MKUKUTA II (DRAFT 2)NATIONAL CONSULTATIVE WORKSHOP JUNE 7-8, 2010

MINISTRY OF FINANCE AND ECONOMIC AFFAIRS

JUNE, 7-8, 2010

UBUNGO PLAZA,

DAR ES SALAAM

1

OUTLINE

• Background• The Review process• Assessment of MKUKUTA (I)• Stakeholder Consultations

• Key design aspects of MKUKUTA II• Similarities• Strategic Shift (Differences/value addition)

• Thrust of the Strategy

2

Outline…

• Content and Emphasis• Broad outcomes,• Goals, • Targets• Interventions

• Beyond MKUKUTA Framework• Concluding Remarks

3

I: Background

• The Review process• Use of (New) National Dialogue Structure and Division

of Labour PER WGs• Consensus on Guidelines, Concepts, Rationale etc• Areas for review

• Assessment of MKUKUTA I• Overall assessment of MKUKUTA I• Assessment on specific areas/Issues

4

Background Cont…

• Consultation process• Objective: fostering legitimacy, building consensus,

deepening ownership, capacity building• Methodology: Stakeholder-led, special groups and

national level• Stakeholder-led

• Major constituencies were MDAs, LGAs, CSOs, Private Sector, Development Partners,

• Apex organizations• Other: Parliamentarians• National level

• Confirming and Firming up priorities

5

II: MKUKUTA II Design Aspects

MKUKUTA II inherits many features of its predecessor – MKUKUTA (I)

Being informed by, and consistent with:• Tanzania’s long term development

framework (Tanzania Development Vision 2025);

• Global commitments (Millennium Development Goals);

• sector policies and strategies.

6

Design…Similarities

• Other important elements• Embraces importance of economic growth and

governance in poverty reduction (recognizing that these are necessary but not sufficient conditions)

• Adopts mainstreaming of cross cutting issues in development policies, strategies and programmes

• Is a Result-based Five year framework (2010-2015)• Has a three cluster configuration: Growth, Social Well-

being, Governance and Accountability)

7

Design.. …

MKUKUTA II continues to build on and broaden the space for country's ownership of the development agenda by fostering effective participation of civil society, private sector, and other stakeholders while also forging fruitful local and external partnerships

8

Design….Strategic Shift …

• Strategic Shift has been necessitated by lessons learned during implementation of MKUKUTA (I): absence of a growth strategy to guide implementation, inadequate prioritisation, loose coordination in interventions, limited scope for innovative ways of financing, low awareness of the strategy, and incomplete reform processes

9

Design strategic shift….

CONTENT:

1. More clarity in terms of priorities: within clusters and goals;

2. Analysis of constraints improved;

3. Implementation focus: actors – primary versus secondary;

4. Two stage process: more engagement with sectors (MDAs); Alignment of MDAs Strategic Plans, Budget/MTEF

10

Design…Strategic shift

• MKUKUTA II has:• Widened scope for sources of high and sustainable growth by

increasing number of goals to five;• Created more space for private sector participation;• Addressed the issue of underemployment, especially in rural

areas;• Strengthened closer link of Clusters;• Addressed macroeconomic issues holistically in order to

capture inter-linkages; paying particular attention to ensuring consistency of the various elements of the macro policy framework.

11

Design… Strategic Shift

• Emphasized Quality of Human Resources and Delivery of Services;

• Emphasized skills development for employability;

• Focused more on implementation effectiveness by bridging the institutional gap;

12

Design… Strategic Shift

• Embracing the concept of Drivers of growth with greater focus on agriculture;

• Strengthening the macro-micro link;• Significantly reduced certain targets to reflect

more, realistic state of progress (e.g. poverty targets);

13

Design…Strategic shift

• Forged closer link between MKUKUTA and Strategic Plans of Ministries, Departments and Agencies (MDAs);

• Has utilized findings of review studies;

• Prioritized interventions.

