606. The CRM observed that the policy framework – the financial framework and budgeting and expenditure processes - is well developed and meets desired standards for good economic governance and management. It further confirmed the existence of a multiplicity of constraints, namely: inadequate macroeconomic management capacity; poor accountability by public servants; weak capacity to manage funds at regional and ministry levels; challenges in the MTEF implementation in the absence of a shared understanding of the utility of this mechanism; inadequate capacity for data collection, analysis and management; low levels of technical knowhow for financial data and information systems operations and management; and limited human and other resources capacity for taking on responsibilities and activities at sub-national levels. 607. The Plan of Action stipulates a fairly good framework for: (a) enhancing Public Procurement Act activities; (b) building MDA and LGA capacity to manage funds and improve performance; (c) enhancing tax administration; and, (d) instituting effective government expenditure control mechanisms in MDAs and LGAs. However, stakeholders told the CRM it would be difficult to implement the lengthy wish list of proposed actions within the stipulated time. This challenge to implementation is broadly associated with the more fundamental issue of a lack of coordination. It is difficult to clearly identify the key drivers of all the prescribed reforms in the country’s public finance management. 608. The CRM noted that if indeed NPoA was able to achieve results in an efficient manner, the assumption is that a sustained effort to implement a “macroeconomic framework which prioritizes efficiency and effectiveness in public service delivery to achieve results, transparency and accountability in the use of available resources99” is a necessary condition for success. However, stakeholders agree that the most serious constraint in this effort is both institutional and technical capacity to generate, analyse and use comprehensive, current, reliable and centralised data. In addition, it is widely acknowledged that the data is not available because of fractious organisational responsibilities, weak institutional capacities, and low demand for statistics. 609. The CRM observed that initiatives to empower the population to participate in various aspects of public finance management were designed, some of which are being implemented. However, most Tanzanians had not made the necessary paradigm shift that is a pre-requisite for their effective involvement in economic decision-making. Over the years, they were conditioned to actively participate in political decision-making. At the same time, however, their connection to economic decision-making was minimal. They were conditioned and accepted central government and/or elected leaders to direct all their economic decisions. Consequently, reform policies and specific initiatives aimed at enhancing people’s participation in establishing a strong macro-micro link and making public finance management more sound are unlikely to deliver the desired results in the short- and medium-term, as anticipated in the NPoA. 610. The CRM observed that there is indeed a problem with statistics and up-to-date data is wanting or unavailable centrally. State stakeholders confirmed this to be the case. The solution resides in vertically- and horizontallycoordinated programming over the long term, focused manpower training and deployment, in addition to the generation of up-to-date statistics. They further informed the CRM of three initiatives planned for implementation to reduce human and data capacity constraints. These are the National Statistical Master Plan100 and the National Manpower Development Plan, and the Household Survey planned for this year. However, they agree that these initiatives will require a lot of financial resources and hence there are no definite implementation time-lines. 611. In close interaction with the executive, it was confirmed that Government is firmly committed to achieving the fiscal decentralisation goals. The relevant institutions, systems and tools continue to be established. The same was confirmed by non-state stakeholders throughout the country. Overall, the policy framework is sound and implementation progressing well, albeit at a slow pace. This positive development notwithstanding, the CRM observed that the ownership of the process has not spread adequately - both vertically and horizontally - across the government establishment. 612. The CRM observed that sustainability is an issue for LGA revenue and that the POA only stipulates that a proportion of LGAs own funds to total expenditure of LGAs will be achieved through improved tax administration. However, all stakeholders appreciate that this is neither well-articulated nor clearly linked to regional and LGA economic activities. They press for the identification of regional anchor development and commercial projects (government or PPP). 613. These projects should have strong backward- and forward-linkages and capacity to both preserve natural The Tanzania Five Year Development Plan 2011/2012-2015/2016: Unleashing Tanzania’s Latest Growth Potentials, President’s Office Planning Commission, United Republic of Tanzania, 2011 100 Tanzania Statistical Master Plan 2009/10-2013/14, National Bureau of Statistics, United Republic of Tanzania, 2010. 99 128