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TABLE OF CONTENTS ........ ............................................................... iii
FOREWORD ......................................................................................vi
PREFACE ...........................................................................................
CHAPTER 1 :DEVELOPMENT COOPERATION ISSUES BETWEEN TANZANIA AND ITS
AID DONORS: REPORT OF THE GROUP OF INDEPENDENT ADVISERS ..........3.. 3
1. THE CRISIS IN AID RELATIONSHIPS IN TANZANIA .......................... 3
1.1 The Background to the Crisis .............................................. 3
1.2 The Crisis in Context ............................................... 6
1.3 Difficult Transitions/Changing Needs................................. 9
2. THE QUESTION OF 'OWNERSHIP' ............................................ 11
2.1 The Ownership Situation .................................................. 11
2.2 Source of Weakness ....................................... ........ 14
3. DONOR COORDINATION AND AID EFFECTIVENESS ........................ 19
3.1 Concerns about Aid Coordination ......................................19
3.2 Current Arrangements for Aid Coordination...................... 23
3.3 Further Dimensions of Coordination and Aid Effectiveness 26
4. RESPONSIBILITIES OF THE GOVERNMENT OF TANZANIA ................. 28
4.1 Civil Service Reform ......................................................... 29
4.2 Budgetary Reform and Economic Management................ 32
4.3 Social Sector Strategy ....................................................... 34
4.4 Dealing with Corruption.................................................... 36
5. IMMEDIATE RISKS AND REQUIRMENTS ........................................ 37
LIST OF RECOMMENDATIONS ....................................................39
APPENDIX ............................................................................44
CHAPTER 2: DEVELOPMENT COOPERATION ISSUES BETWEEN TANZANIA
AND ITS AID DONORS: COMMENTS AND OBSERVATIONS ON HELLEINER
REPORT .........................................................................................47
ACKNOWLEDGEMENT .............................................................. 49
1. INTRODUCTION ............................................... 49
2. FOREIGN AID RELATIONS IN TANZANIA ......................................50
2.1 Crisis in Aid Relations and Subsequent Development........ 50
2.2 Development Co-operation Issues in Perspective.................51
2.2.1 Concerns of Aid Effectiveness Have Wider Ramifications. 51
2.2.2 Global Foreign Aid Reduction Scenario .............................51
2.2.3 Tanzania's Macroeconomic Performance in Perspective..... 52
2.3 Changing Forms of Aid: a Challenge on Evaluation of
Aid Effectiveness .............................................................53
2.4 Towards Institutional Development ...................................54
2.5 Aid and Self Reliance .......................................54
3. THE QUESTION OF OWNERSHIP ....................................... . 55
3.1 Importance of Local Ownership .......................................55
3.2 Dimensions of "Ownership" .............................................55
3.3 Low Level of Ownership................................................56
3.3.1 Ownership of the Policy Agenda ......................................56
3.3.2 Absorptive Capacity.......................................................... 57
3.3.3 Capacity Building .............................................................58
3.3.4 Conducive Working Conditions .........................................59
3.3.5 Building the Capacity of Local Firms ................................60
3.3.6 Technical Assistance ........................................ 60
3.3.7 Collaboration in Preparing Country Programmes ............. 62
3.3.8 Towards Policy Direction ..................................................63
4. DONOR COORDINATION AID EFFECTIVENESS .............................. 64
4.1 Sector-wide Co-ordination ....................................... 65
4.2 Linking New Aid Commitments to Debt Relief ................. 66
4.3 Demand for Co-ordination ........................................ 66
4.4 Towards a National Aid Strategy...................................... 67
5. RESPONSIBILITIES OF THE GOVERNMENT OF TANZANIA ................. 67
5.1 Need to Articulate a National Vision ................................ 67
5.2 Strengthening Government Machinery.............................. 68
5.2.1 Civil Service Reform .........................................................68
5.2.2 Budgetary Reforms and Economic Management ...............70
5.2.3 Dealing with Corruption................................................... 71
6. GENERAL OBSERVATIONS OF THE DEVELOPMENT
COOPERATION ISSUES .............................................................72
6.1 Aid Dependence ................................................................72
6.2 Aid Conditionality ...........................................................72
6.2.1 Conditionalities in Terms of Procurement ..........................72
6.2.2 Distortion of Aid Tying .....................................................73
6.3 Accountability and Transparency ......................................73
6.4 Capacity for Economic Management ................................74
REFERENCES.............. ..................... 76
CHAPTER 3: CHANGING AID RELATIONSHIPS IN TANZANIA? ......................77
APPENDIX ............................................................................87
CHAPTER 4: CHANGING IN AID RELATIONSHIPS IN TANZANIA? PROGRESS IN AID
RELATIONSHIP IN TANANIA ...................................................93
1. INTRODUCTION........................................ . 97
2. MAJOR ISSUES - PROGRESS REPORT ...................................... 99
2.1 Establishing Government of Tanzania Leadership ............. 99
2.2 Changing donor attitudes and Aid Delivery Systems........ 103
2.3 Improved Aid Coordination and Integration of Aid
within Tanzania'a Development Priorities........................ 104
2.4 Greater Transparency in Aid Delivery on the Part
of Donors and Accountability for Its Use on the Part of
the Government ........................................ .... 106
2.5 Reduction of Malfeasance and Adoption of Explicit
Measures to Rid the Country of Corruptive Practices....... 107
2.6 Greater Involvement of the Local Stakeholders,
Outside of the Government in Development
Management ............................................ 109
2.7 Overcoming other Obstacles to good Relationships
Between the Government and the Donors ........................ 109
3. DETAILED AGREED FIRST STEP - PROGRESS REPORT ................... 111
4. SUMMARY .......................................................................... 121
AGREED NOTES FROM THE WORKSHOP ON THE REPORT OF GROUP OF
INDEPENDENT ADVISORS ....................................................... 125
TERMS OF REFERENCE FOR REVIEW OF IMPLEMENTATION OF
RECOMMENDATIONS BY THE HELLEINER REPORT ........................130
1. INTRODUCNN .....................................................................130
2. OBJECTIVES OF THE REVIEW .................................................. 131
3. METHODOLOGY ...................................................................132
4. EXPECTED OUTPUT .............................................................. 132
5. TERMS OF SERVICE ........................................ ... 133
CHAPTERS: TANZANIA ASSISTANCE STRATEGY: CRITICAL ISSUES ...............135
1. How FAR HAVE WE COME? ................................................ 137
2. WHAT Is STILL MISSING? AND SOME SUGGESTIONS ................. 138
3. SUGGESTIONS FOR DONOR PERFORMANCE MONITORING IN
THE TAS ............................................................................139
3.1 Compliance with Recipient Requests for Information....... 139
3.2 Degree to which ODA Expenditures fall within Recipient
Budgetary System ............................................................140
3.3 Integration and Coordination within National Plans and
Priorities ..........................................................................140
3.4 Shortfalls from ODA Promises .........................................141
3.5 Compensatory and Contingency Financing...................... 142
3.6 Tying of Procurement .......................................................143
3.7 Role of Technical Assistance/Cooperation ........................143
3.8 Qualitative Assessments of Ownership ............................ 144
3.9 Time Horizon for ODA Commitments ............................. 144
3.10 Humanitarian versus Development Assistance................. 145
3.11 Individual and Collective Donor Performance Indicators. 145
3.12 Independence of Monitoring Authority .............................145
3.13 Frequency of Performance Assessments.............................146
4. PROCESS ........................... ................. 146
Library of Congress Subject Headings for this publication: Economic assistance Tanzania, Tanzania Foreign economic relations