Executive Directors expressed their support for MKUKUTA II and concurred with the recommendations of the JSAN, noting the importance of accelerating inclusive and sustained growth to reduce income poverty, especially in rural areas.
MKUKUTA II, which covers the period 2010/11-2014/15, focuses on three clusters: accelerating economic growth to reduce poverty; improving the quality of life and standard of living; and improving governance and accountability. It calls for a shift towards a greater role of the private sector in economic growth. It identifies "growth drivers," such as agriculture, and outlines sectoral strategies to promote productivity and private sector activity in these areas. MKUKUTA II was developed through a broad-based consultation process led by the Government of Tanzania and involving many stakeholders.
The JSAN provides analysis and advice to strengthen MKUKUTA II. One of its key recommendations is to urgently address infrastructure bottlenecks and improve the investment climate. It particularly highlights the importance of reducing market distortions in the agriculture sector, given its importance for poverty alleviation.
"MKUKUTA II is an ambitious strategy to reduce poverty," noted Yue Li, the World Bank's Task Team Leader for the JSAN. "Its success will require a greater sense of urgency to improve the business environment and the quality of public services. It will also be important to improve fiscal transparency, public financial management, and anti-corruption efforts to ensure that resources are utilized effectively," she added.
In addition to better use of public resources, the JSAN emphasizes the need to increase domestic revenues, including by reducing tax exemptions and other measures to expand the tax base.
"The World Bank stands ready to support the Government in strengthening the MKUKUTA II during its implementation to ensure an effective policy framework for poverty reduction," said John Murray McIntire, World Bank Country Director for Tanzania, Uganda, and Burundi. "The forthcoming World Bank Country Assistance Strategy for Tanzania will outline our strong support in selected areas to help implement the MKUKUTA II."
The Country Assistance Strategy (CAS), which is under preparation and will be presented to the World Bank Executive Board for discussion in mid-2011, will provide a framework for World Bank assistance to Tanzania for the next four years.
The World Bank's currently active country portfolio includes 23 active projects, with a net commitment of US$2.6 billion, supporting a range of sectors including agriculture, transport, energy, urban infrastructure, environment, water and sanitation, public sector reform, financial and private sector development, health, education and community development. In addition, Tanzania benefits from 11 regional projects, in which Tanzania-specific financing amounts to over US$230 million.
The JSAN is publicly available at the web link below, or can be obtained by sending an email to nmarcus@worldbank.org, or by requesting a hard copy at the World Bank office in Dar es Salaam.