## _cr04282 — PRS Progress Report (July 2002–June 2003) — Chapter Extracts ## Source details **Canonical URL:** [_cr04282 — PRS Progress Report (July 2002–June 2003) — Chapter Extracts](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2004/_cr04282.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2004/_cr04282.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2004/_cr04282.pdf.json) --- ### Introduction: purpose, scope, and main messages - Third PRS Progress Report (July 2002–June 2003) closing first PRSP three‑year cycle (formulated 2000) and bridging to PRSP II review. - PRS review launched during Poverty Policy Week October 2003; follows “Guide for the Poverty Reduction Strategy Review.” - Successes recorded: - Improvements in macroeconomic performance. - Reforms in financial sector, public service, and local government. - Efforts to improve delivery of social services (education, health, water). - Remaining challenges: - Insufficient translation of macro-level achievements to micro-level poverty reduction; need for closer analytical work on growth-poverty linkages. - Need greater attention to quality and equity in social service delivery, combating HIV/AIDS, and governance commitments. - Weaknesses in reporting quality of progress on outcome and impact indicators across PRS sectors and thematic areas. - Poverty Monitoring System (PMS) capacity constraints, duplication of activities, and lack of convergence risking higher transaction costs and stretched capacity. - Government commitments and planned actions: - Strengthen sector and thematic reporting capacity during PRS review and next PRS cycle. - Strengthen PRS Technical Committee and Secretariat capacity; harmonize/synchronize reporting instruments (PHDR, PER, sector reviews). - Address PMS capacity concerns and harmonization to support PRS implementation and PRS review management. ### PRS Review: objectives, scope, and process - Overall purpose: update current PRS to make it more comprehensive and pro‑poor, broaden/deepen poverty‑reducing interventions, and raise PRS and MDG awareness. - Strategic focus: prioritize issues rather than cover everything. - Use of data and studies: - Three PRS progress reports, PPA, PER studies/reports, PHDR, Poverty Week Reports, Labor Force and Child Labor Survey, HBS 2000/01 and Census findings, Agriculture Survey, PSSS, and other reports. - Commission critical new studies on growth and trade, growth and employment, returns to smallholder agriculture, macro‑meso‑micro linkages, integration of HIV/AIDS, gender, environment. - Ownership and participation: - Scale up government leadership and stakeholder participation; emphasize community participation in formulation, implementation, monitoring. - Review process and timeline (as described): - Consultative meeting in January 2004 (Dar es Salaam) to clarify PRS Review issues and launch country‑wide consultations. - Drafting schedule: first draft work start in April (2004); consultations in June (first draft) and September (second draft); Poverty Policy Week scheduled October (2004); finalization/publication October–December 2004. - Details available through http://www.tzonline and http://www.povertymonitoring.go.tz. ### II. Status of poverty — chapter framing - Chapter builds on 2001/02 Progress Report Status chapter; adds new data where available, explains trends, assesses likelihood of meeting targets, highlights strategic policy direction and monitoring prospects. - In‑depth poverty analysis in PHDR 2003. - Chapter structure: - Section 1: income poverty (GDP growth, agriculture, employment). - Section 2: non‑income poverty dimensions. - Section 3: governance and gender indicators. - Section 4: medium‑term prospects for improving poverty monitoring. ### Income poverty: growth, employment, roads — key indicators and findings - PRS premise: sustained economic growth necessary for poverty reduction; priority sectors include agriculture and roads. - Indicator revisions (2002) and status (Table.1 excerpts): - "% of the population below the basic needs poverty line" - Baseline Estimate Year: 2000-01[1] - Baseline: 36 - Actual 2003*: 30 - Targets 2010: 17.8 - "% of the population below the food poverty line" - Baseline Estimate Year: 2000-01[1] - Baseline: 18.7 - Actual 2003*: - - Targets 2010: 9.3 - (Table shows an intermediate value "16" under Actual 2003 column; source note: For actual 2003, most socio-economic indicators have not been worked out.) - "GDP growth rate (%)" - Baseline Estimate Year: 2000[1] - Baseline: 4.9 - Actual 2003*: 5.5 - Targets 2010: 6.3 - "Agricultural growth rate (%)" - Baseline Estimate Year: 2000[1] - Baseline: 3.4 - Actual 2003*: 3.3 - Targets 2010: 5 - "Food price inflation in urban areas (%)" - Baseline Estimate Year: 2000[1] - Baseline: 6.8 - "% of working age population not currently employed" - Baseline Estimate Year: 2000-01[1] - Baseline: 5 - "% of 15-24 years old not currently employed in urban areas" - Baseline Estimate Year: 2000-01[1] - Baseline: 28 - Data limitations and notes: - For actual 2003, most socio‑economic indicators not worked out; information mainly from HBS 2000/01. - No household income poverty trends since 2000; HBS 2000/01 shows very limited declines in income poverty over 1990s. - Economic growth performance: - Population growth rate: 2.9% for 1988-2002. - GDP growth: 6.2% in 2002 (surpassing PRSP target of 6.0%); provisional 2003 estimate 5.5%. - Government actions to broaden benefits of growth: broaden sources of growth; expedite agricultural/rural programs; facilitate private investment; promote microfinancing and SMEs; develop infrastructure for agriculture. - Agriculture and food security: - PRS agriculture growth target of 5% achieved in 2001 and 2002 due to good weather; 2003 provisional agricultural growth: 3.3% (poor rains). - Forthcoming agriculture survey (2003) expected to provide 2003 baseline data for production, credit, market access, extension services. - Employment and child labour: - ILFS 2000/01: overall unemployment increased substantially; higher among urban women; particularly high among young people. - ILFS/Child Labor 2000/01 findings: - 39.6% of children aged 5 to 17 years old are economically active. - 21.3% of children aged 5 to 17 years old are child labourers working more than 4 hours a day. - Government measures: private sector development policies, SME support, agricultural/rural development, microfinancing, EPZs, productivity enhancement measures. - Child labour measures: “Time Bound Programme on Worst Forms of Child Labour” coordinated by Ministry of Labour, Youth Development and Sports. - Roads: - PRS envisaged rehabilitation of 4,500 km of rural roads in twelve poorest regions; detailed completion/actuals limited in text. ### Macroeconomic performance and selected indicators (Table excerpts) - Real GDP growth rate (%): - 1997: 3.3 - 1998: 4.0 - 1999: 4.7 - 2000: 4.9 - 2001: 5.7 - 2002: 6.2 - 2003*: 5.5 - Real per capita GDP (US$): - 1997: 240.2; 1998: 256.9; 1999: 259.4; 2000: 261.2; 2001: 264.1; 2002: 265.3; 2003*: ... - Real growth of agriculture (%): 1997: 2.4; 1998: 1.9; 1999: 4.1; 2000: 3.4; 2001: 5.5; 2002: 5.0; 2003*: 3.5 - Real growth of manufacturing (%): 1997: 5; 1998: 8; 1999: 3.6; 2000: 4.8; 2001: 5; 2002: 8; 2003*: 8.5 - Mining and quarrying (%): 1997: 17.1; 1998: 27.4; 1999: 9.1; 2000: 13.9; 2001: 13.5; 2002: 15; 2003*: 15.1 - Inflation – annual average CPI (%): 1997: 16.1; 1998: 12.9; 1999: 7.8; 2000: 6; 2001: 5.2; 2002: 4.5; 2003*: 4.6 (November) - Foreign exchange reserves (months of imports): 1997: 3.8; 1998: 3; 1999: 4.1; 2000: 5.6; 2001: 6.3; 2002: 8.9 - Exchange rate (annual average, TShs/US$1): 1997: 612.1; 1998: 664.7; 1999: 744.8; 2000: 808.4; 2001: 876.4; 2002: 978.9 ### Fiscal and monetary indicators (selected) - Domestic revenue (excl. grants)/GDP (%): FY97/98: 12.6; FY98/99: 12.5; FY99/00: 11.3; FY00/01: 12.2; FY01/02: 12.1; FY02/03: 12.8; FY03/04: 13.3 - Total Govt expenditure/GDP at market prices: FY97/98: 14.8; FY98/99: 14.8; FY99/00: 17.1; FY00/01: 16.8; FY01/02: 17.6; FY02/03: 20.8; FY03/04: 24.9 - Fiscal deficit before grants/GDP (%): FY97/98: -2.3; FY98/99: -2.3; FY99/00: -5.8; FY00/01: -4.5; FY01/02: -6.6; FY02/03: -4.1 - Growth of money supply (M2) (%): 1997: 11; 1998: 11.1; 1999: 15; 2000: 12.5; 2001: 12.3; 2002: 13 - Average deposit interest rate (%): 1997: 10; 1998: 7.9; 1999: 7.1; 2000: 4.2; 2001: 3.5; 2002: 3.1 - Average lending interest rate (%): 1997: 24; 1998: 24.5; 1999: 22.1; 2000: 19.6; 2001: 16.4; 2002: 15.7 ### Revenue and public spending (2002/03) — key figures - Government revenue collection improved, reaching Tshs. 100 billion per month. - FY2002/03 totals: - Total revenue: Tshs. 1,217.5 billion - Tax revenue: Tshs. 1,105.7 billion (2002/03) vs Tshs. 938.5 billion (2001/02) - Non‑tax revenue: Tshs. 111.8 billion (2002/03) - Priority sector expenditures (Table 6, selected items, in billions TShs): - Total Priority Sectors: 2001/02 Actual: 753.8; 2002/03 Actual: 953.7; 2003/04 Budget: 1,164.0; 2004/05 Proj.: 1,443.9 - Education (2001/02 Actual; 2002/03 Actual; 2003/04 Budget; 2004/05 Proj.): 344.9; 436.2; 502.3; 564.7 - Basic Education: 116.6; 171.3; 371.3; 417.4 - Health: 142.1; 186.7; 214.3; 284.9 - Primary Health: 101.0; 113.3; 124.4; 165.4 - Roads: 179.6; 190.2; 236.0; 289.5 - Rural Roads: 21.5; 22.8; 57.0; 69.9 - Agriculture and Food Security: 31.9; 60.2; 93.1; 112.3 - TACAIDS: 4.0; 5.3; 21.2; 58.7 ### Structural reforms, privatization, and private sector development - Privatization by June 2002: - 259 public enterprise companies and 210 non-core assets placed with private sector. - Of 259 privatized enterprises, 135 acquired 100% by Tanzanian investors. - Of 210 non-core assets divested, Tanzanians acquired 180 through open competitive tender. - Parastatal Sector Reform Program (PSRP) highlighted privatization of TANESCO, TRC, THA, NMB; divestiture concluded for ATC (December 2002) and DAWASA (February 2003). - TIC approvals in 2002: - 311 private sector investment projects in manufacturing worth TShs 1,024,536 million. - Potential employment: 33,132 people. ### Employment creation and social mitigation - Time Bound program (2004-05) budget and targets: - Budget: US$ 1,230,000 (2004-05) - Targets: skill training for 2,000 families and 7,500 youth in worst forms of child labour or at risk. - Privatization Trust established to enable low‑income participation in privatization. - Shs 4,000 million set aside for terminal benefits to retrenched employees in key parastatals and District Councils. ### 2003/04 Budget: poverty orientation (selected sector measures) - Health: increased allocation; inclusion of ambulances in item 5 to The Third Schedule of the VAT Act. - Water: Customs duty exemption on water drilling machines and equipment; increased allocation. - Education: additional resources for education fund for children whose parents cannot pay school fees; increased allocation. - Agriculture: simplified district business procedures; reduction of withholding tax on fish sales from 2% to 1%; provision of modern seeds and subsidized fertilizers for Rukwa, Mbeya, Iringa and Ruvuma regions; plan to start bank for large/medium fishermen, livestock keepers and farmers. - Governance: abolish a number of levies/fees charged by Local Governments; Shs 5,000 million set aside for new National Assembly Hall construction; raised minimum pension entitlement to Shs 20,000 per month. ### Roads: progress, maintenance, and costing - Government allocating Tshs. 1.84 billion monthly to improve transport links to northwestern and southern regions. - Upgrading/rehabilitation: - Rehabilitation will cover total of 468 km on Southern and Central Corridors; Tshs 25.36 billion already spent. - Three‑year regional roads program: road works on 923 km in four regions under ADB and GoT financing. - PORALG: 7,049 km of rural roads (51.4%) of planned 13,727 km received routine/spot improvement and periodic maintenance. - Expenditure for the work amounts to 63.4% of planned budget of Tshs 13,854 million. - Tshs 4,927 million earmarked for PORALG rehabilitation/construction for 2002/2003 was not released. - Road Sector costing (Table 11 — Tsh. Million): - Total Sector Requirement: 260,170; 299,274; 344,255; 395,997 - Allocation: 208,415; 258,655; 321,005; 369,156 - Gap: 51,755; 40,619; 23,250; 26,484 - Rural Roads TOTAL: 24,232; 25,490; 33,972; 39,108 - Rural Roads Gap: 20,298; 15,930; 10,100; 10,143 - Lessons: only 17% of district road network in good condition; financial resources insufficient; need enhanced LGA capacity and roll out of DROMAS. ### Education — primary achievements, indicators, and costing - Enrollment growth and ratios: - Enrolment grew by 50% from 4.4 million in 2000 to 6.6 million in 2003. - Gross Enrolment Ratio (GER): 2002: 100.4%; 2003: 105.3% - Net Enrolment Ratio (NER) (Age 7–13): 2002: 80.7%; 2003: 88.5% - 2003 enrolment: 1,475,889 pupils against target 1,600,000. - Standard One enrolment for 2003 above PRS target of 85% of school age children. - Transition, dropout, and pass rates: - Transition rate primary→secondary: 2001: 21%; 2002: 21.7% - Dropout rate in primary schools: 2003: 4.7%; 2000: 6.6%; target 3.0% by 2003 (not met). - PSLE (Standard 7) pass rates: 24.9% (2001); 27.1% (2002); PRS target 50% by 2005 seems unlikely. - Teacher training and recruitment: - Pre‑service teacher training enrolment: 2002: 9,728; 2003: 15,285. - By May (year partial), government recruited 10,719 new Grade “A” teachers out of target 11,651. - INSET and pre‑service integration; 763 facilitators trained to upgrade 50,000 grades “C/B” teachers to grade A. - Capitation grants: - National application of USD 10 (Tshs 10,000/=) capitation grant per pupil. - Tshs 32.19 million disbursed to councils for 6,536,798 pupils in 2002/03 (equivalent to USD 4.9 per pupil). - Costing (Table 10, selected, in million Tshs.): - Primary Education: Capitation grant 2002/03 Expenditure Requirements: 62,298.3; Actual 2003/04 Budget: 63,342.9; 2004/05 Proj.: 67,762.8; 2005/06 Proj.: 74,212.3 and 77,102.4 (table shows two figures in same row). - TOTAL (selected row): 306,538.3; 149,822.2; 248,545.5; 353,029.2; 377,974.3 ### Health, survival, nutrition — indicators and service delivery - Health outcome indicators (Table 3 excerpts): - Total fertility rate: 5.6 1997[1] - Infant mortality rate: 99 1997 [1] — Targets: 85 50 20 - Under-five mortality rate (MDG): 147 1997[1] — Targets: 127 79 - HIV prevalence in age group 15-24 (%): Male: 8 Fem: 13 2000[2] - Life expectancy at birth: 52 1988[3] — Targets: 52 - Nutrition in under fives: Stunting 44 1999[1] — Targets: 20; Wasting 5 1999[1] — Targets: 2; Under-weight 29 1999[1] - Service delivery and trends: - Number of outpatient visits increased 47% between 2000 and 2002. - DTP3 immunization coverage reached almost 90% in 2002; TB treatment completion 78% (2000[1]). - Proportion of births attended by skilled health worker and institutional deliveries declined over 1990s; rural‑urban and poorest‑richest disparities large and increased. - Policy direction: - Improve routine data systems; upcoming DHS in 2004 and 2002 Census analyses to provide better estimates. - Focus on access for rural and poor populations; reflect on user fees at primary level to ensure universal access; scale up HIV prevention and mitigation. ### Water and sanitation — coverage, progress, and financing - Rural water supply coverage increased from 48.5% in 2000 to 53% in 2003; PRS target 55% by 2003 likely not met. - Urban water access maintained at 73% for second consecutive year. - Sewerage service coverage in Dar es Salaam, Mwanza and seven municipalities increased from 10% (June 2002) to 17% (June 2003). - Selected outputs: - Completion of Chalinze pumped scheme covering one small town and 21 villages with 105,000 beneficiaries. - Construction of 328 rural water wells and 100 peri‑urban wells. - 2,300 water meters installed (50% of customers in 18 UWSAs). - Financing (Table 12, billion Tshs, selected): - Investment/Development: 41.7 (2002/03 Budget); 46.1 (2003/04 Budget); 89.4 (2004/05 Projection); 97.2 (2005/2006 Projection) - Rural water supply infrastructure: 9.3; 20.3; 22.2; 25.2 - Urban water and sewerage: 26.2; 18.5; 48.5; 48.5 - Total expenditure: 58.6; 63.6; 118.1; 126.2 - Challenges: weak routine data systems, fragmented financing, LGA capacity gaps, ambitious PRS indicators need review. ### Agriculture — ASDP progress, sub‑sector achievements, costing - ASDP objective: create enabling environment for productivity, profitability, farm income improvement and household food security; DADPs focal point for rural poverty reduction. - Crop sub‑sector highlights: - Land under irrigation increased by 8,995 ha in 2002/03 to 200,895 ha. - Improved seeds availability 10,426 tons (2002/03), equivalent to 35% of total requirement. - Inputs and mechanization: 274 big tractors; 75 power tillers; 19,319 oxen‑ploughs; 2,107,550 hand hoes imported. - Crop pests estimate: 30% of crops lost annually due to pests/disease; outbreaks contained in 19 out of 21 regions. - Inputs Trust Fund issued loans amounting to Tshs 2.05 billion. - Livestock sub‑sector: - 41,250 doses of semen produced (9% increase vs 2001/02). - 6.2 million chickens vaccinated against Newcastle disease in 145 villages. - I-2 Newcastle vaccine production and storage characteristics reported. - 4,494 in‑calf heifers produced/distributed to smallholders. - Cooperative and marketing: - 150 Cooperative Societies formed; 123 SACCOS registered. - AMSDP and other projects building rural marketing infrastructure; Agricultural Marketing Policy preparation underway. - Costing (Tshs. ‘Millions, selected): - Crop sub‑sector Recurrent (2003/04; 2004/05; 2005/06): Sub‑total Recurrent: 16,292.0; 21,240.4; 26,425.7 - Crop sub‑sector Development total: 6,210.0; 