Joint Assistance Strategy for Tanzania Objectives & Principles

1. Joint Assistance Strategy for Tanzania Objectives & Principles Development Partners Group Orientation Seminar for New Development Partners Presentation by the Ministry of Finance Dar es Salaam, Tanzania JAST Objectives&Principles

2. Presentation outline • Background • Progress under TAS • The Joint Assistance Strategy for Tanzania • Challenges JAST Objectives&Principles

3. 1. Background • In 1997 the Government of Tanzania (GOT) and her Development Partners (DPs) agreed to reform their aid architecture – It followed the 1995 Helleiner Report’s recommendations • GOT and DPs signed ‘Agreed Notes’ – 18 actions • It meant a process of redefining the GOT-DPs relationships in the conception and management of the development process • Key issues in the new architecture (Agreed Notes) included: • National Ownership and Government leadership of the Development process • GOT to raise the effectiveness of aid and its own resources in facilitating both sustained growth and poverty reduction • Greater transparency and accountability in the use of public resources JAST Objectives&Principles

4. 1. Background, cont. • Key issues in the new architecture, cont. • GOT to strengthen Public Financial Management System including the Budget Management process • GOT to involve all relevant stakeholders in the management of development process • DPs to support national led development and poverty reduction efforts (priorities) • DPs policies (TA) complements domestic capacity building efforts • Rationalization, harmonization and alignment of DPs assistance, process, procedures and systems with national processes, procedures, systems and structures JAST Objectives&Principles

5. 1. Background, cont. • The roles were defined and refined in the Tanzania Assistance Strategy launched in June 2002 • TAS implementation - 2002/03 – 2004/05 • 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 • TAS Priorities • Predictability of External Resources • Integration of external resources into the Government budget and Exchequer system • Harmonization and rationalization of processes • Capacity building for external resource management and aid coordination JAST Objectives&Principles

6. 2. Progress under TAS • Public financial management systems, accountability and management of public resources has been strengthened • Predictability of external resources (particularly GBS) has improved and increasingly being integrated into the Government Budget and Exchequer System • DPs have increasingly aligned their activities with national systems and processes • Improved aid coordination – move to GBS has strengthened Government ownership and leadership over resource allocation, and budget contestability of external resources • Improved relationship in development cooperation • Participatory approach to Policies and Strategies formulation JAST Objectives&Principles

7. 2. Progress under TAS, cont. • Instituting a period of “quiet time” – interaction between the GOT and DPs are minimized to allow sufficient time for budget preparation and approval • Institutionalization of an Independent Monitoring Group (IMG) • Influential in guiding improvements in partnership relations and aid effectiveness, provided inputs into implementation of TAS and the formulation of JAST • Provides a valuable addition to internal monitoring by GOT and DPs, as it offers an independent view • Facilitates mutual accountability JAST Objectives&Principles

8. 3. The Joint Assistance Strategy for Tanzania (JAST) • Why JAST? • Parallel systems and un-harmonized practices for delivering, managing, monitoring and evaluating development assistance still coexist with the harmonization and alignment efforts –keepstransaction costs high,weakening GOT capacity • Provision of off-budget financing, most notably for projects – undermines the national budget management process • Need for a strategy that meets demands of the new PRS – NSGRP/ZSGRP (MKUKUTA/MKUZA) • Fully reflect all principles of aid effectiveness in line with international commitments (Monterrey 2002, Rome 2003, Marrakech 2004, Paris 2005) – adapted to the Tanzanian context JAST Objectives&Principles

9. 3. JAST, cont. What is JAST? • National medium-term framework for managing development cooperation between GOT and DPs so as to achieve national development goals as outlined in the NSGRP/ZSGRP and in line with Vision 2025 / Zanzibar Vision 2020 • DPs to adopt the JAST as basis for guiding their development co-operation with GOT • Bilateral agreements and country assistance strategies to be brought in line with JAST • Overall objective is to contribute to sustainable growth and achieve results under NSGRP/ZSGRP • Intermediate objectives: aid effectiveness by strengthening national ownership, alignment, harmonisation, managing for results, mutual and domestic accountability JAST Objectives&Principles

10. 3. JAST, cont. main features/principles • National ownership – JAST creates conditions for allowing domestic stakeholders to participate more fully in the development process • Mutual and domestic accountability – Clarifying roles, rights and responsibilities of GOT, DPs and NSAs, & creating conditions for their realisation. • Aid modalities and scaling up of ODA – GeneralBudget Support, the GOT preferred modality. Appropriate mix of aid aligned to National Budget and MKUKUTA priorities/processes • Alignment & Harmonization – Using and strengthening national processes, systems, procedures, etc. (Budget, exchequer & accounting, procurement, etc.) JAST Objectives&Principles

11. 3. JAST, cont. main features/principles, cont. • Capacity development – build sustainable capacity at all levels of Government to manage the development process (for MKUKUTA/MKUZA implementation) – TA complement capacity building and be demand driven, etc. • Division of labour – rationalize engagement, use of comparative/competitive advantage, increased use of delegation arrangements • Dialogue – create a structure for improved dialogue with all relevant stakeholders, at all levels and processes, and in particular on governance and accountability • JAST action plan and monitoring framework – operationalizing the JAST JAST Objectives&Principles

12. 3. JAST cont. 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 JAST Objectives&Principles

13. 6. Challenges • Challenges and constraints include: • Government capacity at all levels to manage the development process (various processes) is still low • Continued parallel systems and structures for managing development assistance – constraints the Government capacity to full take leadership and ownership in managing external resources • DPs institutional set up – still not very much supportive – decisions not localized – most comes from head offices • Reduce aid dependence, at the same time making available adequate resources to finance NSGRP/ZSGRP JAST Objectives&Principles

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