PRBS in Tanzania

1
PRBS in Tanzania

• An aligned and harmonized instrument for
  financing poverty reduction and
• A framework for dialogue on results and
  accountability.

2
PRBS Organisation

• History
• Late 90s 5 bilaterals ( MDF)
• 2001 9 bilaterals (PRBS I)
• 2006 14 bi- and multilaterals (PRBS II)
• Troika () leading dialogue
• DP and GoT secretariates
• Quarterly meetings at DPlead/PSMoF level
• One annual review

3
PRBS as a part of a broader structure

• PRBS PER DPG
• Thematic Cluster Subgroups
• working and
• groups sectors
• Example
• TWG 3 PER DPGsubgroup Health
• (PAF) Cluster2 DPGsubgroup Education

4
PFM and PAF

• Why?
• Mkukuta/JAS new aid architechture
• Old PAF unworkable
• Move to domestic accountability (size and Paris)
• One assessment one process several responses,
  but transparent and predictable.
• Domestic systems, institutions and accountability
• Work in progress temporary process actions to
  be replaced as domestic processes are
  established.

5
Annual Calender

• The integration of the GBS Annual Review with
  other review processes and the budget
• March-Sept Sector/thematic reviews
• October Mkukuta review
• October GBS Annual Review
• Nov-Jan Budget Guidelines preparation
• Feb-June Budget and MTEF preparation

6
Overall financial picture

• PRBS is 16 of the budget 2006/07
• Distribution among donors 2006/07
• WB 32
• UK 25
• AfDB 12
• EU 6
• Sweden 6
• Norway 4
• Canada 4
• Netherlands 3
• Ireland 2
• Finland 2
• Denmark 2
• Switzerland 1
• Japan 1

7
Achievments

• GBS has dramatically increased the proportion of
  external funds subject to the national budget
  process, and in the process increased ownership
  of the development process.
• GBS has helped to focus dialogue on the strategic
  issues of economic management, and in the process
  made some significant contributions to the design
  of policy.
• GBS has helped to focus technical assistance and
  capacity building on core public policy and
  public expenditure processes, contributing to the
  process of institutional renewal which the
  Ministry of Finance has undergone over 1996 to
  the present.
• GBS has made a major contribution to the
  alignment process.
• GBS has made a major contribution to the
  harmonisation process.

8
Challenges

• Public Financial Management
• Private Sector Growth
• Capacity
• Poverty Monitoring
• Sustainability/Donor dependency
• The new PAF