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Aid Architecture and Development Partners Group (DPG)

DPG Orientation Seminar

October 25 2007

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I. Review of Aid

Increase in the overall scale of assistance in recent years, reaching USD 1.4 Billion in FY 06/07 (including HIPC/MDRI). USD 2 Billion in national budget for FY 07/08

Progressive shift to GBS GBS 45% of ODA (FY 06/07) 36% of ODA (FY 05/06)* Basket 7% of ODA (FY 06/07) 18% of ODA (FY 05/06) Projects 48% of ODA (FY 06/07) 47% of ODA (FY 05/06)*excluding HIPC/MDRI

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Since the Helleiner Report in 1995, an increased focus on effective and efficient development assistance

Progress achieved: Improved relationship in development cooperation; national capacity strengthened through core reforms; New mechanisms adopted (MKUKUTA; 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; Predictability of aid multiple missions, meetings and analytical studies

II. Changing Aid Environment

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Joint Assistance Strategy for Tanzania (JAST) 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)

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Under JAST: Greater shift towards General Budget Support, as the

Government’s preferred aid modality, Greater harmonization and alignment to national priorities,

process, procedures, and systems, Better Division of Labour (DoL) through greater specialization of

activities by DPs, based on principles of comparative and competitive advantage,

Reforming a way Technical Assistance is provided to be demand-driven, increasingly untied, under Government management towards long-term sustainable capacity development.

Independent Monitoring Group (IMG): An initiative of the GoT, to undertake independent assessment of

partnership related issues (i.e. policy dialogue, financial management systems, predictability of aid flow, etc.)

To bring a better balance to the aid relationship, creating conditions for GoT asserting ownership and leadership

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Cluster 3 – Governance

Cluster 1 – Growth

Cluster 2 – Social Development

DPG

Agriculture

Private Sector & Trade

Transport Sector

Health

Education

Water

HIVAIDS

Governance

Public Financial Management

Local Government Reform

Public Service Reform

Legal Sector Reform

Gender

Information/Communication Technologies

Refugee

Environment

Forestry

Fisheries

Wildlife

Poverty Monitoring

Public Expenditure Review

GBS Donors Group

Key:

Does not exist currently

Crosscutting Issue

Gender Macro Group

Natl HIVAIDS Coordinating Mech.TACAIDS

ICT Working Group

Environment Working Group

Basic Education Development Committee

Health SWAP Tech. Working Group

Monitoring Advisory Committee

Development Cooperation Forum

Fund Management

Apex Organization (s)

Intra-Government Counterpart Government – DP Coordination Intra-DP Coordination (DPG Sub-Groups) Apex Organization

(s)

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Paris IndicatorsThe below table presents the 2005 baselines and targets for Tanzania. The main source is the baseline survey undertaken in Tanzania under the aegis of the National Co-coordinator (Joyce Mapunjo)

Indicator 2005 Baseline 2010 Target

1 Ownership – Operational PRS B A

2a Quality of PFM Systems 4.5 5.0

2b Quality of Procurement Systems Not Available Not Applicable

3 Aid Reported on Budget 90% 95%

4 Co-coordinated Capacity Development 50% 50%

5a Use of Country PFM systems (aid flows) 66% No Target

5b Use of Country Procurement systems (aid flows) 61% Not applicable

6 Parallel PIUs 56 19

7 In-year predictability 70% 85%

8 Untied Aid 95% More than 95%

9 Use of Programme-based approaches 55% 66%

10a Co-Ordinated Missions 17% 40%

10b Co-Ordinated Country Analytical Framework 38% 66%

11 Sound Performance Assessment Framework B A

12 Reviews of Mutual Accountability Yes Yes Source: OECD 2006 Survey on Monitoring Paris Declaration

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III. Development Partners Group (DPG) DPG formalized in 2004 from local Development Assistance

Committee (DAC) to shift from information sharing to actively seeking best practices in harmonization and alignment

