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Strategic Response to Political Economy

Strategic Response to Political Economy. Addis, June 6, 2007. Politics Matters. Politics is a complex game of strategic calculations. Politicians often face the so-called “politicians’ dilemma” in deciding among a set of policy preferences. Politician ’ s Dilemma. Conflicting Objectives:

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Strategic Response to Political Economy

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  1. Strategic Response to Political Economy Addis, June 6, 2007

  2. Politics Matters Politics is a complex game of strategic calculations. Politicians often face the so-called “politicians’ dilemma” in deciding among a set of policy preferences

  3. Politician’s Dilemma Conflicting Objectives: • To survive in office; to build a loyal political organization—no suicide • To govern effectively & efficiently

  4. Harmonisation Framework

  5. Challenges • Reforms are not only technical = embedded in larger political, cultural, social and economic context • How to put in place strategies that take into account how power is exercise • Mkukuta cluster 3 = governance recognizing that it is the bedrock to the other two pillars on growth and social services

  6. Reform agenda (National Framework for Good Governance) • PFMRP • PSRP • LGRP • LSRP • NACSAP Together constitute very ambitious and comprehensive restructuring of the state.

  7. GWG Research Agenda • WB -- Political Economy, Anti-Corruption, Political Finance, Pay Reform studies • DFID – Drivers of Change/Patterns of Accountability State Weakness – Operational Policy for Anti-Corruption • Norway – Governance and Corruption in Tanzania; sector-specific (natural resources) • SIDA – A Power Analysis of Tanzania (2005) Monitoring Power in Tanzania (Update) (2007) • USAID – Assessment of Democracy and Governance Use • Synthesis paper of above has been prepared • Workshops have been conducted for donors, public servants and civil society

  8. How to use the findings • For policy dialogue • For programme choice and design • For risk management • General budget support • Sector support

  9. Design ATIP Understand decisions on to pay Advent of new government – understand challenges and opportunities and prepare a CAS that would build on the knowledge Assessment of political context of reforms + stakeholders consultation Tanzania included in a broader study Political economy of Tanzania World Bank’s Response

  10. Lessons Learnt • Realisation of importance of PE context • Need to take into consideration in design of programs (sectoral too) • Technical expertise to do PE • Standard part of training program • Easy to do PE in a country where governance is relatively positive • Issue: what to do when the environment is less conducive?

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