Capacity Development:

In Context of Aid Coordination,

Harmonization and Alignment Agenda

Yuko SuzukiUNDP TanzaniaNovember 2005

Country Context Tanzania’s leadership in aid

coordination; TAS/JAS, Heillener/IMG process, DAC Task Force partner country/ DPG , “Quiet time”, Africa-wide High-Level Forum on Harmonization and Alignment held in Dar Es Salaam (Nov. 2004), etc.

• Strong national ownership & commitment to dev. outcomes: MKUKUTA (MDG+, outcome orientation, participation, focus on growth and equity; quality of life and social well being; good governance and accountability); and ZPRP

Evolving Aid Environment Ongoing harmonization of

policy processes (sector strategic planning, budgeting - PER, MTEF, SBAS-, PMS) and their alignment with MKUKUTA goals and targets

Mutual accountability (IMG and evolving PRBS/PAF process harmonized with MKUKUTA)

Evolving Aid Environment Mix of aid delivery modalities:

– GBS: GoT’s preferred modality – target: from 34 % of total ODA (2005) to 50-70 % (2010);

– Current PRBS instrument evolving: more inclusive; focused on domestic accountability; PAF to be increasingly aligned to MKUKUTA (i.e. Poverty Monitoring Master Plan)

– Basket funding (as a transition to GBS) – Projects (under specific conditions, well

aligned to national systems)

Evolving Aid Environment

The Joint Assistance Strategy: Guiding framework of principles moving forward post Paris High Level Forum (work in progress)– A more authentic ownership– A more effective partnership– Promoting domestic accountability– Mutual accountability

Main features of the JAS National ownership - JAS creates conditions for DPs

to step back, allowing national stakeholders to participate more fully

Mutual accountability - Clarifying roles, rights and responsibilities of GoT and DPs, & creating conditions for their realisation

Scaling up ODA – Budget support the GoT preferred

modality. An aligned PAF and a focused use of complementary project assistance

Main features of the JAS

Capacity development – Coherent entry points for sustainability. Use of core reforms, pay strategy, national monitoring systems, TA policy.

Alignment - Using and strengthening national processes (Budget, PMS) to create sustainable capacity for PRS

Division of Labour – increased delegation and innovative partnership arrangements to rationalise engagement

Dialogue – A structure for improved dialogue at all levels, in particular on governance and accountability

Capacity Needs - Framework

3.Harmonization(Development Partners’ Group)

1.Ownership (Govt of Tanzania)

2. Alignment (Govt of Tanzania-DPG)

Rationalize procedures

Common Arrangements

TAS sets harmonizat

ion priorities

TAS sets harmonizat

ion priorities

Alignment with the

PRS

Use of Government

Systems

Information sharing

Capacity Needs Ownership

– On-going core reforms (PSRP, PFMRP, LGRP, LSRP) – but effects of decentralization do not sufficiently accompanied by intended devolution

– GoT’s leadership in policy priorities, strategic frameworks, and institutionalized cooperation mechanisms at sector levels – Still weak capacity in policy strategy and formulation in sector ministries

– Non-state actors – Engagement of CSOs on ad-hoc basis. Voices of CSOs heared but not leading to specific actions

– JAS

Capacity Needs Alignment - Partner

– Improved linkages and budgeting process – acute shortages of expertise in monitoring of PRS

– SWAPs (education, health, water, agriculture) – Still weak in policy and strategy formulation in sector ministries, and better coordination with local government authority needed at district level

– Improvement in accounting and financial management, operationalization of Integrated Financial Management System (IFMS) – step by step action is more realistic to allow for new technology assimilation

Capacity Needs Alignment – Donors

– Budget support and basket fund increased from 48% (2002.3) to 54% (2004/5) of total aid flow – capacity needs highlighted to build confidence

– Assistance for reforms mainstreamed in GoT policies and operations gradually – reform processes are still weak and not mainstreamed (i.e. PER process, etc.). Further mainstreaming of PRSP

– Increased involvement of national consultants to support country programme – foreign experts not proven more capable than local experts.

Capacity Needs Harmonization

– Formalization of donor group into Development Partners Group – coherence among donors – remuneration practices not coordinated

– “Quite Time”– Meetings/Missions reduced– Overlapping of studies by donor continues – more

access to information needed, feedback important if local people involved in the process of study

Learning the Lessons

Fragmented and ad hoc Emphasis on technical, not strategic

capacity Ignored pay and incentives “Capacity development” as a fuzzy slogan No means of assessing impact A concept developed in the North and

applied in the South

Capacity Development in JAS Demand driven Long-term capacity development Pooled Fund Reform of TA – TA Policy Untying

UN/UNDP-JICA-GtZ-JAS Work on Capacity Development Work in Progress Individual

– Needs assessment guides support to training in context of core reforms and sector programmes

– Dialogue on Pay Reform– Facilitation of South-South Learning and

Local Partnerships

Continued Organizational

– Comprehensive needs assessment for MDAs and organizations in context of sector plans, reforms and PRS

– Support and partnership with local research institution to ensure depository of institutional capacity

– Focus on qualitative “soft” capacities for building and strengthening new partnerships (leadership&vision, effective communication, brokering relationships, building trust, coordination and management)

– South-South learning and use of local partners

Continued Organizational (continued)

– Support to PRS as an institution– Strengthening each of the major processes (PMS,

PHDR, PER, sector reviews, etc.)– Communications training across GoT and key

advocacy partners– Effective support to linking the processes

(development management)– More effective Parliamentary participation– Development of broader sector plans

Continued Societal

– Governance & deepening democracy– Legal frameworks– Human rights– Media and CSO advocacy

New Principles for Technical AssistanceThe Independent Monitoring Group (2004)

observed that reforming TA was a long-standing challenge

Needs a broader definition (not only ‘experts’) A TA policy based on national priorities (not on donor

accountability requirements)– a) Coherent planning and prioritisation – ‘needs assessment’– b) Identifying individual, institutional and systemic needs– c) Government to lead in selection & management of TA– d)  Outline for clear objective-setting and monitoring– e) All TA services contested through budget – not a “free” good

Increased pooling of funds (possibly supported by strategic partner)

JAS (Division of Labour) to identify specific DP comparative advantage in capacity development?