“Getting it Together”… or Not. An Analysis of the Early Period of Tanzania's Move Towards Adopting Performance Management Systems

Abstract

Budget reform fits into a broad context of public sector improvement in Tanzania. This article discusses the progress in reforms up to the end of 2002 and attempts to explain such progress. The discussion indicates that while there have been many steps forward, overall reform progress has been slow. Two approaches to explaining this are presented. The first suggests that the Tanzanian case is a prime example of a reform “work in progress,” with reformers choosing a measured, gradual approach that accommodates necessary improvements in capacity and the development of reform structures and coalitions along the way. The second approach suggests that reform implementation has not been quite so purposeful, and that its slow pace is more a function of problems experienced and not sufficiently dealt with, including capacity limitations, varying reform support and will, and problematic reform coordination.

The opinions expressed in this paper are those of the authors and do not necessarily reflect the positions of the World Bank.

Notes

The opinions expressed in this paper are those of the authors and do not necessarily reflect the positions of the World Bank.

1. The background discussion is based on, inter alia, Tanzania Planning Commission. The Tanzania Development Vision 2025, Dar es Salaam: Government of Tanzania, undated; United Republic of Tanzania. Poverty Reduction Strategy Paper,Dar es Salaam: Government of Tanzania, October 2001.

2. Le Houerou, P.; Taliercio, R. Medium Term Expenditure Frameworks: From Concept to Practice. Preliminary Lessons from Africa. World Bank Africa Region Working Paper Series No. 28. Washington, DC: World Bank, February 2002.

3. United Republic of Tanzania Civil Service Department. Tanzania Public Service Reform Programme Volume I – MDA Guidelines for Accessing Funds from the Performance Improvement Fund. Dar es Salaam: Government of Tanzania President's Office, Civil Service Department, May 2000.

4. Caulfield, J.L. Agency reform in Tanzania: Freedom, Finance and Performance, 2001 Winelands Conference, Stellenbosch South Africa, September 2001.

5. United Republic of Tanzania. The Public Finance Act, 2001, Act no. 6 of 2001 in Acts Supplement no. 1 of 6th April 2001 to the Gazette of the United Republic of Tanzania no. 14, vol. 82, Dar es Salaam: United Republic of Tanzania, 2001.

6. Ronsholt, F.;Mushi, R.; Shallanda, B.; Assey, P. Results Oriented Expenditure Management – Country Study Tanzania;ODI Working Paper 204; London: Overseas Development Institute, March 2003.

7. Ronsholt, Supra note 6; 15.

8. As reported in Ronsholt, Supra note 6. Based, primarily, on Tanzania Civil Service Department. Public Sector Reform Programme 2000-2011, Annual Report July 1st 2001–June 30th 2002. Dar es Salaam: Civil Service Department, July 2002; 4.

9. As reported in Ronsholt, Supra note 6. Based, primarily, on Tanzania Civil Service Department, Supra note 8; 4.

10. Information on reform progress in the roads sector comes from, inter alia, Road Fund Board. Criteria for Allocating Road Funds to Districts and Design of an Appropriate Disbursement and Monitoring System, Final Report by K & Associates Professional Services, Dar es Salaam, January 2001; United Republic of Tanzania. Public Expenditure Review for FY02, Road Sector, National Consultative Meeting, 9th–10th May 2002, Dar es Salaam: URT, May 2002; Roads Fund Board.Annual Performance Agreement for District, Urban and Feeder Roads Maintenance Works for FY2002/03 between Roads Fund Board and PO-RALG, Dar es Salaam: Roads Fund Board, August 2002; Roads Fund Board. Annual Report Financial Year 2000/2001, Dar es Salaam: Road Funds Board, undated; TANROADS. TANROADS Business Plan for Financial Year 2001/02, Revised in August 2001. Dar es Salaam: TANROADS, August 2001; TANROADS. TANROADS Quarterly Report Number 4, April 1st to June 30th 2001, Volumes I and II, Dar es Salaam: TANROADS, 2001; TANROADS.TANROADS Business Plan for Financial Year 2002/03, Dar es Salaam: TANROADS, June 2002, as well as Kumar, A. A Review of Road Sector Reforms in Tanzania. SSATP Discussion Paper No. 2, World Bank Africa Region. Washington, DC: World Bank, April 2002.

11. Kumar, A. A Review of Road Sector Reforms in Tanzania. SSATP Discussion Paper No. 2, World Bank Africa Region. Washington, DC: World Bank, April 2002; vii.

12. Ibid, 17.

13. Ibid, 14.

14. United Republic of Tanzania. Poverty Reduction Strategy, The Second Progress Report, 2001. Dar Es Salaam: Government of Tanzania, 2003; 32–35.

15. IMF and IDA. Poverty Reduction Strategy Paper—Progress Report and Joint Staff Assessment. Washington, DC: IDA, November 1, 2001; 4.

