The UNCDF/UNDP Experience With LGRP Basket Funding Arrangements in Tanzania

An Internal Assessment

Per Tidemand UNCDF Regional Technical Advisor

July 2003

Currency Unit Tshs 1040
Tanzania Shilling (Tshs) US$ 1.00 (as of June 2003)
LIST OF ABBREVIATIONS ALAT CBFSC CDD CRT CSRP DED DCDO DPLO DSW GoT IFMS IPF LDF LGA LGRP LGRT LGSP MRALG MIS PE PER PO-RALG PS PSU OC O&OD RAC RAS RS SDP RTA TAS UNCDF UNDP VA VC VEO WDC WEO ZRT Association of Local Authorities of Tanzania Common Basket Fund Steering Committee Community Driven Development Council Reform Team Civil Service Reform Programme District Executive Director, District Community Development Officer District Planning Officer Decentralisation Sector Work Government of Tanzania Integrated Financial Management System Indicative Planning Figure Local Development Fund Local Government Authority Local Government Reform Programme Local Government Reform Team Local Government Support Programme Ministry of Regional Administration and Local Governments Management and Information System Personnel Emoluments Public Expenditure Review Presidents Office - Regional Administration and Local Government Permanent Secretary Programme Support Unit (SDP Mwanza) Other Charges Opportunities and Obstacles to Development Regional Advisory Committee Regional Administrative Secretary Regional Secretariat Support to Decentralisation Programme (UNCDF/UNDP Mwanza) Regional Technical Advisor (UNCDF) Technical Advisory Services United Nations Capital Development Fund United Nations Development Programme Village Assembly Village Council Village Executive Officer Ward Development Committee Ward Executive Officer Zonal Reform Team
UNCDF Experiences with LGRP Basket Fund
List of Contents 1. INTRODUCTION.... 1 2. UN SUPPORT TO LOCAL GOVERNANCE... 3 2.1 UNDP/UNCDF.... 3 2.2 UNDAF.... 4 2.3 WORLD BANK AND IMF.... 5 3. LGRP..... 6 3.1 BACKGROUND... 6 3.2 MAIN ACHIEVEMENTS 1999-2001.... 8 3.3 REVIEW RECOMMENDATIONS AND OBSERVATIONS... 8 3.4 GOT RESPONSE TO REVIEW.... 9 3.5 POST REVIEW ACHIEVEMENTS 2001-03... 9 4. THE BASKET FUNDING MODALITY... 11 4.1 INSTITUTIONAL ARRANGEMENTS.... 11 4.2 MANAGEMENT PRACTICES.... 11 4.3 FINANCIAL MANAGEMENT AND REPORTING.. 12 5. THE FUTURE LGRP... 14 6. KEY LESSONS AND RECOMMENDATIONS FOR UNCDF/UNDP.. 15 6.1 LGRP EFFECTIVENESS... 15 6. 2 INSTITUTIONAL ARRANGEMENTS FOR LGRP... 15 6.3 RELEVANCE OF UNCDF/UNDP PRESENCE IN CBF.. 16 6.4 FUTURE UNCDF AND UNDP SUPPORT TO LGRP... 17 ANNEXES.... 19 ANNEX A: DOCUMENTATION.... 19 ANNEX B: MASTER LOG FRAME OF LGRP 2002-2005.. 22

1. Introduction

During the formulation of the UNCDF/UNDP Programme Support to Good Local Governance, in 1998/99 it was decided to allocate some of the programme funds as contribution to the basket funded Local Government Reform Programme. The major share of the 6.9 million US$ programme was devoted to the extension and deepening of activities of the Support to Decentralisation Programme in Mwanza Region. A small part of the budget was set aside for selected studies and earmarked activities for support to national processes in support of decentralisation, but most of the national level support was allocated in the form of a 1 million US$ contribution to the existing basket funded Local Government Reform Programme (LGRP). The contribution to the basket fund was controversial as UNDP funding to basket funding arrangements up to this stage had been virtually non-existent, UNDP/UNCDF are multilateral institutions receiving funding from many nations with bilateral representation in Tanzania who already contribute to the basket fund, Concerns similar to many of the participating bilateral donors - regarding how to report on achievements in a manner that establish a link between received funding and accomplishments.