9,310.0; 16,000.0 - Livestock and Cooperative items listed with detailed annual figures. - Total – Sector: 25,822.40 (2003/04); 36,026.10 (2004/05); 49,414.60 (2005/06) - Lessons: low use of inputs, unreliable marketing infrastructure, rain‑fed dependence, inadequate extension services, low public/private investment. ### HIV/AIDS — institutions, strategy, financing, care and treatment - Institutional transformation: NACP → TACAIDS under Prime Minister’s Office; fully staffed Secretariat since January 2003. - NMSF launched 10 May 2003 to guide multi‑sectoral response; aligned with MDGs, UNGASS, Vision 2025, PRS. - National response: emphasis on prevention (protect the 85–90% HIV free population), workplace interventions, mainstreaming HIV/AIDS into MDAs’ MTEF, district programs and District AIDS Committees. - Partner funding and initiatives: - Global Fund grant signed 3 July 2003: USD 5.4 million for one year (scaling up district response). - World Bank TMAP signed 27 August 2003: USD 65 million (Mainland) and USD 5 million (Zanzibar) for five years. - Rapid Funding Envelope mobilized over USD 2.5 million. - Care and treatment program: - Draft Care and Treatment Program aims to provide care/treatment to about 400,000 people in five years at estimated cost of about US$535 million; policy, financial and human resource implications being addressed. ### Human capital, public service reform, and gender - Human Capital Development priorities: leadership, meritocracy, ethical conduct restoration, gender equality, pay reform. - Legal/institutional reform: Public Service Act No. 8 of 2002 enacted. - Performance management systems established in 16 ministries/departments. - Executive agencies: 19 established to improve service delivery. - Gender in public service senior levels: - Permanent Secretaries: 24% - Directors: 26% - Assistant Directors: 24% - Monitoring: public service and local government reform indicators developed and to be reported in PRS monitoring framework. ### Environment — integration, institutions, indicators, planned actions - Environment identified as PRS priority cross‑cutting issue linked to livelihoods, health and vulnerability. - Institutional/legal steps: - Cabinet approved new institutional framework December 2002. - First draft single environmental framework law prepared for consultation December 2003. - Program to Integrate Environment into PRS launched 26 September 2003; outputs: knowledge on poverty‑environment linkages, environment data use in PMS, capacity building. - Environment Working Group established; first PER of environment initiated. - Planned actions: complete poverty‑environment indicators study; finalize environmental framework law for Parliament; capacity building; integrate environment into PRS review and sector PERs. ### Governance, legal and judicial system — reforms and costing - Legal Sector Reform Program and Medium Term Strategy/Action Plan 2000-2005 reviewed March 2003. - Recruitment in FY2002/03: 2 Judges of Court of Appeal; 6 High Court Judges; 7 Resident Magistrates; 84 Primary Court Magistrates; 36 State Attorneys. - Alternative Dispute Resolution (ADR) extended to all Resident Magistrates and District Courts (April 2002) and reduced backlog. - Human Rights and Good Governance Commission established March 2002. - Costing of interventions (Table 13, TShs. Million, 2003/04 totals): - TOTAL Basket Fund: VOTE 40: 11,042.2; VOTE 41: 7,742.56; VOTE 59: 108.42; TOTAL: 18,893.18 - Reducing backlog of pending cases TOTAL: 6,705.94 (GoT funded across votes) - Training TOTAL: 1,765.45 (GoT/QST) - Legal Sector Reform Program TOTAL: 2,841.22 (GoT) - Challenges: formulate Legal Sector Policy; mainstream gender and HIV/AIDS in legal sector policy/plans/budgets; address new legal issues from e‑commerce and globalization. ### Budget framework for poverty reduction (2003/04–2006/07) — macro targets and resource envelope - Medium Term macro policy targets: - Attain real GDP growth of 6.3% in 2004, thereafter up to 7% by 2006. - Reduce inflation to 4.0% by end‑2004; level off at 4% during 2004/05–2006/07. - Domestic revenue expected to reach 13.3% of GDP in 2003/04. - Maintain official foreign reserves at not less than six months of imports. - Freely floating exchange rate with limited interventions. - Revenue measures: review EPZ and Income Tax legislation; review exemptions; improve tax administration via TRA corporate plan and Large Taxpayers Department. - Budget frame (Table 18(a) selected, million TShs): - TOTAL RESOURCES: 2,607,205; 3,328,237; 3,344,372; 3,308,546 - Domestic revenue: 1,393,026; 1,588,392; 1,766,453; 1,988,546 - TOTAL EXPENDITURE: 2,607,205; 3,328,237; 3,344,372; 3,308,546 - Recurrent Expenditure: 1,799,765; 2,081,981; 2,189,655; 2,287,963 - DEVELOPMENT EXPENDITURE: 807,440; 1,246,256; 1,154,717; 1,020,583 - Budget frame (Table 18(b) selected, % of GDP): - TOTAL RESOURCES: 24.9%; 28.7%; 26.1%; 23.2% - Domestic revenue: 13.2%; 13.7%; 13.8%; 14.0% - DEVELOPMENT EXPENDITURE: 7.7%; 10.8%; 9.0%; 7.2% ### Public expenditure management and IFMS rollout - Strengthen expenditure management, accountability and procurement oversight. - Amend Public Procurement Act to separate regulatory from supervisory functions; strengthen implementers’ capacity. - Continue improvement of Public Finance Act 2001 regulations and roll out IFMS to Offices of Regional Administrative Secretaries and National Defence Forces. ### Poverty Monitoring and Evaluation — PMMP operationalization and pooled fund - Four Technical Working Groups: Census & Survey; Research & Analysis; Routine Data System; Dissemination, Sensitization & Advocacy. - Major activities: Second PRS Progress Report (2001/02); PHDR 2002; dissemination of HBS2000/01 and ILFS 2002/01; PPA 2002. - Pooled Fund for PMS: - Tsh 408,390,000 deposited end‑December 2002 by the Danish Embassy. - MoU between GOT and Development Partners concerning pooled fund signed March 2003. - Financial procedures for use finalized in 2003; TWGs and Secretariat opened Bank Special accounts. ### Challenges encountered and planned actions (selected) - PMS and TWG activities: some activities delayed due to irregular disbursement and fund shortages; need open assessment of operational weaknesses. - Macroeconomic, governance and private sector objectives and planned actions include: - Attain real growth of 6.3% in 2004; reduce inflation to about 4.0% by 2004; increase revenue efforts to 13.2% of GDP in 2004/05. - Continue public sector reforms, revenue mobilization, decentralization, judicial strengthening, financial management, and fight corruption. - Sectoral planned actions (selected): - Water: increase rural coverage from 53% (2003) to 60% (2006); rehabilitate/expand 794 rural schemes by 2006; ensure district town water boards in all district HQs by 2006. - Health: operationalize Health Sector Strategic Plan 2003‑2008; develop new resource allocation formula for local government health grant. - Education: construct 14,203 classrooms; enroll 1,640,969 school‑age children; recruit 10,563 new teachers; maintain USD 10 capitation grant per pupil. - Roads: national rollout of DROMAS and RMMS; maintain trunk, regional, district and feeder networks; advocate labor‑based technology. *Italic source attribution line* ### 1.1 Introduction ................................................................................................ ### _cr04282 - 1.1 Introduction ................................................................................................. ### Introduction: purpose, scope, and main messages - This is the third PRS Progress Report (July 2002-June 2003) closing the three-year implementation cycle of the first PRSP (formulated in 2000) and providing a bridge to the PRSP II review process. - The PRS review process was launched during the Poverty Policy Week in October 2003 and follows the “Guide for the Poverty Reduction Strategy Review.” - Successes recorded during the first PRSP cycle include macroeconomic performance improvements and reforms in financial sector, public service, and local government, and efforts to improve delivery of social services (education, health, water). - Remaining challenges: - Insufficient translation of macro-level achievements to micro-level poverty reduction — need for closer analytical work on growth-poverty linkages and how growth could better benefit the poor. - Need for greater attention to quality and equity in social service delivery, combating HIV/AIDS, and commitments to governance. - Weaknesses in the reporting quality of progress on both outcome and impact indicators across PRS sectors and thematic areas. - Poverty Monitoring System (PMS) capacity constraints, duplication of activities, and lack of convergence point risk raising transaction costs and stretching capacity. - Government commitments and planned actions: - Strengthen reporting capacity of sectors and thematic areas during the PRS review and next PRS cycle. - Strengthen capacity of the PRS Technical Committee and Secretariat and harmonize/synchronize reporting instruments (PHDR, PER, sector reviews). - Address PMS capacity concerns and harmonization to support PRS implementation and PRS review management. ### PRS Review: objectives, scope, and process - Overall purpose: update the current PRS to make it more comprehensive and pro-poor, broaden and deepen interventions to reduce poverty, and raise awareness on PRS and MDGs. - Strategic focus: prioritize issues for the review rather than attempting to cover everything. - Specific intentions for the review: - Be set in the context of long-term strategies (e.g. NPES and Vision 2025); PRS seen as means to achieve long-term goals and MDGs. - Use existing and recent data and analyses, including the three PRS progress reports, PPA, PER studies and reports, PHDR, Poverty Week Reports, Labor Force and Child Labor Survey, HBS 2000/01 and Census findings, Agriculture Survey, Policy and Service Satisfaction Survey (PSSS), and other reports. - Identify knowledge gaps and commission a few critical new studies (e.g. growth and trade, growth and employment (jobs) creation, raising returns to smallholder agriculture, examining macro-meso-micro linkages, integration of cross-cutting issues - HIV/AIDS, gender, environment). - Scale up ownership and awareness of PRS within and across government; strengthen government leadership and stakeholder participation with emphasis on community participation in PRS formulation, implementation, and monitoring. - Improve harmonization of key processes around PRS, PMS, PER, and budgeting cycles to ensure effective utilization of government resources in line with poverty reduction efforts. - Review process and timeline (as described): - Consultative meeting of stakeholders held in January 2004 in Dar es Salaam to clarify PRS Review issues and launch country-wide consultations. - Stakeholders included priority sector and cross-cutting ministries, government departments, and civil society. - Government and development partners contributed financial resources to support consultations; reports are being analyzed for PRS incorporation. - Expected drafting schedule described: - Work on first draft of the PRS expected to start in April (2004). - Further rounds of consultation in June (first draft) and September (second draft). - Poverty Policy Week scheduled for October (2004). - Finalization and publication activities scheduled between October and December 2004. - Details on the PRS review available through http://www.tzonline and http://www.povertymonitoring.go.tz. ### II. The status of poverty — framing of the chapter - Chapter builds on the 2001/02 Progress Report Status chapter, adds new data where available, explains trends in selected indicators, assesses likelihood of meeting targets, highlights strategic policy direction and prospects for monitoring poverty reduction. - In-depth poverty analysis is contained in PHDR 2003. - Chapter structure: - Section 1: income poverty including GDP growth, agriculture and employment. - Section 2: non-income poverty dimensions. - Section 3: governance and related gender indicators. - Section 4: medium-term prospects for improving poverty monitoring. ### 2.1 Income poverty: growth, employment and roads — key findings and indicators - PRS premise: sustained economic growth is a precondition for poverty reduction, grounded in sound macroeconomic management, increased investment, and productivity improvements; priority sectors include agriculture and road network improvements. - Indicator revisions (2002) and status (as presented in Table.1): - "% of the population below the basic needs poverty line" - Baseline Estimate Year: 2000-01[1] - Baseline: 36 - Actual 2003*: 30 - Targets 2010: 17.8 - "% of the population below the food poverty line" - Baseline Estimate Year: 2000-01[1] - Baseline: 18.7 - Actual 2003*: - - Targets 2010: 9.3 - (Table shows an intermediate value "16" under Actual 2003 column in the layout; source note: For actual 2003, most socio-economic indicators have not been worked out.) - "GDP growth rate (%)" - Baseline Estimate Year: 2000[1] - Baseline: 4.9 - Actual 2003*: 5.5 - Targets 2010: 6.3 - "Agricultural growth rate (%)" - Baseline Estimate Year: 2000[1] - Baseline: 3.4 - Actual 2003*: 3.3 - Targets 2010: 5 - "Food price inflation in urban areas (%)" - Baseline Estimate Year: 2000[1] - Baseline: 6.8 - "% of working age population not currently employed" - Baseline Estimate Year: 2000-01[1] - Baseline: 5 - "% of 15-24 years old not currently employed in urban areas" - Baseline Estimate Year: 2000-01[1] - Baseline: 28 - Notes on data availability: - For actual 2003, most socio-economic indicators have not been worked out; information is obtained from HBS, latest being 2000/01 HBS. - Other indicators to be considered in future reports: kilometers of roads under periodic/routine maintenance; percentage of roads only seasonally accessible; percentage of working age population not currently employed; percentage of 15-24 years old not currently employed in urban areas; investment and business climate indicators. - Trends and data limitations: - No information on household income poverty trends since 2000; the Household Budget Survey 2000/01 provides current information on trends between 1991/92 and 2000/01 showing very limited declines in income poverty levels over the 1990s. - Household consumption estimates are not produced annually. - Subsequent reports will include analyses from upcoming surveys and consider private sector contributions to social sectors. - Economic growth performance: - Population growth rate: 2.9% for 1988-2002. - GDP growth: 6.2% in 2002 (surpassing PRSP target of 6.0%); provisional 2003 estimate 5.5%. - Government actions to broaden benefits of growth: broaden sources of growth; expedite agricultural sector and rural development programs; facilitate private investment; promote microfinancing and SMEs; develop infrastructure supporting agriculture. - Agriculture and food security: - PRS agriculture growth target of 5% achieved in 2001 and 2002, largely due to good weather conditions. - Agricultural growth rate for 2003 provisionally set at 3.3% due to poor rains. - Forthcoming agricultural survey expected to provide 2003 baseline data to reduce data limitations on production, credit access, market access, and extension services. - Employment and unemployment: - ILFS 2000/01 shows overall unemployment increased substantially and is higher among women than men in urban areas; unemployment particularly high among young people. - Integrated Labor Force and Child Labor surveys, 2000/01 (launched in April 2003) findings: - 39.6% of children aged 5 to 17 years old are economically active. - 21.3% of children aged 5 to 17 years old are child laborers working more than 4 hours a day (often in worst forms of child labor). - Government measures to address employment creation: private sector development policies, SMEs support, agricultural and rural development, microfinancing, EPZs, productivity enhancement measures (job/business management skills, flexible loans, market support for poor women and families). - Measures to curb child labour include the “Time Bound Programme on Worst Forms of Child Labour” coordinated by the Ministry of Labour, Youth Development and Sports. - Roads: - PRS envisaged rehabilitation of 4,500 km of rural roads in twelve of the poorest regions (statement starts but detailed completion/actuals not provided in the available text). *Note: For actual 2003, most socio-economic indicators in this section have not been worked out; information is obtained from HBS and the latest is the 2000/01 HBS.* *Source: IMF PDF chapter _cr04282 - 1.1 Introduction (PRS Progress Report July 2002–June 2003).