strategic response to political economy addis, june 6, 2007
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Strategic Response to Strategic Response to Political EconomyPolitical Economy
Addis, June 6, 2007Addis, June 6, 2007
Politics MattersPolitics Matters
Politics is a complex game of strategic calculations.
Politicians often face the so-called “politicians’ dilemma” in deciding among a set of policy
preferences
Politician’s DilemmaPolitician’s Dilemma
Conflicting Objectives:
• To survive in office; to build a loyal political organization—no suicide
• To govern effectively & efficiently
Harmonisation Harmonisation FrameworkFramework
Mkukuta
Growth SocialGovernance(GWG)
Core Reforms Accountability
PSRP
PFMRP
LSRP
Anti-Corruption
LGRP
ChallengesChallenges
• Reforms are not only technical = embedded in larger political, cultural, social and economic context
• How to put in place strategies that take into account how power is exercise
• Mkukuta cluster 3 = governance recognizing that it is the bedrock to the other two pillars on growth and social services
Reform agenda (National Framework for Reform agenda (National Framework for Good Governance)Good Governance)
o PFMRPo PSRPo LGRPo LSRPo NACSAP
Together constitute very ambitiousambitious and comprehensivecomprehensive restructuring of the state.
GWG Research AgendaGWG Research Agenda
► WB -- Political Economy, Anti-Corruption, Political Finance, Pay Reform studies
► DFID – Drivers of Change/Patterns of AccountabilityState Weakness – Operational Policy for Anti-
Corruption► Norway – Governance and Corruption in Tanzania;
sector-specific (natural resources)► SIDA – A Power Analysis of Tanzania (2005)
Monitoring Power in Tanzania (Update) (2007)► USAID – Assessment of Democracy and Governance
Use – Synthesis paper of above has been prepared– Workshops have been conducted for donors, public
servants and civil society
How to use the How to use the findingsfindings
o For policy dialogueo For programme choice
and designo For risk management
►General budget support
►Sector support
World Bank’s ResponseWorld Bank’s Response• Design ATIP
• Understand decisions on to pay
• Advent of new government – understand challenges and opportunities and prepare a CAS that would build on the knowledge
• Assessment of political context of reforms + stakeholders consultation
• Tanzania included in a broader study
• Political economy of Tanzania
Lessons LearntLessons Learnt
o Realisation of importance of PE context
o Need to take into consideration in design of programs (sectoral too)
o Technical expertise to do PEo Standard part of training programo Easy to do PE in a country where
governance is relatively positiveo Issue: what to do when the
environment is less conducive?
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