The report is divided into the following sections: 1. Introduction, with overview of issues and methodology,
2. Overview of UN programmes in particular UNCDF and UNDP programmes in Tanzania in support of local governance, 3. Assessment of the achievements progress and problems of the LGRP; this is divided into a discussion of achievements and issues prior to and after the joint GoT-Donor Review 4. Assessment of the Basket Funding Modality itself: institutional and reporting arrangements, 5. Outline of the Future Plans of LGRP 6. Recommendations and lessons regarding UNCDF/UNDP funding through CBF
2. UN Support to Local Governance
The support to the basket funded LGRP has to be seen in context of other UN support to the Tanzanian efforts for improved local governance - in particular other support from UNDP and UNCDF.
2.1 UNDP/UNCDF Up to 1998 when the national Local Government Reform Policy was adopted, UNDP and UNCDF support to local governance had mainly been in the form of area-based support: Capacity 21 support to Mbozi and Sengerema Districts supporting participatory planning in the two districts with residential national advisors, and The much larger UNCDF/UNDP support programme in Mwanza Region supporting the six rural districts in the region in the areas of general development planning and managements as well as feeder road rehabilitation. The programme initiatives of capacity building and systems development is underpinned by practical piloting of development grant transfers in the form of non-sector specific general development grant (the Local Development Fund LDF) and conditional grants for feeder roads rehabilitations.
In 1998-99 it was discussed how UNCDF and UNDP more deliberately could support efforts at national level for supporting the nationally agreed policy for local government reforms. Two programmes were subsequently developed:
URT/99/001 Strengthening Capacities for Good Governance in Local Government. With a total budget of 619,500 US the programme aimed at
building the capacity of MRALG to oversee the LGRP programme. The programme included activities in support of establishment of a MIS, facilitation of national policy dialogue, learning from existing experiences in LGAs and support to improved village governance. The programme Document was signed April 2000 and was foreseen to be implemented over a two-year period. It has during the mid of 2002 being in the process of redesign as affective delivery of the programme up to that time had been rather limited. A revised programme has now been developed which pays greater emphasis to the strategic planning and reorganisation of PO-RALG in line with the overall Public Sector Reform in particular how this is to be implemented at the level of the Regional Secretariats. URT/99/005 & URT/99CO1: Support to Good Local Governance. With a total budget of 6.9 million US$ (UNCDF 5.7 and UNDP 1.2 million US$), the programme seeks to o Extend and deepen the experiences in Mwanza where the Local development Fund Component pilots the use of unconditional grants to plan and allocate resources for districts and community based infrastructure and the Roads component which pilots the use of conditional grants to local authorities for rehabilitation of feeder roads through application of labour based technologies, o Support technical co-operation between ongoing field based activities in support of decentralisation and national dialogue through various activities including provision of a UNCDF Regional technical Advisor, o Strengthen the national LGRP through earmarked and non-earmarked contributions to the basket fund. 2.2 UNDAF Other UN Agencies had until recently no explicit programmes in place in support of local government reforms. An UNDAF working group on Community Driven Development (CDD) was established in 2001 in order to co-ordinate programme activities and formulate joint working programme - in support of the local government reforms. The UNDAF is chaired by UNICEF, which for long has been a key player in support to community based programmes through local authorities. UNICEF has for instance for long supported a community based information system at village level. UNICEF has no engagement in the national Local Government Basket Fund. The UNDAF CDD aims at establishing a joint programme and has in principle agreed on a three-year programme with contributions from various UN agencies mainly UNICEF, UNDP/UNCDF, UNFPA, WFP and ILO. The total three-year budget is 3.2 million US$. The programme focuses on three areas:

