(Further) Improving Development Cooperation Ger Considine, Head of Cooperation Irish Aid, JAST co-Chair.

1. Aid Cooperation in Tanzania 50 years of cooperation - Tanzania and Development Partners have come a long way. The JAST builds on a decade of aid reform. Positive progress but challenges remain - But… the direction is right.

2. Paris Declaration Survey Tanzania 2011 GoT and 23 DPs involved Assesses 5 areas – Ownership, Harmonisation, Alignment, Managing for Development Results and Mutual Accountability. Both very encouraging and worrying trends Challenges are not country unique Bullet 3: Ownership Top rating of MKUKUTA II and linkages to Vision 2025, MTEF and budget cycle Alignment Positive trend: Use of country PFM system, number of PIUs and in-year predictability. Negative trend: Reliability of PFM system (WB assessment) and coordinated TA. Static: Untying aid and alignment to national priorities. Harmonization Positive trends: Use of program-based approaches (basket arrangements). Below target: Joint missions and analytical work. Managing for Results Target reached on developing a results-based monitoring framework (WB assessment). Mutual Accountability Tanzania’s use of the Independent Monitoring Group, the JAST and Action Plan has achieved the target.

3. Global lessons - 5 years after Paris Independent Paris Declaration Evaluation 2011 Partner Countries: Many reforms Good momentum Slow and varied implementation Development Partners: Uneven implementation Risk-averse Less peer pressure Global lessons from the Paris Declaration surveys: Partner Countries: Slow and varied implementation but overall reforms are picking up momentum. Reforms serve wider national needs than aid alone, and momentum has held up through political changes and crises. Development Partners: Uneven implementation. Some exceptions but donors have been risk-adverse and slow to make the less demanding changes expected. Peer pressure and collective action are not yet embedded in systems.

4. Recommendations of Global Evaluation A broader spectrum of actors should be involved (moving from Donor-Recipient Country relationship towards a much broader cooperation with CSOs, NSAs, private initiatives and foundations, non-DAC DPs and increasingly important national resources: the effectiveness of these combined efforts should remain in focus. PD principles are still relevant but balance between technical/bureaucratic approach and high-level political commitment should be ensured. Broader mutual accountability framework should take centre stage including risk-management.

4. Recommendations of Global Evaluation Strong leadership (by all stakeholders but especially partner countries) is key for the reform agenda to progress effectively. Independent facilitation of the reform agenda can be very useful, to some extent similarly to Tanzania’s Independent Monitoring Group 6. Capacity development efforts need to take centre stage with long-term commitments.

4. Recommendations of Global Evaluation 7. Higher political attention by partner countries to main stumbling blocks for aid reform: corruption and poverty reduction. 8. Donor governments find ways to overcome institutional and administrative obstacles slowing the reform down and manage risks more directly and honestly. 9. Intensify peer-pressure on free riders.

5. Unfinished business in Tanzania Predictability of aid. Use of country systems, procedures and rules. Capacity development and Technical Assistance to be clarified. Harmonisation of missions and studies Lack of 5 or even 3-year predictability continues to be a challenge. Although in-year predictability of aid has improved on the overall, there are still very large variations DP per DP. Although improved use of country systems, there is room for improvement. It is now the default option for all ODA. Also, getting aid on budget, particularly a large volume of project aid, challenges the budget process and strategic allocation of resources. Coordinated TA proved problematic to measure and due to changes in the way it has been measured in Tanzania in 2005, 2007 and 2010 the results are incomparable. The lack of policy coherence surrounding TA and capacity development calls for stronger measures to finalise the TA policy and strategic plan. The harmonisation agenda on missions and analytical works seems to have stagnated. Lack of harmonization increases transaction costs on both Government and DP side. One positive example was the MKUKUTA and MKUZA review and drafting process, where X studies were produced based on a joint consultative process – benefiting not only the MKUKUTA and MKUZA processes, but also Development Partner internal reporting.

6. Joint call from Tanzania at Busan The Government of Tanzania and its development partners presented the following joint key messages at Busan HLF 1 We want to continue...built and not reverse 2. Broadening Partnership for better results 3. Headquarter policies, support and will to change must improve 4.Transformational change through Capacity Development 5. Keep the compass on results, national ownership and Government leadership