A case for enhancing Joint-Programming in Tanzania?

1. A case for enhancing Joint-Programmingin Tanzania? European Union Delegation to Tanzania 4 February 2013

2. Why now? • EU stepping-up efforts to effectively implement the Busan agenda + Agenda for Change. • EU (EDF 11) and some EU MS engaged in programming. • Cross-roads for JAST / successor framework. • Government of Tanzania at turning point: Mkututa, Big Fast Results, 2015 elections, etc. • Post 2015 Development agenda in the making.

3. EU HOMs to report by 28 February! =>EU HOMS to report on the “opportunity of EU joint programming in Tanzania”. • January: Initial exchanges between EU HOCS, also associating Norway and Switzerland. • 5 February: DPG Main exchange. • 13 February: EU HOMS/HOCS agree on response. • 14-22 February: Consultations with Government and NSA, with EU facilitation. • 25-28 February: Finalisation of report.

4. The EU: pressing ahead after Busan EU commitment to Joint Programming: • 2007 EU code of conduct on complementarity and DOL. • 2009 EU Operational Framework on aid effectiveness • 2011 EU common position for Busan High Level Forum (outcome document including commitment on joint programming) • 2012 “Agenda for Change” EU Council conclusions

5. The opportunity: 11 EDF Programming Programming of EU Development Assistance for 2014-2020 Process: • May - September 2012 : First Phase • Consultations with national stakeholders (GoT, MPs, CSOs, DPs) • Analysis of National Development Plans • Proposal of the overall lines of the EU response in line with Agenda for Change • October 2012 – March 2013: Second Phase Development of Multi-Annual Indicative Plan (MIP) (identifying specific objectives, expected results, performance indicators, financial allocations under each sector)

6. EDF 11 – possible sector focus Regional linkage Supply-side constraints to growth and trade Blending opportunities Policy dialogue Low carbon and resilient economy Social inclusion and human development Regional linkage 6

7. 11 EDF: Choice of sectors Sector Concentration: • 3 Focal Sectors – choice based on basic principles • Country needs & priorities • Potential impact on economic, social, environmental policy reforms • Leveraging effect on other sources of finance for development (in particular private investment) • Coherence and lessons learnt from previous EU assistance • EU priority areas of cooperation and comparative advantage, including in relations to EU Member States • Additional Support to Civil Society Organisations and Local Authorities • At least 20% of EU aid to support social inclusion and human development • 20% of to contribute to low carbon and resilient economy

8. Scope of Joint Programming • Joint analysis of partner country’s development strategy. • Joint response to that strategy. • Identification of sectors of intervention. • In-country division of labour: who is working in which sectors, based on comparative advantages. • Indicative multi-annual financial allocation per sector and donor.

9. Principles of Joint Programming • Led by partner country government and based on its strategy • Aligned to partner country's strategy cycles: synchronisation • Conducted primarily at partner country level in order to respond to specific needs and the situation on the ground • Does not encompass for the EU and MS the determination of country allocations and bilateral implementation plans • Taking into accountdonor-wide strategies as far as they already exist to avoid parallel processes/duplication • Open to other committed donors, with the EU prepared to be a driving force (similar dynamic to the Fast Track Initiative for DOL) • Gradual approach, according to country specific situations

10. Benefits of Joint Programming • Stronger alignment with partner country's strategies • Complementarity → less fragmentation → aid effectiveness • Improved impact and visibility through more coherent EU and MS interventions • Cost savings: JP allows the EU and MS to substitute their individual country strategies • A more clear-cut, coherent and visible, EU profile

11. Synchronisation Synchronisation of EU and MS cycles with National Development Plan (or other national cycles like elections) is requirement • If not possible now: - Prolongation of existing strategy until new partner country cycle starts • This interim period to be used to: - facilitate preparatory process for Joint Programming - identify participating donors