1. Enhancing governance within local authorities, 2. Communication and Public Information, and 3. Community Based MIS.
The UNDAF CDD document describes a wide range of issues to be addressed and activities to be supporting in each of these areas. The programme remains to a large extent an overview of ongoing UN programmes within the common broad areas rather than one focused and uniform programme. To aim at a common programme is probably also initially over ambitious there is under all circumstances ample scope for initial coordination of various approaches. The single most prominent feature of the UNDAF CDD is support to piloting and up scaling of the O&OD Planning approach under PO-RALG. The concept of O&OD Planning originated from work in 1998-99 where at that time MRALG developed a concept for linking local government planning to central government planning and budgeting based on existing opportunities and obstacles to development2. The Ministry and later PORALG has since then mainly with UNICEF assistance developed the approach with emphasis on community planning. The approach suffers from some weaknesses. Its focus on a range of particular facilitation techniques and high costs have led to concerns within the UNDAF in particular from UNCDF and UNDP regarding the appropriateness of developing a joint programme around that particular approach3. 2.3 World Bank and IMF World Bank support to local government reforms has until recently been limited to support to selected urban authorities through the Urban Sector Rehabilitation Programme. However, in 2001 the World Bank undertook a major analytical work4 and later decided to prepare for a Local Government Support Credit. The envisaged World Bank Local Government Support Programme (LGSP) will partly address the special needs of Dar es Salaam local authorities, but mainly provide nonsector specific capital grant funding to a large part of local authorities in the country in a manner that give the local authorities incentives to improve their functional performance. The World Bank LGSP will in this manner fill a gap in the local government reforms in Tanzania, which only have addressed policy, procedural, and capacity building issues. The LGSP will provide much needed non-earmarked development funds to allow local authorities effectively to plan in accordance with their mandate. The programme will be designed during 2003 and probably start effective implementation 2004.

Operational Guideline to Regional Secretariats 1999 and the later Planning and Management guide to Regional Secretariats, 3 The problems are most briefly described in the Joint Government and Donor Review of the Local Government Reform programme (Annex 6) as well as in later reports from Hyden (2002) and field report from Mabina, Anoushka and Tidemand 2002. 4 World Bank, United Republic of Tanzania: Decentralisation Sector Work, March 2001.
The UNCDF LDF Programme in Mwanza was late 2001 redesigned in order effectively to pilot the introduction of this national non-sector specific development grant. This redesign included in particular the design of an effective incentive based LDF allocation system and a replicable system of indicative planning figures below district level for more effective community participation and transparency in resource allocations. IMF has provided limited support in the form of analytical work on fiscal decentralisation5.

3. LGRP

3.1 Background Local governments were abolished in the early 1970s and re-introduced in Tanzania in 1982. However, a substantive programme for enhancing their effectiveness in service delivery as well as reforming the overall public sector along the principles of decentralisation was first taken up as an issue through the Civil Service Reform Programme (CSRP) in 1994. In October 1996 the Prime Ministers Office presented the Local Government Reform Agenda a paper developed with technical support from the Civil Service Reform Programme Secretariat. The Reform Agenda made substantive policy proposals regarding the vision of local governments as: Largely autonomous institutions, Strengthened in financial and HRD aspects, Democratically governed and conducting business in a transparent and accountable manner, Deriving their legitimacy from service delivery to the people
The role of central government should in such a future decentralised context be confined to policy development, management of regulatory framework and monitoring of local authorities. The document also outlined the main elements of a local government reform strategy and an action plan including proposals for management of the reforms. The proposed programme would be constituted by six main components: 1. 2. 3. 4. 5.

