The National Strategy for Growth and Reduction of Poverty (NSGRP/ MKUKUTA) – by Mr. Clifford K. Tandari (MPEE),Tanzania, presented at Pretoria, South Africa, 20-21, Nov. 2006

THE LAYOUT OF PRESENTATION

• Background • Objectives of Poverty Reduction Review • Priority areas in Poverty Reduction Reviews • Objectives and issues which were considered during the Review process.

• Stakeholders involved in the Review process.

• Levels of consultations.

• NSGRP Structure • NSGRP cluster strategies • NSGRP departure from PRS.

• NSGRP Status and Way forward.

• NSGRP challenges • Desirable characteristics of the Second Generation PRS

Background… • Tanzania has long history in fighting poverty since our independence 1961.

• Various Poverty related Policies were developed at different times.

• Significant achievements were made. However we also experienced some challenges which have led to frequent reviews of those policies

Recent initiatives in fighting poverty

 POLICY CONTEXT • Development Vision 2025 • NPES 1997/98 • PRS I (2000-2003) GLOBAL AND REGIONAL COMMITMENTS  NEPAD  MD and MDGs   BRUSSELS PLAN OF ACTION EAC • PRS Review Process – Launching (2003) – Stakeholders Consultations.

Vision 2025

• High quality of livelihood • Peace, stability and Unity • Good governance • A well educated and learning Society • A competitive economy sustainable growth and equity

NPES

Reduce abject poverty by 50% by 2010  Eradicate abject poverty by 2025  Provide a framework to guide poverty eradication initiatives

Sector Development Programme (SDP)

Basically a sector wide framework • Anchored on the PRS/MDGs • Mainstreaming of cross-cutting issues at sector level • Identifies detailed priority expenditure actions/projects • Sets medium term outcomes/objectives and targets in light of the PRS/MDGs • Outlines financing needs for sectoral PRS/SDP • Outlines implementation arrangements

Principles of the PRS

      National ownership Equity Global and Regional Commitments (MDGs, NEPAD) Comprehensive Coordinated “Partnership” Harmonization

Objectives and issues which were considered during the Review process • The overall objective was to update the original PRSP in a manner that will create more commitment, ownership and rally all the stakeholders behind it • Specific objectives were; – To make PRS more comprehensive and pro poor – To expand and deepen interventions to reduce poverty – To create commitment and build consensus on the priority outcomes for poverty reduction

Principles which were considered during the Review process • Be nationally owned and driven by national interests and the national agenda • Be developed through a participatory/consultative process • Build on what we have and not start a completely new PRS • Set realistic and achievable operational outcomes • Harmonize NSGRP with other Government Processes

LEVELS OF CONSULTATIONS • Village and community Level • District Level • Regional Level • National Level

CHAPTERS OF THE NSGRP

• Chapter 1: Introduction • Chapter 2: Poverty Status and Challenges • Chapter 3: Framework of the NSGRP • Chapter 4: The Strategy • Chapter 5: Implementation Arrangement • Chapter 6: Monitoring and Evaluation • Chapter 7: Financing Strategy • Annex I and II

I: Introduction

• NSGRP focuses on RESULTS/OUTCOME • Inter-sectoral linkages, cross-sectoral collaboration & synergies • Attention to mainstreaming cross-cutting issues • More Attention to Governance & Accountability • Continue to be guided by Vision 2025, aligned with MDGs, NEPAD

2: Poverty Status and Challenges

 Income poverty  -Basic Needs -Food -Employment Non-Income poverty - education and illiteracy  - health services, survival, nutrition - water and sanitation - vulnerability - cross-cutting Poverty Monitoring System

CHAPTER 3: PRS FRAMEWORK

CHAPTER 4: STRATEGY

Pillars of the NSGRP • Growth and Reduction of Income Poverty • Quality of Life and Social Well-being • Governance & Accountability

ANNEX

Contents: 3 Clusters     Broad Outcomes Goals Operational Outcomes Cluster Strategies (need prioritization/sequencing)   Sector or areas of collaboration Actors

4: The Strategy

CLUSTER 1: GROWTH AND REDUCTION OF INCOME POVERTY

Broad outcomes:



Broad based and equitable growth is achieved and sustained

Goals:

F Ensuring sound economic management. F F Promoting sustainable and broad-based growth.

Improving food availability, accessibility and nutrition at household level, with particular focus on food security needs of children and women, in urban and rural areas.

F Reducing income poverty of both men and women in rural areas  Reducing income poverty of both men and women in urban areas

4: The Strategy …

CLUSTER 1: GROWTH AND REDUCTION OF INCOME POVERTY Areas of Interventions:  Monetary, Expenditure, Tax and Trade Policies  Gender, Governance, Environment, Justice,   Technology, Human Capacity, Employment Investments in SMEs, Agriculture, Mining, Tourism  Infrastructure (roads, energy, water, communication)  Lands, Settlements and other cross-cutting

4: The Strategy …

CLUSTER 2: IMPROVEMENT OF QUALITY OF LIFE AND SOCIAL WELL BEING Broad outcomes:   · Quality of life and social well-being, with particular focus on the poorest and most vulnerable groups improved · Inequalities in outcomes across geographic and social economic groups reduced

4: The Strategy …

Goals:

F Improving educational access, performance and relevance at primary and secondary levels, and universal literacy among adults.

