (2004) and the Procurement Act No. 9 (2005) of Zanzibar

Decisions to rely on GOT rather than DP procurement systems will however also consider their efficiency and effectiveness and ability to ensure value for money

DPs will work closely with the GOT to address weaknesses and further strengthen GOT procurement systems so as to attain international standards (continued implementation and monitoring within the PFMRP)


4. JAS key issues – Accounting and Auditing

DPs will use Government accounting and auditing procedures and systems as provided for in the Public Finance Act (2001) and in adherence with the Public Finance Act No. 12 (2005) of Zanzibar

GOT will enhance its capacity to provide reliable and timely accounting and audit reports at all levels

Actions to improve accounting and auditing are implemented and monitored within PFMRP and GBS-PAF frameworks


4. JAS key issues - Dialogue

Dialogue between GOT, DPs and NSAs will be guided by principles on: Government leadership Involvement of all relevant stakeholders Domestic accountability Openness, frankness and mutual trust Minimisation of transaction costs through simplification and

rationalization Thorough scrutiny Transparent, timely, clear and accessible information sharing Establishment of follow-up mechanisms

Sector dialogue to be strengthened, in particular by using SWAps as instruments for organising sector dialogue around strategic issues and overall policy directions rather than for deciding on the provision of funding


4. JAS key issues – Risk mitigation

Mitigation of political risk on GOT side by: Cabinet approval of the JAS Dialogue between GOT and DPs in case of divergence from

JAS GOT measures to improve governance and accountability

under cluster 3 of NSGRP and in various reform programmes (e.g. the PSRP, PFMRP, LSRP, NACSAP, and LGRP) and continuous high-level dialogue between GOT and DPs on these issues

Continued JAS awareness raising among Parliamentarians, Councillors and politicians, and GOT support in strengthening their capacity in the JAS process

JAS consultation and support at all levels of GOT as well as NSAs during formulation stage, and ongoing awareness and capacity building, information sharing as well as stakeholder participation in various consultative fora, including JAS review


4. JAS key issues – Risk mitigation (2)

Mitigation of political risk on DP side by: Bilateral agreements and country assistance strategies of

DPs will be brought in line with JAS Consultation and dialogue between GOT and DPs in case

of a divergence from JAS DPs will take their commitment to the Paris Declaration

and other international aid effectiveness initiatives seriously and will continue to advocate at headquarter and

international level for adherence to these commitments



Mitigation of institutional and operational risk on GOT side: Continued awareness raising at all levels of GOT Clear identification and communication of each GOT agency’s

roles and responsibilities in implementing JAS Strengthening Government ownership and leadership of the JAS

through capacity development Better organisation and horizontal co-operation within and

between GOT agencies including more effective information sharing and consensus building

Regular monitoring and review of GOT agencies’ performance in JAS implementation



Mitigation measures by DPs: Better handing-over procedures Adequate training and agency capacity development Appropriate recruitment policies and staff performance

assessment Greater devolution of authority from headquarters to field

offices



Mitigation of fiduciary risk by GOT with DP support: Ongoing efforts to strengthen strategic budget planning and

execution as well as financial management and accountability systems under the NSGRP/ZSGRP, PFMRP and LGRP;

Building an efficient and effective procurement system by implementing the Public Procurement Act 2004/Procurement Act 2005 of Zanzibar;

Improving transparency in public spending; Ongoing national anti-corruption measures under NSGRP/ZSGRP

and NACSAP; Strengthen technical and administrative capacity of GOT agencies

through on-going implementation of the PSRP; Open and frank policy dialogue on public financial management,

accountability issues and corruption; Monitoring and evaluation of public financial management and

accountability systems in NSGRP/ZSGRP, PER, PFMRP processes Periodic harmonised diagnostic reviews within existing processes


4. JAS key issues – Monitoring and Evaluation

GOT and DPs will regularly monitor and evaluate their performance relative to jointly agreed indicators, targets and actions outlined in JAS monitoring matrix and JAS Action Plan

Indicators will reflect Paris Declaration indicators as adapted to the Tanzanian context and will be grouped in 6 categories: (1) national ownership and GOT leadership, (2) alignment, (3) harmonisation, (4) managing for results, (5) mutual and domestic accountability, (6) operational functioning of JAS

2 M&E mechanisms:1. Annual joint GOT-DP review (incl. comprehensive mid-term and final review) in consultation with NSAs, using existing

processes as main avenues for dialogue and information generation

2. Mid-term and final assessment by IMG


5. Conclusion

Tanzania’s development partnership has made substantial progress in enhancing national ownership and aid effectiveness

It has been a frontrunner at international level

With the JAS, we now have the opportunity to take a major step forward on our national as well as the international (Paris) aid effectiveness agenda

Success of the JAS depends on all DPs’ support

We need to agree on the presented key issues and adopt the JAS Document, keeping in mind that the implementation of the JAS will be a gradual process of moving forward and that the JAS Action Plan will outline how existing processes and practices will be brought in line with the JAS

jas consultative meeting, 28 april 2006, golden tulip hotel, dar es salaam

Documents

jas retreat

jas consultative meeting3

jas development processwhat

jas development processidea

jas concept paper

jas core groupidea

jas sector group dps

national development