State of poverty: Achievements, challenges and Prospects

1. State of poverty: Achievements, challenges and Prospects MKUKUTA: Achievements, challenges and Prospects

2. Current Poverty Reduction Policy Frameworks • National Development Vision 2025, • National Strategy for Growth and Reduction of Poverty (MKUKUTA II), • Five Years Development Plan, • Poverty Monitoring Master Plan • Sector Policies/programs/projects and Reforms Programs, Emphasis on inclusive growth, reduction of income poverty; improvement of quality of life and social well-being; good governance and accountability.

3. Overview of MKUKUTA II Implementation State of poverty is assessed by looking at the achievements and challenges recorded through the implementation of MKUKUTA-II developed 2010 MKUKUTA implementation is tracked through the MKUKUTA Monitoring Master Plan set up in December 2011

4. Overview of MKUKUTA II Implementation Cont… • MAIR, PHDR and survey reports prepared in close collaboration with s/holders as part of MKUKUTA assessment

5. Purpose of MKUKUTA Annual Assessment • Provide progress on priorities as identified in MKUKUTA; • Stimulate further dialogue on key strategic issues: prioritization , resources mobilization and utilization; • Provide inputs and information for national budget process

6. 1. Growth and Reduction of Income Poverty • Most macro indicators have recorded positive and significant progress. For instance: • GDP growth: Real GDP grew by 6.9 percent in 2012 higher than growth of 6.4 recorded in 2011 (mainly attributed to favourable weather, improved communication and financial services, supply of subsidized agricultural inputs and increased reliability of power generation) • The manufacturing sector grew by 8.2 percent in 2012 compared to 7.8 percent in 2011

7. Cont…. • Agriculture sector grew by 4.3 percent in 2012 as compared to 3.6 percent in 2011 (attributed to favourable weather condition during 2010/11 and timely distribution of inputs, as well as availability of high yield seeds). • The annual average inflation rate for June 2013 was 8.5 percent compared to 17. 4 percent in June 2011. This is partly attributed to (i) higher oil prices in the world market , and (ii) high food prices caused by high food demand in some of the neighboring countries .

8. Cont…. • Total exports of goods and services grew by 2.8 percent to US$8,283.8 million in 2012/13 from USD 8,055.1 million in 2011/12 (mainly attributable to traditional and manufactured export goods, and transportation receipts). • Government domestic revenue collection as a percentage of GDP (tax and non tax revenue) increased to 17.7 percent in 2012/13 from 17 percent in 2011/12.

9. Income Poverty Current Status • According to the HBS 2011/12, the overall basic needs poverty level in Tanzania Mainland is 28.2 percent, 33.3 percent in rural areas, 4.1 per cent Dar es Salaam and 21.7 percent in other urban areas. • The national average food poverty stands at 9.7 percent, rural has 11.3 percent and 8.7 percent in other urban areas. Dar es Salaam has the lowest of extreme food poverty (1.0 percent).

10. ChallengesPoverty is a multidimensional phenomenon: (income and non income dimensions). • Poverty is still high in rural areas -growth is not pro-poor, emphasis on inclusive growth, to address issues of quality of growth, redistribution, social protection and need for results and accountability (need to speed-up efforts to improve productivity in sectors with maximum impact on poverty reduction to the poor (agriculture & manufacturing) • How to expand and maintain efficient, transport system for growth. • Innovative sources to finance Government budget (e.g. infrastructure bond and PPP arrangement).

11. Copping up Strategies • Expand irrigation systems as a substitute for rain-fed agriculture • Encourage rural non-farm activities for increasing rural employment, especially in the food processing and service sectors • Design and implement youth employment programmes for self-employment to address urban poverty • Break the Cycle of Energy Crises in the country to boost manufacturing and employment creation.

12. 2.Improving Quality of Life and Social Well-being (performance) Most indicators have recorded remarkable improvement Education • Increased enrolment ratio in primary education (achievable MDG 2). Net enrolment was 92.0 percent in 2012. 2015 target is 100 percent. • Training at various levels including teacher’s training has been enhanced • Increased recruitment of teachers in all levels (primary, secondary and higher education) • Enrolment at higher education continued to rise as a result of an increase in the number of universities and increased loans for students pursuing higher education.

13. Cont….. Survival, Health and well-being • Proportion of stunted children under five years decreased from 38 percent during 2004/05 to 35 percent in 2012; • Infant mortality (achievable MDG 4) reduced from 68 deaths per 1,000 live births (2004/05) to 51 (2011/12) – DHS. 2015 target is 40 • Child(under-five) mortality (achievable MDG 4) reduced from 112 deaths per 1,000 live births (2004/05) to 81 (2011/12) - DHS. 2015 target is 67 • Maternal mortality decreased from 578 per 100,000 live births in 2004/05 to 454 (DHS 2011/12) • HIV prevalence (achievable MDG 6) among adults age (15-49) declined slightly from 5.7 percent in 2007/08 to 5.1 percent in 2011/12 (THMIS). 2015 target is less than 6 percent

14. Cont….. Water • Access to clean and safe water in urban areas has been maintained at 86 percent in 2012/13. • In rural areas access has increased from 56.6 percent in 2011/12 to 57percent in 2012/13. • The number of households connected to sewerage system increased from 20,910 in 2011/2012 to 21,999 in 2012/2013.