Institutional and legal framework, Restructuring of local authorities, Governance Finance, HRD
IMF: Fiscal Decentralisation Issues Tanzania May 2001.
6. Programme management. The programme was to be implemented through the Prime Ministers Office (PMO) that at that time had the mandate to oversee and support local authorities. It was foreseen that a strong secretariat would be established within the PMO to manage the LGRP. The Reform Agenda was endorsed by the Steering Committee of the Civil Service Reform Programme in 1996 and subsequently in 1998 GoT published its Policy Paper on Local Government Reforms. These two documents constitute the policy framework on which the reform of local government in Tanzania mainland is based. A detailed Action Plan and Budget (July 1999 June 2004) was developed by the Government of Tanzania and endorsed by a joint Government Donor Appraisal mission in 1999. This document has until recently been the master plan for the LGRP. It was during the formulation process decided to establish a dedicated management unit within the ministry responsible for local government (initially PMO, later MRALG and now PO-RALG), but with a large degree of autonomy. The management unit includes national component mangers for the above-mentioned six components, 2 international Advisors, Zonal Reform teams based in selected regions for outreach and support to approximately six reforming councils each and various support staff. Component Managers report to the Programme manager (supported by the Chief Technical Advisor) who reports directly to the Permanent Secretary. An important strategic choice was the decision to phase the reforms initially by including one third of the councils (the 38 batch one councils), approximately 1-2 years later to include the next batch etc in order to cover all local authorities within the foreseen five year period. The total budget of the Action Plan and Budget (July 1999 June 2004) was approximately 50 million US$. The programme was funded through a basket fund arrangement further detailed below with contributions from Denmark, UK, Norway, Netherlands, Ireland, Finland, Sweden and EU, UNCDF. Sweden (SIDA) was the latest donor to join (2001). The LGRP aims principally at: Revising and harmonising laws and policies in support of local government reforms, Developing mechanism for block grant financing and strengthening financial management in local authorities, Developing regulations and systems for a decentralised personnel management system including comprehensive training of staff and councillors, Restructuring the first batch of reforming councils (38 out of 114) to ensure a more effective delivery of services.

3.2 Main Achievements 1999-2001 The programme has supported policy development and legal reforms, including: The restructuring (with substantial retrenchments) of the Regional Secretariats based on the 1997 Regional Act, The Local Government reform Policy approved by cabinet 1998, Amendments to the Local Government Act (1999), which more clearly established the autonomy of local authorities in areas of planning, budgeting, and personal management. Detailed regulations in areas of fiscal block grant regulations and staff regulations (December 2000), Activities for dissemination of new policies and reforms to the wider public have been undertaken.
The Programme has designed and initiated a process of restructuring the first batch of councils. A manual with 17 steps for a restructuring was developed. Zonal reform teams have been employed to support local authorities in the restructuring process. Substantial delays have occurred in this exercise. A substantive programme for capacity building has been designed for training of councillors. A programme for training of grass root leaders (leadership at ward, village and Kitongoji levels) has been undertaken in most of the country (more than 1000 trainers were trained to undertake the exercise). A system for integrated financial management (platinum) in local authorities has been designed and rolled out in selected councils. Effective utilisation of the system is however limited.
3.3 Review Recommendations and Observations A joint donor government review of the LGRP was undertaken June 2001. The review endorsed the basic principles of reform, but took note of the many problems: Most importantly a lack of reform implementation in areas that matters most. The block grants were in spite of legislation never effectively introduced to the reforming councils. Line ministries and central government ministries (including PO-RALG itself) often overruled effective local government control of staff in reforming councils - in spite of new staff regulations. This absence of systemic reforms were recognised as being outside the direct control of the LGR team, but noted as crucial for the relevance of the overall
programme. The Review thus recommended more emphasis on these aspects, including the revival of inter ministerial working group and other institutional arrangements. Substantial delays had occurred in many of the planned activities especially in the restructuring of local authorities. This was reflected in a continuous and substantial under spending compared to budgets. Continued extensive use of consultancies for various analytical reports with subsequent limited effective follow up. The reforms appeared to be with limited ownership at local government level. Few incentives were in place to ensure that local authorities change. An initially envisaged component for a capital grant to local authorities was abandoned during the appraisal in 1999. Local authorities that undertook painful retrenchment exercise would not be able to retain any of the finances saved. The LGRT was established as a semi-autonomous unit to drive the reforms. However, the work and institutional set-up appeared on a number of occasions to work in parallel rather than in support to the permanent government institutions such as the PO_RALG in Dodoma and the Regional Secretariats. It was noted that better co-ordination between the LGRT and PO-RALG was needed, that activities in support of the PO-RALG and Regional Secretariats should be strengthened and a strategy for integration of the reform programme over time into PO-RALG to be developed.

