Case Tanzania Training elements for Joint Donor Staff Training on Poverty Reduction in PRSP-Contexts, Dar es Salaam, June, 2002 Amon Manyama, UNDP & Christopher Mwakasege, TASOET & Timo Voipio, MFA-Finland

A Brief history of aid relationships in Tanzania: From ’Aid Fatique’ to Partnership During early Nyerere period, Tanzania was a ”donor darling”. But creeping ”Aid Fatique” By early 1990s, during President Mwinyi’s administration aid relationships were in crisis: –Donors (including the ’likeminded’) were tired with Tanzania and enormously annoyed due the GOT’s perceived poor administration, corruption, weak democratic processes and budget mismanagement –GOT saw aid donors as inappropriately intrusive, and unwilling to deliver on their promises.

Nordic-Tanzanian Initiative The ’likeminded’ donors (Nordics + NL) conducted country programme evaluations in Tanzania. Gov.of Denmark nominated a 5-person ”Wise-men’s Group”, chaired by Gerry Helleiner (Canadian), to investigate, what had gone wrong and what might be done to rectify the bad aid relationship. TOR made reference to the need to clarify ’ownership’. Helleiner Group recommended: ”Put GOT into the driver’s seat” GOT-Donor workshop in DSM Jan-1997: ”Agreed Notes” towards a new way of ”doing business”

Tanzania was ahead of times The ’spirit’ of the DAC ’Shaping the 21st Century’ was quickly adopted in Tanzania: Vision 2025 (1997) Multi-Debt Fund (MDF) > c.f. HIPC ’99 National Poverty Eradication Strategy (NPES) 1998, as a follow-up on Copenhagen Social Summit, with UNDP-support. Tanzania Assistance Strategy TAS (Draft 2000) I-PRSP (3/2000) PRSP (10/2000) 1st Annual Progress Report (8/2001) TAS Final draft 2002  GOT leadership

Meanwhile, in the OECD-DAC ( ) UN Social Summit, Copenhagen High-Level: ’Shaping the 21st C.’ –Conditionality won’t work –”Ownership” and ”Partnership” require new channels and methods of co-operation PovRed Scoping Study Partner consultations in Tanzania 2001 PovRed Guidelines

And at the World Bank… Wolfensohn became President 1995 Strategic Compact 1997 –Decentralization of Country Office and Director to Dar es Salaam in 1998 Comprehensive Development Framework (CDF) 1999 HIPC & PRSPs > Tanzania was one of the fore-runners. --> But is true ”partnership” possible between powerful donors and dependent GOT ?

Helleiner proposed: Donor Performance Monitoring (1) Not only GOT’s performance should be assessed Also donors’ performance should be monitored, e.g. the degree of... a)compliance with GOT requests for timely and standardized information about aid expenditures and plans; b)aid expenditures incorporated within the GOT budgetary system;

Helleiner: Donor Performance Monitoring (2) …the degree to which… c) donor projects and programmes are coordinated, integrated into governmental expenditure frameworks and recognize governmental priorities. d) shortfalls in aid disbursements relative to previous aid commitments e) aid is untied with respect to country of procurement

Helleiner: Donor Performance Monitoring (3) …the degree to which… f) the timing of aid disbursements is responsive to exogenous shocks to the Tanzania economy g) aid commitments are made for time periods longer than those which were the norm in the past h) procurement tied TA makes up of total aid expenditures

2002: GOT and donors have set up an ”Independent Monitoring Group” (IMG), chaired by Prof. Wangwe, to monitor the performance of –not only GOT, but also: –the performance of the donors In addition, e.g. Finland has agreed with GOT and DAC, that there will be a Tanzanian member in the DAC Peer Review on Finland 2002.

Hence, what new knowledge, skills and administrative changes will be needed? By the Donor Embassy Staff? By the Donor Headquarters Staff? By GOT staff? Related to: –Understanding poverty reduction? –Understanding Tanzania? –Partnership attitudes, skills and procedures?

Tanzania Assistance Strategy (TAS) See also Budget Speech by Finance Minister Basil P. Mramba 13 June, 2002, at: And monitor the work of the ”Independent Monitoring Group” (IMG), at:

Tanzania PRSP - Pro-poor growth and Pro-poor policies Christopher Mwakasege TASOET Joint Donor Staff Training DSM June, 2002

PROCESS: 1.Though PRSP was participatory in its preparation, the PRGF (Poverty Reduction and Growth Facility of the IMF) which constitutes macro policies was not participatory. 2.The cost of participating in the process. Such as in terms of time and expectations and ownership. 3.Preparing PRSP as a condition or as an accountability instrument or as a poverty reduction strategy ?

CONTENTS: 1.Picking priority sectors ? 2.Streamlining priorities within priority sectors ? 3.The challenge of financing PRSP ?

FUTURE: 1.Putting in place short-term and long-term strategies to help the macro-economic gain trickle down to the poor? 2.Financing PRSP versus its sustainability in meeting expected results ? 3.Monitoring PRSP versus capacity of key stakeholders to qualitatively and quantitatively participate ?

THANK YOU !