Aid Effectiveness Network news

Tanzania launches its Joint Assistance Strategy

What is the Joint Assistance Strategy?

The Joint Assistance Strategy in Tanzania (JAST) is a new framework agreed between the Government (GoT) and its 40 development partners (DPs) to make aid more effective. It puts into practice in Tanzania the 2005 Paris Declaration on Aid Effectiveness.

The JAST builds on earlier efforts to improve harmonisation under the 2002-2005 Tanzania Assistance Strategy. Unlike JASs elsewhere in Africa, JAST was led from the start by GoT, and is highly inclusive – it applies to all GoT, and all DPs. The core principles are to:

  • strengthen national ownership of development
  • align aid with GoT priorities and plans
  • reduce transaction costs of multiple strategies, programmes, reviews and missions
  • strengthen GoT accountability to DPs, but also to Tanzanian institutions and citizens.

When does JAST Happen?

The JAS officially comes into effect in July, following approval by the Tanzanian Cabinet. The JAST will include an action plan and a monitoring matrix, based on Paris Declaration indicators, to measure performance of GoT and DPs in implementation.

A short Memorandum of Understanding will also be signed, summarising joint commitments.

What will we do differently under JAST?

  • More Budget Support: General Budget Support is set to increase as a percentage of all aid to Tanzania (today it is 40%). GoT considers this modality the best way to deepen national ownership, accountability, and predictability. There is also space for sector basket funds and direct project assistance. But off-budget project financing is discouraged, since it is less aligned to national strategy and less transparent. We are increasing DFID’s budget support allocation, whilst also looking at how to balance budget support with other spending.
  • Better Division of Labour: With so many donors, sectors are overcrowded. DPs will specialise more, based on JAST principles of comparative and competitive advantage, and clearer segregation of lead, active and delegated partnerships. This means that DFID Tanzania will have to lead in some areas, and withdraw from others where other donors will lead. A new division of labour matrix will show these agreements.
  • Developing National Capacity: JAST seeks to strengthen the human resource, technical and financial capacity of Tanzanian institutions. DPs will seek to eliminate Project Implementation Units that are separate from GoT structures, and to make technical assistance more responsive to GoT’s long-term needs. DPs will also increasingly untie aid, procuring instead in accordance with Tanzania’s 2004 Procurement Act. Apart from developing GoT capacity, DFID Tanzania will also develop the capacities of non-government institutions like civil society, parliament and media to improve government’s accountability.
  • The CAP Must Fit: Separate bilateral agreements and country assistance plans by each DP must be brought into line with the above JAST principles.

What have we learned from JAST?

  • JAST builds on good harmonisation in poverty reduction budget support (PRBS) over the last four years. A group of 14 DPs including DFID now provide $660 million of PRBS to GoT under a single instrument. This has common design, monitoring and review procedures built around the annual budget cycle. Improving the predictability of aid is critical, especially where aid accounts for a large proportion of the GoT’s budget (39% of the 2006/07 budget). DPs need to provide more predictable finance, in terms of their contributions to the Medium Term Expenditure Framework.
  • Harmonising over 40 agencies isn’t straightforward. It took two years to develop the JAST. GoT leadership, and an inclusive process that engaged all DPs helped win broad political commitment, but slowed the pace of progress.
  • JASs require leadership and political will in GoT and in DPs to drive through reform. High quality communication with capitals is needed to explain why Tanzania is moving the way it is, and to persuade HQs of more traditionally-minded donors of the merits of reform.
  • No pain, no gain! If adapting to a JAS doesn’t stretch institutional capacity or change our way of doing business, it’s probably not working!

For further information, contact Eunice Urio.