In addition the Review noted particular issues to the various components and the detailed work plan of the LGRP. 3.4 GoT Response to Review The GoT responded positively to the Review basically endorsing all major findings and recommendations. However, practical response and redirection of the LGRP took long. A series of consultative workshops for the reprogramming were initiated early 2002 and completed July 2002. The new programme is briefly outlined in section 5 and the logical framework presented in annex. More immediate response to the recommendations of the Review included the establishment of two task forces on finance and personnel/organisation respectively to advise on how the above-mentioned systemic aspects of reforms could be more effectively addressed. 3.5 Post Review Achievements 2001-03 In particular in the area of fiscal decentralisation the new arrangements were successful in facilitating important systemic reforms. Georgia State University was contracted to
develop a system of intergovernmental grants as replacements for the hitherto negotiated allocation of funds for local governments. The new formula based approach to allocation of finances to Local Governments is gradually to include all recurrent fund transfers within the sectors of education, health, roads, water, agriculture and administration. From next Financial Year it will be applied to health and education. The new system will rectify previous years very unequal distribution of resources, which has favoured urban local governments and local governments with well-developed infrastructures (districts with more schools received more money than other districts even through the number of children in school going age was similar). The new system will also gradually give local governments more discretion in allocation of resources and would bring them some incentives for more rational allocation of e.g. staff. Similar systemic progress has not been achieved regarding devolution of staff to local governments. A new Public Service Act was passed by Parliament in 2002 and later amended. The Public Service Act does not provide for a clear legal framework for local accountability of staff. In fact a review of the Local government Service Regulations 2000 and the Draft Public Service Regulations in the context of the respective parent legislation and underlying policies (Shivji 2003) concluded, the Public Service Act centralises the administration and management of the public service, including the local government service, in the organs of the central government while deconcentrating powers from centrally based to locally based executive officers. It is suggested therefore that centralisation and deconcentration are the twin principles, which underlie the Public Service Act (Shivji 2003, paragraph 21). The report further adds In practice, no doubt, there will perhaps be consultation and some involvement of the local councils in the administration and management of local government service, but this would be as a matter of policy and practice rather than law. It is understood that some discussion still is ongoing within Government, including consultations with ALAT and that further revisions of regulations and even the Act still is possible. Under LGRP progress was in the same period made regarding implementation of nationwide training programmes for all Local Government Councillors and District Executive Directors. The restructuring exercise was slightly simplified within the period and most LGAs reached the final stages of the process. Two benchmarking exercises of LGA functional capacities were undertaken 2002 and 2003 (under the Fiscal Task Force for preparation of recurrent block grants as well as under the consultancy for preparation of the LGSP). Overall the period 1999-2002 seemed to lead overall improvements in LGAs performances in particular within financial management (starting with less than 10% of the councils in 1999 receiving a clean audit opinion). More interestingly the benchmarking exercises showed limited correlation between LGA performances and the many expensive capacity building exercises undertaken by LGRP (restructuring etc) and various area based programmes.