* ### 2003. It also aimed at undertaking routine and periodic maintenance on all rural roads, with a focus on ### _cr04282 - 2003. It also aimed at undertaking routine and periodic maintenance on all rural roads, with a focus on ### Rural roads and community involvement - Only 51% of the planned rural roads had routine spot improvement and periodic maintenance. - The condition of most roads is classed “poor”. - For the roads, more effective coordination machinery between the central and local governments in the maintenance of the road stock will be developed. - The coordination machinery will clearly assign responsibilities. - The capacity of Government and relevant NGOs at national and sub-national levels, both human and resources, will be strengthened to meet the challenges of efficiently implementing the “Time Bound Program on the Worst Forms of Child Labor.” ### Challenges and strategic policy direction (agriculture, regional inequality, monitoring) - Overriding concern: ensure attainment of sustained high economic growth and ensuring such growth benefits the poor particularly in the rural areas. - Constraints facing agriculture require expeditious actions with regard to financing mechanisms, investment and provision of support services. - Regional diversity and inequality will be addressed through appropriate budgetary allocation mechanisms as well as provision of enabling environment for domestic and foreign investment. - The forthcoming agriculture survey offers an opportunity to revisit and establish concrete indicators for monitoring agriculture and rural development. - More concrete approach of measuring will be designed to capture both rural and urban dimensions. - As part of the PRS updates, attention will be paid to the income and employment impacts of agriculture, with increasing returns to agriculture at the center. ### Education — achievements and indicators - Enrolment grew by 50 % from 4.4 million in 2000 to 6.6 million in 2003. - Both net and gross enrolments have increased by about 30%. - Increase attributed to the abolition of UPE levy and other mandatory contributions. - 2003 PRS and PEDP targets for GER and NER have been surpassed, but concerns remain about gender parity and over-age girls. - Vast disparities in enrolment rates across regions. - Table 2: Education Indicators, Base line and Targets - Primary net enrolment ratio (%) — 59 2000 [1] — Targets: 90 100 - Primary gross enrolment ratio (%) — 78 2000 [1] — Targets: 100 - Ratio of girls/boys in primary — 0.98 2000 [1] — Targets: 1.00 - Ratio of girls/boys in secondary — 0.85 2000 [1] — Targets: 0.90 - % of cohort completing std 7 — 70 2000 [1] - Primary dropout rate (%) — 6 2000 [1] — Targets: 3 - % students passing PSLE — 22 2000 [1] — Targets: 50 - Transition rate std 7 to form 1 (%) — 16 2000 [1] — Targets: 28 - Literacy rate of pop aged 15+ — 71 2000-01 [2] — Targets: 100 - Literacy rate of pop aged 15-24 — 82 2000-01 [2] - Many out-of-school children were registered for complementary basic education programs in 2002 but actual enrolment in non-formal education is still low. - Government implementing new strategy for adult and non-formal education beginning 2003/04. - Pass rates in PSLE peaked at 29% in 2001; PRS target of a 50% PSLE pass rate by 2005 seems unlikely. - Transition rate from primary to secondary increased from 16% during the late 1990s to about 20%. - Overall gender gap in secondary enrolment remains large; poorer performance of girls in PSLE is a factor. - Challenges and policy direction (education) - Focus on improving infrastructure and quality in teaching. - Provision of pedagogical inputs, and incentives. - Supporting vulnerable children. - Reviewing curriculum to provide knowledge and skills useful to graduates in the labor market. - Provision of non-formal education for older out-of-school children and illiterate adults. - Continued expansion of secondary schooling, with enhanced government-private sector partnership. ### Survival, Nutrition and Health — indicators and assessment - Maternal mortality ratio removed from PRS indicator list and replaced by births attended by skilled health worker due to lack of data. - General assessment based on demographic and health surveys of the 1990s and sentinel surveillance sites. - Table 3: Health Outcome and Nutrition Indicators, Base line and Targets - Total fertility rate — 5.6 1997[1] - Infant mortality rate — 99 1997 [1] — Targets: 85 50 20 - Ratio of the IMR of the poorest quintile to the IMR of the richest — 1.25 1999[1] - Under-five mortality rate (MDG) — 147 1997[1] — Targets: 127 79 - HIV prevalence in age group 15-24 (%) — Male: 8 Fem: 13 2000[2] - Life expectancy at birth — 52 1988[3] — Targets: 52 - Nutrition in the under fives: - Stunting (moderate-severe, %) — 44 1999[1] — Targets: 20 - Wasting (moderate-severe, %) — 5 1999[1] — Targets: 2 - Under-weight (mod.-severe,%) — 29 1999[1] - % change in mortality attributable to malaria in under-fives – to be added in later reports / analyses - Infant and child mortality: no significant changes in infant mortality and prevalence of fever in children under five during the 1990s; malaria remains an important cause of child deaths with site differences. - HIV and AIDS: blood donor data show steady increases in HIV prevalence since 1996; prevalence generally higher in women than men and the gap has increased. - Prevalence in blood donors replaced prevalence in antenatal clinic attendees as indicator because of weakness in ANC sentinel surveillance. - National HIV/AIDS survey being conducted in 2003 will provide a baseline. - Life expectancy: 52 years based on 1988 census; expected to be lower now due to HIV. - Nutrition: little improvement in under-five nutrition; worse in rural areas and poorest quintiles. - About 16% of children have a birth weight below 2,500 grams. ### Health service delivery indicators and trends - Number of outpatient visits increased 47% in absolute numbers between 2000 and 2002. - Proportion of births attended by skilled health worker and proportion of institutional deliveries declined over the 1990s. - Rural-urban and poorest-richest disparities in skilled attendance at birth are large and increased during the 1990s. - Continuous improvement in DPT3 and measles coverage; DTP3 reached almost 90% coverage in 2002, well above targets for 2003. - Table 4: Health Service Indicators, Base line and Targets - Annual no. of outpatient visits per capita — Gov 1.3 All 2.3 2000-01 [3] - Health facility users’ satisfaction (%) — Gov. 66 All 71 2000-01[3] - Births attended by doctor, nurse or skilled midwife (%) (MDG) — 36 1999[2] — Targets: 80 - Births taking place in govt health facility (%) — 44 1999[2] - DTP(Hb)3 immunization coverage (%) — DHS 81 MoH 76 1999[2] 1999[1] — ≈90(2002) 85 - TB treatment completion (%) — 78 2000[1] - Challenges and policy direction (health) - Analysis of 2002 Census and forthcoming DHS in 2004 will provide more robust estimates. - Improvement in routine data system to provide regular source for assessing trends in health service outputs. - Government will focus on ensuring health services are accessible to the rural population and the poor through provision of adequate facilities and quality services. - As part of PRS review, further reflection on application of user fees at primary level facilities to ensure universal access. - Government will scale up efforts in prioritizing measures to reduce transmission of HIV and its impact. ### Water and sanitation - PRS priority: increasing access to clean and safe drinking water for the rural population. - Target: improve coverage to 55% of rural inhabitants by 2003. - Noticeable improvement in rural coverage during 1990s, but rate of improvement unlikely to reach the 2003 target. - Time to collect water has increased in urban areas, implying substantial time costs on those who collect water, mostly women and children. - No specific targets for sanitation were set. - Challenges and policy direction (water & sanitation) - Greatest concern: weakness of routine data system from collection, production and analysis to dissemination at district, regional, and national levels. - Government developing a single, highly accessible monitoring system containing all necessary data for district, councils, regional secretariats and central government. ### Extreme vulnerability - Vulnerable groups recognized: AIDS sufferers, orphaned children, the disabled, the very old and refugees. - No new information on trends of the five indicators for monitoring extreme vulnerability; orphanhood increased during the 1990s. - Participatory Poverty Assessment (PPA) 2002 provided qualitative information on vulnerability dimensions. - Challenges and policy direction (extreme vulnerability) - Current indicators cover disparate areas and lack a common conceptual and policy framework. - PPA will assist in refining indicators for vulnerability and in developing additional indicators. - During PRS review, PPA will be used to concretize Government policy towards vulnerability and to develop appropriate social protection programs. ### Governance — indicators and challenges - Audit coverage increased; most local authorities audited annually since 1998. - Only 10% of councils were awarded a clean certificate, indicating weak accountability at local level. - Corruption cases lodged increased from 33 in 2000 to 129 in 2002. - Number of convictions: 6 in 2000 and 12 in 2002, attributed to long delays in processing cases. - Proportion of women among civil servants steady at 39% over past 3 years, rising to 40% in 2003. - When women teachers excluded, proportion falls to about one third. - Women’s representation in Parliament: 27% of all seats in current Parliament, up from 18% in previous Parliament. - Programs implemented: workers education, women workers rights, occupational safety and health, social dialogue and HIV/AIDS interventions; social welfare services promoted in tea plantations via renovation and creation of day care centers. - Challenges and policy direction (governance) - Increase proportion of district councils given clean auditing certificates. - Faster processing of corruption cases to retain public confidence and engagement. - More robust actions to increase women’s representation and involvement in Government and Parliament. ### Prospects of monitoring poverty reduction - Revision of poverty monitoring indicators in response to PRBS, PRSC and MDGs; indicators in the Poverty Monitoring Master Plan (PMMP) were revised and supplemented. - PMMP prioritized selection of indicators including slow moving impact indicators for balance and to monitor beyond short-term PRS perspective (e.g., MDGs). - Upcoming and ongoing data activities that will improve monitoring: - Analysis of the Population and Housing Census 2002 — preliminary tabulations of population by district produced; census will update indicators including literacy, school enrolment, child and adult mortality, fertility, source of drinking water and unemployment; enables high disaggregation. - Agriculture Survey conducted in 2003 — will provide information on agricultural production to update GDP figures and allow calculation of three agriculture indicators for the first time; will use the ‘core poverty module’. - Review and re-basing of the GDP and CPI series undertaken in 2003. - National HIV/AIDS survey being conducted during 2003/04 to provide national seroprevalence estimates linked with knowledge and behavior. - 2002/03 Tanzania Participatory Poverty Assessment finalized in 2003 provides insights into vulnerability and impoverishing processes. - Policy and Service Satisfaction Survey (PSSS) undertaken as part of civil service performance management system currently being analyzed; will give baseline on people’s knowledge of, and satisfaction with, government policies and basic services (health, education, water, roads and agriculture). *Source: IMF staff report content provided in the supplied PDF excerpt.* ### 3.1 Macroeconomic Performance ### 3.1 Macroeconomic Performance ### Macroeconomic growth and inflation - Tanzania experienced steady economic growth over the last 4-5 years. - Real GDP growth rate: - 2001: 5.7% - 2002: 6.2% - 2003*: 5.5% - Main sector growth contributions in 2002: - Agriculture: 5.0% - Mining: 15% (from 13.5% in 2001) - Wholesale and retail trade including tourism: 7% (from 6.7% in 2001) - Manufacturing: 8% (from 5% in 2001) - Real per capita GDP growth: - 2001: 2.8% - 2002: 3.4% - Inflation (annual average CPI): - End-December 2002: 4.4% - March 2003: 4.2% - Headline inflation rose to 4.6% by end-November 2003 due to adverse 2002/03 season weather and higher food prices. ### Selected macroeconomic indicators (selected entries from Table 5) - Real GDP growth rate (%) by year: 1997: 3.3; 1998: 4.0; 1999: 4.7; 2000: 4.9; 2001: 5.7; 2002: 6.2; 2003*: 5.5 - Real per capita income (US$): 1997: 240.2; 1998: 256.9; 1999: 259.4; 2000: 261.2; 2001: 264.1; 2002: 265.3; 2003*: ... - Real growth of agriculture (%): 1997: 2.4; 1998: 1.9; 1999: 4.1; 2000: 3.4; 2001: 5.5; 2002: 5.0; 2003*: 3.5 - Real growth of manufacturing (%): 1997: 5; 1998: 8; 1999: 3.6; 2000: 4.8; 2001: 5; 2002: 8; 2003*: 8.5 - Real growth of mining and quarrying (&): 1997: 17.1; 1998: 27.4; 1999: 9.1; 2000: 13.9; 2001: 13.5; 2002: 15; 2003*: 15.1 - Inflation – annual average CPI (%): 1997: 16.1; 1998: 12.9; 1999: 7.8; 2000: 6; 2001: 5.2; 2002: 4.5; 2003*: 4.6 (November) - Current account balance (US$): 1997: -403.5; 1998: -921.3; 1999: -860.1; 2000: -469.6; 2001: -479.5; 2002: -325.4 - Merchandise exports (US$ m): 1997: 752.6; 1998: 588.5; 1999: 543.3; 2000: 663.3; 2001: 776.4; 2002: 902.5 - Export/Import ratio (goods): 1997: 65.6; 1998: 43.1; 1999: 38.1; 2000: 49.6; 2001: 52.1; 2002: 59.7 - Foreign Direct Investment (mil. US$)**: 1997: 157.8; 1998: 172.2; 1999: 516.7; 2000: 463.4; 2001: 327.4; 2002: 240.4 - Foreign exchange reserves (months of imports): 1997: 3.8; 1998: 3; 1999: 4.1; 2000: 5.6; 2001: 6.3; 2002: 8.9 - Exchange rate (annual average, TShs/US$1): 1997: 612.1; 1998: 664.7; 1999: 744.8; 2000: 808.4; 2001: 876.4; 2002: 978.9 - Investment/GDP (%): 1997: 14.9; 1998: 15; 1999: 15.2; 2000: 16; 2001: 17.2 - External debt service/exports (%): 1997: 36.9; 1998: 36.4; 1999: 27.2; 2000: 28.6; 2001: 21.6 ### Fiscal and monetary indicators - Fiscal years and fiscal aggregates: - Domestic revenue (excl. grants)/GDP (%): FY97/98: 12.6; FY98/99: 12.5; FY99/00: 11.3; FY00/01: 12.2; FY01/02: 12.1; FY02/03: 12.8; FY03/04: 13.3 - Total Govt expenditure/GDP at market prices: FY97/98: 14.8; FY98/99: 14.8; FY99/00: 17.1; FY00/01: 16.8; FY01/02: 17.6; FY02/03: 20.8; FY03/04: 24.9 - Fiscal deficit before grants/GDP (%): FY97/98: -2.3; FY98/99: -2.3; FY99/00: -5.8; FY00/01: -4.5; FY01/02: -6.6; FY02/03: -4.1 - Money and interest rates: - Growth of money supply (M2) (%): 1997: 11; 1998: 11.1; 1999: 15; 2000: 12.5; 2001: 12.3; 2002: 13 - Average deposit interest rate (%): 1997: 10; 1998: 7.9; 1999: 7.1; 2000: 4.2; 2001: 3.5; 2002: 3.1 - Average lending interest rate: 1997: 24; 1998: 24.5; 1999: 22.1; 2000: 19.6; 2001: 16.4; 2002: 15.7 ### Revenue and public spending (2002/03) - Government revenue collection has improved, reaching Tshs. 100 billion per month. - FY2002/03 totals: - Total revenue: Tshs. 1,217.5 billion - Tax revenue: Tshs. 1,105.7 billion (2002/03) vs Tshs. 938.5 billion (2001/02) - Non-tax revenue: Tshs. 111.8 billion (2002/03) - Improved collections attributed to income tax, customs duty and VAT on domestic goods and services. - Government spending guided by PRS priorities; trends in recurrent and development expenditures presented (see tables). ### Priority sector expenditures (Table 6 — selected items, in billions TShs) - Total Priority Sectors: - 2001/02 Actual: 753.8 - 2002/03 Actual: 953.7 - 2003/04 Budget: 1,164.0 - 2004/05 Proj.: 1,443.9 - Total Priority Items: - 2001/02 Actual: 261.9 - 2002/03 Actual: 335.9 - 2003/04 Budget: 606.6 - 2004/05 Proj.: 757.5 - Selected sector allocations (2001/02 Actual; 2002/03 Actual; 2003/04 Budget; 2004/05 Proj.): - Education: 344.9; 436.2; 502.3; 564.7 - Basic Education: 116.6; 171.3; 371.3; 417.4 - Health: 142.1; 186.7; 214.3; 284.9 - Primary Health: 101.0; 113.3; 124.4; 165.4 - Water: 32.5; 51.9; 64.4; 87.7 - Roads: 179.6; 190.2; 236.0; 289.5 - Rural Roads: 21.5; 22.8; 57.0; 69.9 - Judiciary: 18.8; 23.2; 32.7; 46.0 - Agriculture and Food Security: 31.9; 60.2; 93.1; 112.3 - TACAIDS: 4.0; 5.3; 21.2; 58.7 *Source: Ministry of Finance --- ### Structural reforms and private sector development - Privatization progress by June 2002: - 259 public enterprise companies (two thirds of all public enterprises) and 210 non-core assets placed with the private sector. - Of 259 privatized enterprises, 135 have been acquired 100% by Tanzanian investors. - Of 210 non-core assets divested, Tanzanians acquired 180 through open competitive tender. - Parastatal Sector Reform Program (PSRP) focus: - Privatization of large utilities and banks including TANESCO, TRC, THA, and NMB. - Divestiture concluded: Air Tanzania Corporation (ATC) in December 2002 and Dar es Salaam Water and Sewerage Authority (DAWASA) in February 2003. - TANESCO unbundling into autonomous commercial entities ongoing; private management company took over in April 2002 and has begun to improve TANESCO finances. ### Employment creation and skills - Structural reforms have had short-term job-loss implications, particularly in urban centers. - Private sector development expected to create sustainable employment in medium to long term. - Tanzania Investment Centre (TIC) approvals in 2002: - 311 private sector investment projects in manufacturing worth TShs 1,024,536 million. - Potential employment from these projects: 33,132 people. - Time Bound program (2004-05) budget and targets: - Budget: US$ 1,230,000 (2004-05) - Targets: skill training for 2,000 families and 7,500 youth in worst forms of child labor or at risk. - Government initiatives: - Revisions of employment laws, labor relations, dispute prevention and settlement, regulatory framework. - Established a Labor Exchange Center (LEC). - Implemented demand-driven skills training to promote self-employment. ### Government–private sector consultation and institutional support - Tanzania National Business Council (TNBC) established to enhance private sector participation. - Issues acted on through dialogue include: - Establishment of the Export Credit Guarantee Scheme. - Comprehensive review of micro credit schemes. - Involving private sector in EAC and SADC trade agreement negotiations. - Abolition of nuisance taxes. - Processing stakeholder views for possible revision of the Land Act of 1999 (including collateralization). - Business Environment Strengthening in Tanzania (BEST) program approved to improve policy, administrative, legal, regulatory and judicial