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MKUKUTA REVIEW AND EMERGING ISSUES FOR MKUKUTA II. ANNUAL NATIONAL POLICY DIALOGUE 19-25 Nov. 2009: Day 2: Friday 20 th Nov. 2009 Ms. A. Mwasha /Prof. A.V.Y. Mbelle. STRUCTURE OF PRESENTATION. FIVE SECTIONS I: INTRODUCTION II: EMERGING ISSUES FROM REVIEW

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mkukuta review and emerging issues for mkukuta ii

MKUKUTA REVIEWAND EMERGING ISSUES FOR MKUKUTA II

ANNUAL NATIONAL POLICY DIALOGUE

19-25 Nov. 2009: Day 2: Friday 20th Nov. 2009

Ms. A. Mwasha/Prof. A.V.Y. Mbelle

structure of presentation
STRUCTURE OF PRESENTATION

FIVE SECTIONS

I: INTRODUCTION

II: EMERGING ISSUES FROM REVIEW

III: HIGHLIGHTS/ISSUES FOR MKUKUTA II

IV: CHALLENGES

V: CONCLUDING REMARKS

i introduction
I: INTRODUCTION

POVERTY IS THE MAIN DEVELOPMENT CHALLENGE IN TANZANIA. THE FIGHT AGAINST POVERTY IS GROUNDED IN THE FOLLOWING:

  • NATIONAL REALITIES – SINCE INDEPENDENCE
  • HUMAN RIGHTS PERSPECTIVE – POVERTY IS DEHUMANIZING
  • REGIONAL AND INTERNATIONAL COMMITMENTS

HENCE POLICIES AND STRATEGIES PUT IN PLACE

KEY DOCUMENTS: ARUSHA DECLARATION (1967) NATIONAL POVERTY ERADICATION STRATEGY (1998); VISION 2025 (1999); PRSP 2000-2004; MKUKTA (2005).

i introduction1
I: INTRODUCTION

EXPECTATIONS ON MKUKUTA OVER POVERTY REDUCTION STRATEGY PAPER: SUBSTANTIAL POVERTY REDUCTION, GIVEN:

  • MOVE FROM PRIORITY SECTOR APPROACH TO OUTCOME-BASED APPROACH TO POVERTY REDUCTION
  • IMPROVED COORDINATION
  • IMPROVED SYNERGIES AND CROSS-SECTOR COLLABORATION
  • POVERTY FOCUS INCLUDING BEING MDGs-BASED
  • IMPROVED MACROECONOMIC PERFORMANCE MANIFESTING IN RELATIVELY HIGH GDP GROWTH
introduction
INTRODUCTION …

AREAS OF CONSENSUS

  • GROWTH ACHIEVED DURING MKUKUTA IMPLEMENTATION COULD HAVE DELIVERED MORE IN TERMS OF POVERTY REDUCTION (CONTRAST 1991/2 – 2001 AND 2001-2007 HBSs). WHERE DID ALL THE GROWTH GO?
  • HIGHER GROWTH COULD HAVE BEEN ACHIEVED
  • CONSIDERABLE A CHIEVEMENTS HAVE BEEN RECORDED IN NON-INCOME POVERTY (HUMAN DEVELOPMENT GAINS) AND SYSTEMS FOR RESOURCE ALLOCATION E.G. SBAS
  • REFORM PROCESS HAS BEEN INCOMPLETE

CAUTION: MKUKUTA SHOULD NOT TAKE ALL CREDIT NOR ALL BLAME

i cont d
I: CONT’D

CONSIDERABLE “INVESTMENTS” IN MKUKUTA

  • DEVELOPMENT OF STRATEGIC BUDGET ALLOCATION SYSTEM (SBAS MACRO AND MICRO)
  • REVIEW OF STRATEGIC PLANS (MDAs, LGAs)
  • MONITORING SYSTEM
  • PRODUCTION OF MAIRs AND PHDRs
  • DESIGN OF MEDIUM TERM STRATEGIC PLANNING AND BUDGETING MANUAL
ii emerging issues from review
II: EMERGING ISSUES FROM REVIEW
  • MOST OF THE ISSUES RAISED DURING CONSULTATTIONS TOWARDS MKUKUTA LARGELY STILL VALID
  • KEY ISSUES THAT NEED TO BE ADDRESSED FOR MORE EFFECTIVE IMPLEMENTATION AND ATTAINMENT OF RESULTS HAVE BEEN IDENTIFIED (INADEQUATE PRIORITIZATION AND COORDINATION; INCOMPLETE REFORM PROCESS; INSTITUTIONAL CONCERNS, ETC)
ii cont d
II CONT’D

FINANCING OF MKUKUTA:

  • MKUKUTA FINANCING TAKES LARGER SHARE (EG. 70.7% DURING 2008/09 COMPARED TO 29.3% NON-MKUKUTA ACTIVITIES)
  • SPENDING BY ECONOMIC CATEGORY FAVOURS DEVELOPMENT SPENDING (70%)
  • CLUSTER II TAKES LARGER SHARE OF MKUKUTA FINANCING (EG. 45.5% DURING 2008/09; COMPARED TO CLUSTER I, 34.1%; CLUSTER III, 16.1% AND X-CUTTING ISSUES, 4.4%)
  • DEVELOPMENT FINANCING OF MKUKUTA DOMINATED BY FOREIGN SOURCES (57% COMPARED TO LOCAL, 43)
iii highlights issues for mkukuta ii
III: HIGHLIGHTS/ISSUES FOR MKUKUTA II