6. Key Lessons and Recommendations for UNCDF/UNDP
6.1 LGRP Effectiveness The LGRP Programme as such is a reasonable effective programming mechanism for achievement of several key reform objectives. At present there is no alternative programme mechanism for driving the policy development such as harmonisation of sector legislation, continued refinement of local government legislation etc, continued analytical work in support of systemic reforms (fiscal and personal decentralisation in particular) as well as generic capacity building. These activities are time consuming to manage and can at the moment not be undertaken within PO-RALG without the additional human resources provided by LGRT. However, the overhead costs of LGRP are high (now a total of 4 million US per year for LGRT salaries, vehicles etc). Plans have also during the period 1999-2003 continued to be overoptimistic and actual spending compared to budgets have generally been around only 70%. A discussion of the effectives of LGRP in achieving objectives should also bee seen in light of alternative arrangements. UNDP has during the same period as discussed here provided direct support to PO-RALG for internal capacity building. That programme has been even more difficult to implement in time. Of the different specific activities undertaken under LGRP, especially the effectiveness in LG restructuring can be questioned. The restructuring of the first batch of councils took much longer than expected and the impact in terms of improved LGA performances in e.g. financial management has not been impressive. A number of other capacity building activities are also moving very slowly. Although LGRP is not sole responsible for e.g. introduction of Epicor and LG M&E systems, then the unsatisfactory progress in these areas can in part be subscribed to lack of initiative from the relatively well resources LGRT. 6. 2 Institutional arrangements for LGRP Are the institutional arrangements of LGRP appropriate for achievements of overall reform objectives? The institutional arrangements for the direct management of LGRP (the CBFSC and Consultative Forum) can only be effective if overall policy guidance is clear. This requires effective guidance from IMTC and IMWG. In retrospect, the original LGRP plan may have assumed too rapid implementation of the 1998 Local Government Reform Policy without due consideration of the immense problems the Government of Tanzania is facing by implementing a wide range of other reforms (for each of the sectors, for the overall public service etc). The new MTP thus includes planned activities for support to more effective overall reform co-ordination. The institutional arrangements for the direct management of LGRP (the CBFSC and Consultative Forum) have in the period 2001-03 shown some unfortunate bias towards

(such as the Dutch and DfID) now actively seek to integrate existing area based programmes into GoT modalities and the new emerging intergovernmental fiscal transfer system (where LGSP will be an essential building block). Relevant UNCDF support to local governance reforms in Tanzania (mainland) can in future best take the form of Technical Advisory Services in areas where the LGRP do not support the reform and/or where UNCDF/UNDP have specific comparative advantages. This may include 1. Continued support to sub-district local governance. The LGRP focus almost entirely on the district/municipal level of governance. UNCDF and UNDP has for long been the only partner supporting PO-RALG in matters related to sub-district local governance. Since 1999 we have supported the Village Democracy Initiative that provided PO-RALG with a critical review of the institutional arrangements for village governance. UNDP supported 2002-03 the development of a practical Village Government Handbook which provides practical guidance on matters such as how best to conduct meetings, how to pass bye laws etc. In 2003 UNCDF together with DfID assist PO-RALG in making an assessment of procedures for sub-district retention of revenue. This work will need follow up in subsequent years. Support to a reform of the sub district court system (currently in the form of Baraza ya Kata) has for long been a neglected area even though PORALG a long time ago developed TOR for such an exercise (with the assistance of legal experts in LGRP and UNCDF RTA). UNCDF funds a closely related activity in Uganda, which may provide opportunities for linkages. The work to sub-district level may primarily take the form of TAS, although some elements of piloting can be explored within the context of the upcoming LGSP or integral part of LGRP not as a stand-alone. 2. Continued support to PORALG for operationalising the Regional Secretariats. UNDP has with UNCDF TAS spearheaded an institutional strengthening programme for Regional Secretariats by assisting PO-RALG in updating the Regional Planning and Management Guide etc. TAS from UNCDF could be integrated into such a wider programme if the programme will be approved for funding. Programming opportunities in Zanzibar are more in line with UNCDF corporate mission and comparative advantages. The reform of the local governance system in Zanzibar is starting in 2003 with UNDP support to formulation of policy reform options. UNCDFs global experience in development of capital grant transfer systems to local authorities in tandem with policy reforms will prove valuable contributions to possible continued UNDP support in Zanzibar.

