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POVERTY POLICY WEEK

RECAP OF DAY 2 SCALING UP BEST PRACTICES AND MAXIMIZING POTENTIAL

OPPORTUNITIES FOR PRO-POOR AND INCLUSIVE GROWTH

by Prof. A.V.Y. Mbelle, Facilitator

Dar es Salaam, November 25-27; 2013

PRELIMINARIES

ORGANIZATION OF SUMMARY

I: Introduction and background

II: Summary of Day 1

III: Summary of Day 2

IV: Summary of Day 3

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I: BACKGROUND AND CONTEXT

The context of PPW was set by two realities:

1. Review of MKUKUTA II (towards MKUKUTA III) which will commence in 2014

2. PPW, launched in 2002, as one of the key activities of Poverty Monitoring System with the main objective of offering an interactive platform to stakeholders on policy issues.

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Theme of PPW 2013: “Scaling up Best practices and Maximizing Potential Opportunities for Sustainable Pro-poor and Inclusive Growth”

Theme is very timely opening discussions around the “messo level” i.e. institutions which link the macro economy and the micro economy previously not examined as an important link in the fight against poverty

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Organization of activities was carefully designed:

Day 1 What is on the ground

Day 2 Empowerment and inclusiveness

Day 3 - opportunities

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II: SUMMARY OF DAY ONE

Three activities marked the first day of PPW 2013

Official opening speech (and protocols around it: Welcoming and introductory remarks – PST MOF; Opening statements – NSAs, DPG Co-Chair; Deputy Minister MOF and vote of thanks – Deputy Minister MOF)

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Presentations:

i. Household Budget Survey

ii.State of the National Economy

iii.MKUKUTA: Achievements, Challenges and Prospects

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iv: MKUZA: Achievements, Challenges and Prospects

v: Rural Growth and Poverty: What are we learning from research?

vi: Accelerating implementation of MDGs: A Case of a

vii: Beyond Agriculture – Building Linkages for the Poor

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Commentaries

i. From DPs

ii.From NSAsDiscussion by Panelists

i. SAGCOT and PPP in Agriculture [X]

ii. Industry and Trade in Poverty Eradication Initiatives

iii.Role of Transport in Promoting National Growth (Railway and Roads)

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iv: Energy: How this sector helps improve the lives of the poor especially rural electrification?

v: Representative from DPs

vi: Representative from NSAsPlenary session/general discussion

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Key messages from Day 1 There are successes in some sectors and challenges in others in

Tanzania’s efforts towards eradicating abject poverty; Sustaining partnerships is important in the fight against poverty National and global efforts in eradicating poverty need to be taken

together Importance of Monitoring and Evaluation

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Responsibility and Accountability are key in the fight against poverty

Critical importance of inclusiveness (policies and programmes; as well as in sharing ideas/best practices keeping in mind the youth

Good governance and accountability are critical in the fight against poverty

Importance of commitment Need to monitor urban poverty

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PROSPECTS FOR SCALING UP BEST PRACTICES AND MAXIMIZING POTENTIAL OPPORTUNITIES

Inhibiting factors

Macroeconomic challenges

Corruption

Some elements of trade policy

Adverse impacts of climate change

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Promoting factors

Existence of best practices – Millennium Villages project

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III: SUMMARY OF DAY TWO

Three activities marked the second day of PPW 2013

Recap of Day 1Presentations:

i. Pro-poor Budget Allocations and Interventions (by Commissioner for Budget, URT)

ii. Social Protection: Potential Opportunities to Accelerate Initiatives to Improve Livelihood

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Commentaries

i. Representative from DPs on both papers

ii.Representative from NSAs on both papers

Presentation by Panelists

On paper 1

i. Economic Empowerment to Reduce Poverty

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ii Financial services Experience of TIB SELF project VICOBA

iii Land and Human Settlement

iv Insurance

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On paper 2

i Social Protection for Vulnerable groups: best practices from research

ii SSRA

iii NHIF, CHF, TIKA

Plenary session/general discussions

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iii KEY MESSAGES FROM DAY 2

THEME 1: PRO-POOR BUDGETIssue of definition and identification of activitiesThere are substantial investments in pro-poor

areasInclusiveness in pro-poor budgeting –

Guidelines for O&D existIssue of equity;Issue of access to financial services

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Housing as pro-poor intervention e.g. creation of jobs;

