1 POVERTY POLICY WEEK RECAP OF DAY 2 SCALING UP BEST PRACTICES AND MAXIMIZING POTENTIAL OPPORTUNITIES FOR PRO-POOR AND INCLUSIVE GROWTH by Prof. A.V.Y. Mbelle, Facilitator Dar es Salaam, November 25-27; 2013

INTRODUCTION ORGANIZATION OF PRESENTATION I: Background and context II: Organization of Day 2 Activities III: Key messages from Day 2 IV: Way forward 2

I: BACKGROUND AND CONTEXT The main context of this forum is to set the stage for review of MKUKUTA II (towards MKUKUTA III – note Second FYDP) – Revokes debate on role of MKUKUTA (poverty reduction) vs role of FYDP (growth focus) There are theoretical and empirical justification for their co-existence. 3

i Genesis: PPW work was launched in 2002 with the main objective of offering an interactive platform to stakeholders on policy issues. It is one of the key activities of Poverty Monitoring System 4

II: ORGANIZATION OF DAY 2 ACTIVITIES Three activities marked the first day of PPW 2013  Recap of Day 1 5

ii  Presentations: i.Pro-poor Budget Allocations and Interventions (by Commissioner for Budget, URT) ii.Social Protection: Potential Opportunities to Accelerate Initiatives to Improve Livelihood 6

ii…  Commentaries i.Representative from DPs on both papers ii.Representative from NSAs on both papers  Presentation by Panelists On paper 1 i.Economic Empowerment to Reduce Poverty 7

ii ii Financial services  Experience of TIB  SELF project  VICOBA iii Land and Human Settlement iv Insurance 8

ii On paper 2 i Social Protection for Vulnerable groups: best practices from research ii SSRA iii NHIF, CHF, TIKA  Plenary session/general discussions 9

III KEY MESSAGES FROM DAY 1 THEME 1: PRO-POOR BUDGET  Issue of definition and identification of targeting activities  Interventions in many sectors with elaborate funding  Inclusiveness in pro-poor budgeting – Guidelines for O&D from village level  Issue of equity;  Issue of access to financial services 10

iii  Housing as pro-poor intervention e.g. creation of jobs;  Insurance for crops  Existence of finances for onward lending to small scale farmers  Empowerment of groups (machines, cash, etc) 11

iii.. THEME II: SOCIAL PROTECTION 1.Issue of definition 2.Issue of targeting 3.Many supporting Policies 4.Existence of unregistered caring centers 5.Identification of beneficiaries: through LGAs 6.Two main schemes possible for scaling up (both coordinated by Government): a)National community-based care for Most Vulnerable Children 12

iii b) TASAF – conditional cash transfer (grant); is mainstreamed in government plans in terms of standards and norms; involves all key Ministries/sectors; TASAF III emphasizes institutional arrangements Other schemes/services targeting vulnerable groups: i.The elderly and people with disabilities ii.Vulnerable families (multiple schemes such as families with triplets….) iii.MVC (wide typology and various forms of support e.g. education support; food; 13

iii.. New NCPA: multiple partners in implementation – household economic strengthening Challenges: many (low budgetary allocation; social welfare work force; dependence on donors Recommendations More and timeliness in delivery of resources (financial, human…) Scale up to Universal pension for elderly Create separate Social welfare department in LGAs Sustainability Ownership 14

iii Other issues raised o Low coverage of official SP e.g. only 8% of workforce o Existence of informal SP o Weak coordination among institutions dealing with SP o Typology: three – Universal, contributory and supplementary o Six funds 15

iii..  New initiatives establishment of SSA has enabled legislations; ICT use in contribution; institution of penalties for delaying benefits; covering both formal and informal sectors - inclusiveness  Challenges – inadequate benefits ; limited coverage; computation formula (differing benefits, etc)  SP schemes are key to poverty reduction 16

iii  Intensity of interventions (multiple and duration) and exit strategy; and monitoring  Linkages among actors  Information asymmetry hampering SP objectives  Capacity building for the poor (credit issues, feasibility of projects etc..)  There are best practices that can be scaled up (e.g. in health insurance fund – soft loans; coverage)  Leakages  Prudence needed in investing contributors’ funds 17

iii  Knowledge of implementers (on modality and use of funds; supply side – coverage and quality; curative as well as preventive; package)  Operationalization of Policy (e.g. new dimensions)  Administration of exemptions  Application of the principle of universality  Sustainability issues – higher government investment needed; long term horizon 18

ii  Cash and non cash interventions  Importance of Communities taking a lead role in management of funds and involvement in planning  Importance of M&E  Key role of coordination of actors  Call for NSP Framework/Policy to be passed and operationalized 19

IV: WAY FORWARD Day 2 set the stage for day 3 – emerging opportunities for poverty reduction Two presentations: a.Big Results Now initiative b.The contribution of Science, Technology, Innovations and Entrepreneurship to growth and poverty reduction 20

 Practical demonstrations a)SIDO b)VETA c)TPSF  Plenary sessions IT IS THE EXPECTATION OF THE ORGANIZERS THAT ATTENDANCE WILL MATCH, AND PARTICIPATION WILL BE AS ACTIVE AS DURING DAY 1 21