Enhancing Aid Effectiveness-Joint Assistance Strategy
DPG Orientation Seminar
12 September 2006
I. Global Aid Context Paris Declaration-Framework for Aid Effectiveness:
From donorship to ownership
Partners set the agenda
Aligning with partners’ agenda
Using partners’ systems
Establishing common arrangements
Simplifying procedures
Sharing information
Ownership(Partner countries)
Alignment(Donors-Partners)
Harmonization(Donors-Donors)
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II. A Shifting Aid Environment in Tanzania TAS (2002-2005): A framework to more effectively manage and improve
predictability of external resources; restore local ownership and leadership
Progress achieved: Improved relationship in development cooperation; national capacity developed through core reforms (essentially PFM); new mechanisms adopted (PRS I; PER; MTEF); rationalization and increased national ownership of technical assistance; move from project to program aid and increasingly GBS
Outstanding Challenges: still widespread provision of off-budget financing (projects) impeding strategic budget resource allocation at national level, transparency & domestic accountability; parallel systems and procedures; uncoordinated Development Programme at LGAs; multiple missions, meetings and analytical studies
Scaling up TAS towards JAS to operate at a higher level of commitment to the principles of H&A by effectively aligning donor country assistance strategies with MKUKUTA and MKUZA. Further enhancement of national ownership and GoT wide leadership.
III. Joint Assistance Strategy (JAS) Inclusive Dialogue
Idea of JAS emerged in TAS process in 2003/04 resulting from a joint GOT-DP study on rationalisation/ harmonisation of processes
Idea was taken further in GOT-DP consultations formulation of a JAS Concept Paper end 2004
JAS Consultative Meeting with domestic and international stakeholders in April 2005
First draft JAS Document prepared by GOT in May 2005
JAS Retreat with Directors of Policy and Planning in November 2005
Outcomes of JAS Retreat incorporated into third draft JAS Document November 2005
JAS discussion with Parliamentarians
JAS discussion with Zanzibar on 3rd draft
JAS Consultative Meeting with PSs and DPs in April 2006 – agreed on JAST principles
III. Joint Assistance Strategy (JAS) JAS to emphasize:
Guiding framework of principles moving toward post Paris High-Level Forum
The principle of National Ownership and Leadership with broad-based stakeholder participation (CSO, private sector, local governments, Parliament) in identifying development goals and formulate strategies;
Country-led partnership representing a paradigm shift towards putting Tanzania in the driver’s seats/reduce the asymmetrical relationships and tensions in the donor-led approach. Ensuring that aid is aligned with GoT priorities.
Shift from external accountability to domestic accountability (Legislature, non-state actors – participation, quality)
Mutual accountability (to move towards better alignment and greater predictability in ODA disbursement)
III. JAS-Key Principles Harmonisation and alignment around MKUKUTA/MKUZA and
national budget Align National, Sector and Local policies, strategies and processes
with MKUKUTA/MKUZA and national budget
Align DPs support, strategies, and processes with national priorities (MKUKUTA/MKUZA), systems, procedures and processes
Mix of aid delivery modalities: GBS: GoT’s preferred modality (currently 38% of total ODA); Current
PRBS instrument evolving: more inclusive; focused on domestic accountability with PAF to be increasingly aligned to MKUKUTA Monitoring Master Plan and national instruments and processes
Basket funding (as a transition to GBS) to protect public reforms and/or thematic areas not yet mainstreamed in normal government activities
Direct Project Funding (under specific conditions; well aligned to national systems – for pilots and innovations & emergency aid)
Channel/Disburse ODA through Govt Exchequer and Budget System
Use of national procurement, accounting and auditing systems and procedures
Developing National Capacity Supporting the building of sustainable human resource, technical and
financial capacity in Tanzania institutions
Working closely with Govt to eliminate systems that historically detracted from this goal (i.e. separate or parallel PIUs, etc.)
Enhanced TA strategy Demand driven, responsive to GoT needs and focused on capacity
development
Increasingly untied from the source of financial assistance (focusing on value for money)
Procurement under Govt Leadership and using Govt system (I.e. pooled TA)
Better Division of Labour: More effective division of labour among GOT agencies with clearly defined roles – lead agency in
each sector/thematic area
Rationalise number of DPs per sector/thematic area and the number of sectors/thematic areas per DP
Concept of lead & delegating partner by sector & thematic areas (based on comparative & competitive advantages)
Dialogue: Improving public policy choices, effectiveness in planning, budget management and public service
delivery
High quality and regular dialogue under Govt leadership
Based on existing, national processes (i.e. MKUKUTA/MKUZA, PER, Sector Reviews, etc.)
Facilitating domestic and mutual accountability
On the basis of agreed DoL arrangements
III. JAS-Going Forward Cabinet approval process– ascertaining GoT’s commitments
Joint JAS Working Group to carry out: Preparation of JAS Monitoring Framework and Action Plan immediately after the JAS Consultation and to be carried out into first quarter of FY 2006/07
MoU/Commitments of Principles – Mutual commitments to JAS
JAS – dynamic and evolutionary process with emphasis on inclusiveness and dialogue
IV. Paris Baseline Exercise – Assessing where we are Paris Baseline Exercise in Tanzania – concluded at the end of
August, under GoT/MoF leadership in steering the process in Tanzania
Paris Indicators to inform the JAST progress – JAST Monitoring Framework, building on the Paris Indicators and the baseline exercise
Baseline exercise provides quantitative assessment on where we are: at the beginning of JAST Implementation
Opportunity for dialogue
INDICATORS Survey Results Target
Indicator 3: Aid flows are aligned with national priorities
90% of aid flows to government sector reported on government's budget
At least 85% reported on budget
Indicator 4: Strengthened capacity by coordinated support
50% of technical cooperation flows are implemented through coordinated programmes
50%
Indicator 5a: Use of country PFM systems
66% of aid to the public sector using countries PFM systems (76% through Exchequer, 60-61% using financial reporting and auditing, 55% using all the three procedures)
a two-thirds reduction for score 5+, a one-third reduction for score 3.5-4.5
INDICATORS Survey Results Target
Indicator 5b: Use of country procurement systems
62% of aid to public sector using public procurement systems
a two-thirds reduction for score A, a one-third reduction for score B
Indicator 6: Avoiding parallel implementation structures
69 PIUs Reduce by two-thirds
Indicator 7: Aid is more predictable
70% of aid disbursed within the fiscal year for which it was scheduled
Halve the proportion of aid not dibusred within the fiscal year for which it was scheduled
INDICATORS Survey Results Target
Indicator 9: Use of common arrangements or procedures
55% of flows are provided in the context of programme-based approahces (40% GBS, 15% Basket)
66%
Indicator 10a: Joint missions
17% of donor missions to the field are joint
40%
Indicator 10b: Joint analytic work
38% of country analytic work is joint
66%
IV. Paris Baseline Exercise –Challenges Improving MTEF processes – ensuring aid alignment (reflected on
budget)
TA/TC for capacity development through coordinated framework
H&A of processes and procedures
PIUs – systematic approach
Predictability
Reduction of transaction costs