DESIGN/VALUE ADDITION OVER MKUKUTA I

  • SHARP, FOCUSSED, PRIORITIZED STRATEGY/INTERVENTIONS
  • GREATER EMPHASIS ON GROWTH (INCLUSIVE)
  • TARGETING GREATER DEVELOPMENT IMPACT
  • FLEXIBILITY IN ADJUSTING STRATEGIES
  • INCORPORATING ISSUES THAT WERE NOT PROMINENT IN MKUKUTA (I): HUMAN RESOURCE DEVELOPMENT PLAN; PUBLIC PRIVATE PARTNERSHIPS; EXTENDED EMPHASIS ON CROSS-CUTTING ISSUES -INTEGRATED MANAGEMENT OF ENVIRONMENTAL RESOURCES (INCLUDING CLIMATE CHANGE); ENABLING INVESTMENT CLIMATE FOR DOMESTIC ENTERPRISE; POPULATION ISSUES; SPATIAL/GEOGRAPHICAL/LOCATION ISSUES;

RAPID URBANIZATION AND IMPLICATIONS

iii cont d
III CONT’D

6. ROBUST ACTORS COORDINATION IN ACHIEVING RESULTS

7. LONG TERM GROWTH AND DEVELOPMENT PLAN 2010-2025 (MISSED INTERVENTION IN MKUKUTA) – JUSTIFICATION (EXPERIENCE OF SUCCESSFUL COUNTRIES; INVESTMENTS NEED A LONGER HORIZON TO DELIVER “MULTIPLIER EFFECT”; DOMESTIC RESOURCE MOBILIZATION; INSTITUTIONAL ISSUES; SUSTAINING REDUCTION IN EXTERNAL DEPENDENCE;

iii cont d1
III CONT’D

DESIGN – WHAT WILL NOT CHANGE :BROAD FRAMEWORK: RESULTS FOCUSSED, CLUSTER-BASED. KEY STRATEGIC INVESTMENTS AND POLICY DIRECTION : HIGH AND SUSTAINED GROWTH

CLUSTER I: GROWTH AND REDUCTION OF INCOME POVERTY

  • GROWTH –FOCUSSED INTERVENTIONS WITH EXPLICIT AND ELABORATE LONG TERM GROWTH PLAN
  • ANCHORED ON COMPARATIVE AND COMPETITIVE ADVANTAGES
  • DRIVEN BY GROWTH DRIVERS: AGRICULTURE, INFRASTRUCTURE, TOURISM, MINING
  • INCLUSIVE GROWTH
  • INTERVENTIONS FROM CLUSTERS II AND III EMBEDED (E.G. SKILLS, WATER FOR PRODUCTION, PRODUCTIVE INTERVENTIONS IN SOCIAL PROTECTION, ECONOMI GOVERNANCE
iii cont d2
III CONT’D

CLUSTER II: IMPROVEMENT OF QUALITY OF LIFE AND SOCIAL WELL BEING

  • ADDRESSING QUALITY ISSUES IN SERVICE DELIVERY (EDUCATION, HEALTH, WATER, SANITATION)
  • COORDINATED INTERVENTIONS
iii cont d3
III CONT’D

CLUSTER III: GOVERNANCE AND ACCOUNTABILITY

  • ISSUES OF GOVERNANCE IN SUPPORT OF GROWTH
iv challenges
IV: CHALLENGES
  • AREAS AND EXTENT OF REFORMS TO COMPLETE REFORM PROCESS
  • IMPROVING THE BUSINESS ENVIRONMENT
  • ADAPTATION TO DEVELOPMENT MANAGEMENT (ATITUDES, WORK CULTURE, ETC)
  • CONTRACTUAL ARRANGEMENTS FOR STUDIES THAT HAVE BEEN APPROVED INORDER TO INFORM REVIEW/DRAFTING OF MKUKUTA II
  • DEVELOPMENT OF MKUKUTA II AND LONG TERM GROWTH AND DEVELOPMENT PLAN CONCURRENTLY
  • POLITICAL CONSENSUS AND STEWARDSHIP
v concluding remarks
V: CONCLUDING REMARKS

MKUKUTA II IS ABOUT CHOICES:

  • SUBSTANTIAL POVERTY REDUCTION VERSUS INCREASED GROWTH IN THE SHORT TERM
  • WHAT SHOULD SPUR GROWTH IN THE SHORT TO MEDIUM TERM AND IN THE LONG RUN
  • FACING THE FINANCIAL RISK: SIGNIFICANT SCALE-UP OF ODA (INCLUDING GLENEAGLES SCENARIO) VERSUS DOMESTIC RESOURCE MOBILIZATION AS ENVISAGED ALSO IN VISION 2025
  • RESOURCE ALLOCATION IN MKUKUTA – ADDITIONAL REQUIREMENTS FOR CLUSTER I WITHOUT DEPRIVING CLUSTERS II AND III
end note
END NOTE

THANK YOU FOR YOUR KIND ATTENTION

AHSANTENI SANA

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