12. Analysis of NDPs- Reference Documents Co-ordinated programming with some MS Phasing of programming in Tanzania: Phase I: 2014 - ? Phase II: 201? - 2020 Long Term Perspective Plan 2011/12 – 2025/26; and Tanzania Vision 2025 Opportunity for joint EU Programming

13. EU & MS programming cycles

14. From EDF 10 to EDF 11 Water and Energy Facilities Food Facility Thematic programmes in human development, human rights … 14

15. Initial reaction for EU capitals: • Joint programming is not new to Tanzania (JAST, precedent of EDF 10, etc) • Lessons learnt from JAST implementation: call for strengthening the harmonisation agenda through changes starting with programming and greater coordination in joint-missions and analytical studies. • Need to ensure higher impact of aid programmes and reduce further transaction costs already well rooted in the principles of cooperation promoted by EU MS and the EUD in the larger forum of the DPG

16. Principles of JP informed the design of the initial concept note for the EDF 11. • But opportunity for a new phase or enhanced joint programming only in 2014/15 making it possible to more effectively synchronise EU cooperation with the GOT agenda, advocating for it to lead coordination at the sector level. • In a transition period, the EUD and MS will continue to work around the earlier agreed framework, updated to take notably into consideration the EU Agenda for Change and the EU HOMs agreed lines of strategic engagement with Tanzania.

17. Objective: raise our level of ambition through more systematic joint diagnosis and reinforced DOL with the articulated EU leads in key areas where comparative advantages can be secured. • A mapping of current areas of joint work would underline that we are already effectively implementing the principles of JP. Extensive joint analysis / assessment takes place at sector level and there are a number of success stories or best practices of joint implementation to be show-cased.

18. Opportunity to illustrate benefits gained and added value of working more effectively within the EU but also with other DPs (including UN Agencies and IFIs such as the EIB, WB, ADB). • EU ready to contribute to the fast tracking a new phase of joint programming within the DPG, to promote overall aid effectiveness.

19. 4 key JP elements of EU Conclusions 1. Joint analysis of and joint response to the national development strategy identifying priority sectors of intervention: - Opportunity to take stock of latest policy developments, notably around the Big Fast Result agenda. Engage through the sector groups (as has been initiated) and possibly through the Government-led laboratories. Come-up with joint analysis for each priority sector. - Joint Political Economy Analysis (example of the Port study)

20. 2. Identifying priority sectors of intervention:

21. 3. In country-DOL: who is working in which sector: - Scope for further Delegated (from EU to a MS or between MS) or Transfer (from a MS to the EU) agreements should be explored. Other modalities to be explored, such as the future large-scale EU Trust Funds, pulling funds of the EU and Member States together (part of the EDF 11 programming exercise, to ensure that the EU can react quickly and attain visibility, while ensuring a controlled and transparent use of the funds) which should reinforce local initiatives and not open new areas of focus. - EU partners will not be forced into one particular sector or forced out from an other. However, the principle of sector concentration (three intervention sectors max) will be promoted.

22. 4. Indicative financial allocations by donor and sector: - Improved communication of EU aid flows through the AMP.

23. Other considerations: - EU partners will continue to channel their aid through different modalities, specific to each. Individual decision making will remain. - Need to keep the focus on demonstrable results. Scope for the EU and MS to better work together – with other Partners when relevant - on including results and evaluation frameworks in the programming process. The Big Fast Results agenda could offer an opportunity in this respect, already in 2013/14. - Aid transformation dynamic and the involvement of other sources of development finance, in particular from the private sector or partners such as the BRICs. - Communicating better: improving European visibility through joint communication and visibility, notably with a strengthened EU development narrative linked to the EU strategic vision (including on issues such as governance, transparency, respect of fundamental values, sustainable growth, and management of natural resources).

24. Next steps - To validate approach with EU HOMS… and beyond. - To engage Government, with a view to seeking its ownership. - To involve non state actors. …. - To consider joint-programming in the case of cooperation with the East African Community.