Annexes

Annex A: Documentation GoT, PO-RALG/MRALG and LGRP General Documents: Local Government Reform Agenda 1996-2000, Local Government Reform Policy Paper 1998 Joint Government and Donor Appraisal of LGRP 1999. LGRP Action Plan and Budget July 1999-December 2004 Vol. 1 and 2 LGRP Work plan and Budget July 2000-June 2001. LGRP quarterly implementation Progress Report (October-December 2000) and forward Work plan (April-June 2001) March 2001. Local Government Laws revised 2000. Restructuring Manual. LGRP Audit Report December 1999, September 1999, May 1999, June 2000, March 2001. Audited Accounts and Management Audit Report on the Financial Statements of LGRP for the year ended 30th June 1998. A framework for coordinating Local Government and Sector Reforms. Internal Review Report on the achievements of key milestones for the period July 1999 to June 2000. Financial Management Manual.
LGRP Governance Component: Framework for Governance Component of LGRP, May 1999 Code of Conduct for Councillors and Council Staff, June 2000 Guidelines and Booklets on Good Local Governance, September - November 2000 Sensitisation Booklet on Local Government Reform, December, 2000 Preparation of National Framework on Participatory Planning and Budgeting at District Level, March 2001 Report on Sensitisation Seminars, April 2001 LGRP Restructuring Component Report on the restructuring study in Kondoa District Council and Mbeya Municipal Council 1999. Final Report (Study was to test the practicability of 17 steps restructuring process outlined in the Restructuring Manual).
LGRP Finance Component Financing of Dar es Salaam Local Government authorities, June 1999. Regulations for Management of Block Grants December 2000. 19
Preparation of a Financial Management Manual for Council Heads of Department, October 1999 (completed and in use). Improved Revenue Collection Procedures, January 2000 (completed and being introduced). National Minimum Standards and Block Grants for the year 2000/01, February 2000. Arrangements for Support to Local Authorities Implementing Platinum SQL, July 2000 (completed). Restructuring of the Local Government Loans Board by Nordic Consulting Group a/s, November 2000. Transformation of the Local authorities Provident Fund by the Solomon Consortium ongoing. Fiscal Decentralization Issues (commissioned by the Ministry of Finance) by IMF Mission, March 2001 completed. Data Collection and Processing for Assessment of Financial Performance of Local Government Authorities, Study by PricewaterhouseCoopers for Fiscal Task Force for the development of eligibility criteria for fiscal decentralisation. Study funded by DfID. June 2002. Developing a System of Intergovernmental Grants in Tanzania, Georgia State University, Andrew Young School of Policy Studies, (Jamie Boax et al) Various reports 2002-03.

Purpose

Outcomes

Outputs

Democratically elected leaders, rule of law, equity, public participation, accountability, integrity and transparency.
LGAs restructured to more effectively and efficiently respond to identified local priorities of service delivery in a sustainable manner

1. 2. 3. 4. 5. 6. 7. 8.