environment for private sector development. - Financial sector actions include improvements in payments systems, stronger insurance supervisory regime, and support for institutions such as National Insurance Corporation, Tanzania Postal Bank, Tanzania Investment Bank. ### 2003/04 Budget: poverty orientation and sectoral measures (selected highlights) - Health: - Increased resource allocation to the sector. - Inclusion of ambulances in item 5 to The Third Schedule of the VAT Act. - Water: - Introduction of Customs duty exemption on water drilling machines and equipment. - Increased resource allocation to the sector. - Education: - Additional resources for the education fund to support children with academic ability whose parents cannot pay school fees. - Increased resource allocation to the sector. - Roads, Lands, HIV/AIDS, Legal and Judicial System: - Increased resource allocation to respective sectors; earmarking/advertising land for commercial farming to attract investors. - Agriculture sector measures: - Simplified and transparent procedures for business activities in the districts. - Reduction of withholding tax on sale of fish from 2% to 1%. - Increased resource allocation to the sector. - Shifted milk packaging from Second Schedule to Third Schedule of the VAT Act of 1997. - Improve access to credit via export credit guarantee scheme and micro-credit guarantees. - Provision of modern superior seeds and subsidized fertilizers for Rukwa, Mbeya, Iringa and Ruvuma regions. - Plans to start a bank for large and medium scale fishermen, livestock keepers and farmers. - Introduced a fund for livestock development; increased allocation to Export Credit Guarantee Scheme. - Structural reform and social mitigation: - Privatization Trust established to enable low-income participation in privatization. - Shs 4,000 million set aside for payment of terminal benefits to retrenched employees in key parastatals and District Councils. - Private sector and employment support: - Funds allocated to guarantee loans for SMEs in 2003/04 budget. - Review of Income Tax Act No.33 of 1973 to update legal framework. - Funds allocated for special projects focusing on economic growth, employment creation, and exports. - Governance and public administration: - Abolish a number of levies and fees charged by Local Governments, retain few beneficial ones. - Special allocation for salary reviews, including Government institutions. - From January 2004, start paying salaries to Village Government and Ward officials. - Shs 5,000 million set aside to start construction of the new National Assembly Hall. - Increased allocation to security agencies. - Raised the minimum pension entitlement to Shs 20,000 per month. - Direct channeling of funds to District Commissioners' districts rather than via Regional Administrative Secretaries. ### Globalization and poverty: strategies and measures - Measures to position Tanzania to benefit from globalization include: - Diversification of exports and processing of agricultural produce to add value. - Initiatives to establish Export Processing Zones (EPZ). - Developing strong financial systems, financial markets and sound economic policies; enhancing SME participation (SME Development Policy approved in 2003). - Sound, consistent and stable investment policies to encourage development, technology and export sector. - Reviewing aid relationships via Tanzania Assistance Strategy (TAS) to create local ownership. - Promoting intra-regional trade and regional cooperation. - Increased investment in education, research, health and IT. - Enhancement of private sector development through BEST. - Participation in the “Development Round of Trade Talks” to urge removal of trade barriers under the WTO Doha Development Agenda. - Push for common positions among developing countries for lower trade barriers between themselves. - Creating community awareness to address globalization issues holistically. ### Public debt developments and management - National Debt Strategy launched in August 2002 to strengthen external and domestic debt management. - Implemented measures: - Amendment of the Loan, Securities and Grants Act of 1974 to strengthen legal and regulatory framework. - Amendment vests powers of debt contraction and management with the Minister for Finance based upon advice of the National Debt Management Committee. - Debt relief and domestic debt instruments: - Debt cancellation under enhanced HIPC initiative by all Paris Club members except Brazil and Japan under Paris Club VII agreements; Government seeks further cancellation from Brazil, Japan, Non-Paris Club and commercial creditors on similar terms. - October 2002: introduction of a 10-year Treasury bond in addition to existing 2-year and 5-year Treasury bonds. - Greater flexibility in restructuring and extending domestic debt maturities; NDS implementation expected to reinforce these initiatives. --- ### 4.1 Primary Education ### Overview and program context - Government, with development partner support, implemented the second year of the five-year Primary Education Development Program (PEDP) in 2002/03, part of the Education Sector Development Program (ESDP). - PEDP aims: sustain PRS targets for 2003 by expanding enrolment, improving quality, capacity building, improving management and strengthening institutional arrangements. ### Progress and achievements (selected) - Enrolment: - 2003 enrolment: 1,475,889 pupils against a target of 1,600,000. - Standard One enrolment for 2003 is above the PRS target of 85% of school age children. - School mapping: - Coverage expanded from 82 districts in June 2002 to 98 by June 2003; 53 districts micro-planned; additional 16 districts to be micro-planned by December 2003. - Enrolment ratios: - Gross Enrolment Ratio (GER): - 2002: 100.4% - 2003: 105.3% - Net Enrolment Ratio (NER) (Age 7–13): - 2002: 80.7% - 2003: 88.5% (PRS target of 77% by 2003 surpassed) - Transition and dropout: - Transition rate from primary to secondary: 2001: 21%; 2002: 21.7% (increase attributed to number of secondary schools rising from 937 in 2001 to 1,024 in 2002). - Dropout rate in primary schools: 2003: 4.7%; 2000: 6.6%; target was 3.0% by 2003 (not met). - Teacher recruitment: - By May (year partially provided by source), government recruited 10,719 new Grade “A” teachers out of the targeted 11,651. ### Regional GER and NER snapshots (selected table highlights) - 2002 Grand Total: - GER (Total): 98.6 - NER (Total): 80.7 - 2003 Grand Total: - GER (Total): 105.3 - NER (Total): 88.5 - Example regional values (2003 Total GER / Total NER where provided): - Arusha: Total GER 103.4; Total NER 85.6 - Dar es Salaam: Total GER 110.1; Total NER 96.4 - Mwanza: Total GER 116.9; Total NER 97.7 - Mara: Total GER 120.4; Total NER 103.1 *projections where indicated in original tables *Italic source attribution line* ### 2003. This is 92% of the target. The failure to employ in some districts is a result of unattractive ### _cr04282 - 2003 ### Education: Primary and Teacher Training - Pre-service teacher training enrolment expanded from 9,728 in 2002 to 15,285 in 2003. - In-service training: - 2002: 149 in-service grade A teachers admitted (86 male and 63 female). - 2003: 484 teachers enrolled (234 male and 250 female). - Training of 763 facilitators to upgrade 50,000 grades “C/B” teachers to grade A was conducted. - INSET integration: In-service and pre-service teacher professional development programs have been developed to integrate In-Service Training Program (INSET) into PEDP to enhance quality of the learning environment. - Standard 7 pass rates: - 24.9% (2001) - 27.1% (2002) - Target: attain pass rate of 50% by year 2005 through recruitment of qualified teachers, improvement of school inspection service and provision of quality teaching and learning materials. - Gender parity: - Primary Schools gender enrolment parity ratio: 1:1 in 2002 and maintained in 2003. - Secondary schools gender parity ratio increased from 1:0.87 (2002) to 1:0.93 (2003). - Capitation grant implementation: - National application of USD 10 (Tshs 10,000/=) capitation grant per pupil. - Tshs 32.19 million was disbursed to councils for 6,536,798 pupils in 2002/03. This is equivalent to USD 4.9 per pupil. - Inspectorate inspections (2002) — targets met or exceeded; selected figures from Table 9: - Pre-primary Schools: Target 2,879; Inspected 3,918; 136.1% - Primary: Target 6,402; Inspected 7,043; 110.0% - Special Education Schools: Target 118; Inspected 121; 102.5% - Adult Education Center: Target 6,402; Inspected 6,726; 105.1% - Secondary: Target 506; Inspected 529; 104.5% - Teachers Training Colleges: Target 42; Inspected 42; 100.0% - Source: MOEC Budget Speech (2003) - Secondary enrolment (Form I-IV) increased by 8% (2003); PRS target of 7% by 2003 reached. Lessons and Challenges (Education) - Some Councils weak in use of funds as per action plan, causing donor delays. - Some Councils do not adhere to standards for construction of classrooms and teachers’ houses nor follow criteria for management of primary schools. - Some Council Directors and District Education Officers do not inform Head Teachers and School Committees about amounts of funds released by central government, hindering oversight and community participation. Costing of interventions — Selected figures from Table 10 (in million Tshs.) - Primary Education: Capitation grant - 2002/03 Expenditure Requirements: 62,298.3 - Actual 2003/04 Budget of Tanzania: 63,342.9 - 2004/05 Projections: 67,762.8 - 2005/06 Projections: 74,212.3 and 77,102.4 (table formatting shows two figures in same row) - Investment grant/development: - 2002/03: 160,990.0 - Actual 2003/04: 62,326.2 - 2004/05: 148,253.0 - 2005/06 Projections: 181,451.4 and 199,596.5 - Recruitment of New Teachers: - 2002/03: 10,310.0 - Actual 2003/04: 8,230.7 - 2004/05: 13,700.0 - 2005/06 Projections: 13,511.4 and 14,862.5 - Secondary Education (selected): - Construction and furnishing New classrooms and laboratories: 3,300; 6,374.2; 3,937.5; 4,725.0; 5,670 - Supply of textbooks and other teaching and learning materials: 2,160.0; 5,469.0; 5,186.5; 6,223.8; 7,468.6 - Science teaching equipment for secondary schools: 190.0; 331.5; 687.6; 825.1; 990.1 - Rehabilitation of secondary school Physical facilities: 4,800.0; 1,474.6; 850.2; 1,020.2; 1,224.2 - Teachers Training: - 61,100.0; 1,685.4; 7,620.0; 69,540.0; 69,540.0 - HIV/AIDS: - 1,390.0; 587.7; 547.9; 1,520.0; 1,520.0 - TOTAL: 306,538.3; 149,822.2; 248,545.5; 353,029.2; 377,974.3 - Source: MoF and PO-PP Budget Guidelines (2003/04 – 2005/06); 2001/02 and 2002/03 Budget books --- ### Roads: Overview, Progress, and Costing Progress and Achievements - Government continues allocating Tshs. 1.84 billion monthly to improve transport link to the northwestern and southern regions. - Upgrading to bitumen standard road sections on Southern Corridor (Dar es Salaam-Lindi-Mingoyo) and Central Corridor (Dar es Salaam-Dodoma-Singida). Rehabilitation will cover a total of 468 km. A total of Tshs 25.36 billion has already been spent. - Three year Program on rehabilitation of regional roads: - Road works on 923 km in four regions (Kagera, Dodoma, Singida and Tabora) under ADB and GoT financing. - Regional network rehabilitation program involving about 320 km under OPEC and GoT financing for Lindi and Kigoma regions. - Maintenance Works: - District Roads Management System consideration for rolling out to the 92 District Councils not in pilot. - Under PORALG, 7,049 km of rural roads (51.4%) of the planned 13,727 km received routine, spot improvement and periodic maintenance. - Expenditure for the work amounts to 63.4% of the planned budget of Tshs 13,854 million. - Bridges, culverts and drifts repaired and maintained at a cost of Tshs 1,961.2 million. - Tshs 4,927 million earmarked for PORALG for rehabilitation/construction from the development budget for year 2002/2003 was not released, hampering rehabilitation of the 4,500 km originally planned. - Promotion of Labor Based Technology: - Chalinze–Melela roads rehabilitation project employs more than 700 people (mostly laborers); about 12% are women. - Makuyuni–Ngorongoro road upgrade employs about 500 people (mostly laborers); 2% are women. - Petty contracts awarded to village contractors and communities in the Southern Highland zone. Lessons learned and Challenges (Roads) - Need to enhance capacity of local government authorities to manage district, urban and feeder roads; ongoing Local Government reforms need to establish mechanisms for proper management. - URRP, 10YSRP and DROMAS planned; DROMAS needs roll out to more districts. - Financial resources insufficient; need to go beyond Road Fund Resources. - Only 17% of the District road network is in good condition (requiring recurrent maintenance); the rest are in fair and poor condition requiring development budget. - Need to establish and reinforce technical departments with required personnel, tools and equipment, and enhance accountability and transparency. Cost of Interventions — Table 11: Summary of program costing (Tsh. Million) - Road Sector total requirement and allocation: - Total Sector Requirement: 260,170; 299,274; 344,255; 395,997 (for 2002/03, 2003/04, 2004/05, 2005/06 respectively) - Allocation: 208,415; 258,655; 321,005; 369,156 - Gap: 51,755; 40,619; 23,250; 26,484 - Breakdown between Trunk and Regional Roads: - Construction (Budgeted): 133,483; 167,631; 227,856; 262,034 - Maintenance: 50,700; 45,157; 59,177; 68,014 - TOTAL: 184,183; 212,788; 287,033; 330,048 - Gap: 31,457; 24,689; 13,150; 16,341 - Rural Roads (under Regional Administration and Local Government): - Construction: 4,927; 3,945; 8,606; 9,244 - Maintenance: 19,305; 21,545; 25,366; 29,864 - TOTAL: 24,232; 25,490; 33,972; 39,108 - Gap: 20,298; 15,930; 10,100; 10,143 --- ### Water: Overview, Progress, and Financing Progress and Achievements - Rural water supply service coverage increased from 48.5% in 2000 to 53% in 2003, failing to hit the PRS target of 55% by 2003. - Urban water supply and sewerage: - Urban access to water in urban centers maintained at 73% for the second consecutive year. - Sewerage service coverage in Dar es Salaam and Mwanza and seven municipalities increased from 10% in June 2002 to 17% in June 2003. - Interventions included rehabilitation and expansion in Songea, Kigoma, Musoma, Bukoba, Sumbawanga, Shinyanga, Mtwara (11 pumping stations strengthened) and Lindi town (10 deep boreholes built for production of 4.2 million liters per day). - 80% progress in implementation of the 2nd phase of expansion of water supply systems in Tanga, Moshi and Arusha. - Installation of 2,300 water meters which increased installed meters to 50% of all customers in the 18 UWSAs. - Rural water supply (June 2002 to June 2003): - Coverage increased from 50% in June 2002 to 53% in June 2003. - Rehabilitation and expansion of 28 rural water schemes in 24 Districts and rehabilitation of 14 water pumps in 14 pumped schemes. - Completion of the Chalinze Water supply pumped scheme project covering one small town and 21 villages with 105,000 beneficiaries. - Over 90% progress in implementation of East Kilimanjaro and Hai District rural water supply projects involving construction of 8 large gravity water supply schemes for 779,958 beneficiaries in Rombo, Moshi rural and Hai districts. - Completion of impact evaluation of the Rural Water Supply Project covering 15 Districts in Iringa, Ruvuma and Mbeya Regions; the project serves 902,000 people. - Completion of impact evaluation of the HESAWA project covering 17 districts in 3 regions; the project serves 3,248,000 rural inhabitants (equivalent to 61% of the total population). - Construction of 328 water wells in rural areas and 100 water wells in selected peri-urban areas. - Adequate project design manuals prepared and disseminated to District Water Engineers. - Policy and institutional developments: - National Water Policy of 2002 launched in March 2003 emphasizing sustainable management, equitable allocation, environmental conservation, private/public partnerships, community participation, gender awareness, appropriate technologies and institutional/regulatory framework. - Government continues to sensitize communities, private sector and Local Government Authorities to participate in developing water schemes, protect water sources and enact by-laws. - Divestiture of DAWASA completed; City Water Services Ltd has taken over DAWASA to improve technical efficiency and ensure reliable services to about 3 million beneficiaries in Dar es Salaam city, Kibaha and Bagamoyo. Lessons learnt and challenges (Water) - Capacity building of village water funds management is important to enhance community ownership, meet operation and maintenance costs, and develop new sources; legal framework for Village Water Funds is being worked out. - Water users and Local Authorities need further sensitization to increase participation and reduce donor dependency. - Sector financing fragmented across projects; need for coordinated Sector wide approach in planning. - Capacity at Local Government Authorities needs strengthening through merit recruitments and training. - Water Sector PRS indicators ambitious (e.g., possibility of reaching 85% by 2010) and need review during comprehensive PRS review. - Implementation, monitoring and evaluation of sanitation activities challenged by uncoordinated obligations among MoWLD, MoH and PORALG; to be addressed through consultative PRS review. Costing of Interventions — Table 12: Financing of the water sector Program (billion Tshs) - Recurrent expenditure and projections (table formatting preserved where possible): - 2002/03 Budget; 2003/04 Budget; 2004/05 Projection; 2005/2006 Projection - Recurrent expenditure: 16.9 17.5; 28.7 29.0 (table formatting ambiguous in source) - Salaries and wages: 5.2 4.8; 8.8 9.0 - Other charges: 11.7 12.7 19.9 20.0 - Administration: 1.6 2.7 2.9 3.5 - Electricity: 7.2 2.9 9.8 8.0 - Operation and maintenance: 1.6 4.8 4.6 5.2 - Capacity building: 1.3 2.3 2.6 3.3 - Investment/Development: 41.7 46.1 89.4 97.2 - Rural water supply infrastructure: 9.3 20.3 22.2 25.2 - Urban water and sewerage: 26.2 18.5 48.5 48.5 - Water research, management, Planning and Training: 5.9; 4.4; 6.7; 10.0 - *Others: 0.3 2.9 12.0 13.5 - **Total expenditure: 58.6 63.6 118.1 126.2 - Notes from table: - “Others” means the Development budget shares going to Regions and the Local Government. This allocation has a very strong bias in financing rural water supply schemes. - Projections for 2004/2005 and 2005/2006 consider a change in sector planning through introduction of the sector SWAP that incorporates LGA’s planned sector requirements and donor commitments for rural and urban sub sectors respectively. - Sector planning: - The sector is planning the WSDS that will be in place by June 2004 to guide sector programs, implementation and financing modalities and capture aid-financed spending that is currently off-budget. *Source: Extracted from the provided IMF PDF content unit _cr04282 - 2003.