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BEST Briefing GWG 9 November 2006. Kevin Quinlan - DFID. Contents. Background Review findings on reforms areas Review findings on institutional arrangements. BEST Programme – what is it?. Programme is designed to improve the investment climate for private sector in Tanzania by:
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BEST BriefingGWG 9 November 2006 Kevin Quinlan - DFID
Contents • Background • Review findings on reforms areas • Review findings on institutional arrangements
BEST Programme – what is it? Programme is designed to improve the investment climate for private sector in Tanzania by: • Reducing the Burden of regulatory & administrative constraints • Improving the quality of Service GoT provides to the private sector
Why reform investment climate? • High rates of growth are essential to achieving MDG 1 • Government’s role is primarily to facilitate private sector to invest, creating jobs and increase tax base for essential services. • International evidence = quality of economic governance really does matter in increasing investment. • How well is Tanzania doing? • Tanzania ranked 142 out of 175 countries in Doing Business 2007 • 2003 ICA indicates investment climate = cost penalty of 25%+ of sales. • Tanzania’s ranking WEF competitiveness index 70 - 80 of 117 • Tanzania competes globally so reform is needed to catch up!
BEST has 5 components • Achieving Better Regulation • Simplified Business Licensing & registration • Land Administration • modernising Labour Laws for more flexible labour markets • National ID card • Simplifying and speeding up Commercial Dispute Resolution • Strengthening the Tanzania Investment Centre (TIC); • Changing the culture and mindset of Government from inhibiting to facilitating and serving the private sector as the engine of growth • Empowering Private Sector Organisation to advocate sensibly and knowledgeably for a better investment climate
Achieving Better Regulation • Business Licensing & registration • Simplified • Land Administration • modernising Labour Laws for more flexible labour markets • National ID card
Some Basics • Co-ordinated by Better Regulation Unit (BRU), MPEE • Implemented by 8+ MDAs, also Zanzibar • Long design, approved by Cabinet end 2003, part-time CEO 2004, full-time CEO & staff from 2005, new CEO mid 2006 • Funding • bi-lateral $19m (DANIDA, DFID, RNE, SIDA) • IDA $41m (new from end 2006)
Review findings • Progress but slower than anticipated • Mostly due to institutional arrangements of BEST in GoT • Delays as WB was mainstreamed • Delays due to CEO turnover