Capacity Development: In Context of Aid Coordination, Harmonization and Alignment Agenda

1. Capacity Development: In Context of Aid Coordination, Harmonization and Alignment Agenda Yuko Suzuki UNDP Tanzania November 2005

2. Country Context • Tanzania’s leadership in aid coordination; TAS/JAS, Heillener/IMG process, DAC Task Force partner country/ DPG , “Quiet time”, Africa-wide High-Level Forum on Harmonization and Alignment held in Dar Es Salaam (Nov. 2004), etc. • Strong national ownership & commitment to dev. outcomes: MKUKUTA (MDG+, outcome orientation, participation, focus on growth and equity; quality of life and social well being; good governance and accountability); and ZPRP

3. Evolving Aid Environment • Ongoing harmonization of policy processes (sector strategic planning, budgeting - PER, MTEF, SBAS-, PMS) and their alignment with MKUKUTA goals and targets • Mutual accountability (IMG and evolving PRBS/PAF process harmonized with MKUKUTA)

4. Evolving Aid Environment • Mix of aid delivery modalities: • GBS: GoT’s preferred modality – target: from 34 % of total ODA (2005) to 50-70 % (2010); • Current PRBS instrument evolving: more inclusive; focused on domestic accountability; PAF to be increasingly aligned to MKUKUTA (i.e. Poverty Monitoring Master Plan) • Basket funding (as a transition to GBS) • Projects (under specific conditions, well aligned to national systems)

5. Evolving Aid Environment • The Joint Assistance Strategy: Guiding framework of principles moving forward post Paris High Level Forum (work in progress) • A more authentic ownership • A more effective partnership • Promoting domestic accountability • Mutual accountability

6. Main features of the JAS • National ownership- JAS creates conditions for DPs to step back, allowing national stakeholders to participate more fully • Mutual accountability- Clarifying roles, rights and responsibilities of GoT and DPs, & creating conditions for their realisation • Scaling up ODA – Budget support the GoT preferred modality. An aligned PAF and a focused use of complementary project assistance

7. Main features of the JAS • Capacity development – Coherent entry points for sustainability. Use of core reforms, pay strategy, national monitoring systems, TA policy. • Alignment- Using and strengthening national processes (Budget, PMS) to create sustainable capacity for PRS • Division of Labour– increased delegation and innovative partnership arrangements to rationalise engagement • Dialogue– A structure for improved dialogue at all levels, in particular on governance and accountability

8. TAS sets harmonization priorities 1.Ownership • (Govt of Tanzania) 2. Alignment • (Govt of Tanzania-DPG) Alignment with the PRS Use of Government Systems 3.Harmonization (Development Partners’ Group) Rationalize procedures Information sharing Common Arrangements Capacity Needs - Framework

9. Capacity Needs • Ownership • On-going core reforms (PSRP, PFMRP, LGRP, LSRP) – but effects of decentralization do not sufficiently accompanied by intended devolution • GoT’s leadership in policy priorities, strategic frameworks, and institutionalized cooperation mechanisms at sector levels – Still weak capacity in policy strategy and formulation in sector ministries • Non-state actors – Engagement of CSOs on ad-hoc basis. Voices of CSOs heared but not leading to specific actions • JAS

10. Capacity Needs • Alignment - Partner • Improved linkages and budgeting process – acute shortages of expertise in monitoring of PRS • SWAPs (education, health, water, agriculture) – Still weak in policy and strategy formulation in sector ministries, and better coordination with local government authority needed at district level • Improvement in accounting and financial management, operationalization of Integrated Financial Management System (IFMS) – step by step action is more realistic to allow for new technology assimilation

11. Capacity Needs • Alignment – Donors • Budget support and basket fund increased from 48% (2002.3) to 54% (2004/5) of total aid flow – capacity needs highlighted to build confidence • Assistance for reforms mainstreamed in GoT policies and operations gradually – reform processes are still weak and not mainstreamed (i.e. PER process, etc.). Further mainstreaming of PRSP • Increased involvement of national consultants to support country programme – foreign experts not proven more capable than local experts.

12. Capacity Needs • Harmonization • Formalization of donor group into Development Partners Group – coherence among donors – remuneration practices not coordinated • “Quite Time” • Meetings/Missions reduced • Overlapping of studies by donor continues – more access to information needed, feedback important if local people involved in the process of study

13. Learning the Lessons • Fragmented and ad hoc • Emphasis on technical, not strategic capacity • Ignored pay and incentives • “Capacity development” as a fuzzy slogan • No means of assessing impact • A concept developed in the North and applied in the South

14. Capacity Development in JAS • Demand driven • Long-term capacity development • Pooled Fund • Reform of TA – TA Policy • Untying

15. UN/UNDP-JICA-GtZ-JAS Work on Capacity Development • Work in Progress • Individual • Needs assessment guides support to training in context of core reforms and sector programmes • Dialogue on Pay Reform • Facilitation of South-South Learning and Local Partnerships

16. Continued • Organizational • Comprehensive needs assessment for MDAs and organizations in context of sector plans, reforms and PRS • Support and partnership with local research institution to ensure depository of institutional capacity • Focus on qualitative “soft” capacities for building and strengthening new partnerships (leadership&vision, effective communication, brokering relationships, building trust, coordination and management) • South-South learning and use of local partners

17. Continued • Organizational (continued) • Support to PRS as an institution • Strengthening each of the major processes (PMS, PHDR, PER, sector reviews, etc.) • Communications training across GoT and key advocacy partners • Effective support to linking the processes (development management) • More effective Parliamentary participation • Development of broader sector plans

18. Continued • Societal • Governance & deepening democracy • Legal frameworks • Human rights • Media and CSO advocacy

19. New Principles for Technical Assistance The Independent Monitoring Group (2004) observed that reforming TA was a long-standing challenge • Needs a broader definition (not only ‘experts’) • A TA policy based on national priorities (not on donor accountability requirements) • a)Coherent planning and prioritisation – ‘needs assessment’ • b) Identifying individual, institutional and systemic needs • c) Government to lead in selection & management of TA • d)  Outline for clear objective-setting and monitoring • e) All TA services contested through budget – not a “free” good • Increased pooling of funds (possibly supported by strategic partner) • JAS (Division of Labour) to identify specific DP comparative advantage in capacity development?