14

III: Main thrust of MKUKUTA II

• Growth interventions, with an explicit and elaborate long term growth plan which emphasizes:

• Investments to raise rural productivity in line with KILIMO KWANZA;

• Sustaining and deepening reforms and improving the business climate especially in agriculture;

• Trade and trade logistics based on Tanzania’s geographical location

15

III Cont …

• Aligning and scaling up skills development, training and innovation interventions in order to generate skills needed for effective Long Term Growth and Development Plan (LGDP)

• Addressing issues of economic governance, economic rights and institutions in support of the Longer Term Growth and Development Plan (LGDP)

• Investing in quality and equity in service delivery – education, health, water coverage and sanitation facilities

16

III Cont …

• Raising domestic and external resource mobilization:• Domestic resource mobilization - by enhancing

savings mobilization; leveraging returns on national resources (both within and outside Tanzania); strategic investments.

• Enhancing participation in regional integration schemes especially EAC and SADC;

• External Financing.

17

III Cont …

Specific issues • Growth and distributional issues (pro-poor

growth issue) • Population growth and population dynamics • Employment, particularly of women, youth

and people with disabilities

18

IV: MKUKUTA II Contents and Emphasis

• Organized around seven chapters: • 1- Introduction and background• 2- Status of Poverty, Challenges and Opportunities• 3-Framework of the Strategy• 4-the Strategy (growth, wellbeing, and governance)• 5-implementation arrangement• 6- Monitoring and evaluation • 7-Budget and financing framework

Annex of the results matrix

19

IV Cont …

• The core strategies are organized in three clusters. • Clusters, have broad outcomes and are organized

in several goals • Goals are assigned operational targets –

sometimes attributable directly, but in many cases, not directly attributable because of result-based approach

• Operational targets are assigned cluster strategies,• Cluster strategies are assigned intervention

packages

20

Cluster Broad

Outcomes

Cluster Goals

Operational targets

Cluster Strategies

Intervention package From Intervention package (inputs) outputs outcomes

21

IV Cont …

• Cluster 1: 3-Broad outcomes: 1. Inclusive and accelerated growth achieved

and sustained,

2. Employment opportunities for all, including women and youth created,

3. Good economic governance ensured and enhanced.

22

IV Cont …

Cluster 1: Goals 1. Pursuing sound macroeconomic management 2. Reducing income poverty through promoting inclusive,

sustainable, and employment-enhancing growth 3. Ensuring creation of productive and decent

employment, especially for women, youth and people with disabilities

4. Ensuring food and nutrition security and climate change adaptation and mitigation

5. Leveraging returns on national resources (both within and outside Tanzania) for enhancing growth, and benefits to the country at large and communities in particular, especially in rural areas

23

IV cont’d

• Priorities in goal 1:Consistency of macroeconomic policiesTrade issues

24

IV Cont …goal 2

• Prioritization: Cluster 1: Drivers of Growth: Agriculture – Kilimo Kwanza

The “drivers” are prioritized according to impact in raising productivity and creation of decent employment (with variations per region/district depending on existing relative advantages): 1. Supportive physical infrastructure2. Water and irrigation infrastructure, 3. Financial services and incentives to invest in agriculture4. Knowledge and information5. Value addition activities (agro-processing and mechanization)6. Trade/export development services 25

IV Cont …

• Cluster 1: Drivers of Growth 2. Manufacturing

The objective is to propel manufacturing; at the centre of prioritization of ‘drivers’ is highest impact in raising productivity and creation of decent employment. 1. Energy/electricity, 2. Knowledge and skills, 3. Information Communication Technology (ICT),4. Marketing interventions,5. Financial services,6. Legal environment and Intellectual Property Rights. 26

IV Cont …

• Cluster 1: Drivers of Growth 3. Tourism

Ranking of “drivers” based on impact: 1. Business environment2. Competitiveness and Value for Money 3. Marketing and promotion strategies 4. The People in Tourism – skills 5. Expanded access to transport6. Product development and innovation

27

IV Cont …

• Cluster 1: Drivers of Growth 4. Mining

Ranking of “drivers” from highest impact: 1. Value addition 2. Training of local experts (engineering, law)3. Financing (local investors) 4. Small artisanal miners (technology, skills, start-up capital etc). 5. Marketing interventions6. Geological information and property rights

28

IV cont’d

Cross-sectoral drivers: physical infrastructure, energy, water

Prioritization in physical infrastructure: • 1. Primary infrastructure in rural areas (feeder,

collector, community roads; • 2. Labour-based methods in rural roads

construction and maintenance;• 3. Transit traffic facilitation (port and maritime); • 4. Trunk and regional roads;• 5. Rail;• 6. Urban transport

29

IV cont’dPriorities in energy

• new power plants;

• renewable energies;

• rural electrification;

• Expanding and strengthening the National;

• Promoting projects which qualify for carbon credit;

• Promoting participation of local land owners.