Restructuring Manual Developed Restructuring Manual revised to incorporate experiences gained Technical support and backstopping provided for the implementation of the LGAs restructuring process. LGAs restructuring implementation financially supported. Assistance to LGAs on methods and procedures to improve service delivery provided. Sector policies, guidelines, service and staffing standards availed to LGAs. Restructuring guidelines for sub-council level designed and disseminated Strategy for supporting additional LGAs designed and implemented.
LGAs locally generated and centrally disbursed financial resources enhanced and managed efficiently.
Fiscal decentralisation undertaken through granting financial autonomy to qualifying LGAs. 2. Improved LGA financial management and reporting systems designed and implemented 3. Capacity building programme for financial management and internal audit functions designed and implemented 4. LGAs own source revenue enhancement programmes designed and implemented 5. Proposals on revenue sharing (central/local) developed and submitted to MoF. 6. Modalities of establishing LG Finance Commission worked out and recommendations progressed to Government for decision. 7. Guidelines for management of financial resources at sub-council levels provided to LGAs 8. Transformation of LAPF into an autonomous pension fund facilitated 9. The future of Local Government loans Board established and necessary restructuring facilitated 10. A central support mechanism for LGAs implementing the Epicor (Platinum) based IMFS put in place 11. Funding for Local Government Support Project preparation provided
Effective system of devolved human resource management in place, underpinned by comprehensive staff/elected official development for decentralization.
New staff regulations developed. LGAs supported to exercise powers to recruit and manage their staff. 3. Additional, complementary systems of HRM designed and introduced in LGAs. 4. Targeted staff and elected leaders capacity building programme planned and implemented. 5. Capacity building Programme for selected training institutions planned and implemented. 6. Systematic analysis of motivating factors for staff in LGAs completed and integrated into LGA staff development plans. 7. LGAs staff rationalization programme implemented. 8. LGAs training Policy options analyzed, refocused and presented to Government. 9. Institutional implications of decentralised staff management examined and capacity building programme for LGSC implemented. 10. Sector ministries consulted and professional training in critical skills gaps for LGAs identified and operationalized.

Legal basis for devolution to and autonomy of LGAs established and complied with
1. 2. 3. 4. 5. 6. 7. 8. 9.
Strategy for establishing and operationalising LGAs auxiliary police prepared and implemented. 11. Strategy for strengthening by-law making process and enforcement mechanism by LGAs prepared and implemented.
Sector laws harmonised in line with Policy on National Decentralisation by devolution. Legislation and amendments to LG laws which are necessary to implement decentralisation by devolution prepared and submitted to Parliament Legal instruments necessary for implementation of decentralisation by devolution prepared issued and distributed to all levels of central and Local Government. Local Government Laws revised and compiled into one legal document, printed and distributed. Popular version of Local Government laws prepared, printed and distributed. Role of Ward tribunals reviewed and recommendations for improvement tested. Proposals on LG courts, LG Police and other law enforcement mechanisms prepared and recommendations submitted to the Attorney General. Chapter 8 of the Constitution redrafted to enshrine principles of devolution and autonomy and submitted to Attorney Generals Office. One comprehensive law on LG prepared and submitted to the Parliament.
PO-RALG and RS strengthened enabling effective and efficient facilitation, supervision and monitoring of Local Government Authorities in order to perform mandated functions.
1. 2. 3. 4. 5. 6. 7. 8. 9. 1. 2. 3. 4. 5. 6. 7.
Increased coherence and consistency of reform processes with PO-RALG / LGRP taking a more proactive lead
PO-RALG Restructured in line with strategic priorities Capacity building programme for PO-RALG designed and implemented PO-RALG MIS designed and operationalised RS operations reviewed and capacity building programme to facilitate progress of devolution designed and implemented M&E system at LGA established and managed Local Government Information and Coordination Centre established Strategy for integrating LGRP into PO-RALG designed and implemented. Strategy for integration of ZRTs into RS designed and implemented LGA plans supported, consolidated and monitored by RS Sector reforms, PSRP and LGR informed and consulted through existing and new fora Specific challenges and differences pertaining to sectors reforms, PSRP and Treasury addressed through IMWG(LG) bilateral meetings Capacity and strategies to mitigate bottlenecks between LGR and sector reforms developed, implemented and adjusted periodically Status of LGR policy vis--vis other reforms documented and disseminated Re-orientation programmes for sector reforms designed and conducted Effective mechanism established within RS for monitoring and coordination of sector policies in LGAs Lessons from Area-based programmes reviewed, compiled, shared with key stakeholders and used structurally within PO-RALG for mainstreaming, coordination and monitoring purposes