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TANZANIA GOVERNANCE REVIEW 2012: Transparency with Impunity?

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TANZANIA GOVERNANCE REVIEW 2012: Transparency with Impunity? TANZANIA GOVERNANCE REVIEW 2012: Transparency with Impunity? TANZANIA GOVERNANCE REVIEW 2012: Transparency with Impunity? With Partial Support from a TANZANIA GOVERNANCE REVIEW 2012: Transparency with Impunity? ACKNOWLEDGEMENTS This review was compiled and edited by Tanzania Development Research Group (TADREG) under the supervision of the Steering Group of Policy Forum members, and has been financially supported in part by Water Aid in Tanzania and Policy Forum core funders. The cartoons were drawn by Adam Lutta Published 2013 For more information and to order copies of the review please contact: Policy Forum P.O Box 38486 Dar es Salaam Tel: +255 22 2780200 Website: www.policyforum.or.tz Email: [email protected] ISBN: 978-9987 -708-09-3 © Policy Forum The conclusions drawn and views expressed on the basis of the data and analysis presented in this review do not necessarily reflect those of Policy Forum. Every effort has been made to verify the accuracy of the information contained in this review, including allegations. Nevertheless, Policy Forum cannot guarantee the accuracy and completeness of the contents. Whereas any part of this review may be reproduced providing it is properly sourced, Policy Forum cannot accept responsibility for the consequences of its use for other purposes or in other contexts. Designed by: Jamana Printers b TANZANIA GOVERNANCE REVIEW 2012: Transparency with Impunity? TABLE OF CONTENTS POLICY FORUM’s OBJECTIVES .............................................................................................................. v SOME TANZANIAN NUMBERS ............................................................................................................. vi 1.0 INTRODUCTION and OVERVIEW .................................................................................................1 1.1 Summary of TGR3 (2010/11) ...............................................................................1 1.2 Overview 2012: Challenging impunity? ..................................................................3 1.2.1 Corruption and Accountability ...................................................................3 1.2.2 Poverty and Inequality .............................................................................9 2.0 PUBLIC MONEY AND NATIONAL GOVERNANCE ....................................................................... 11 2.1 Introduction .................................................................................................... 11 2.2 Taxation .......................................................................................................... 12 2.2.1 Tax exemptions, avoidance and evasion .................................................... 13 2.2.2 Illicit financial flows .............................................................................. 15 2.2.3 Natural resource rents ............................................................................ 16 2.2.4 Aid ...................................................................................................... 16 2.3 Public expenditure ........................................................................................... 17 2.3.1 Wages and allowances ............................................................................ 18 2.3.2 Procurement and contracting .................................................................. 20 2.3.3 Public debt .......................................................................................... 21 2.3.4 Pension funds ....................................................................................... 21 2.4 Transparency and accountability ........................................................................ 22 2.4.1 Parliament ........................................................................................... 24 2.4.2 Judiciary ............................................................................................... 24 2.4.3 Prevention and Combating of Corruption Bureau ........................................ 25 2.4.4 The Controller and Auditor General .......................................................... 26 2.4.5 Public Procurement Regulatory Authority .................................................. 27 2.4.6 Ethics Secretariat ................................................................................. 28 2.4.7 Tanzania Extractive Industries Transparency Initiative ................................. 28 2.4.8 Open Budget Partnership ........................................................................ 29 2.5 Conclusion ....................................................................................................... 29 3.0 PUBLIC MONEY AND LOCAL GOVERNANCE .............................................................................30 3.1 Introduction ..................................................................................................... 30 3.2 Trends in service delivery performance ................................................................ 31 3.2.1 Education ............................................................................................ 31 3.2.2 Healthcare ............................................................................................ 33 3.2.3 Water and sanitation .............................................................................. 35 3.2.4 Agriculture ........................................................................................... 39 3.3 CAG and LGA Money ........................................................................................ 41 3.4 Parliamentary oversight ..................................................................................... 43 3.5 Conclusion ....................................................................................................... 44 4.0 REGULATING THE ECONOMY ...................................................................................................45 4.1 Introduction ..................................................................................................... 45 4.2 Private sector policy and regulation ..................................................................... 45 4.2.1 Mining ................................................................................................. 48 4.2.2 Natural gas ........................................................................................... 50 4.2.3 Tourism ................................................................................................ 51 4.2.4 Land and Agriculture .............................................................................. 53 4.3 Regulating state enterprises and corporations ....................................................... 57 4.4 Conclusion ....................................................................................................... 59 i TANZANIA GOVERNANCE REVIEW 2012: Transparency with Impunity? 5.0 CSOs AND CITIZENS’ VOICE .......................................................................................................60 5.1 Introduction ..................................................................................................... 60 5.2 Trends in Citizen’s Views on Governance and Social Issues ..................................... 60 5.3 Civil Society: Services and Activism ..................................................................... 62 5.3.1 Tracking the Extractive Industries ............................................................ 64 5.3.2 Social Accountability Monitoring (SAM) ..................................................... 65 5.3.3 Budget Transparency ............................................................................. 66 5.3.4 The media ............................................................................................ 67 5.4 Civil Society Governance .................................................................................... 71 5.5 Corruption and Human Rights ............................................................................. 72 5.6 Conclusion ....................................................................................................... 74 6.0 FOREIGN AID AND COMPARATIVE PERSPECTIVES ..................................................................76 6.1 Donors in Tanzania ........................................................................................... 76 6.1.1 Budget Support .................................................................................... 76 6.1.2 Aid Effectiveness and Corruption.............................................................. 78 6.2 Tanzania in the East African Community ............................................................... 82 6.2.1 Doing Business in East Africa .................................................................. 83 6.2.2 Comparative Governance Indicators ......................................................... 85 6.3 Conclusion ....................................................................................................... 87 7.0 SUMMARY: MONITORING GOVERNANCE ...............................................................................88 7.1 Summary of Main Findings ................................................................................. 88 7.1.1 National Governance .............................................................................. 88 7.1.2 Local Governance .................................................................................. 89 7.1.3 Economic Regulation .............................................................................
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