1. Joint Assistance Strategy for Tanzania (JAST) Poverty Policy Week Creative and Hard Work, the Key to Fighting Poverty Presentation by the Ministry of Finance Dar es Salaam - Tanzania

2. Nov 19, 2007 Poverty Policy Week2 Presentation Outline 1. Introduction 2. Why do we need a JAST? 3. What is JAST? 4. JAST development process 5. JAST main features/principles 6. Conclusion

3. Nov 19, 2007 Poverty Policy Week3 1. Introduction Aid management reforms The aim of aid management reforms – aid effectiveness The Tanzania Assistance Strategy (TAS), 2002 TAS thought to ensure that external resources are transparently and effectively delivered, managed, and accounted for, with the view of assisting to attain the national development and poverty reduction goals

4. Nov 19, 2007 Poverty Policy Week4 1. Introduction, Cont. TAS focused on four priorities  Aid predictability  Integration of external resources into the GOT budget and Exchequer system  Harmonisation and rationalisation of processes  Capacity building for aid coordination and external resource management Substantial progress during the TAS implementation (2002/03 - 2004/05) - in almost all the above 4 priorities

5. Nov 19, 2007 Poverty Policy Week5 2. Why do we need a JAST? But despite progress made under TAS, … GOT ownership needs further strengthening at all levels, Parallel systems and un-harmonized practices Continued provision of off-budget financing Continued multiple missions, meetings and analytical studies MKUKUTA) and MKUZA demands International commitments on aid effectiveness (Monterrey 2002, Rome 2003, Marrakech 2004, Paris 2005)

6. Nov 19, 2007 Poverty Policy Week6 3. What is JAST? National medium-term framework for managing development co-operation between GOT and DPs so as to achieve national development and poverty reduction goals JAST to be implemented at all levels of GOT in existing national, sector and local processes DPs to adopt the JAST to guide their development co- operation relation with GOT Overall objective: achieving results on MKUKUTA / MKUZA and other national development and poverty reduction programmes Intermediate objectives: aid effectiveness

7. Nov 19, 2007 Poverty Policy Week7 4. JAST development process Broad participatory approach GOT JAST Sector Group DPs JAST Core Group  jointly worked on the development of JAST Government prepared JAST Document in early 2005 Final draft JAST Document in May 2006 Official launch - 5 December 2006 Government led process Joint JAST Working Group

8. Nov 19, 2007 Poverty Policy Week8 5. JAST main features/principles National Ownership Mutual and domestic accountability Aid modalities and scaling up of ODA – General Budget Support (GBS), the GOT preferred modality DPs increasingly move to GBS Basket funds will be used where it is seen appropriate by the GOT Direct project funds will be utilized for large-scale infrastructure investment, for piloting and for emergency aid Direct Project funds will also continue to be used to support NSAs Existing basket/direct project funds that do not fit in these categories will be phased out over the medium-term

9. Nov 19, 2007 Poverty Policy Week9 5. JAST main features/principles, Cont. 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;

10. Nov 19, 2007 Poverty Policy Week10 5. JAST main features/principles, Cont. Alignment & Harmonization – Using and strengthening national processes, systems, procedures, etc. (Budget, exchequer & accounting, procurement, etc.) Capacity development – build sustainable capacity at all levels of Government to manage the development process, GOT to support capacity development of Parliamentarians, Councillors, politicians, and non- state actors

11. Nov 19, 2007 Poverty Policy Week11 5. JAST main features/principles, Cont. Capacity development – development partners’ role DPs to respond to national capacity needs DPs to increasingly rely on GOT systems and structures – elimination of parallel PIUs Provide TA as a means to facilitate sustainable capacity development Demand-driven and untied TA TA management - GOT administrative system & structures TA policy formulation to guide the use and management of TA

12. Nov 19, 2007 Poverty Policy Week12 5. JAST main features/principles, Cont. Division of labour – rationalize engagement, increased use of comparative advantage Use of competitive advantage use of delegated cooperation arrangements Assessment is primarily based on a DP’s established international and field office expertise, based on past successful experience

13. Nov 19, 2007 Poverty Policy Week13 5. JAST main features/principles, Cont. Dialogue – creating a structure for improved dialogue with all relevant stakeholders, at all levels and processes, and in particular on governance and accountability Guiding principles: Government leadership Involvement of all relevant stakeholders Domestic accountability Openness, frankness and mutual trust Minimisation of transaction costs through simplification and rationalization Transparent, timely, clear and accessible information sharing Establishment of follow-up mechanisms Strengthened Sector dialogue

14. Nov 19, 2007 Poverty Policy Week14 5. JAST main features/principles, Cont. JAST action plan and monitoring framework The action plan operationalizes the JAST Action plan organised around the five objectives of JAST: 1)National ownership and Government leadership of the development process 2)Aligning DP support to Government priorities, systems, structures and procedures 3)Harmonising Government and DP processes 4)Managing resources for achieving development results 5)Strengthening domestic and mutual accountability

15. Nov 19, 2007 Poverty Policy Week15 5. JAST main features/principles, Cont. JAST Monitoring and Evaluation – to 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 and final review – 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

16. Nov 19, 2007 Poverty Policy Week16 6. Conclusion Tanzania’s development partnership has made substantial progress in enhancing national ownership and aid effectiveness With the JAST, we now have the opportunity to take a major step forward on our national as well as the international (Paris) aid effectiveness agenda JAST is an inclusive process, involving ALL DPs – progress under the JAST depends on balancing the need to move forward on key issues with the need for inclusiveness

17. Nov 19, 2007 Poverty Policy Week17 THANK YOU