Pro-poor Policy Development and Wealth Creation

The Situation

Analysis contained in several national policy documents including the national development strategies (MKUKUTA/MKUZA) and UNDPs Country Program and Country Action Plan (CPD/CPAP) reveals that Tanzania has had significant economic growth over the past decade, improved economic fundamentals and steady progress towards the achievement of the MDGs (poverty and hunger, education, health, HIV and AIDS).

Implementation of economic reform programmes that began in 1986 have restored macroeconomic balances leading to high rates of economic growth.  Real GDP growth rose from 4.8 per cent in 2000 to 6.8 percent in 2005 (Tanzania Mainland) and 3.6 percent to 5.6 per cent respectively, for Zanzibar. The growth was mainly due to improved performance of the sectors of agriculture, wholesale and retail trade, hotels, restaurants, tourism; mining and manufacturing. The economy is projected to grow by 7.9 per cent in 2008 and 10 per cent in 2010 (Tanzania Mainland) while for Zanzibar, a growth rate of 7 per cent annually up to 2010 is forecasted. Inflation has been contained to a single digit figure, for Tanzania Mainland falling from 6 per cent in 2000 to 4.3 percent in 2005. For the same comparative period, inflation in Zanzibar rose from 6.7 per cent in 2000 to 9.0 percent in 2003 before falling to 8.3 per cent in 2005. The target is to contain and stabilize it around 4 per cent per annum up to 2010.

Despite these achievements a large number of Tanzanians are unable to meet their basic needs and have limited access to social services including water and sanitation.  Regional and gender based disparities exist especially with regard to access to post-primary education, resources and employment opportunities. Poverty incidence remains high, up to 49% of Zanzibaris cannot meet their basic needs and poverty and hunger is more pronounced in some districts (74% in Micheweni). In Tanzania Mainland about 36% of the population remains under the basic poverty line (HBS 2000/01). Although growth is significant, it is not yet pro-poor as many youth remain unemployed and there is a skewed distribution with regard to access to technology including ICT.   In particular, attention needs to be focused on health related MDGs including improving maternal health, and combating HIV and AIDS, Malaria and other major diseases, which in turn affect growth levels and its quality.

UN and UNDP Strategy

In the context of the National Development Strategies (MKUKUTA/MKUZA) and the UN response as articulated in the United Nations Development Assistance Framework (UNDAF), the first pillar of the Country Program Document (CPD/CPAP) will address Pro Poor Policy Development And Wealth Creation.  The Pro-poor Policy Development And Wealth Creation constitutes a programme with two main components that are:

• Pro Poor Policy Development and Monitoring (Equitable Growth); and
• Wealth Creation (through Empowerment)

Component 1: Pro Poor Policy Development and Monitoring (Equitable Growth):
In order to facilitate the development and implementation of pro-poor policies and strategies at national, sectoral and decentralized level UNDP will work within the framework of national systems and processes for planning, budgeting, monitoring, reporting and improving advocacy and communication and engage a range of stakeholders including the government, parliament, private sector and civil society. The focus will be on the promoting strategies for pro-poor growth by strengthening research and analysis, monitoring and communication and enhancing effective participation by non-state actors. Through this component, the program will facilitate evidence based decision making and multi-stakeholder dialogue processes that promote equitable growth and reduced inequalities.  UNDP will work in partnership with the government, CSOs, academic institutions and development partners.  In the context of delivering as one UN country team, UNDP will work closely with other UN agencies through possible Joint Programs in Capacity Development and in support of Zanzibar.  

Under this component, the following key results are expected during the period 2007 to 2010:

• Improved capacity to design and implement national strategies for pro-poor growth and poverty reduction. (through A Human Rights Based Approach);
• Informed research, analysis and advocacy on macroeconomic policies/ “fiscal space” required for scaling up investment to achieve National Strategy for Growth and Reduction of Poverty (MKUKUTA/MKUZA) goals and targets;
• Enhanced capacity of non-state actors for advocacy for policy analysis and poverty monitoring;
• Comprehensive MKUKUTA/MKUZA Monitoring Master Plan (MMMP) incorporating disaggregated data on cross-cutting themes implemented and Strengthened budget process through support to PER Review Process; and
• MKUKUTA/MKUZA Communication strategies implemented and key messages from MMMP outputs disseminated to relevant audiences.

The activities to be undertaken over the period include:

• Training of MDA planning officials in pro-poor policy analysis and policy development (including mainstreaming HIV, Environment, Gender, and Human Rights);
• Research and studies on scaling up investment to meet MKUKUTA/MKUZA targets and MDGs;
• Training, skills and develop tools for CSOs to undertake policy analysis, monitoring, and advocacy in institutional governance;
• Strengthening PER and Budgeting/MTEF (and Budget Guideline) processes and systems at Cluster level;
• Statistical literacy seminars around MDGs;
• TSED dissemination and links to sectoral/local information systems (resource centers); and;
• Support to MKUKUA/MKUZA Monitoring, Reporting and Communication systems.

