AID HARMONISATION &THE JOINT ASSISTANCE STRATEGYIN TANZANIA

Presentation to The Foundation for Advanced Studies
by David Stanton
Head, UK Department for International Development
in Tanzania
Tokyo, July 2006

Goals of Presentation
 Introduction to Tanzania, aid & harmonisation
 Past progress & future challenges
 Implications for government, donors, civilsociety, companies, and researchers Learn, as Chair of JAST Core Group, about

Japan’s thinking about aid & harmonisation
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Tanzania - a Model for Africa?
Political & social stability – no conflicts, national identity & unity

Macroeconomic stability; 5% -7% GDP growth since 2003

Public service reformCommitment and plan to reduce poverty (see budget)Results: school enrolment, lower child mortality, better roads

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But Big Challenges Remain….
Poverty broad (35%<$1/day) & deep (GDP $310/$450 for SSA)

Still a commodity-based, not a global economy

Underdeveloped agriculture & infrastructure (Japan’scontribution)Weak educational skills & institutions

The “Missing Middle”

40 years of aid – limited progress

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42Progress in Harmonisation
 Paris Declaration commitment to more effective aid (a) Ownership, (b) Alignment, (c) Harmonisation
 Joint Assistance Strategies: Uganda, Zambia, Ghana
 JAST builds on 2002-5 Tanzania Assistance Strategy
 Poverty Reduction Strategy = what; JAST = how

Donor Harmonisation in Tanzania

5Why Is Aid in Tanzania
Considered Effective?
Good government / donor relations & government leadershipAll donors support Poverty Reduction Strategy, Mkukuta

Multilateral funding instruments, policy fora, & the budget

Poverty Reduction Budget Support: 14 donors (incl. Japan &UK) together provided $660m in 2006/07 (40% of all Tz aid)

“Single instrument, single process”

Japan praised by Min. of Finance for its reforms since 2000

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What More is Needed?
Broader-based economic growthLong-term public & private investment



Systemic change in capacity & resultsSimplification: too many donors, aid strategies & programmesClarify Tanzania’s national priorities; redirect aid towards them

Pluralism & challenge: strengthen civil society, firms, parliament,labour, the media

Donor Harmonisation in Tanzania

7Changes Expected in JAST

Using government systems (procurement, TA, “quiet time”)

Sharper division of labour between donors

Focus dialogue on sector reviews & national budgetGovernment favours general budget support (GBS)

Shift sector funding to GBS, moving projects onto budget

Strengthen Tanzanian institutions - TA & capacity-building

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Next Steps JAST under way since July
 Government Cabinet Approval Signing Memorandum of Understanding byGovernment & all donors in September Draw up joint Action Plan & monitoring framework

Donor Harmonisation in Tanzania

9Five Challenges for All Donors
 Ensure accountability to donor country taxpayers
 Track outcomes & improve action against corruption
 Satisfy donors’ legal, audit & accounting

requirements, whilst minimising aid transaction costs
 Speed up multilateral agreements & reform in donor

HQs Include all donors in JAST without weakening reform
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105Conclusions


JAST shifts focus from bilateral to multilateral aid effectiveness

A long process - no overnight change!

Importance of vigorous, independent monitoring of donors



Need for continuous reform both in Tanzanian Government & indonor HQs (London, Washington, Tokyo, etc)

Tanzania is progressive, but far to go to deliver on Paris &MDGs

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Thank You!

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