1. 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

2. PRELIMINARIES ORGANIZATION OF SUMMARY I: Introduction and background II: Summary of Day 1 III: Summary of Day 2 IV: Summary of Day 3 2

3. I: BACKGROUND AND CONTEXT The context of PPW was set by two realities: 1. Review of MKUKUTA II (towards MKUKUTA III) which will commence in 2014 2. PPW, launched in 2002, as one of the key activities of Poverty Monitoring System with the main objective of offering an interactive platform to stakeholders on policy issues. 3

4. i.. Theme of PPW 2013: “Scaling up Best practices and Maximizing Potential Opportunities for Sustainable Pro-poor and Inclusive Growth” Theme is very timely opening discussions around the “messo level” i.e. institutions which link the macro economy and the micro economy previously not examined as an important link in the fight against poverty 4

5. i.. Organization of activities was carefully designed: Day 1 What is on the ground Day 2 Empowerment and inclusiveness Day 3 - opportunities 5

6. II: SUMMARY OF DAY ONE Three activities marked the first day of PPW 2013  Official opening speech (and protocols around it: Welcoming and introductory remarks – PST MOF; Opening statements – NSAs, DPG Co-Chair; Deputy Minister MOF and vote of thanks – Deputy Minister MOF) 6

7. ii  Presentations: i.Household Budget Survey ii.State of the National Economy iii.MKUKUTA: Achievements, Challenges and Prospects 7

8. ii… iv: MKUZA: Achievements, Challenges and Prospects v: Rural Growth and Poverty: What are we learning from research? vi: Accelerating implementation of MDGs: A Case of a vii: Beyond Agriculture – Building Linkages for the Poor 8

9. ii…  Commentaries i.From DPs ii.From NSAs  Discussion by Panelists i.SAGCOT and PPP in Agriculture [X] ii.Industry and Trade in Poverty Eradication Initiatives iii.Role of Transport in Promoting National Growth (Railway and Roads) 9

10. ii.. iv: Energy: How this sector helps improve the lives of the poor especially rural electrification? v: Representative from DPs vi: Representative from NSAs  Plenary session/general discussion 10

11. ii Key messages from Day 1  There are successes in some sectors and challenges in others in Tanzania’s efforts towards eradicating abject poverty;  Sustaining partnerships is important in the fight against poverty  National and global efforts in eradicating poverty need to be taken together  Importance of Monitoring and Evaluation 11

12. ii  Responsibility and Accountability are key in the fight against poverty  Critical importance of inclusiveness (policies and programmes; as well as in sharing ideas/best practices keeping in mind the youth  Good governance and accountability are critical in the fight against poverty  Importance of commitment  Need to monitor urban poverty 12

13. ii PROSPECTS FOR SCALING UP BEST PRACTICES AND MAXIMIZING POTENTIAL OPPORTUNITIES Inhibiting factors Macroeconomic challenges Corruption Some elements of trade policy Adverse impacts of climate change 13

14. ii Promoting factors Existence of best practices – Millennium Villages project 14

15. III: SUMMARY OF DAY TWO Three activities marked the second day of PPW 2013  Recap of Day 1  Presentations: i.Pro-poor Budget Allocations and Interventions (by Commissioner for Budget, URT) ii.Social Protection: Potential Opportunities to Accelerate Initiatives to Improve Livelihood 15

16. iii…  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 16

17. iii ii Financial services  Experience of TIB  SELF project  VICOBA iii Land and Human Settlement iv Insurance 17

18. iii On paper 2 i Social Protection for Vulnerable groups: best practices from research ii SSRA iii NHIF, CHF, TIKA  Plenary session/general discussions 18

19. iii KEY MESSAGES FROM DAY 2 THEME 1: PRO-POOR BUDGET  Issue of definition and identification of activities  There are substantial investments in pro-poor areas  Inclusiveness in pro-poor budgeting – Guidelines for O&D exist  Issue of equity;  Issue of access to financial services 19

20. 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) 20

21. iii PROSPECTS FOR SCALING UP BEST PRACTICES AND MAXIMIZING POTENTIAL OPPORTUNITIES Inhibiting factors o Limited fiscal space Promoting factors PPP 21

22. 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 22

23. 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; 23

24. iii.. New NCPA: multiple partners in implementation – household economic strengthening Challenges: many (low budgetary allocation; social welfare work force; dependence on donors, etc) 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 24

25. 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 25

26. 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 26

27. 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)  Prudence needed in investing contributors’ funds 27

28. iii  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 28

29. iii  Need to combine 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 29

30. iii PROSPECTS FOR SCALING UP BEST PRACTICES AND MAXIMIZING POTENTIAL OPPORTUNITIES Inhibiting factors o Delay in adopting National Social Protection Framework/Policy o Limited knowledge of implementers (on modality and use of funds; o Leakages o Supply side constraints: limited coverage, poor quality; neglect of preventive measures 30

31. iii o Subdued social welfare status (no Department status in LGAs) o Insufficient social welfare work force o Limited financial resources o Uncertainties around sustainability issue (project nature of many schemes) Promoting factors Upgraded mandate of LGAs 31

32. III DAY 3 MAIN THRUST: OPPORTUNITIES Organization of activities Recap of day 2 Two presentations Panelists including representatives from DPs and NSAs Practical demonstrations 32

33. iv Opportunities  Doing things differently – “business unusual Flags raised: Suitability of context Sustainability especially funding 33

34. iv Paper 2: Contribution of Science, Technology, Innovation and Entrepreneurship to growth and poverty reduction  ICT revolution 34

35. iv Opportunities  Research resources  Link to R&D institutions  Emphasis on results e.g. incubators Raised flags o Uptake of research results for Policy is limited o Cluster methodology – low linkages o Promotion of indigenous knowledge o Dissemination of opportunities is limited 35

36. V: OVERALL CONCLUSIONS  Great support for PPW from DPs and NSAs  Hailed innovation in PPW 2013  Emphasis on importance of collaboration/cooperation among actors  Need for greater use of evidence/data (quality, timeliness, etc) 36