Tanzania Public Expenditure and Financial Accountability Review: Some Insights -----------------------------------------------

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Tanzania Public Expenditure and Financial
Accountability Review Some Insights
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• By Philip Mpango (AFTP2)
• PFAM Course - PREM Learning Week
• May 3, 2006

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I TRANSITION FROM PER TO INTEGRATED PEFAR
OPPORTUNITIES CHALLENGES

• Pre-1998 Bank product by Washington missions gt
  Focus on restoring fiscal equilibrium
  (introduction of cash budget system).
• 1998 to 2000 Introduction of Participatory
  annual PERs MTEF gtFocus on consolidating
  fiscal prudence improving budget predictability
  Accountability TTL in country.
• 2001-2004 Participatory annual PERs to support
  implementation of PRSP gt Focus on protecting
  social sector expenditures. TTL in country
• 2005 to date One Process One Assessment
  Integrated PEFAR review of PE PFM PP. gt
  Focus on aligning the budget to support the
  growth focus of MKUKUTA. TTL in country

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KEY FEATURES OF THE TANZANIA PER PROCESS

• Govt-led Participatory process (PS-MoF
  Secretariat Broad membership of Macro Sector
  PER WGs Regular meetings) Jointly agreed work
  program that dovetails with the budget cycle.
• Joint External Evaluation WB, IMF/East AFRITAC,
  DFID, KfW, EU, Finland, Ireland, Canada, NGOs
  Haki Elimu, Water Aid, NPF, REPOA consultancy
  support (local international) to feed into the
  Annual Stakeholders Consultative meeting gt
  Provide feedback to stakeholders Get feedback
  of draft budget frame/cross-sector allocations.
• Migrating from focus on priority sectors to
  MKUKUTA clusters (?)

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II DONOR HARMONIZATION

• Claim Tanzania is on the frontier of donor
  harmonization
• Opportunities
• Lower transaction costs to GoT (e.g. Joint review
  for PRBS/PRSC, PFM, PEFA analytic work)
• Minimized donor overlap duplication of effort
• Leveraged resources (manpower, financial)
• Success Factors
• Articulate country Devt Program
• Strong GoT leadership demands (Quite period
  shame list inclusion of NGOs in external
  evaluation one process-one assessment clearance
  of analytic work)
• IMG Honest broker (select group ESRF)
• Up front consultation with DPs to agree on areas
  of focus for the year supportive analytic work
  continuous dialogue regular briefs to DPG
• WB leadership in the process (heavy weight
  champion!)
• Continuity provided by national staff

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HARMONIZATION CHALLENGES

• Harmonization is time consuming
• Term assignment of DP staff gt Discontinuity in
  dialogue (e.g. Change of IMF RR)
• Disagreements on right policy sometimes
  (stabilization Vs growth) e.g. taxation of the
  informal sector creating fiscal space.
• Integration of the product (scope Vs depth
  uneven quality of contributions Agreement on
  process Label for buy in).
• How to strengthen domestic accountability in a
  highly donor-dependent environment

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III STAYING IN LOVE WITH GOVT SOME TIPS

• Identify COMMON OBJECTIVES/INTERESTS
• TRUST Give space to Govt to articulate their
  views Listen humbly Use your expertise to
  engage in constructive dialogue (challenge
  positions offer alternatives Give credit where
  due Appreciate genuine difficulties technical
  or political. They know the country, political
  games, allies adversaries culture better
  Focus on the big picture /overall progress not
  just to pick the negatives
• COLLABORATION Involve Govt officials in analytic
  work for substantive contributions capacity
  building Provide support as needed e.g. drafting
  MKUKUTA, task forces, Technical WGs Invite Govt
  officials to WB to talk about key
  developments/challenges faced e.g. SBAS

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STAYING IN LOVE WITH GOVT SOME TIPS

• COMMUNICATION Maintain continuous dialogue on
  difficult reforms (process) Consolidate gains
  instead of introducing more reforms especially
  where capacity is weak Ensure consistency of
  messages to Govt Good PR official social
  etc.
• Identify and form a COALITION with key reformers
  in and outside Government.
• Existence of the referee (IMG) to guard against
  the parties going astray.