In doing so DPG re-affirmed its relevance as an apex coordination organization of the development partners in context of the Paris Declarations on Aid Effectiveness and the JAST

DPG seeks to:

Improve effectiveness of dialogue Strengthening quality of dialogue for more effective high-

level dialogue Promoting internal coherence and quality of policy

dialogue through better coordination of DPG Main and DPG sub-groups

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Development Partners Group

Coordinate DP harmonization and alignment efforts

Actively leading the rationalization of DP interventions in the context of JAST (i.e. concept and practice of lead, active and delegated cooperation)

Managing the effectiveness of the DPG structure, in line with DPG principles

Coordinate and lead DP participation and discussion with DCF – on average 3 meeting per year

Coordinate DP responses to request from GoT i.e. New dialogue structures; MTEF projections, Paris benchmark survey etc

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IV. Composition of the DPG

DPG Main Group co-chaired by UN Resident Coordinator/UNDP Resident Representative as a permanent chair and rotating bilateral agency (currently Ireland)

Includes 35 Bilateral and Multilateral Agencies

DPG Structure consists of the DPG Main Group (at HoCs/HoAs level), and 18 Sector/Thematic Working Groups

Where possible, DPG seeks to participate in government-led groups and build government capacity to coordinate development activities

DPG endeavours to align its own structure of sector/thematic sub-groups to a corresponding Government-led structure

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The following principles guide the work of the DPG National ownership and Government Leadership. Unity: DP groups are considered part of a single DP

“architecture”. Accountability: DPs are accountable to Government and other

DPs for implementing the JAST commitments to improved aid effectiveness.

Consistency: The DPG will ensure that its decisions and actions are consistent with the JAST, Paris Declaration, and other national and international agreements/commitments to which DPG members are party.

Inclusiveness: Membership of the DPG is open to any bilateral or multilateral partner that provides development assistance to the United Republic of Tanzania.

Transparency: DPG members should ensure transparency in their engagement in policy dialogue as well as efforts for improving aid effectiveness, etc.

Subsidiarity: Dialogue and resolution of issues should occur at the highest level of technical expertise possible in the DPG structure, or at the level where it is most efficient and effective.

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Quality of dialogue (i.e. key area of dialogue and engagement with Govt, political level dialogue, etc.)

Effectiveness of dialogue and greater emphasis / focus on results

Effective communication (internal and external) and ensuring DP coherence especially in relation to dialogue with government; division of labour etc

Reduction of transaction costs.

Ensuring balance between process and substance

V. Challenges

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VI. New Proposed Dialogue Structure

MKUKUTA-PER Main Working Group

MKUKUTA-PER CWG 1

MKUKUTA-PER CWG 2

MKUKUTA-PER CWG 3

MKUKUTA-PER Macro Group

Sector A Sector B Thematic Area A

Sector C Sector DThematic Area B

Thematic Area C

MDA MDA

MDA

DP DP

DP

Non-state actors

Sector/thematic area lead MDAs & lead DPs

Sector/thematic area lead MDAs & lead DPs

Sector/thematic area lead MDAs & lead DPs

CWG 1 lead MDA & lead DP

CWG 2 lead MDA & lead DP

CWG 3 lead MDA & lead DP

Macro Group lead MDA & lead DP

(lead) (lead)

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Effectiveness of Proposed Dialogue Structure

• Insufficient dialogue at a political level

• DP behaviour: commitment to structure & DoL

• Ambitious and cumbersome structure

• Need for clearer objectives of dialogue at each level

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Strengthening the Key Processes within the Dialogue Structure

• Dialogue is an input to the wider Mkukuta implementation and review process

• Merging structures, but distinguishing between underlying processes

• Emphasis on alignment as opposed to parallel processes

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Strengthening Domestic Accountability and Participation

• Creating space and a clear role for CSOs, Private Sector, Parliament etc

• Participation of Local Government is important

• Clarification on level of GoT participation