1. Capacity Development: In Context of Aid Coordination, Harmonization and Alignment Agenda Yuko Suzuki UNDP Tanzania November 2005

2. Country Context  Tanzania ’ s leadership in aid coordination; TAS/JAS, Heillener/IMG process, DAC Task Force partner country/ DPG, “ Quiet time ”, Africa-wide High-Level Forum on Harmonization and Alignment held in Dar Es Salaam (Nov. 2004), etc. Strong national ownership & commitment to dev. outcomes: MKUKUTA (MDG+, outcome orientation, participation, focus on growth and equity; quality of life and social well being; good governance and accountability); and ZPRP

3. Evolving Aid Environment  Ongoing harmonization of policy processes (sector strategic planning, budgeting - PER, MTEF, SBAS-, PMS) and their alignment with MKUKUTA goals and targets  Mutual accountability (IMG and evolving PRBS/PAF process harmonized with MKUKUTA)

4. Evolving Aid Environment  Mix of aid delivery modalities: – GBS: GoT ’ s preferred modality – target: from 34 % of total ODA (2005) to 50-70 % (2010); – Current PRBS instrument evolving: more inclusive; focused on domestic accountability; PAF to be increasingly aligned to MKUKUTA (i.e. Poverty Monitoring Master Plan) – Basket funding (as a transition to GBS) – Projects (under specific conditions, well aligned to national systems)

5. Evolving Aid Environment  The Joint Assistance Strategy: Guiding framework of principles moving forward post Paris High Level Forum (work in progress) – A more authentic ownership – A more effective partnership – Promoting domestic accountability – Mutual accountability

6. Main features of the JAS  National ownership - JAS creates conditions for DPs to step back, allowing national stakeholders to participate more fully  Mutual accountability - Clarifying roles, rights and responsibilities of GoT and DPs, & creating conditions for their realisation  Scaling up ODA – Budget support the GoT preferred modality. An aligned PAF and a focused use of complementary project assistance

7. Main features of the JAS  Capacity development – Coherent entry points for sustainability. Use of core reforms, pay strategy, national monitoring systems, TA policy.  Alignment - Using and strengthening national processes (Budget, PMS) to create sustainable capacity for PRS  Division of Labour – increased delegation and innovative partnership arrangements to rationalise engagement  Dialogue – A structure for improved dialogue at all levels, in particular on governance and accountability

8. Capacity Needs - Framework 3.Harmonization (Development Partners’ Group) 1.Ownership (Govt of Tanzania) 2. Alignment (Govt of Tanzania-DPG) Rationalize procedures Common Arrangements TAS sets harmonizat ion priorities Alignment with the PRS Use of Government Systems Information sharing

9. Capacity Needs  Ownership – On-going core reforms (PSRP, PFMRP, LGRP, LSRP) – but effects of decentralization do not sufficiently accompanied by intended devolution – GoT’s leadership in policy priorities, strategic frameworks, and institutionalized cooperation mechanisms at sector levels – Still weak capacity in policy strategy and formulation in sector ministries – Non-state actors – Engagement of CSOs on ad-hoc basis. Voices of CSOs heared but not leading to specific actions – JAS

10. Capacity Needs  Alignment - Partner – Improved linkages and budgeting process – acute shortages of expertise in monitoring of PRS – SWAPs (education, health, water, agriculture) – Still weak in policy and strategy formulation in sector ministries, and better coordination with local government authority needed at district level – Improvement in accounting and financial management, operationalization of Integrated Financial Management System (IFMS) – step by step action is more realistic to allow for new technology assimilation

11. Capacity Needs  Alignment – Donors – Budget support and basket fund increased from 48% (2002.3) to 54% (2004/5) of total aid flow – capacity needs highlighted to build confidence – Assistance for reforms mainstreamed in GoT policies and operations gradually – reform processes are still weak and not mainstreamed (i.e. PER process, etc.). Further mainstreaming of PRSP – Increased involvement of national consultants to support country programme – foreign experts not proven more capable than local experts.

12. Capacity Needs  Harmonization – Formalization of donor group into Development Partners Group – coherence among donors – remuneration practices not coordinated – “Quite Time” – Meetings/Missions reduced – Overlapping of studies by donor continues – more access to information needed, feedback important if local people involved in the process of study

13. Learning the Lessons  Fragmented and ad hoc  Emphasis on technical, not strategic capacity  Ignored pay and incentives  “Capacity development” as a fuzzy slogan  No means of assessing impact  A concept developed in the North and applied in the South

14. Capacity Development in JAS  Demand driven  Long-term capacity development  Pooled Fund  Reform of TA – TA Policy  Untying

15. UN/UNDP-JICA-GtZ-JAS Work on Capacity Development  Work in Progress  Individual – Needs assessment guides support to training in context of core reforms and sector programmes – Dialogue on Pay Reform – Facilitation of South-South Learning and Local Partnerships

16. Continued  Organizational – Comprehensive needs assessment for MDAs and organizations in context of sector plans, reforms and PRS – Support and partnership with local research institution to ensure depository of institutional capacity – Focus on qualitative “soft” capacities for building and strengthening new partnerships (leadership&vision, effective communication, brokering relationships, building trust, coordination and management) – South-South learning and use of local partners

17. Continued  Organizational (continued) – Support to PRS as an institution – Strengthening each of the major processes (PMS, PHDR, PER, sector reviews, etc.) – Communications training across GoT and key advocacy partners – Effective support to linking the processes (development management) – More effective Parliamentary participation – Development of broader sector plans

18. Continued  Societal – Governance & deepening democracy – Legal frameworks – Human rights – Media and CSO advocacy

19. New Principles for Technical Assistance The Independent Monitoring Group (2004) observed that reforming TA was a long-standing challenge  Needs a broader definition (not only ‘experts’)  A TA policy based on national priorities (not on donor accountability requirements) – a) Coherent planning and prioritisation – ‘needs assessment’ – b) Identifying individual, institutional and systemic needs – c) Government to lead in selection & management of TA – d) Outline for clear objective-setting and monitoring – e) All TA services contested through budget – not a “free” good  Increased pooling of funds (possibly supported by strategic partner)  JAS (Division of Labour) to identify specific DP comparative advantage in capacity development?