* ### 4.4 Legal and Judicial System ### 4.4 Legal and Judicial System ### Program and Objectives - The Government is implementing the Legal Sector Reform Program. - The Medium Term Strategy and Action Plan 2000-2005 was reviewed in March 2003. - Objectives: enhance timely and accessible justice for all, focusing on personal safety, access to justice, overall efficiency, fairness, and transparency of the administrative system. - Government financing reflects this commitment. ### Progress and Achievements (2002/03) - Parliament moved to open the legislative process to participation by civil society organization as part of the legal reform process. - Recruitment undertaken in fiscal year 2002/03: - 2 Judges of Court of Appeal - 6 Judges of the High Court - 7 Resident Magistrates - 84 Primary Court Magistrates - 36 State Attorneys - Introduction of the Alternative Dispute Resolution (ADR) system: - Contributed to a significant reduction in the backlog of pending civil cases in the High Court and Resident Magistrate Courts. - ADR was extended to all Resident Magistrates and District Courts in April 2002. - Training conducted: - 600 Primary Court Magistrates - 300 Resident Magistrates - 34 Judges of Court of Appeal and High Court - Establishment of the Human Rights and Good Governance Commission in March 2002 (now operational). - Preparations for Tanzania Accountability, Transparency and Integrity (ATIP) being finalized to strengthen good governance. - Preliminary preparation of a comprehensive program for rehabilitation of buildings and other facilities of primary courts has started. ### Lessons Learned and Challenges - Outstanding tasks: - Formulation of the Legal Sector Policy. - Mainstreaming gender and HIV/AIDS issues in the legal sector, policy, plans and budget. - Social and institutional challenges: - Changing social cultures arising from urbanization and intensifying interaction with other cultures requiring appropriate legal frameworks. - New pluralistic democratic political environment and movement towards participatory management of legal and socioeconomic development. - Rapidly expanding and institutionally complex private sector-led market economy and globalization. - Vastly growing electronic (e)-commerce raising new legal issues including regulation, taxation, contract, liability, patent, data protection, etc. - Need to create a legal framework to cater for the needs of the National Development Vision and Long term Development Strategy (Vision 2025). ### Costing of Interventions (2003/04) - Table 13: Legal and Judicial Systems Costing of Interventions 2003/04 — TOTAL COST (IN TSHS. MILLION) - Reducing the backlog of pending cases - SOURCE OF FUNDS: GoT - VOTE 40: 4,580.7 - VOTE 41: 2,125.24 - VOTE 59: - - TOTAL: 6,705.94 - Enhancing supervision, division of work - SOURCE OF FUNDS: GoT/QST - VOTE 40: 1,717.57 - VOTE 41: 1,012.76 - VOTE 59: - - TOTAL: 2,730.33 - Updating legal framework and legal - SOURCE OF FUNDS: GoT/QST - VOTE 40: - - VOTE 41: 1,049.25 - VOTE 59: 42.34 - TOTAL: 1,091.59 - Improvement of civil registration - SOURCE OF FUNDS: GoT - VOTE 40: - - VOTE 41: 268.36 - VOTE 59: - - TOTAL: 268.36 - Training - SOURCE OF FUNDS: GoT/QST - VOTE 40: 998.64 - VOTE 41: 355.73 - VOTE 59: 66.08 - TOTAL: 1,765.45 - Improvement of accommodation - SOURCE OF FUNDS: GoT/QST - VOTE 40: 1,700.00 - VOTE 41: 65.00 - VOTE 59: - - TOTAL: 1,420.45 - Transfers - SOURCE OF FUNDS: GoT - VOTE 40: 1,613.62 - VOTE 41: 25.00 - VOTE 59: - - TOTAL: 1,638.62 - Establishment of new Divisions/ Institutions - SOURCE OF FUNDS: GoT - VOTE 40: 431.67 - VOTE 41: - - VOTE 59: - - TOTAL: 431.67 - Legal Sector Reform Program - SOURCE OF FUNDS: GoT - VOTE 40: - - VOTE 41: 2,841.22 - VOTE 59: - - TOTAL: 2,841.22 - TOTAL Basket Fund - VOTE 40: 11,042.2 - VOTE 41: 7,742.56 - VOTE 59: 108.42 - TOTAL: 18,893.18 *Source: _cr04282 - 4.4 Legal and Judicial System* ### 4.6 Agriculture ### 4.6 Agriculture ### Overview - The Agricultural Sector Development Program (ASDP) is an instrument for achieving the PRS objectives in the Sector. - Broad objective of the ASDP: create an enabling environment for improving productivity and profitability in agriculture, improve farm income and ensure household food security. - ASDP activities: - Design and strengthen a system involving districts and wards and participatory approaches in the design of District Agricultural Development Plans (DADPs). - DADPs act as focal point for identifying priority areas for poverty reduction in rural areas. - Strengthen community-based monitoring for community feedback on outcomes and impact of agricultural interventions. - Available statistics indicate yield levels for major cereals such as maize and paddy have increased due to improved adoption rates in use of better seeds, better farming practices and general increase in area under irrigation, resulting in improved household incomes and food security. ### Progress and achievements — Sector Level - Initiated detailed formulation of key ASDP sub-programs (Phase II), including issuance of guidelines for preparation of DADPs. - Local government taxes and levies were harmonized; non-core (nuisance) taxes that negatively impact agricultural growth have been eliminated. - Private Agribusiness Sector Support (PASS) implemented: - 77 gender balanced farmers groups organized; they received assistance on contract farming, input supply, producer-price negotiations and advisory services. - 78 businesses received financial linkage. - 75 credit guarantees were issued for agriculture investments. - A review of the role and funding arrangements of Crop Boards is underway in collaboration with the Ministry of Cooperatives and Marketing. ### Progress and achievements — Crop Sub-Sector - Irrigation development: - For 2002/03 land under irrigation farming increased by 8,995ha, totaling 200,895ha compared to 191,000ha under irrigation in 2001/2002. - Advisory, Research, Training and Regulatory Services Support — Extension services and Training: - 6,688 farmers and 1,130 village extension staff trained on participatory methodologies in 2002/03. - 104 radio programs broadcast regarding crop production. - 6 leaflets on agricultural technologies distributed to farmers. - 6,031 farmers (2,524 female and 3,507 male) received formal training in Oxen plough farming, crop processing and sugar cane production. - Number of farmers trained increased by 59% compared to 3,803 farmers trained in 2001/02. - 1,079 farmers (491 women) attended a special course on irrigation for paddy production in KATC Moshi. - Crop research services: - Nine (9) new breeder seeds for paddy, sorghum, beans, pigeon peas, soya, wheat, wheat potatoes and UK 91 generated from research institutions. - Improved Seeds: - For 2002/03 actual availability of improved seeds was 10,426 tons, equivalent to 35% of total requirement. - Seed production contributors to total requirement: government seed farms 1%, smallholder farms 2%, private seed production companies 32%. - Agricultural Equipment (2002/03): - 274 big tractors, 75 power tillers, 19,319 oxen-ploughs and 2,107,550 hand hoes imported. - 83 hand small tractors distributed to farmers. - Oxenization centers rehabilitated in 16 regions; about 520 extension staff and 8,717 farmers trained. - Crop pests: - It is estimated 30% of crops in the country is lost annually due to pests and disease outbreaks. - Outbreaks experienced include: quelea quelea and parrots, locusts, army warms, rodents and various plant diseases. - Outbreaks were contained in 19 out of 21 regions in Tanzania Mainland. - The ministry and stakeholders saved 90% of crops and grasslands invaded by armyworms. - Inputs credit: - The Inputs Trust Fund started issuing fresh loans for importers and input distributors through banking arrangement system in collaboration with district councils. - Input Trust Fund signed contracts with Exim Bank and Kilimanjaro Cooperative Bank through which loan amounting to Tshs 2.05 billion have been issued for various agricultural inputs. ### Progress and achievements — Livestock Sub-sector - Animal Health Services: - 39 zoo sanitary checkpoints equipped; 399 zoo sanitary inspectors trained. - National Artificial Insemination Center (NAIC) strengthened; 41,250 doses of semen produced (9% increase compared to 38,560 doses of 2001/02). - Newcastle disease thermo-stable vaccines: 6.2 million chickens vaccinated in 145 villages. - Six (6) Veterinary Investigation Centers (VICs) continue disease investigations and surveillance; 4 VICs (Mpwapwa, Mtwara, Tabora and Arusha) rehabilitated and equipped. - 60,000 doses of rabies vaccines procured and distributed to 30 districts which reported rabies. - 3,000 leaflets on rabies and 15,000 leaflets on modern livestock keeping, pasture and range management, poultry, beef production and control of diseases produced and distributed. - I-2 Newcastle vaccine: more than 13 million doses produced and most sold; thermo stability tested with results suggesting storage: about 1 month at room temperature, 6 months in refrigerator and for some years when frozen. - Dairy production services: - 4,494 in-calf heifers produced and distributed to smallholder livestock keepers: 3,880 distributed by NGOs and 614 obtained from Government Livestock Multiplication Farms. - Introduction of Mpwapwa cattle breed at smallholder farms increased milk production in the central zone ranging from 4 – 6 liters/day with average production of 5 lts/day (excluding amount sucked by calves). This is an increase of about 4 extra liters compared to local breeds producing hardly a liter per day. ### Progress and achievements — Cooperative and Marketing Sub-sector - Cooperative development: - 150 Cooperative Societies formed comprising disadvantaged groups such as women, youth and people with disabilities. - 123 SACCOS registered whose memberships include farmers, fishermen, workers, women, youth, groups and small traders. - 16 SACCOS in Mbeya, Dodoma, Morogoro and Dar es Salaam regions monitored, evaluated and provided with management advisory services. - Marketing development services: - Ministry, in collaboration with PORALG, coordinating projects dealing with construction and rehabilitation of rural agricultural marketing infrastructure: Agricultural Marketing Service Development Project (AMSDP). - Projects include Morogoro and Kongwa Rural Agricultural Marketing Project funded by the French government expected to build a market center at Kibaigwa in 2003 and Agricultural Marketing System Development Program funded by ADF/IFAD implemented in 36 districts of Rukwa, Mbeya, Ruvuma, Iringa, Tanga, Kilimanjaro and Manyara. - Ministry preparing the Agricultural Marketing Policy in collaboration with stakeholders. ### Lessons and Challenges - Low use of agricultural inputs (such as improved seeds, farm machinery, agro-chemicals, fertilizers) resulting in low production and productivity. - Unreliable crop and livestock marketing caused by poor marketing infrastructure, acting as disincentive to producers. - Dependence on rain-fed agriculture and low use of technology by smallholder farmers and livestock keepers leading to unreliable food production for domestic demand and foreign market. - Inadequate extension services (technology dissemination) causing low adoption of agriculture technologies by farmers. - Low crop product quality resulting in low prices and market uncertainty. - Inadequate capacity in managing agricultural projects and programs at district level. - Low level of investment from both public and private sector leading to low growth rate in the sector. ### Costing of interventions (Tshs. ‘Millions) - Crop sub sector — Recurrent (priority areas for PRS): - Strengthening Agriculture Extension Services: 541.5 (2003/04), 920.5 (2004/05), 1,196.7 (2005/06) - Promote Client-oriented Agricultural Research: 588.3, 1,029.5, 1,801.6 - Irrigation Development: 2,663.3, 3,062.8, 3,522.2 - Control crop pests and diseases outbreak: 908.9, 1,045.3, 1,202.1 - Agriculture Mechanization and land use: 782.5, 899.9, 1,034.9 - Strengthening Agriculture Input Trust Fund (AGTIF): 3,600.0, 4,680.0, 6,084.0 - Strengthening strategic Grain Reserve (SGR): 3,026.5, 3,480.4, 4,002.5 - Support to Post harvest and Agro processing: 553, 635.9, 731.3 - Strengthen Sub sector Policy, Regulatory and Institutional Capacity: 1,093.7, 1,257.8, 1,446.4 - Support to Internal and External Subventions: 3,121.8, 5,904.7, 7,263.9 - Sub-total Recurrent: 16,292.0 (2003/04), 21,240.4 (2004/05), 26,425.7 (2005/06) - Crop sub sector — Development expenditure: - Constructions of irrigation structures: 520.0, 600.0, 1,000.0 - Research and Agriculture extension and training center rehabilitation: 1,690.0, 1,710.0, 2,000.0 - District Agricultural Development Program: 4,000.0, 7,000.0, 13,000.0 - Total Development: 6,210.0 (2003/04), 9,310.0 (2004/05), 16,000.0 (2005/06) - Livestock — Sub-sector (selected items): - Develop and introduce livestock of high genetic potential as well as formulation of feasible feeding packages in beef and milk production (from 1600 lts to 2000lts of milk yield/lactation and from 100 kg to 250kgs): 290.8, 392.5, 529.9 - Strengthen Veterinary Investigation Centers (VICs) to carry out effective disease surveillance and early warning system, analyze, process animal disease data: 305.6, 412.6, 226.4 - Strengthen livestock production, input and regulatory services in order to achieve quality assurance: 70.0, 94.5, 127.5 - Facilitate LMU in production of 1,000 heifers pending privatizations aiming to increase the productivity: 170.9, 230.7, 311.4 - Strengthen rangeland management development in 50 local authorities and provide water for livestock in drought prone regions: 592.3, 799.6, 1,079.4 - Develop and strengthen the existing extension packages to be delivered to the Districts aiming to improve small holder’s performance on animal production, diseases, control, management, book keeping and husbands: 197.1, 266.0, 359.2 - To control and eradicate other zoonoses in particular tuberculosis and other brucelosis: 154.2, 208.1, 281.0 - Improve livestock, products, markets and other infrastructures to increase the off-take rates of livestock: 123.6, 166.8, 225.2 - Control and arrest the spread of trans boundary diseases such as Contagious Bovine Pleuroneumonia (CBPP), African Swine Fever (ASF), New castle disease (ND) etc in the country: 427.7, 577.3, 779.4 - Strengthen and formulating ticks and tick-board disease control (dip rehabilitation/constructions) and raise community awareness of tsetse and tyrpanosomiasis control techniques: 89.2, 120.4, 162.5 - Cooperative and Marketing Sub-sector (selected items): - Establishment and strengthening of SACCOS: 7.0, 10.3, 13.9 - Members Empowerment Program: 110.0, 148.5, 200.4 - Capacity building Cooperative Society through Export Credit Guarantee Scheme (ECGS): 9.4, 12.7, 17.1 - Inspection and Supervision Districts: 112.7, 152.1, 205.4 - Special Investigation and Enquiries: 12.9, 17.5, 23.6 - Promotion and Establishment of Cooperative Banks: 61.6, 83.1, 112.2 - Review of 1991 Cooperative Act (Code of Conduct for Cooperative Management): 9.0, 121.5, 164.0 - Formulation and operationalization of enabling Agricultural Marketing Policy by year 2004: 25.1, 33.8, 45.7 - Monitoring and evaluation of Marketing projects (AMSDP): 14.8, 20.1, 27.1 - Establishment of marketing development center by June, 2004: 7.7, 10.5, 14.1 - To expand and promote market potentials of non traditional crops (e.g. cassava and millet): 20.5, 27.7, 37.4 - Total – Sector: 25,822.40 (2003/04), 36,026.10 (2004/05), 49,414.60 (2005/06) *IMF Staff Country Report content unit: 4.6 Agriculture* ### 5.1 HIV/AIDS ### 5.1 HIV/AIDS ### Overview - Institutional framework transformed from National AIDS Control Program (NACP) under the Ministry of Health (MoH) to the centrally placed Tanzania Commission for AIDS (TACAIDS) under the Prime Minister’s Office. - Transformation aims to provide strategic leadership and multi-sectoral coordination, advocacy, resource mobilization, monitoring and evaluation of the national response. - The commission has strong representation from the civil society and a fully staffed Secretariat since January 2003. ### The Multi-Sectoral Strategic Framework (NMSF) on HIV/AIDS - The Prime Minister officially launched the Multi-sectoral Strategic Framework (NMSF) on HIV/AIDS on 10 May 2003. - The framework translates the National Policy on HIV/AIDS and provides strategic guidance for planning programs, projects and interventions by various stakeholders. - NMSF