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Country analysis > Tanzania Last update: 2020-11-27  

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Republic of Tanzania: Poverty Reduction Strategy Paper - Third progress report 2002/03

IMF Country Report No. 04/282

Dar es Salaam, April 2004

SARPN acknowledges the IMF website ( as the source of this report.
It can be consulted for other related reports, including the Article IV report on Tanzania.
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This is the third PRS Progress Report (July 2002-June 2003) that closes the three-year cycle of the implementation of the first PRSP, which was formulated in the year 2000. While it marks the end of the first cycle it also provides a bridge to the review process leading to the formulation of the second cycle – PRSP II. The PRS review process was launched during the Poverty Policy Week in October 2003, the consultative process of which is stipulated in the “Guide for the Poverty Reduction Strategy Review.” There are successes recorded due to the implementation of the first PRSP in macroeconomic performance and in reforms in various areas including financial sector, public service and local government. Distinct effort has been made to improve delivery of social services such as education, health and water. However, more effort is still needed in virtually all areas. Challenges due to unmet development needs emanate from various angles. There is insufficient translation of macro level achievements to the micro level – hence the need for closer analytical work on growth-poverty linkages and how growth could better benefit the poor. Greater attention also has to be paid to quality and equity issues in the delivery of social services, like education and health; combating the spread of HIV/AIDS and commitment to governance issues.

The report highlights what Government did during the past year in terms of policy developments, an assessment of the achievements and challenges, including the monitoring system. Unlike the earlier two reports that pointed out intervention areas for the following year in terms of next steps, this report only updates the Policy Matrix and takes the year ahead as the planning year to inform the next PRSP. The first cycle PRS had process activities, some of which have been finalized, while others will continue and be better informed by the PRS review. Cases in point are the Rural Development Strategy (RDS), mainstreaming of gender, environment and governance issues.

Experience during the preparation of the last two progress reports and this one reveals that the reporting quality of progress on both outcome and impact indicators requires improvement. This includes all PRS sectors and thematic areas. Further, reporting on progress towards poverty reduction in terms of incidence and correlates can only be made if new data sets are generated. Government will strengthen the reporting capacity of sectors and thematic areas during the PRS review and in the next PRS cycle. Among other things, Government will strengthen the capacity of the PRS Technical Committee and Secretariat and harmonize and synchronize various reporting instruments e.g. PHDR, PER and sector reviews.

In relation to the Poverty Monitoring System (PMS) the challenge is how to hold the entire “machinery” together and avoid duplication of activities without further stretching available capacity and existing institutional set up. This occupies center stage as we plan for the PRS review. Capacity constraints may hinder consolidation of the PRS gains and poverty monitoring. Duplication of activities and failure to define a point of convergence will add to the transaction costs and put additional strain on the already stretched capacity. Thus addressing PMS capacity concerns and harmonization of activities will certainly be critical to the implementation of the next PRS cycle and to the management of the PRS review process.

PRS Review

Overall, the purpose of the review is to update the current PRS by making it more comprehensive and pro-poor. Also, the review will broaden and deepen interventions to reduce poverty and raise awareness on the PRS and MDGs. While it is intended to undertake a comprehensive review it is necessary to be strategic and prioritize issues the review will focus on, and avoid trying to do everything. Specifically the review will:

  • Be set in the context of the country's long-term strategies (e.g. NPES and Vision 2025). The PRS is seen as a means to achieve these long-term goals set out in these strategies, visions and MDGs.
  • Use existing and recent data and analyses including the last (three) PRS progress reports, PPA, PER studies and reports, PHDR, Poverty Week Reports, Labor Force and Child Labor Survey, HBS 2000/01 and Census findings, Agriculture Survey, Policy and Service Satisfaction Survey (PSSS) and other reports. However, since the findings of these reports will be used in the review process, it is not necessary for this report to highlight them.
  • Identify knowledge gaps and commission few critical new studies e.g. growth and trade, growth and employment (jobs) creation, raising returns to smallholder agriculture, examining macro-meso-micro linkages and integration of cross-cutting issues - HIV/AIDS, gender and environment.
  • Scale up ownership and awareness of PRS within and across government; strengthen government leadership and foster participation of key stakeholder with a clear focus on community participation in PRS formulation, implementation and monitoring.
  • Improve harmonization of key processes around the PRS, PMS, PER and the budgeting cycle to ensure most effective utilization of government resources in line with its poverty reduction efforts.
The PRS review provides an opportunity to explore and discuss what is working and what is not. The review has to address the current limitations of the PRS and PMS and amplify the complementing contributions of sectors by examining the inter-sector linkages. Capacity constraints in key institutional bodies of the PRS and PMS, including Local Government will be examined. A PRS Communication Strategy to support the PRS/MDGs and the PMS will be prepared.

As part of the review, a consultative meeting of stakeholders was held in January 2004 in Dar es Salaam to clarify PRS Review issues and launch the preparation of a country-wide Consultation Process on a range of poverty and policy concerns for the next cycle PRS. Stakeholders came from first-PRS priority sector and cross-cutting issues ministries, government departments and civil society. Government and development partners have contributed financial resources to support the country-wide consultations which are now underway. Reports from the consultations are beginning to flow in. They will be analysed so that key messages can be incorporated in the new PRS document. It is expected that work on the first draft of the PRS will start in April and that there will be further rounds of consultation – in June for the first draft and September for the second draft. Poverty Policy Week is scheduled for October and finalization and publication activities on the document will take place between October and December 2004.

Details on the PRS review are available in the guide document which can be accessed through and poverty website –

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