1. Equitable Service Delivery: Opportunities and Challenges General Budget Support Annual Review, 2009 24 November 2009

2. Contents Introduction Why equity remains a focus What has happened since last year? A story from a district Discussion for 2009 – Classification of challenging districts – Allocation of resources according to population – Allowances – Local decision making Way forward

3. Introduction In 2007 and 2008 we demonstrated the link between the lowest levels of staffing allocations the highest levels of poverty in Tanzania Using health and education as examples, we showed that the difference between district budgets can vary greatly And we showed that even where results are improving overall those improvements are not equal across Tanzania

4. Introduction Innovations from some regions to attract and retain HR were also discussed e.g. Rukwa and Mbinga Recommendations were made as follows: – Local level incentive packages to ensure that new staff are attracted and retained, and that this could be funded through transfers to under served districts – Eliminate delays in the payment of new salaries – Revision of the Medium Term Pay Policy as an entry point to addressing in equity in the distribution of human resources – A road map to implement the outcomes agreed on the basis of the approved MTPP An assessment of progress will be provided later in this presentation

5. Why equity remains a focus Need for equal access to public services All Governments are concerned with equity Social economic development as a platform for growth and development

6. Why equity remains a focus Education: – The more that is spent per child, the greater the likelihood of success in examinations – The allocation of grants per student can vary as much as Tsh13, 000 per student to Tsh188, 000 per student – Allocations are determined by the number of teachers on the payroll.

7. Why equity remains a focus Health – Staffing budget per capita can vary as much as Tsh.1, 700 to Ths.8500 – Some regions have twice the number of health workers per 10,000 people as others

8. Staffing budget can only be disbursed against the actual number of workers on duty and... Teacher HousingTraining Infrastructure Salary Flow of resources...allocations follow human resources.

9. The number of health workers varies widely between authorities… Health Staffing Budget 2008/9 per capita IFMS MoFEA

10. Districts which are in the top 20% of resource allocation have a higher Standard VII pass rate than those in the bottom 20%: Login Tanzania, 2001 and EMIS

11. If you received a low level of funding per child in 07/08 you are likely to receive a low level in 99/00 Source: Login Tanzania There is a 600% difference in funding between the top and bottom levels

12. What has happened since last year?

13. Revised Medium Term Pay Policy Situational analysis carried out Built on LGRP 2005 study Defined the range of measures required to tackle inequitable staffing

14. Difficulties in attracting and retaining workers to under-served areas Key factors identified in 2008Progress in 2009 Continued recruitment in better resourced areas Halt to recruitment in better resourced areas; PE Budget guidelines 08/09 8000 transferred in just over a year to better served districts Transfers restricted; Circular issued by PO- PSM but early to assess the impact Administrative procedures – speed, clarityAverage time to get onto payroll improved now an average of 3 months – down from 8 months Roles and responsibilities, coordination – who does what? Each LGA is responsible for HR management including education and health Lack of comprehensive, accessible and regularly updated data on staffing HCMIS software procured in 2009; aim to decentralise HR information in the coming years

15. What was needed in order start resolving recruitment and retention Actions identified in 2008Progress in 2009 Classification of under-served/better-served in relation to need Pending – for discussion today Development of Medium-Term Pay PolicyDraft Medium Term Pay and Incentive Policy is developed pending formal approval Cross-Government review of administrative procedures, roles and responsibilities Pending – for discussion today

16. Challenges and Opportunities Funds are finite and likely to become more scarce in the current economic climate and skewed in favour of growth Culture of allowances BUT Medium Term Pay and Incentive Policy developed Districts have the best local knowledge on what the problems are Stakeholders and Government are eager to see results.