30

IV cont’dPriorities in water supply

• Strengthening basin water resource management;

• Rehabilitating non functioning systems;

• Constructing new dams;

•  

31

IV cont’dPriorities in employment• Improving labour market information system;• Implementing affirmative action in

employment creation;• Providing selective and customized

investment in human capital;• Addressing underemployment in rural areas;•  

32

IV cont’dPriorities in ensuring food and nutritional security

• promoting skills among farmers;

• maintaining strategic Grain Reserve;

• Supporting research;

• increasing farmers’ awareness

• Providing specific adaptation and mitigation options;

• Strengthening weather projection and early warning systems;

• Promoting private sector investments.

•  33

IV cont’dPriorities in leveraging returns on national resources

• Strengthening capacity for administration and monitoring;

• Strengthening the capacity of TRA;

• Supporting the private sector;

• Enhancing community-based natural resource management arrangements.

•  Strengthening weather projection and early warning systems;

• Promoting private sector investments.

•   34

IV cont’dCluster II: 2 - Broad outcomes

1. Quality of life and social wellbeing for enhancing capabilities, with particular focus on the poorest and most vulnerable groups, improved;

2. Inequities in accessing economic opportunities, environment and natural resources, and social services along geographical areas, income, age and gender reduced

35

IV cont’dCluster II: Goals1. Ensuring equitable and inclusive access to quality

education at pre-primary, primary, and secondary levels for boys and girls

2. Ensuring expansion of vocational, technical, polytechnics and higher education to support growth

3. Improving survival, health, nutrition and well being of all children, women and vulnerable groups

4. Increasing access to affordable clean and safe water; sanitation and hygiene

5. Developing decent human settlements while sustaining environmental quality.

6. Providing adequate social protection and rights to the vulnerable and needy groups

36

IV cont’d CLUSTER II

Goal 1: Order of Priority Areas

• Quality schooling in primary and secondary levels, training, recruiting, and deploying qualified teachers and school inspectors

• Increased access, especially in lower secondary

Goal 2: Order of Priority Areas

• Increased access and quality of technical education and vocational training

• Quality tertiary education 37

IV cont’d Cluster II Goal 3: Order of Priority Areas• Human recourses for health system (training,

deployment, and retention) • Maternal health• Health facilities

Goal 4: Order of Priority Areas• Rehabilitation of malfunctioning water facilities • Construction of additional low-cost appropriate water

sources • Sanitation, especially in public facilities/places

38

Cluster II Goal 5: Order of Priority Areas

• Plans, surveys, and issuance of land titles

• Regularization of unplanned settlements and enforcement of urban land use plans

Goal 6: Order of Priority Areas

• Exemption and waiver schemes for PWDs, OVCs, eligible elderly people living with HIV and other vulnerable groups

• Systems and institutions for effective delivery of social protection packages

39

IV cont’dCluster III: 3 - Broad outcomes

1. Democracy, good governance, human rights and the rule of law deepened and ensured;

2. Peace, political stability, social cohesion and national unity consolidated and sustained;

3. Accountable, responsive, effective, and efficient leadership in public service ensured.

40

IV Cont …Cluster III: Goals

1. Ensuring systems and structures of governance uphold the rule of law and are democratic, effective, accountable, predictable, transparent, inclusive and corruption-free at all levels.

2. Improving public service delivery to all, especially to the poor and vulnerable.

3. Promoting and protecting human rights for all, particularly for poor women, children, men and the vulnerable

4. Ensuring national and personal security and safety of properties

5. Promoting and preserving culture of patriotism, hard work, moral integrity, and self-confidence

41

IV cont’dCluster III: Order of Priority Areas• Implementation of Core Reforms with focus on

creating an enabling environment for promotion of pro-poor growth, with special emphasis on strengthening business and investment environment, fighting both petty and grand corruption, strengthening public finance management and value for money in use of resources, ensuring credible legal sector, responsive and performance based public service administration and capable local government

• enhancing the institutional and human resource capacity of each pillar of the state for the proper execution of its functions 42