16. Kumar, Supra note 11; 12.

17. United Republic of Tanzania, Supra note 14.

18. The Ministry of Health budget comprised 790 pages of activity-based costing (Ronsholt, Supra note 6).

19. IMF and IDA, Supra note 15; 4.

20. Le Houerou; Taliercio, Supra note 2; 21. The authors calculate a Budget Deviation Index (BDI), which, when disaggregated to the ministry/agency level in Tanzania, averaged 33% during the pre-MTEF period (FY95-FY98), and stood at 25% in the post-MTEF period (FY99). The authors conclude that, “This apparent decrease…is minor. Calculating the BDI by both sectors (a higher level of aggregation) and individual budget items (a lower level of aggregation) produces similar results. Thus, there is no solid evidence that the MTEF improved budget predictability in Tanzania.”

21. Kumar, Supra note 11; 13.

22. For more details, see Ministry of Health. Ministry of Health, Public Expenditure Review, Health Sector Update for 2002, Final Report. Dar es Salaam: Ministry of Health, May 2002.

23. Ibid, 49.

24. Kumar, Supra note 11; 10–14.

25. During the early stages of the LGRP, the Health Sector was pushing strongly for accelerated progress, as its sector-wide approach plan intended to provide sector grants to LGAs but could not proceed on this until the LGAs were capable of producing Council Health Plans and had completed installation of improved/computerized accounting systems.

26. Discussion on local government reforms is based on, inter alia, Ministry of Regional Administration and Local Government. Policy Paper on Local Government Reform, Dar es Salaam:MRALG, October 1998; Ministry of Regional Administration and Local Government, LGRP: Restructuring Manual, A strategic approach to reform by Local Authorities, Dar es Salaam: LGRP, March 2000; President's Office, Regional Administration and Local Government, Assessment of the Progress of the LGAs Restructuring Process and the Appropriateness of the LGA Restructuring Manual, Final Report, Dar es Salaam: LGRP, January 2002; President's Office, Regional Administration and Local Government, Implementation of the Local Government Reform Programme July 2001 to June 2002, August 2002, Dar es Salaam: LGRP, August 2002.

27. IMF and IDA. Supra note 15; 2.

28. The authors made this comment in the draft paper preceding their 2002 publication, referenced as Le Houerou; Taliercio, Supra note 2.

29. Caulfield, Supra note 4; 4.

30. See, for example: Therkildsen, O. Public Sector Reform in Tanzania, Public Administration & Development, 2000, 20, 61–70.; Caulfield, Supra note 4; 4; Andersson,G; Isaksen, J. Best Practice in Capacity Building in Public Finance Management in Africa, Experiences of NORAD and Sida. SIPU International Report R 2002: 16. Chr . Michelsen Institute, 2002.

31. Le Houerou; Taliercio, Supra note 2.

32. Andersson; Isaksen, Supra note 30; 22.

33. Therkildsen, Supra note 30; 63.

34. Ronsholt, Supra note 6; 31.

35. Ronsholt, Supra note 6; 58.

36. Ronsholt, Supra note 6; 24–26.

37. Andersson; Isaksen, Supra note 30; 19.

38. Caulfield, Supra note 4; 5.

39. United Republic of Tanzania, Supra note 1, 45–47.

40. Ronsholt, F.; Mushi, R.; Shallanda, B.; Assey, P.: Results Oriented Expenditure Management – Country Study Tanzania; ODI Working Paper 204; London: Overseas Development Institute, March 2003: 8–9.

41. “Despite many reform measures being implemented or under way, it is difficult to identify political support for the reform package as a whole.” Therkildsen, Supra note 30; 62.

42. Therkildsen, Supra note 30; 65.

43. Ronsholt, Supra note 6; 36.

44. Caulfield, Supra note 4; 5.

45. Caulfield, Supra note 4; 6.

46. Caulfield, Supra note 4; 7.

47. Caulfield, Supra note 4; 8.

48. Caulfield, Supra note 4; 8.

49. Ronsholt, Supra note 6; 39.

50. Article 31 (2) states “ the Controller and Auditor General shall…satisfy himself that… (c) all expenditure of public monies has been properly authorised and applied to the purposes for which they were appropri-ated…and (d) economy, efficiency and effectiveness have been achieved in the use of public moneys resources.” United Republic of Tanzania. The Public Finance Act, 2001, Act no. 6 of 2001 in Acts Supplement no. 1 of 6th April 2001 to the Gazette of the United Republic of Tanzania, no. 14 vol. 82.

51. Pricewaterhousecoopers. LGRP Fiscal Decentralisation Task Force, Data Collection and Processing for Assessment of Financial Performance of Local Government Authorities, Progress Report Stage 1. October 2002.

52. Ronsholt, Supra note 6; 36.

53. Therkildsen, Supra note 30; 70