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 Tanzania 2. Tanzania Assistance Strategy 3. The Joint Assistance Strategy for Tanzania (JAST)- Why JAST? 4. What is JAST? 5. Objectives of JAST 6. Roles of Actors in JAST implementation 7. JAST main features/principles 8. How is JAST implemented 9. JAST Action Plan 10. JAST Monitoring and Evaluation 11. Conclusion 25 th 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. 325 th 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. 25 th 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 25 th 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 25 th August, 2009

Tanzania Assistance Strategy (Cont)  TAS implementation /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 725 th 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; 25 th 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 JAST Despite 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). 25 th 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 25 th 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 25 th August, 2009

14 7. Roles of actors in implementing JAST, cont 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 25 th August, 2009

15 7. Roles of actors in implementing JAST, cont 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 25 th August, 2009

16 7. Roles of actors in implementing JAST, cont 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 25 th 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.) 25 th 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 25 th 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) 25 th 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 2025 th 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

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 25 th August, 2009

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 25 th August, 2009

24 THANK YOU 25 th August, 2009