CHAPTER FOUR ECONOMIC GOVERNANCE AND MANAGEMENTECONOMIC GOVERNANCE AND MANAGEMENT 4.1 Overview 506. Chapter Four in the CSAR addresses six issues of economic governance and management. They are standards and codes; promoting macro-economic policies that support sustainable development; implementing transparent, predictable and credible government economic policies; promoting sound public finance management; fighting corruption and money laundering; and accelerating regional integration by participating in the harmonisation of monetary, trade and investment policies among participating states. This chapter first summarises the findings on these issues from the Country Self-Assessment Report (CSAR), followed by the findings of the Country Review Mission (CRM) on the same issues. It ends with recommendations on what needs to be done to satisfactorily address challenges in these areas. 507. As noted in Chapter Two, Tanzania made good progress in promoting economic growth over the past five years, with growth rates averaging about 6.8 per cent a year. However, this growth has not been broad-based, pro-poor development nor did it bring about structural transformations. The structure of the economy has not changed in recent years and industrial production has stagnated. More importantly, levels of poverty and economic inequality remain high, and unemployment is a major problem in rural areas and among the youth. The 2011/12-2015/16 economic development plan is intended to address these challenges. For significant progress to be achieved in addressing the problem of growth without development, Tanzania must make more vigorous efforts to implement its policies and strategies, build capacity for this, expand and deepen consultation and coordination among all stakeholders at all levels. Direct and explicit action must also be taken to address poverty and inequality without relying on the trickle-down effects of economic growth. 508. Through Vision 2025, the Government of Tanzania has the ambition to transform the country into a middle income country by 2025. It will take drastic improvements and an effectively functioning government machinery to attain that objective. Planning processes must be more robust. The various government departments and agencies and local government bodies and authorities must improve coordination. Government must own policy and this will require effective consultations with all stakeholders, including the private sector and civil society. The oversight function, including over the budget and procurement processes, must be strengthened to avoid any resource leakages. The Government acknowedged the need for action in these areas and continues to embark on a number of initiatives and reform measures. These areas are explored and appropriate recommendations made for improvement. 509. Tanzania has been implementing policy reforms to strengthen national public resource management. The country designed and continues to implement policy frameworks to deepen and create efficiency in the financial sector. Various reforms have been implemented to date and a second generation of financial sector reforms is underway. In addition, the country pursued reform implementation to strengthen the budgeting process and create a conducive environment for strengthened expenditure planning, controls, reporting, auditing and enhanced accountability on the part of public officials. Programmes and initiatives were designed and are being implemented to decentralise fiscal functions down to grassroots level. A summary of these reforms, results achieved, and pending challenges are presented. Also, findings contained in the CSAR and the interactions with a variety of stakeholders are assessed and recommendations made accordingly. 510. Like many other African countries, Tanzania recognised the need to bolster the fight against corruption. It has ratified important instruments to prevent and combat corruption and money laundering. It has also established key institutions that are championing the war on this vice. Questions put to the CSAR and interactions with stakeholders permitted an assessment of the efficiency of these institutions. A National Anti-corruption Strategy and Action Plan continue to be implemented. The focus was on institutions of accountability and findings are 111