identifies goals, objectives and strategies aligned with: - Millennium Development Goals (2000) - Declaration of Commitment of the United Nations General Assembly Special Session on HIV/AIDS (UNGASS) of June 2001 - Vision 2025 and Poverty Reduction Strategy national aspirations ### National Response - Despite increasing awareness and interventions, more serious and targeted interventions are deemed necessary to slow new infections and protect the 85–90% of HIV free people in the community. - Emphasis placed on increasing individual and community awareness of HIV risk and its implications for individuals, families and communities. - Workplace interventions are highlighted as an entry point to upscale national efforts. - Measures being taken include: - Government Ministries, Departments and Agencies developing plans for mainstreaming HIV/AIDS intervention into routine activities including workplace interventions and integrating HIV/AIDS control activities in the ministry’s MTEF. Private enterprises have workplace HIV/AIDS interventions including provision of anti retroviral treatment. - Local government authorities supported to develop comprehensive HIV/AIDS programs involving all stakeholders. Regional Facilitating Agencies (RFAs) will provide technical assistance to local government authorities and civil society organizations. Guidelines for establishment of District AIDS Committees disseminated; training modules developed with training expected to start in November 2003. - Efforts to mainstream HIV/AIDS in public sector planning/budgeting initiated to ensure regular budgetary allocations. Codes for tracking HIV/AIDS related activities developed and to be applied in fiscal year 2004/05. Medium Term Expenditure Review (MTEF) for 2003/04 – 2005/06 for TACAIDS developed and TACAIDS now operates own vote. - National monitoring and evaluation framework developed and core team of trainers trained. A protocol for Tanzania HIV Indicator Survey (THIS) developed and scheduled for November 2003 to provide information on HIV prevalence in the community. - Development of a National Advocacy Strategy is ongoing; a draft outline developed. An advocacy forum for religious leaders from all Christian and Muslim denominations was held in March 2002 and agreed to promote awareness, care and support, and impact mitigation in line with religious ethics. ### Partnership - National response enjoys partnership with Development Partners, civil society organizations, the private sector and faith-based organizations. - Development Partners and Government signed a Memorandum of Understanding (MoU) to reaffirm joint commitment and support to the National Multisectoral Strategic Framework on HIV/AIDS to enhance and harmonize partnership through a common program of work for planning, management, resource mobilization and allocation, and monitoring and evaluation. - Global Fund Country Coordinating Mechanism (GFCCM) brings together some 28 members from all sectors as an example of multi-sectoral coordination; consultations ongoing to expand its mandate. - Major funding and initiatives: - Global Fund Grant Agreement for scaling up effective district response focusing on communities, primary schools and the informal sector signed on 3 July 2003 for USD 5.4 million for one year. - World Bank funded TMAP agreement signed on 27 August 2003 for providing USD 65 million and USD 5 million for Tanzania Mainland and Zanzibar respectively for the next five years. - Rapid Funding Envelope has mobilized over USD 2.5 million from willing partners to finance short term quick impact projects by civil society organizations and institutions. - Civil society collaboration strengthened: a network of AIDS service organizations (TANASO) formed; people living with HIV/AIDS (PLHAs) forming their Council to cater for welfare of all PLHAs. ### Care and Treatment for people living with HIV/AIDS - Government and the Clinton Foundation formulated a draft Care and Treatment Program aiming to provide care and treatment to about 400,000 people living with HIV/AIDs in five years at an estimated cost of about US$535 million. - Policy, financial and human resources implications are being addressed; program will be integrated into existing systems to ensure sustainability and continuity. - A second five-year program will be developed during implementation of the program. *Source: _cr04282 - 5.1 HIV/AIDS* ### 5.5 Human Capital Development ### _cr04282 - 5.5 Human Capital Development ### Human Capital Development: key priorities and reforms - Human capital development is critical for the success of the PRS and is reported under PRS crosscutting issues. - Focus areas: strengthening leadership and management qualities, meritocracy, restoration of ethical conduct, gender equality and pay reform. - Legal and institutional reforms: - Enactment of the Public Service Act No. 8 of 2002 to give legal backing to modernization of the public service. - Performance management systems established in 16 ministries and departments to set service delivery targets and measure public servant performance. - Pay and capacity measures: - Several measures taken to implement the Medium Term Pay Policy including annual enhancement of salaries of public servants and implementation of job evaluation. - Ongoing training and capacity building programs to enhance leadership and modern management capabilities in the public service. - Executive agencies and reform programs: - Establishment of 19 executive agencies to improve service delivery for selected operational functions. - Public Service Reform Program for the Central Government and the Local Government Reform Program will continue and track these activities. - Gender mainstreaming achievements (public service senior levels): - Permanent Secretaries: 24% - Directors: 26% - Assistant Directors: 24% - Child and youth focus: - Government recognizes children and young people as key to a sustained future workforce. - Continued efforts to identify and address specific problems affecting children and young people and to facilitate access to skills and vocational training programs. - Cross-sectoral sectors contributing: education and health. - Critical cross-sectoral concerns requiring close attention: the fight against HIV/AIDs as it relates to children and young people. ### Monitoring and reporting - The public service and local government reform programs and their capacity-building indicators were developed through a consultative process. - Progress and achievements in developing and strengthening human capital will be assessed using these indicators and reported in the PRS monitoring framework. --- ### 5.6 Environment ### Overview - Tanzania's natural resources and environment underpin livelihoods and the country’s main productive sectors: agriculture, tourism and mining. - Participatory Poverty Assessment confirms most people depend directly on a robust, healthy environment for income-generating activities and provisioning of building and cooking materials, food and medicine. - Environment is identified as a priority cross-cutting issue for the PRS linked to livelihood, health and vulnerability. ### Progress and achievements - Institutional and legal steps: - Cabinet approved a new institutional framework for environmental management in December 2002. - Development of a single environmental framework law led by VPO with a first draft prepared for consultation in December 2003. - Programmatic and partnership actions: - Program to Integrate Environment into the PRS process launched on 26th September 2003; supported by UNDP, Dry lands Development Center, Poverty Environment Initiative, DANIDA and DFID. - Program implementation agencies: VPO (PED, DOE), NEMC, NBS and PORALG; implementation commencing in the third quarter 2003. - Outputs focus on: knowledge on poverty-environment linkages; use of environment data in the poverty monitoring system; capacity building of government and non-government stakeholders. - Coordination and analysis: - Establishment of a cross-sectoral Environment Working Group (EWG) to promote integration of environment into GoT policies and plans. - Initiation of the first public expenditure review (PER) of the environment to produce inputs into the medium term expenditure framework (MTEF) and guidelines for sectors to mainstream environment expenditure into sectoral PERs. - Data, indicators and awareness: - Preliminary poverty-environment indicators included in the revised indicator list for the poverty monitoring system for use by PRBS/PRSC. - Terms of reference developed for a detailed study on poverty-environment indicators; identification of consultants underway. The study will also work on improving agricultural indicators for the PMS. - VPO producing a bimonthly newsletter on poverty-environment issues. - Sector integration and surveys: - Approval of environment units for sectors and development of strategic environment assessment. - VPO with NBS ensured the agricultural survey design included relevant questions on environmental sustainability and livelihood issues. - Study completed on the use of strategic environment assessment and poverty reduction. - PRSC and capacity building: - Environmental sustainability explicitly mentioned in the performance action framework for the Poverty Reduction Support Credit (PRSC). - Appointment of Poverty Environment Advisor to VPO; recruitment of Poverty Environment Officer expected to commence work January 2004. - Development of capacity building and training program for VPO and other stakeholders for implementation in 2004. - Sustainable development network: - Proposal to establish a sustainable development network (former environmental champions and think tank) to advise on poverty and environment issues; members contributing to PMS thematic working groups. ### Lessons and challenges - Variable understanding of mainstreaming: need to broaden perceptions of sectors covered (e.g., agriculture, forestry, wildlife, fisheries, environmental health, education, water, tourism, roads, energy, minerals). - Crosscutting linkages: attention largely issue-by-issue; need to address linkages (e.g., gender and environment; HIV/AIDs and environment). - Engagement gaps: local government and private sector involvement still needs to be addressed despite engagement with government sectors and civil society. - Methodological challenges: environment PER study covers a wide range of sectors and levels of government, presenting methodological challenges as Tanzania may be leading with few other countries having undertaken such a PER. --- ### VI. Budget Framework for Poverty Reduction Programs ### 6.1 Resource envelope: macroeconomic perspective and policy targets - 2002/03 budget framework based on assumption of continued sound and stable macroeconomic environment. - Preliminary estimate: real GDP growth targeted at 6.3% in 2003; first half actuals show likely outcome of 5.5%. - Medium Term Plan for Growth and Poverty Reduction (2004/05-2006/07) macroeconomic policy targets: - Attain a real GDP growth of 6.3% in 2004, thereafter up to 7% by 2006. - Continued reducing inflation rate to 4.0% by the end of 2004; expected to level off at 4% during 2004/05-2006/07. - Domestic revenue collection expected to reach 13.3% of GDP in 2003/04. - Restrict broad money supply (M2) to levels consistent with GDP growth and inflation rate targets. - Maintain adequate official foreign reserves of not less than a value equivalent of six months of imports of goods and non-factor services. - Maintain a freely floating exchange rate, limiting interventions exclusively to smoothening wide fluctuations and for liquidity management purposes. - Tax and revenue measures to expand the revenue base in the medium term include: - Review of legislations on Export Processing Zones (EPZ) and Income Tax Legislation to rationalize and close loopholes. - Completing preparations and rationalizing tax and various local government fees. - Review remaining exemptions with a view to abolishing them. - Review the tax contribution of high-growth sectors such as mining. - Improve administration of tax and non-tax revenue and public corporation dividends to check revenue leakages. - Specific administrative measures and reforms: - Measures in 2003/04 budget to curb tax evasion, reduce distortions and eliminate nuisance taxes; increase voluntary tax compliance. - Measures to reduce smuggling and tax evasion on petroleum products; entry of religious NGOs into the Treasury Voucher system; removal of impediments in the fisheries sub-sector; reduction of the withholding tax on sale of fish from 3% to 1%. - Abolition of nuisance taxes (levies and fees) at local government level to encourage development activities. - Adoption of TRA’s corporate plan (2003/04-2007/08) focusing on modernizing organization and operations and improving effectiveness. - Preparations for implementation of an integrated structure for domestic revenue administration during 2004/05. - Advanced stage of implementation of a function-based Large Taxpayers Department (LTD) integrating VAT and income tax administration; plans to transfer an additional 100 large taxpayers to the LTD and pilot an integrated computer system for income tax and VAT administration. - TRA has begun to integrate all district offices. - Tax law change: - New Income Tax law passed by Parliament in April2004; based on the principle of self-assessment, addresses sources of revenue leakages, and will become effective from July 2004. - Resource envelope projection and donor support: - Projected resource envelope and expenditure requirements for 2003/04–2005/06 reflect a declining share of domestic revenue in total from 53% in 2003/04 to 48% in the 2004/05 Budget; the shortfall will be met through support from development partners. ### 6.2 Budget frame consideration for financing of priority sectors — key expenditures and trends - Government expenditure guided by Poverty Reduction Strategy priorities. - Table 17: Central Government Expenditure, 1998/99-2003/04 (billion TShs) — selected figures preserved exactly: - TOTAL EXPENDITURE (INCLUDING CFS): 973.8; 1,191.; 1,258.50; 1,626.50; 2,091.10; 2,607.20 - TOTAL EXPENDITURE (EXCLUDING CFS): 748.5; 925.8; 954.7; 1,296.10; 1,787.40; 2,198.60 - Total expenditure in priority sectors: 342.3; 418.6; 499.8; 761.9; 973.8; 1,170.01 - Education: 164.9; 218; 254.9; 344.9; 436.2; 502.3 - Health: 72.5; 81.2; 100.7; 142.1; 186.7; 214.3 - Water: 14.4; 14.5; 18.3; 32.5; 51.9; 64.4 - Agriculture: 14.9; 21.6; 19.1; 31.9; 60.2; 93.1 - Lands: 3.4; 4.2; 5.1; 8.1; 20.1; 6.0 - Roads: 66.7; 70.8; 92.5; 179.6; 190.2; 236.0 - Judiciary: 5.5; 8.3; 9.2; 18.8; 23.2; 32.7 - TACAIDS/HIV AIDS 2/ : 0; 0; 0; 4; 5.3; 21.2 - Total expenditure in non-priority sectors: 406.1; 507.2; 455.0; 534.2; 813.7; 1,028.5 - TOTAL RECURRENT EXPENDITURE (LESS ...): 565.9; 565.9; 668.5; 951.4; 1,286.50; 1,570.3 - Recurrent expenditure in priority sectors: 235.8; 285.4; 351.6; 497.6; 724.6; 836.8 - Education: 117.6; 158.9; 189.2; 282.1; 422.9; 471.1 - Health: 50.7; 53.9; 70.3; 90.9; 149.1; 177.6 - Water: 7.1; 5.4; 8.1; 15.5; 16.5; 17.5 - Agriculture: 8.6; 13.7; 10.3; 17.2; 36; 47.7 - Lands: 2.8; 3.4; 4.2; 7.4; 4.8; 5.4 - Roads: 43.9; 42.2; 60.7; 65.7; 71.9; 84.5 - Judiciary: 5.2; 7.9; 8.8; 14.8; 18.9; 24.9 - TACAIDS/HIV AIDS 2/ : 0; 0; 0; 4; 4.5; 8.1 - Recurrent expenditure in non-priority sectors: 330.1; 280.5; 316.8; 453.8; 561.9; 733.5 - TOTAL DEVELOPMENT EXPENDITURE: 182.6; 359.9; 286.2; 344.6; 500.9; 628.3 - Development expenditure in priority sectors: 106.5; 133.2; 147.9; 264.3; 249.1; 333.2 - Education: 47.3; 59.1; 65.7; 62.8; 13.3; 31.3 - Health: 21.9; 27.3; 30.4; 51.2; 37.6; 36.6 - Water: 7.3; 9.1; 10.1; 17; 35.4; 46.9 - Agriculture: 6.3; 7.9; 8.7; 14.7; 24.2; 45.4 - Lands: 0.7; 0.8; 0.9; 0.7; 15.3; 0.6 - Roads: 22.8; 28.6; 31.7; 113.9; 118.3; 151.5 - Judiciary: 0.3; 0.4; 0.4; 4; 4.2; 7.8 - TACAIDS/HIV AIDS 2/ : 0; 0; 0; 0; 0.8; 13.2 - Total expenditure in non-priority sectors: 76.1; 226.7; 138.3; 80.4; 251.8; 295.0 - CONSOLIDATED FUND SERVICE: 225.3; 266.1; 303.8; 330.4; 303.7; 408.6 - Notes: - 1/ Original approved budget, with foreign development reallocations from energy to health and roads reflected. - 2/ Basket funds (education and health) are not reflected in development but in recurrent expenditure. - 3/ TACAIDS is a Government agency formed in 2001 to coordinate AIDS related priority interventions. For fiscal years 1998/99-2002/03, HIV/AIDS expenditure is shown as expenditure made by the TACAIDS Agency, while other HIV/AIDS expenditure was shown under the health sector. However, for fiscal year 2003/04, all HIV/AIDS expenditure is shown as expenditure made by TACAIDS, the Ministry of Health as well as other ministries, depts., regions and local Govts. - Source: Ministry of Finance ### Revenue mobilization and administration: measures and expected outcomes - Despite measures, Government has not generated sufficient resources to cover entire requirements; more medium-term measures planned to enhance resource mobilization and allocation including for non-priority sectors. - TRA corporate plan and institutional reforms aim to strengthen revenue collection, improve taxpayer interface and governance, and induce voluntary compliance. - Expected outcome: combination of policy and administration measures to lead to increased domestic revenues in absolute and GDP-relative terms, though projected resource envelope shows a declining share of domestic revenue in total from 53% in 2003/04 to 48% in 2004/05. ### 2003/04-2006/07 Budget framework (Table 18(a) & 18(b)) — selected figures preserved exactly - Table 18(a): Budget Framework 2003/04-2006/07 (in million TShs) - TOTAL RESOURCES: 2,607,205; 3,328,237; 3,344,372; 3,308,546 - Domestic revenue: 1,393,026; 1,588,392; 1,766,453; 1,988,546 - Programme loans and grants: 405,047; 413,266; 325,899; 138,489 - Project loans and grants: 472,772; 1,010,648; 953,821; 815,925 - Basket support loans: 70,982; 10,759; 10,917; 11,076 - Basket support grants: 123,595; 96,758; 48,182; 35,905 - HIPC relief (ADB, IMF, WB): 103,425; 83,100; 85,100; 85,100 - Non-bank borrowing: -; 111,313; 138,175; 218,047 - Bank borrowing: 21,358; -; -; - - Privatisation Funds: 17,000; 14,000; 14,000; 14,000 - TOTAL EXPENDITURE: 2,607,205; 3,328,237; 3,344,372; 3,308,546 - Recurrent Expenditure: 1,799,765; 2,081,981; 2,189,655; 2,287,963 - Consolidated Fund Service (CFS): 408,600; 395,574; 381,934; 371,162 - Debt service: 323,674; 302,155; 288,516; 277,744 - Amortization: 188,867; 134,200; 134,200; 131,700 - CFS others: 84,926; 93,418; 93,418; 93,418 - Recurrent excl CFS: 1,391,164; 1,686,408; 1,807,720; 1,916,800 - Salaries and wages: 464,061; 551,159; 628,205; 727,077 - Designated Items: 18,243; 207,882; 213,969; 203,759 - Other charges: 908,860; 927,367; 965,546; 985,964 - DEVELOPMENT EXPENDITURE: 807,440; 1,246,256; 1,154,717; 1,020,583 - Local: 140,091; 128,091; 141,797; 157,678 - Foreign: 667,349; 1,118,165; 1,012,920; 862,905 - Source: President’s Office, Planning and Privatization and Ministry of Finance. - Table 18(b): Budget Framework 2003/04-2006/07 (in % of GDP) — selected figures preserved exactly: - TOTAL RESOURCES: 24.9%; 28.7%; 26.1%; 23.2% - Domestic revenue: 13.2%; 13.7%; 13.8%; 14.0% - Programme loans and grants: 3.9%; 3.6%; 2.5%; 1.0% - Project loans and grants: 4.5%; 8.7%; 7.4%; 5.7% - HIPC relief (ADB, IMF, WB): 1.0%; 0.7%; 0.7%; 0.6% - TOTAL EXPENDITURE: 24.9%; 28.7%; 26.1%; 23.2% - Recurrent Expenditure: 17.2%; 18.0%; 17.1%; 16.0% - Consolidated Fund Service (CFS): 3.9%; 3.4%; 3.0%; 2.6% - Debt service: 3.1%; 2.6%; 2.3%; 1.9% - Amortization: 1.8%; 1.2%; 1.0%; 0.9% - CFS others: 0.8%; 0.8%; 0.7%; 0.7% - Recurrent excl CFS: 13.3%; 14.6%; 14.1%; 13.4% - Salaries and wages: 4.4%; 4.8%; 4.9%; 5.1% - Designated Items: 0.2%; 1.8%; 1.7%; 1.4% - Other charges: 8.7%; 8.0%; 7.5%; 6.9% - DEVELOPMENT EXPENDITURE: 7.7%; 10.8%; 9.0%; 7.2% - Local: 1.3%; 1.1%; 1.1%; 1.1% - Foreign: 6.4%; 9.7%; 7.9%; 6.1% *Source: IMF staff summary of the cited chapter.