F Reducing infant, child and maternal mortality, morbidity and malnutrition F Improving environmental sanitation and shelter in urban and rural areas and reduced vulnerability from environmental risk.

F Providing adequate basic needs and services to the most vulnerable and needy groups  Ensuring effective systems for universal access to quality and affordable public services

Strategy …

Areas for interventions: • Education, health, water, Employment • Vulnerability, gender, HIV/AIDS, Children, Disability, Elderly, Environment, • Human settlements, Governance, Roads

4: The Strategy …

CLUSTER 3: GOVERNANCE AND ACCOUNTABILITY Broad outcomes:  · Peace, political stability, national unity and social cohesion    · Democracy and political and social tolerance · law Good governance and the rule of · Accountability of leaders and public servants

4: The Strategy …

Goals:

F Improving personal security and the absence of crime F Reducing political and social exclusion and intolerance F Ensuring representative, accountable and inclusive structures and systems of democratic governance and rule of law F Protecting and promoting rights of the poor and excluded in the justice system F Ensuring equitable allocation of public resources and effective control of corruption  Ensuring effective public service framework to improve service delivery

Strategy …

Areas for interventions : • Peace and Security • Democracy and Social Inclusion • Rule of law & Justice • Vulnerability and Human Rights • Gender and Property Rights • Capacity/employment, Environment • Accountability, Corruption

4: The Strategy …

KEY MESSAGES: THE CLUSTERS, BROAD OUCTCOMES, GOALS, OPERATIONAL OUCTCOMES AND CLUSTER STRATEGIES ARE ANALYTICALLY LINKED A NEED TO FOSTER INTER-SECTORAL LINKAGES through CROSS-SECTORAL COLLABORATION

NSGRP Departure from PRS

• The NSGRP focuses on Results/outcomes • Inter-sectoral linkages, cross-sectoral collaboration & synergies • Attention to mainstreaming cross-cutting issues • More Attention to Governance & Accountability • Continue to be guided by Vision 2025 • Aligned with MDGs, NEPAD • NSGRP has five year framework

Challenges

• Implementation • Monitoring • Financing

Implementation Challenges

• Link with/align with the Government budget • Coherence of sector strategic plans with NSGRP • Review of sector and District development plans

Implementation Challenges (cont…)

• Further mainstreaming of the cross cutting issues in sector and district plans • Capacity Development – Skills and knowledge under new outcome based approach.

– Coordination of implementing actors – Implementation Mechanism

Monitoring challenges

• PMS review to reflect NSGRP • PMS review to reflect the global commitment including MDGs • Monitoring capacities – Monitoring Skills and knowledge – Systems of Monitoring (RDS,R&A, C&S, DSA) – Monitoring systems coordination • Capacity to collect, process, analyse and disseminate data • Community participation in monitoring

Monitoring challenges (cont…)

• Deepening and institutionalization of stakeholders’ consultations.

• NSGRP Communication Strategy • Link sector M&E to the PMS • Monitoring indicators – Determine both quantitative and qualitative indicators – Determine accuracy, relevance, frequency and availability of data

Financing Challenges

• Domestic sources – Improved measures of revenue collections • External source (Borrowing, Grants, Aid) – Predictability of external sources – Reliability (honoring pledges) • Resources allocation – Budget for NSGRP versus Non NSGRP

Financing Challenges (cont…)

• Resources utilization – Effectiveness and efficiency in resources utilization – Accountability and transparency of resources utilization to stakeholders

NSGRP Way forward

• Series of meetings to enhance intersectoral collaboration • Looking the ways and means to enhance inter sectoral linkages and tapping the synergies and cross sectoral collaboration.

• Thematic discussion among the stakeholders in order to enhance the understanding of opportunities and challenges.

• Support sectors to align SDPs with NSGRP

Way forward cont…

• Training on skills enhancement for key stakeholders in poverty and policy related areas • Strengthen dissemination and sensitization of NSGRP • Review the PMS and develop the new look MKUKUTA Monitoring Master Plan

Underlying Principles of the PRSP



Country-driven

involving broad-based participation; 

Results-oriented

the poor; 

Comprehensive

in recognizing the multi-dimensional nature of poverty; 

Prioritized

and focus on outcomes that benefit so that implementation is feasible; 

Partnership-oriented

development partners;  Based on a reduction; involving coordination of

long-term perspective

for poverty

Desirable Features of Effective PRSP (E-PRSP)

•

1.

Growth strategies and models underpinning

Effective PRSP (E-PRSP)

should allow for an analysis of

distributional issues

, because… • This is essential for ex-ante and ex-post assessment of impact;

• •

2. E-PRSP

should be driven by country from design to implementation based on available financing and not on prospective or expected financing, this is central to the

ownership process

.