Insurance for cropsExistence of finances for onward lending

to small scale farmersEmpowerment of groups (machines, cash,

etc)

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PROSPECTS FOR SCALING UP BEST PRACTICES AND MAXIMIZING POTENTIAL OPPORTUNITIES

Inhibiting factorso Limited fiscal space

Promoting factorsPPP

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THEME II: SOCIAL PROTECTION1. Issue of definition

2. Issue of targeting

3.Many supporting Policies

4.Existence of unregistered caring centers

5. Identification of beneficiaries: through LGAs

6.Two main schemes possible for scaling up (both coordinated by Government):

a)National community-based care for Most Vulnerable Children

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b) TASAF – conditional cash transfer (grant); is mainstreamed in government plans in terms of standards and norms; involves all key Ministries/sectors; TASAF III emphasizes institutional arrangements

Other schemes/services targeting vulnerable groups:

i. The elderly and people with disabilities

ii. Vulnerable families (multiple schemes such as families with triplets….)

iii. MVC (wide typology and various forms of support e.g. education support; food;

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New NCPA: multiple partners in implementation

– household economic strengthening

Challenges: many (low budgetary allocation; social welfare work force; dependence on donors, etc)

Recommendations More and timeliness in delivery of resources (financial,

human…) Scale up to Universal pension for elderly Create separate Social welfare department in LGAs Sustainability Ownership

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Other issues raisedo Low coverage of official SP e.g. only 8% of

workforceo Existence of informal SPo Weak coordination among institutions dealing

with SP o Typology: three – Universal, contributory and

supplementaryo Six funds

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New initiatives establishment of SSA has enabled legislations; ICT use in contribution; institution of penalties for delaying benefits; covering both formal and informal sectors - inclusiveness

Challenges – inadequate benefits ; limited coverage; computation formula (differing benefits, etc)

SP schemes are key to poverty reduction26

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Intensity of interventions (multiple and duration) and exit strategy; and monitoring

Linkages among actors Information asymmetry hampering SP objectives Capacity building for the poor (credit issues, feasibility of

projects etc..) There are best practices that can be scaled up (e.g. in

health insurance fund – soft loans; coverage) Prudence needed in investing contributors’ funds

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Operationalization of Policy (e.g. new dimensions)

Administration of exemptionsApplication of the principle of universalitySustainability issues – higher government

investment needed; long term horizon

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Need to combine cash and non cash interventions

Importance of Communities taking a lead role in management of funds and involvement in planning

Importance of M&EKey role of coordination of actors

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PROSPECTS FOR SCALING UP BEST PRACTICES AND MAXIMIZING POTENTIAL OPPORTUNITIES

Inhibiting factorso Delay in adopting National Social Protection

Framework/Policy o Limited knowledge of implementers (on modality and use

of funds;o Leakageso Supply side constraints: limited coverage, poor quality;

neglect of preventive measures

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o Subdued social welfare status (no Department status in LGAs)

o Insufficient social welfare work forceo Limited financial resourceso Uncertainties around sustainability issue

(project nature of many schemes)

Promoting factorsUpgraded mandate of LGAs

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III DAY 3

MAIN THRUST: OPPORTUNITIES

Organization of activities

Recap of day 2

Two presentations

Panelists including representatives from DPs and NSAs

Practical demonstrations

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OpportunitiesDoing things differently – “business

unusual

Flags raised:

Suitability of context

Sustainability especially funding

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Paper 2: Contribution of Science, Technology, Innovation and Entrepreneurship to growth and poverty reduction

ICT revolution

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OpportunitiesResearch resourcesLink to R&D institutionsEmphasis on results e.g. incubators

Raised flagso Uptake of research results for Policy is limitedo Cluster methodology – low linkageso Promotion of indigenous knowledgeo Dissemination of opportunities is limited

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V: OVERALL CONCLUSIONS

Great support for PPW from DPs and NSAs

Hailed innovation in PPW 2013Emphasis on importance of

collaboration/cooperation among actorsNeed for greater use of evidence/data

(quality, timeliness, etc)

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