Capacity development activities will be carried out in partnership with UNICEF, UNFPA and others through joint UN program for Capacity Development (to be formulated). The Joint Program for Capacity Development will include support to a proposed Technical Assistance Facility for the Ministry of Planning, Economy and Empowerment (MPEE) and RGoZ to strengthen institutional capacity for planning, policy analysis and monitoring.  In addition, the program will support capacity development of planning officers in all MDAs, and representative CSOs on pro poor policy and strategy formulation and human rights issues.  Effort will be made to institutionalize training in selected local training facilities e.g. UDSM, ZIFA, etc.  

UNDP will collaborate with local research and academic Institutions including ZIFA, REPOA, ESRF and the Economics Department at the UDSM as focal points in building local research capacity for pro poor policy research. In particular a study on scaling up investments to achieve MKUKUTA Targets and the MDGs will be carried out with support from UNDPs Regional Service Centre and Bureau for Development Policy.  National dialogue around the issue will be facilitated in collaboration with the Ministry of Finance / MOFEA and other development partners.

In order to develop the capacity of Civil Society Organizations in the area of evidence based policy dialogue, UNDP will build on the initiative commenced in 2006 in collaboration with the Regional Service Centre for Eastern and Southern Africa (RSCEA).  Based on a CSO capacity assessment, both short term and medium-term interventions have been identified to address capacity gaps. The proposed mid term capacity development plan will be implemented in collaboration with TANGO (the lead CSO coalition), ANGOZA and UNDP RSCEA.

In the area of monitoring UNDP will work within the framework of national monitoring systems (MKUKUTA/MKUZA) to enhance data collection and dissemination and linkages of monitoring to budgeting and planning processes through Public Expenditure Reviews.  Working closely with the Communications Working Groups in the Monitoring Systems in the Mainland and Zanzibar respectively, UNDP will support the implementation of Communication Strategies. 

Component 2: Wealth Creation (Empowerment):

UNDP will complement national efforts to accelerate growth and create employment by empowering the poor and vulnerable groups to participate in and benefit from emerging opportunities.  On the one hand, UNDP will work with government institutions at the national and decentralized levels to create enabling business environment through coordination and implementation of the Mini Tiger Plan, Empowerment policy and SME policy.  On the other hand, UNDP will work to enhance the competitiveness of SMEs by building organizational and technical capacity using the Diagnostic Trade Integrated Study (DTIS) as entry point to build export competitiveness.  The expansion of the Growing Sustainable Business initiative will serve to complement these efforts through strengthening public private linkages.

Through this component, UNDP will draw from its experience during the previous cycle and introduce additional sustainable business models in rural and urban areas; support the implementation of SME related policies and enhance the competitiveness of SME operators, youth, women and vulnerable groups including PLHA.  The focus will be on improving access to micro-finance, micro-insurance and business development services in order to address marginalisation and equity issues.

Under this component, the following key results are expected during the period 2007 to 2010:

• Enhanced capacity of the MPEE to coordinate implementation of Mini Tiger Plan and empowerment policy (including Zanzibar);
• Upgraded organizational and supply capacity (internal operations, leadership, resource mobilization, partnerships, gender responsiveness) of small and medium enterprises, small-scale farmers, agro-processing enterprises, producers groups and cooperatives;
• Strengthened and increased Public Private partnerships in new pro poor business models;
• Improved capacity of the Ministry of Industry, Trade and Marketing to coordinate implementation of national SME policy for pro-poor growth and poverty reduction.
• Better and efficient service delivery from increased use of ICT by SMEs and private and public institutions; and
• Improved access of youth, women and vulnerable groups including People Living with HIV and AIDS (PLHAs) and their caregivers to micro-finance, micro-insurance, business development services (BDS), research and extension services, and agricultural inputs to enhance their participation in productive activities

The activities to be undertaken over the period include:

• Capacity development in support of implementation special economic zones (MPEE);
• Training/skills provision for small and medium enterprises, small-scale farmers, agro-processing enterprises, producers groups and cooperatives on internal operations, leadership, resource mobilization, partnerships, gender responsiveness;
• Introduction and facilitation of new pro poor business models;
• Capacity development in support of implementation of national SME policy for pro-poor growth and poverty reduction (Ministry of Industry, Trade and Marketing).
• Promotion of use of ICT by SMEs and private and public institutions; and
• Training and facilitation of access to Improved access micro-finance, micro-insurance, business development services (BDS), research and extension services, and agricultural inputs to enhance their participation in productive activities by youth, women and vulnerable groups including People Living with HIV and AIDS (PLHAs) and their caregivers.

UNDP will work in partnership with the Ministry of Planning, Economy and Empowerment; Ministry of Trade, Industry and Marketing; private sector associations; and various CSO groups to implement these activities.  In the context of delivering as one, UNDP will collaborate with UNIDO and ILO among others and through a possible joint program on Income Poverty.