3. E-PRSP

should have

strong link to the budget

to be fully integrated to country development strategy. This will further strengthen the ownership process and sectoral links during trade-offs;

• • •

4. E-PRSP

should draw

Household survey

data to improve analytical content and strengthen the monitoring process. The link to household will be essential for impact monitoring and welfare analysis.

5. E-PRSP

should attempt to establish link between

Household Surveys and National Account data. The Micro Macro

link is essential for understanding the transmissions mechanisms and for ex-ante and ex-post analysis which have implications for the

prioritization and costing

.

6. E-PRSP

should stress the supporting role for donors who should

deliver on their commitment for coordinated donors assistance for greater

efficiency and improved allocation of resources in a constraint environment.

• • • •

7. E-PRSP

should support effort to build and strengthen existing

national institutions

to enhance implementation and success of the PRSP process.

8. E-PRSP

should attempt to define a set of

monitorable indicators and target goals

from inception. These target goals may include the MDGs.

9. E-PRSP

should attempt to make a classification between monitorable indicators

sensitive to short term changes

and those with longer term horizon

10. E-PRSP

should also emphasize

geographical targeting

, especially given the overwhelming location of poor in rural areas.

•

1. E-PRSP

Growth strategies and models underpinning

Effective PRSP (E-PRSP)

for an analysis of

distributional issues

should allow •

MKUKUTA

has recognized growth to be important for poverty reduction. Growth strategies are forming the first cluster for MKUKUTA. Distributional analysis are encompassed in the reduction of income poverty goals which also form the first part of MKUKUTA.

•

2. E-PRSP

should be driven by country from design to implementation based on available financing and not on prospective or expected financing, this is central to the

ownership process

.

• The preparation of MKUKUTA was guided by projection of resources from both domestic and foreign sources. The external resources are going to be captured through the Poverty Reduction Budget support; General Budget Support; Sector wide budget support; project based support and the Joint Assistance Strategy – Tanzania (JAST)

•

3. E-PRSP

should have

strong link to the budget

to be fully integrated to country development strategy. This will further strengthen the ownership process and sectoral links during trade-offs; • MKUKUTA has a strong link to the Budget; since all core MKUKUTA based areas are ring fenced and they get resource allocation first.

•

4. E-PRSP

should draw

Household survey

data to improve analytical content and strengthen the monitoring process. The link to household will be essential for impact monitoring and welfare analysis.

• Preparation of MKUKUTA was based on the use of inputs that were taken from the Household Budget Surveys; National Census and Surveys; etc.

•

5. E-PRSP

should attempt to establish link between

Household Surveys and National Account data. The Micro-Macro

link is essential for understanding the transmissions mechanisms and for ex-ante and ex-post analysis which have implications for the

and costing

.

prioritization

• The Research and Analysis Technical Working Group is often carrying out research on the Micro-macro missing links and try to provide possible solutions and answers to areas for prioritization and suggested costing.

• The Plan and Budget Guidelines set priority areas and suggest main areas for resource allocation

•

6. E-PRSP

should stress the supporting role for donors who should

deliver on their commitment for coordinated donors assistance for greater

efficiency and improved allocation of resources in a constraint environment.

• Through the JAST, PRBS and GBS Donors pledge their commitments to the Government and agree with Government on the way forward including modality and timing for disbursement of funds.

•

7. E-PRSP

should support effort to build and strengthen existing

national institutions

to enhance implementation and success of the PRSP process.

• MKUKUTA supports the 3 MKUKUTA monitoring Technical Working Groups; which are • Research and Analysis TWG(MPEE/REPOA/NBS) • Census and Survey TWG(NBS); and • Communication TWG(MPEE)

•

8. E-PRSP

should attempt to define a set of

monitorable indicators and target goals

from inception. These target goals may include the MDGs.

• Through the recently reviewed MKUKUTA Master Plan attempt were made to define a set of indicators and target goals which were mindful of the MDGs.

•

9. E-PRSP

should attempt to make a classification between monitorable indicators

sensitive to short term changes

and those with longer term horizon • Tanzania had already made classification between monitorable indicators that are sensitive to short term changes through the review of Poverty Monitoring Master Plan to the new MKUKUTA Master Plan.

•

10. E-PRSP

should also emphasize

geographical targeting

, especially given the overwhelming location of poor in rural areas.

• Tanzania has conducted poverty mapping to identify which areas are below basic needs poverty line, food poverty line, etc

Conclusion

• Tanzania Government had high commitment to the PRS process; • The link to the HIPC had strengthened implementation; • Adequate funding and resources remain a key challenge to implementation, however; • Strong link with national budget, and donors support through PRBS and better coordination of development assistance, JAST are essential for the success of the PRS process during the second phase of its implementation that is now known as MKUKUTA;

• Growth alone may not suffice to achieve the MDGs and NSGRP goals, and maintain the debt ratios at sustainable levels, distributional issues and structural reforms in the pattern of production, addressing supply side constraints and value addition are also very important.