* ### 6.3 Public Expenditure Management in the Medium Term ### 6.3 Public Expenditure Management in the Medium Term ### Strengthening expenditure management and accountability - Government will continue to strengthen management and discipline in Government expenditure to ensure sufficient accountability. - Government intends to amend the Public Procurement Act and the associated regulations to enhance accountability by separating the regulatory functions from the supervisory functions, and to strengthen capacity of the implementers. - Government has improved regulations of the Public Finance Act of 2001 and will continue to strengthen the application of the IFMS for preparation of the budget and to effect payments in order to increase efficiency and transparent in the allocation of funds. - In the next financial year, the Government will roll out the IFMS to the Offices of the Regional Administrative Secretaries and the National Defence Forces. ### VII. POVERTY MONITORING AND EVALUATION ### 7.1 Performance — operationalization of the Poverty Monitoring Master Plan (PMMP) - Report covers activities of four Technical Working Groups: Census and Survey, Research and Analysis, Routine Data System, and Dissemination, Sensitization and Advocacy. - Major activities performed: - Preparation of the Second PRS Progress Report (2001/02). - Publishing of the Poverty and Human Development Report (PHDR 2002). - Dissemination of the Household Budget Survey (HBS2000/01) and Integrated Labor Force Survey (ILFS 2002/01). - A Participatory Poverty Assessment (PPA) exercise carried out throughout the country focusing on vulnerability to gather grassroots views on poverty reduction efforts and challenges. - Dialogue through consultative meetings between government, CSOs, external development partners and private sector. - Dissemination, sensitization and advocacy activities: - Published and widely disseminated a simplified version of PRSP Progress Report (2000/01) in English and Swahili. - Prepared and disseminated a user guide to enhance understanding of the poverty monitoring master plan. - Efforts underway to establish a Monitoring Website and Documentation Center within the Poverty Eradication Division to ease availability of information generated through the poverty monitoring system and other sources. - Poverty Policy Week: - Held in September 2002 and October 2003 to sensitize and advocate for change and to enable stakeholders to reflect on issues including the contents of the PRS Progress Report and PHDR. - Deliberations documented in the Poverty Policy Week Proceedings for 2002 and 2003. - Routine Data System TWG workshops: - Organized and conducted workshops at national and zonal levels to raise awareness among sector ministries, regional secretariats, NGOs, local authorities, academia and other stakeholders on the PMS and link it with the Local Government Monitoring and Evaluation system. - Workshops provided opportunities for exchange of experiences in data collection and use. ### 7.2 Operationalization of pooled fund mechanism for the PMS - Pooled Fund partners have made pledges and contributed to the PMS Pooled Fund. - Amount deposited to the holding account in the Bank of Tanzania during financial year 2002/03: - Tsh 408,390,000 deposited at the end of December 2002 by the Danish Embassy. - Use of the funds awaited finalization of financial procedures for utilization of funds; these procedures were finalized in 2003. - Memorandum of Understanding (MoU) between GOT and Development Partners concerning the pooled fund for poverty monitoring was prepared and signed in March 2003. - TWGs and the Secretariat have opened their respective Bank Special accounts to facilitate smooth flow of funds and implementation of planned activities. *Source: _cr04282 - 6.3 Public Expenditure Management in the Medium Term* ### 7.3 Challenges encountered ### _cr04282 - 7.3 Challenges encountered ### Challenges encountered - Generally the performance of all four Technical Working Group was satisfactory although some activities were not implemented according to plan due to irregular disbursement and shortage of funds. - Operationalization of the joint funding mechanism provides for smooth operations. However, Government recognizes the need to make an open assessment of the weaknesses of the system at the operational level. ### Macroeconomic, Good governance and Private Sector Development — key findings and planned actions - Objectives (as stated): - Attain a real growth of 6.3% in 2004. - Reduce inflation to about 4.0% by 2004. - Increase revenue efforts to 13.2% of GDP in 2004/05. - Continue to promote good governance in public service delivery through improvements in public finance management and accountability, strengthening legal and regulatory framework, poverty reduction initiatives, and fighting corruption. - Creation of friendly and conducive business environment. - Progress to date: - GDP growth was at 6.2% in 2002, and about 5.5% in 2003. - The PCB was strengthened by increasing its budgetary resources and decentralized from zones to district-level. - Increase in corruption cases lodged: from 33 in 2000 to 129 in 2002; convictions low: 6 in 2000 and 12 in 2002. - National Integrity Fund established. - Land bank draft report completed in 2003. - Labor policy completed. - Nuisance taxes removed. - Restructuring and privatization ongoing. - Planned actions: - Consolidate macroeconomic stability through promoting broad-based economic growth strategies. - Continue implementation of public sector reforms. - Mobilize more revenue and increase resource allocation to identified pro-poverty reducing activities. - Sustenance of peace and security through combating crime. - Create employment opportunities through increased public and private investments. - Continue with decentralization process. - Strengthening judicial and justice system. - Strengthening financial management and control. - Continue fighting corruption. - Finalization of amendments to the Land policy and establish the land bank. - Harmonize and rationalize the licensing process. - Implementation of BEST. - Provide stable electricity power, water, telecommunication and transport systems. ### Poverty Monitoring System (PMS) - Objectives: - Provide the decision policy-making process with evidence-based policy advice or information. - Strengthen data collection and analysis on poverty trends. - Progress to date: - Preparation of the Second PRS Progress Report (2001/02); publishing of the Poverty and Human Development Report (PHDR 2002); dissemination of the Household Budget Survey (HBS2000/01) and Integrated Labor Force Survey (ILFS 2002/01). - Participatory Poverty Assessment (PPA) exercise carried out focusing on vulnerability. - Efforts underway to establish a Monitoring Website and Documentation Center within the Poverty Eradication Division. - Poverty Policy Week held in September 2002 and October 2003. - A number of workshops organized by the Routine Data System Technical Working Group at national and zonal levels. - Planned actions and targets (selected): - Continue with production of 2002 census reports/volumes. - (a) Complete fieldwork of agricultural sample census – February; (b) Complete fieldwork of HIV/AIDS Indicator Survey – April. - (a) Initial planning of DHS (b) Field work – 2004/05. - Report preparations: (a) Agricultural sample census (b) HIV/AIDS Indicator Survey. - RDS: To strengthen capacity on Routine Data System – collection at all levels; To Harmonize Routine Data System collection. - Disseminate PMS findings during the PPW and other channels. - Identify priority research areas: - (i) Poverty mapping: depends on inpts from census and survey. - (ii) Impacts of user charges in health sector: access of poor people to health services. - Prepare (PRS Technical Committee) the Second MDG Report 2004 for Tanzania. - Evaluate PPA to provide lessons for improvement of future PPA. ### Water — progress and targets - Objectives: - Provide adequate, clean and safe water and sanitation services with targets to increase coverage from 53% in 2003 to 60% in 2006. - Strengthen water resource environmental and pollution control network with targets to reduce pollution levels from 20% in 2003 to 10% in 2006. - Improve Management of Water Resources (RBM), with targets to have in place water quantity surveillance and management mechanism in all water basins by the year 2006. - Progress to date (selected figures preserved exactly): - Rehabilitation and expansion of 41 rural water schemes, 118 boreholes, and construction of 2 large dams and 3 medium size dams is complete. - The new Chalinze water supply scheme is almost complete. - 37 district town water boards are in place. - 1431 underground water areas explored and 968 boreholes drilled. - National water Policy 2002 launched in March 2003. - Rehabilitation and expansion of urban water supply to increase service levels with targets from 73% in 2003 to 78% in 2006. - Rehabilitation and expansion of Water supply and Sewerage Systems in Seven Municipalities and eight towns is complete. - Phase II of expansion of urban water supply is 80% complete. - 10,462 water meters installed. 50% of customers now installed with meters. - DAWASA privatization is completed. Private operator operating since August 2003. - 1588 water samples were tested for standard amount of chemicals, and 1839 water samples were tested for turbidity and bacteriological parameters. - 78 industries were inspected to control industrial effluents. - Five water basin offices in five Basins are in place. - 176 hydrometric stations were rehabilitated, 47 data lodgers installed and one isotopic hydrometric station was built at Makutopora Sub-basin. - Planned actions: - Rehabilitate and expand 794 water supply schemes in rural areas by 2006. - Explore underground water in 700 areas. - Ensure district town water boards are in place in all district headquarters by 2006. - Construct Mugumu dam in Serengeti district. - Replicate rural water supply and sanitation project to 50 districts by 2005. - Restructure urban water supply pricing by the year 2004. - Complete phase II of urban water supply by 2005. - Conduct studies, design and implement projects for new water sources in all urban centres. - Ensure customers are connected with water meters by 2005. - Increase activities for water resource environmental and pollution control network in order to reduce pollution levels from 20% to 10% by 2004. - Put in place basin offices in the remaining four basins by 2005. - Rehabilitate existing hydrometric networks and complete the network in all basins by 2005. ### Health — progress and planned reforms - Objectives: - Strengthen immunization services, malaria control activities, nutritional programs, reduce maternal and child mortality rates and reduce prevalence of HIV/AIDS. - Improve environmental sanitation and safe water. - Promote curative services at all levels. - Progress to date (selected figures preserved exactly): - All 113 Local Authorities have developed their comprehensive District health plans. - 31 districts which were in Phase III of LGRs are now brought on board by January 2003. - The Health Sector Strategic Plan 2003-2008 was developed. - Health Sector Public Expenditure Review: per capita public health spending rose from US$3.4 to US$5.50 between 1997/98 to 1999/2000; the PER 2002 indicates 6,361 TSh per capita. - Sectoral allocation to health increasing slowly, from 7.5% in FY00 to an estimated 8.7% in FY03. - PER 2003: spending on preventive health increased from 41.4% in FY01 to 47.8% in FY02. - 47 new councils were trained in IMCI; Kiswahili versions of IMCI modules are now available. - The reproductive and child health unit reports a MMR for 2002 to be 228.3/100.000. - Continuing increase in utilization of MCH services. - Planned actions: - Operationalize the Health Sector Strategic Plan 2003-2008 at all levels. - Financing Task Force established to negotiate with MoF and donors to increase the resources envelope. - Develop a new resource allocation formula for the local government health grant (takes into account population, poverty, mileage traveled by medical vehicles and burden of disease). - Strategy for rehabilitation of health services being developed; implementation expected to start very soon. - Initiate district hospital reforms to improve quality of care and strengthen the district referral system. - MoH established a coordination desk for registration of private sector facilities; MoH, CSSC and faith groups to work out participation modalities. - Accreditation of more private facilities being undertaken by NHIF. - New figures for IMR and U5MR expected to come from the NBS by the beginning of 2004. ### Gender — capacity building and monitoring - Objectives: - Enhance capacity for gender mainstreaming in the PRS/ MTEF/ PER and in sector plans, strategies and programs. - Progress to date: - Gender focal persons approved and established in major PRS priority sectors and their training needs defined. - Considerable gender analysis available in PHDR 2002, 2003. - Computerized system for monitoring progress in gender equity initiated within MCDGC and to be completed in April 2004. - Detailed analysis of the HBS data on Female Headed Households completed. - A National Plan of Action for Combating Violence Against Women developed. - 731 women workers assisted to form economic groups and access productive resources including flexible loans. - Planned actions: - VPO, MCDGC and other stakeholders to ensure gender issues are taken on board in the PRS Review planned for 2003/2004; VPO to coordinate. - Sectors and PORALG to carry out capacity building for gender focal points and improve collection and analysis of gender disaggregated data. - MCDGC /VPO to complete the gender database and monitoring system and provide guidelines for sectors and PORALG. - MCDGC/VPO to obtain information from sectors, NGOs and private sector on activities related to promoting gender equity and mainstreaming. - MOLYDS/MCDGC to consolidate achievements and replicate them so that 1,000 more women can participate and benefit from development interventions. ### Education — enrollment, infrastructure, and targets - Objectives: - Raise gross and net enrolment and enhance the quality of basic education. - Improve access and equity to education at all levels. - Increase number and quality of teaching staff. - Strengthen and improve management capacity at all levels of education. - Control the spread of HIV/AIDS. - Progress to date (figures preserved): - Gross enrolment ratio is at 105.3% and Net enrolment ratio at 88.5% in 2003; both ratios increased from 100.4% and 80.7% respectively in 2002. - Construction of 13,396 classrooms expected to be completed by November 2003. - 98 districts have been school mapped; micro planned to add up to 69 districts by end of November 2003. - Training of Trainers of 763 facilitators to upgrade 50,000 grades "C/B" teachers to grade "A" was conducted. - Planned actions: - Allocate more resources to the sector. - Construction of 14,203 classrooms, 8,197 teacher houses, pit latrines and rain water-harvesting tanks. - Enrolment of 1,640,969-school age going children, recruit 10,563 new teachers and enroll 11,290 teacher trainees. - Ensure pupil book ratio of 1:3 for teaching and learning books so as to attain the ratio of 1:1 by 2006. - Inspect 19,080 Education units to ensure quality Education. - Improve water supply and sanitation. - Conduct counseling activities on radio and TV on HIV/AIDS. - Continue