15. Challenges • How to improve pass rates in both primary and secondary education • How to meet the increasing demand for teachers and lecturers in all levels of education sector • Increasing the availability of teaching and learning facilities including insufficient number of laboratories for practical training in most of schools • How to strengthen routine data for health related indicators

16. Challenges cont…. • Diminishing water resources which is aggravated by encroachment and environmental degradation of water source areas including pollution of watersheds, wetlands, springs and water recharge areas; • Water leakage remains a major issue in various Urban Water Authorities mainly due to dilapidated water infrastructure, water theft and damages during road construction.

17. Copping up Strategies • Enhance the quality and standard of education through programs that focus to increase the number of qualified and professional teachers, school facilities. • Enhance efforts to curb maternal mortality rate, prevent HIV/AIDS, malaria control and improve district health services • Comprehensive planning for the whole district (rehabilitation, capital investments for new projects, and operations and maintenance arrangements that ensure sustainability) needs to be given priority instead of focusing on few villages per year.

18. 3. Good Governance and Accountability • Unqualified opinions for MDAs, and Regional Secretariats (RS) have increased from 69 (85 percent) in 2010/11 to 108(94.7 percent) in 2011/12. This year’s results have not recorded any Adverse Opinion. • Unqualified opinions for LGAs have increased by 32(24 percent) from the year 2010/11 to 2011/12. • The number of court cases outstanding continued to decline whereby for primary courts the number of resolved cases out of total outstanding issues increased from 510,996 cases during 2011/12 to 577,425 cases during 2012/13.

19. Cont… • Number of processed cases has also increased from 83,082 cases in 2011/12 to 104,359 cases in 2012/13 which is an increase equivalent to 26 percent. This is accounted by the increase of court capacity both human as well as on infrastructure development at thedistrict court. • The government recovered the otherwise embezzled public resources equal to 4,404,781,998 in 2011/12 compared to 3,020,556,461 recovered in 2010/11

20. Challenges • Inadequate human resource. Trained personnel continued to refraining reporting to the located stations, and prefer to remain in urban centers. • Inadequate infrastructures (i.e. offices, office equipments, housing, communication equipments) for law enforcers (i.e. Police, Prison, Courtroom, and legal systems); inadequate remunerations • Inadequate monitoring and evaluation framework that help to monitor progress of activities at lower level

21. Copping up Strategies • Capacity building interventions, recruitment of more staff for reduction of case backlog • Instituting incentive mechanisms that will attract personnel to work in rural areas particularly on health, education, agriculture and water sectors. • Direct efforts to improve working infrastructures and conditions • Involve communities in managing the natural resources

22. Financing • Substantial progress has been made in harmonizing donor assistance through the (JAST) which has resulted in reduction of transaction costs. • The General Budget Support (GBS) is an instrument utilized for consolidating government as well as development partners’ efforts towards supporting poverty reducing interventions in the country. • Domestic and Donor contribution has increased significantly

23. Challenges • Enhancing domestic revenue mobilization. efforts to broaden the revenue base should go in line with modernization of tax collection and administration especially computerization of all revenue collection systems to eliminate all forms of revenue leakage/losses and tax evasion. • Enhancing domestic production of goods and services for widening domestic revenue base • Effective and efficient implementation of the PPP Act and increased contribution of the private sector in resource mobilization will also provide another avenue for financing MKUKUTA

24. Monitoring and Evaluation • To ensure availability of timely and reliable evidence on growth and poverty, MKUKUTA Monitoring Master Plan (MMMP) was put in place. • The MKUKUTA Technical Committee under the chairmanship of DPs-MOF (oversee the implementation) • Day to day operations are under: • data and information generation coordinated by NBS • research and analysis function coordinated by REPOA under the chairmanship of COSTECH • stakeholders engagement coordinated by PED

25. Challenges • Staff capacity to undertake monitoring and evaluation functions is still major challenge in almost all government Institutions • The MMS II has more than 80 indicators. This implies more work and funding for data collection (both routine and surveys), research and Analysis • The funding of MMS II highly dependent on external support. This raises concerns on the sustainability of monitoring activities • The MMS has so far little impacts on strengthening routine data systems or research work at the MDA level as well as the LGA level

26. CONCLUSION • Improved poverty focus require the extension of basic services to the poor majority. With resources constrained and limited revenue, can be afforded only if the Government make hard choices to reduce the cost free or subsidized services currently enjoyed by a mainly non-poor minority. • Need to empower community towards social and economic development, promotion of self-reliant activities at household level including open up opportunities for investors for job creation etc.

27. CONCL..Cont.. Efforts which are being done by DPs, CSO/Faith Based Organizations are noted and highly acknowledged by the Government. As a key stakeholder, we emphasize to: • Continue support the Government in bringing peace to strengthen political stability, • Continue support Government efforts at all levels in supporting policy and program formulation, implementation, monitoring and evaluation, • Promote loyalty, and prevention of corruption, • Strengthening support to the poor (vulnerable groups e.g. MVC; poor elderly/widow/disabled; and unemployed youth).

28. CONCL..Cont.. • Collective action to spur good reputation, strengthening cooperation and creativity for development are highly emphasized.

29. Thank you for your Attention