IV cont’dCluster III

Goal 2: Order of Priority Areas

• Enhancement of capacity and improvement of management systems in public services through strengthened, monitoring, performance and accountability mechanisms

• Equitable mechanisms for allocation and disbursement of resources and monitoring

43

IV cont’dCluster III

Goal 3: Order of Priority Areas

• Speedy implementation of legal sector reform program for credible legal sector to provide timely justice to all and favorable legal environment for business, investment, and growth

• Protection and promotion of children rights and rights of the marginalized groups

44

IV cont’dCluster III

Goal 4: Order of Priority Areas

• Fighting crimes of all forms through a modernized and capacitated police force with promotion of community policing and public-private partnership

• Completion of the National Identity Program

• Strengthening of national capacity to mitigate and handle the impacts of climate change, natural disasters and man-made disasters

45

IV cont’dCluster III

Goal 5: Order of Priority Areas• Campaign, coaching and education interventions for

promoting a mindset change of Tanzanians towards hardworking, self-confidence, and self-esteem, creativities, innovations, and moral integrity and love for their country

• Supporting and promoting creative, entertainment, and sports industry for promotion of culture and income generation

• Promoting cultural tolerance, mutual trust and harmony amongst Tanzanians of all religion, ethnicities, occupations or geographical disparities 46

V: IMPLEMENTATION ARRANGEMENT

Main issues:1. Coordination of Processes, Core Reforms

and Programmes ,2. Collaboration and Linkages (macro-micro

linkage; Planning and Prioritization of Key Interventions)

3. Public – Private partnership 4. Capacity development 5. Strengthening knowledge driven economy

47

Result/outcome Improved food security

Primary intervention(s) i. Irrigation schemes (for

food crops, or specific food crop)

Secondary interventions i. Rural road (supportive)

ii. Marketing facilities (supportive) iii. Malaria control (mitigate) iv. etc,.

Primary Actor(s) i. MDAs a, b, c ii. LGAs

Secondary actor(s) i. MDA x, y, z ii. private sector

Harmonized and synchronized

MTEF line items

48

Research (and academic) -adaptive -modification -innovation -etc

Policy (by government) -national -sectoral -short term -long term policies

Industry & productivity -agriculture -manufacturing -trade logistics

Linking Research, Policy, and Productivity

49

VI: MONITORING AND EVALUATION

Monitoring and Evaluation• Emphasizes on an institutional framework that

is inclusive and brings together all relevant stakeholders in working groups and links them to relevant Government policy and decision making bodies

• Emphasizes improving planning and budgeting processes and Strengthening sector’s M & E (regular monitoring &follow-ups and reporting).

50

VII: BUDGET AND FINANCING FRAMEWORK

Financing

• As a national strategy, MKUKUTA-II, financing will mainly depend basically on mobilized domestic resources (with foreign financing as a complement).

• In addition to Government financing, other innovative mechanisms will include PPP, Community financing, etc.

51

VII cont’dGovt Revenue for MKUKUTA, 2010/11-2014/15

2010/11 2011/12 2012/13 2013/14 2014/15 Total

Total Govt Domestic Revenue 6,394.6 7,718.7 9,278.7 11,048.5 13,083.0 47,523.5

% of Govt Revenue for MKUKUTA 60.7 67.3 73.3 78.8 84.4

Govt MKUKUTA-II Financing 3,879.5 5,196.2 6,803.6 8,711.1 11,042.9 35,633.3

52

WAY FORWARD• MKUKUTA II has adopted a two stage approach:

• Approval of the Strategy• Implementation framework(Programme phase)

• Major activities that will support implementation will include:• Preparation of Priority Action Plans (PAPs)• Costing of major programmes/ MKUKUTA• Strengthening link between MKUKUTA and

Budget

53

WAY Cont’d …• Review and design MKUKUTA II Monitoring

Master Plan. • Preparation of MKUKUTA II Communication

Strategy• Capacity building (Implementation, Monitoring

and Evaluation)• Human resource development strategy• Finalization of the Long Term Growth and

Development Plan

54

Concluding RemarksRemaining steps:

• Conclusion of (this) national consultative workshop and incorporating comments emanating

• Strategy to be approved by Government by end of June 2010

• Popular versions in both English and Swahili to be prepared

55

THIS TIME IT HAS TO MAKE A DIFFENCE!

56