to strengthen community capacities in managing primary schools. - Maintain the provision of capitation grant of US$ 10 per pupil per year. - Upgrade 50,000 grades "C/B" teachers to grade "A". - Implement National Adult and Non formal Education Plan. ### Roads — maintenance, rehabilitation, and capacity - Objectives: - Improve rural, district and cross border roads network to enhance access to farm and agriculture markets. - Capacity-building in the LGAs to enable them manage road networks effectively. - Implementation of the EAC-Sub regional priority road network program. - Maintenance of trunk, regional, urban, district and feeder roads. - Increase budget allocation to financing rehabilitation and maintenance using labor-intensive technology. - Progress to date: - Somanga-Masaninga including construction of Matandu bridge, Nangurukuru-Mbwemkulu, Mbwemkulu-Mingoyo, Dodoma-Manyoni and Manyoni-Singida road sections: consultants for the supervision of the works procured. - 34% increase in budget allocation for FY 2002/03. - Routine maintenance, emergency repair and spot improvement carried out in all 20 regions. - Rehabilitation of regional roads in progress; 525 km of regional roads are currently under rehabilitation. - Periodic maintenance of 10,120 kms of the rural roads network has been done. - The government will continue to release the allocated 1.84 billion monthly to improve transport link to the northwestern and southern regions of the country. - Planned actions: - Advocate the use of Labor Based Technology in rehabilitation, routine, periodic and spot improvement for the whole network. - Develop and prepare a Program similar to 10 years Road Sector Development Program for District, Urban and Feeder Roads. - Implementation of the EAC Sub-regional priority road network program. - National rollout and dissemination of District Roads Management System (DROMAS) to District Councils. - National rollout and dissemination of Urban Roads Management System (RMMS) to 21 Town Councils. - National rollout and dissemination of VTTP Program package tools to 113 districts (including training, baseline access study, capacity building, guidance notes etc.). - Undertake maintenance of trunk, regional, district and feeder roads network, and carry out emergency repair and spot improvement in all district roads. - Improve the capacity of district engineers to manage execution of road maintenance works at district level. ### Judiciary and Justice — objective and progress - Objective: - To enhance timely and accessible justice for all, focusing on personal safety, access to justice, overall efficiency, fairness, and transparency of the administrative system. - Progress to date: - Increased appointment and recruitment in the judiciary. - Enhanced training of magistrates and judges. *Source: _cr04282 - 7.3 Challenges encountered* ### Introduction of the alternative dispute resolution. ### Introduction of the alternative dispute resolution. ### Justice, Governance, and Judiciary Reforms - Establishment and operationalization of the Human Rights and Good Governance Commission. - Enhanced budgetary allocation to the Judiciary, Attorney General's Chambers and Law Reform Commission. - Introducing individual Calendar system of managing cases in the High Court and Subordinate Courts. - Strengthening the Institute of Judicial Administration. - Strengthening Law Reform Commission of Tanzania through the provision of adequate working tools and materials and training. - Improving prosecution capacity. - Initiating measures aimed at reducing crowding of prisons. - Combating crime and insecurity. - Establishing and operationalization of Judicial Ethics Committee. - Continue with rehabilitation of primary courts buildings. - Extension of Commercial Court Sub-Registries in Arusha and Mwanza. ### A. IX: Agriculture — Objectives, Progress, and Planned Actions Objective - Create an enabling and conducive environment profitability of the sector and ensure food security. - Increase production and the processing of agricultural and livestock outputs. - Strengthen support services for agricultural and livestock growth (research, extension and technical services). - Support commercialization of agriculture. Progress to date - Agricultural Sector Development Strategy Developed in 2001. - Agriculture Sector Development Program Framework and process document completed. - Restrictions on internal trade on agriculture products removed. - District Agricultural Development Plans (DADPs) prepared. - Local government taxes and levies harmonized. - Private Agribusiness Sector (PASS) intensified. - Food Security Policy Formulated. - Agriculture Survey on going. Planned actions - Finalizing detailed formulation of the ASDP sub-program (ASDP) phase II). - Continue with the analysis of Agriculture Survey 2003/2004. - To develop monitoring and evaluation system for ASDP within the PRS monitoring framework. - Development of small-scale irrigation schemes including water harvesting. - To strengthen extension services and strategic research by institutionalizing participatory methodologies and district level. - To strengthen control of crops migratory pest and diseases. - Review of legal and institutional framework for participation of private sector in agricultural development. - To promote agricultural inputs credit systems through support of AGITF. - Strengthen Veterinary Investigation Centers (VICs) to carry out effective disease surveillance and early warning system, analyze, process animal disease data. - Strengthen livestock products, inputs and regulatory services in order to achieve quality assurance. - Strengthen rangeland management development in 50 local authorities and provide water for livestock in drought prone regions. - Control and arrest the spread of trans-boundary diseases such as Contagious Bovine Pleuroneumonia (CBPP), African Swine Fever (ASF), New castle disease (ND) etc in country. - Capacity building Cooperative society through Export Credit Guarantee Scheme (ECGS). - Promotion and Establishment of Cooperative Banks. - Review of 1991 Cooperative Act (Code of Conduct for Cooperative Management). - Formulation and operationalization of enabling Agricultural Marketing Policy by year 2004’. - Monitoring and evaluation of Marketing projects (AMSDP). - Establishment of marketing Development center by June, 2004. - To expand and promote market potentials of non-traditional crops (e.g. cassava and millet). ### A.X: HIV/AIDS — Objectives, Progress, and Planned Actions Objective - To improve services and reduce HIV/AIDS infection. - Combating HIV/AIDS in general and preventing the spread of HIV/AIDS infection. - Care and treatment of PLWHA. - Support to HIV/AIDS affected victims. Progress to date - MDAs are developing plans for mainstreaming HIV/AIDS intervention into routine activities including workplace interventions and MTEF. - Many private enterprises have workplace HIV/AIDS interventions including provision of anti retroviral treatment. - To ensure that communities at the grassroots have sustained HIV/AIDS interventions, LGAs supported in developing comprehensive HIV/AIDS programs that involve all stakeholders. - Guidelines for the establishment of District AIDS Committees have been disseminated to all LGAs to facilitate community mobilization and involvement in the fight against HIV/AIDS. - Modules for training members of the District AIDS Committees and technical functionaries have been developed and training started in November 2003. - Efforts to mainstream HIV/AIDS in the planning/budgeting process have been initiated and will be applied in the fiscal year 2004/05. - Medium Term Expenditure Review (MTEF) for 2003/04 – 2005/06 for TACAIDS has been developed and TACAIDS now operates own vote. - National monitoring and evaluation framework for the national response has been developed and core team of trainers trained. A protocol for Tanzania HIV Indicator Survey (THIS) has been developed. Planned actions - MDAs to identify HIV/AIDS activities appropriate to the targets. - Providing costing for identified activities by MDAs. - Show the linkages between the activities, objectives and priority areas. - Identify and quantify output by MDAs. ### A.XI: Employment — Objectives, Progress, and Planned Actions Objective - Enhanced productivity and competitiveness, elimination of child labor and increased vulnerability of credit facilities for micro enterprises. - Reduce prevalence of poverty in urban areas. Progress to date - Two policies are in place i.e. the National Aging Policy and the National Social Security. - Two policies are at the stage of being submitted to IMTC i.e. the National Employment and the National Disability. - One policy – National Youth Development under revision is ready for submission to Cabinet Secretariat. - Child Labor Policy has been replaced by strategies to combat child labor and its worst forms. The Child labor survey report was completed and disseminated in 2003. The findings contributed to draft formulation of child labor strategies. - The strategies to combat child labor and its worst forms finalized and linked to the national Child Development Policy. - 848 poor women workers have been assisted to organize into economic groups and provided with new skills including mushroom farming, poultry keeping, handcraft production, vegetable growing etc. - 541 women workers have registered with Akiba Commercial Bank and are receiving loans. - 1026(475 girls and 551 boys) younger and older children have been withdrawn from child labor and provided with alternatives for basic education and vocational training. - 14 daycare attendants have been trained, 15 daycare centers renovated and 1,258 (51% girls) smaller children enrolled in the daycare centers and provided with uniforms, learning and playing materials and a feeding program. - 2,000 jobs were created in solid waste management services in Dar es Salaam on public-private-partnership approaches. - 50 people with disabilities received seed money for income generating activities. - 12 people with disabilities received working tools. - 155 people with disabilities were admitted in vocational training institutions under various skills. - Performance of Labor Exchange Center: 7069 job seekers registered. 2748 referred to employers for employment and 182 were employed. 3430 job openings registered. 444 were provided with job search information and advice. 144 received vocational guidance and counseling services. - Time-Bound Program is in operation – 5,000 children have been withdrawn from child labor. - The key employment study reports i.e. the Investment for Poverty Reducing Employment (IPRE) 2000, the strategies for Employment and poverty reduction Country Action program, and the ILFS2000/01 were officially launched During the employment stakeholders meeting in April 2003. Planned actions - Have all policies in place and complete and carry out policy implementation strategies for these policies. - Facilitate formation of the Youth representative bodies from Village to National level, having in place National Youth Council as an Apex body. - Provide loans to 400 more women workers. - Organize 1,000 more women workers into economic groups and provide them with training. - Remove 1,000 (50% girls) younger and older children from child labor and provide them with alternatives for primary education and formal and non-formal vocational training. - Assist 400 (50% girls) youth withdrawn from child labor and provided with vocational skills to set up youth economic groups for income generation. - Train 10 more daycare attendants and rehabilitate/create 10 daycare centers in project locations. - To up-scale the solid waste management activity in at least six municipalities. - To give seed money and working tools to more people with disabilities. - To avail more vacancies to people with disabilities in vocational training institutions to more people with disabilities. - Capacity building for center (work facilities, website and training). Extension of LEC services to 5 Zonal centers other areas. - Implementation of a program of attaching job seekers to companies to gain experience and skills. - Exploring ways of looking for job opportunities outside the country. - Review of outdated industrial and occupational dictionary currently being used by the center. - Demand driven skills training Program continued to be implemented in 20 other districts. 20 more districts to benefit from the program. - Carry out a SWOT analysis of the program performance, outcome and impact on poverty reduction at community levels. - Translate the key reports to user-friendly versions and disseminate the report findings to wider range of stakeholders at all levels for further reference. - Mainstreaming CAP proposals into other priority sectors for employment creation. - Complete baseline survey on worst forms of child labor in 11 districts. - Community awareness raising and mobilization for elimination of worst forms of child labor in 11 districts surveyed. - Labor Law Reform – Submission of the Report on Labor Law Reform by the Labor Law Reform Task Force to MOLYDS, finalization of two Bills on: Employment and Labor Relations, and Labor Institutions for presentation to the National Assembly for first reading in November 2003. ### A.XII: Environment — Objective, Progress, and Planned Actions Objective - Integrating environment into the PRS process to support sustained economic growth and development. Progress to date - Cabinet approved a new institutional framework for environmental management in December 2002. - Environment framework law – Following approval of the institutional set up the VPO have led on the development of a single environmental framework law with a first draft prepared for consultation in December 2003. - Launch of Program to Integrate Environment into the PRS process. Outputs focus on knowledge on poverty-environment linkages, use of environment data in poverty monitoring system, and capacity building of Government and non-government stakeholders. - Establishment of Environment Working Group - a cross-sector environment-working group (EWG) has been established to promote the integration of the environment into the GOT policies and plans to help ensure the sustainable use of Tanzania’s environment and natural resources for poverty reduction. - PER Environment – the first public expenditure review (PER) of the environment has been initiated and is expected to produce inputs into MTEF and guidelines to mainstream environment into their sector PERs. - Utilization of poverty-environment data for use in PRS process - Preliminary poverty-environment indicators were included in the revised indicator list for the PMS for use by PRBS/PRSC. TOR for detailed study on poverty-environment indicators developed and identification of consultants to undertake study is underway. - Integration of environmental management in the sector programs. Approval of environment units for sectors, and development of SEA. - Agricultural survey – VPO with NBS worked on the design and questionnaire of the agricultural survey to ensure it included relevant questions on environment sustainability and livelihood issues. - Strategic environment assessment – Study completed on the use of SEA and poverty reduction. Planned actions - Poverty and environment linkages – continue to document on poverty and environment linkages and commission studies as appropriate. - Poverty and environment indicators – Complete study on poverty-environment indicators, and use of the results of this to review and amend poverty-environment indicators to strengthen the national poverty monitoring system. - PRS review – a central element of the coming years activities will be attention to environment as one of priority cross cutting issues in the review of PRS. - Cross-cutting issues and mainstreaming – develop links with groups mainstreaming other cross-cutting issues including gender, to help ensure effective mainstreaming of these issues and build knowledge on useful tools for mainstreaming. - Local government – develop with PORALG pilot activities on mainstreaming environment at the local government level (links with the implementation of the new institutional structure for environment management). - Civil Society Organisations – focus work with environment and conservation non-government organisations to increase their awareness on poverty and environment issues, and their involvement in the PRS process. - Private sector – strengthen engagement with private on poverty and environment issues. - Environmental framework law – finalise draft of law for submission to Parliament following Cabinet approval, and subsequent to its passing commence development of relevant environment regulations and guidelines for: (a) integrating EA into sector and district planning processes; (b) Economic instruments; (c) environmental standards for monitoring and compliance. - Environment working group – strengthen membership of the Environment Working Group, and broaden its present work to include inputs into PRS review and implementation of PRS and engagement with other sector working groups. - PER Environment – complete 2003/04 PER study and develop sector guidelines to mainstream environment, and develop TOR and commission PER study 2004/05 to build on first PER for environment. - Tanzania Social Economic Database (TSED) – work with NBS on using existing data collection and analysis of agriculture survey to complete environment module of TSED. - Capacity building – implementation of capacity building action plans under the program to integrate environment into the PRS. *Source: _cr04282 - Introduction of the alternative dispute resolution.* --- _Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2004/_cr04282.pdf_