17. A District story The cost of collecting your salary

18. Daudi Daudi, a Ward Extension Officer (WEO) is based in Mbwera village within the Rufiji delta in Rufiji District. He is one of 44 Extension Officers that man agricultural extension work in the district - too few to meet the demand. Although he is supposed to be in charge of 3 villages, he works for 11 villages within the whole Division because no other WEO’s are available. Daudi takes his salary at NMB Bank in Ikwiriri. He is, however, never sure whether the salary is there or not so he waits until a late date to travel from Mbwera to Ikwiriri to check with the bank. A typical journey takes a whole day or two depending on the weather. He first starts with a boat then a bicycle, then he walks on foot for several kilometres in the lowlands before getting another bicycle that takes him to the main Lindi- Dar es Salaam highway from where he boards a car. By the time he arrives at Ikwiriri, the bank is closed and even if his salary was in his account, he cannot access it as the ATM machine does not work outside office hours. The bank depends on generator which is switched off after official banking hours. By this time, he has parted with about TSh. 10,000.00 to travel from his home to the bank. He then goes to a local guest house where he must part with another Tsh. 5,000 or so for accommodation. If all goes well, he will pick up his salary the next day and travel back the same day. In most cases however, he finishes banking too late to catch the bus and thus he spends another day away from work. When salaries are delayed - which is not unusual, he has to make a painful decision on whether to wait for more days or whether to travel back to Mbwera. It takes Daudi an average of 3 days and about 10% of his salary to collect his wages.

19. Lida Lida is teacher. She spends about three days collecting her salary from Kibiti. Sometimes her salary goes into the bank on 30th of the month, other times not. In July 2009, two new teachers are employed in her school which has helped. It takes Lida an average of 3 days to collect her salary. Lida doesn’t feel that she has seen any substantial changes over the past two years.

20. Kalinga Kalinga is an Extension Officer. He travels about 100km from Mwera to Kibiti to collect his salary. Kalinga spends his own money on transport, accommodation, and meals. By the time he gets back to his working station, he is very tired; he will spend one more day resting at home Kalinga spends at least four working days plus expenses in the process of chasing his salary.

21. The effect on remote districts 36 days* per person per year are lost just collecting salaries – on average A minimum of Tsh.18,000 spent per person per year collecting their salary – approximately *Based on 20 working days a month, 36 working days lost per year

22. What this means for the community At best Two months without a teacher Two months with no nurse At worst No teachers or nurses will work in your community You cannot afford to travel to the clinic, so you leave it until you are really ill, by which time you will need more medication and your family duties will have suffered Exam pass rates go down; parents don’t enrol children in school – what’s the point?

23. What do the workers say about what is needed? I.Higher salaries are their number one request* II.Increased budgets and better tools rank second *MTPP Situational Analysis 2009

24. Proposed way forward over the next year I.Identify districts with the highest challenges II.Give those districts the resources they need according to their population – formula based allocation III.Channel overspends and disproportionate central allowances to workers in challenging districts IV.Encourage districts and regions to use their flexibility to put money towards attracting and retain staff

25. Identify districts with the highest challenges Where we are now Education have ranked districts according to spend per 7-13 year old Health have ranked districts according to spend per head of population The Local Government Special Budget have identified 36 districts that are eligible to receive extra funds What we can do in 2010 What should the criteria be identifying districts with the highest challenges?

26. Allocate resources according to population needs Where we are now GoT set out a formula based on population needs in 2004 What we can do in 2010 Is the current formula based allocation relevant? Should the Government start allocating all budgets against population need?

27. Channel central allowances savings to workers in challenging districts Where we are now Some allowances consolidated into salaries High levels of allowances – 18% of wage bill; remunerative allowances and honoraria grew significantly faster than the wage bill Allowances disproportionately concentrated at the centre – 19% average of basic wage for all workers but 26% for central staff* No financial incentives for those who most need them, disincentives for those who do What we can do in 2010 What are reasonable allowances – rates and type? What measures can be taken to enforce the rules and minimise discretion? What is the best method for financial incentives for challenged districts - salary plus a premium or separate incentive package? What is the most efficient way of channelling funds to the districts, given the existence of multiple sources of funds? *Public Expenditure Review Rapid Budget Analysis, PER Macro Group, 2008

28. Districts flexibility to put money into attracting and retaining staff Where we are now Staffing allocations made by Central Government Resources follow staffing Workers in remote areas need special attention What we can do in 2010 Can the districts use the Special Budget and other additional funding to attract and retain staff ? What is the medium term plan for the Special Budget? How to assess whether the resources allocated are having a positive impact on equitable staffing?

29. Way Forward? Realistic, achievable and clear actions for 2010 Agree Temporary Process Action for 2010 Performance Assessment Framework Agree assessment criteria for those actions