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Table of Contents TABLE OF CONTENTS POLICY FORUM’s OBJECTIVES.................................................................... v 1.0 INTRODUCTION and OVERVIEW..................................................... 1 1.1 Summary of TGR2 (2008-2009)..................................................... 1 2.0 PUBLIC MONEY AND NATIONAL GOVERNANCE............................... 7 2.1 Introduction................................................................................... 7 2.2 Taxation.......................................................................................... 8 2.2.1 Illicit financial flows ................................................................. 9 2.2.2 Tax exemptions, avoidance and evasion...................................... 10 2.2.3 Natural resource rents.............................................................. 12 2.2.4 Aid ....................................................................................... 14 2.3 Public expenditure 2010-2011........................................................ 15 2.3.1 Wages and allowances............................................................. 16 2.3.2 Procurement and contracting.................................................... 17 2.3.3 External debt ......................................................................... 19 2.3.4 Pension funds ........................................................................ 19 2.4 Transparency and accountability.................................................... 21 2.4.1 Parliament ............................................................................. 22 2.4.2 The judiciary .......................................................................... 24 2.4.3 Prevention and Combating of Corruption Bureau ......................... 24 2.4.4 The Controller and Auditor General ........................................... 25 2.5 Leadership and political will ........................................................... 27 2.6 Conclusion ..................................................................................... 27 3.0 PUBLIC MONEY AND LOCAL GOVERNANCE...................................... 28 3.1 Introduction.................................................................................... 28 3.2 Trends in service delivery performance.......................................... 28 3.2.1 Education .............................................................................. 29 3.2.2 Healthcare ............................................................................ 31 3.2.3 Water and sanitation ............................................................... 32 3.2.4 Agriculture ............................................................................ 34 3.3 CAG and LGA money ...................................................................... 37 3.4 Parliamentary oversight ................................................................ 39 3.5 Conclusion ..................................................................................... 39 i 4.0 REGULATING THE ECONOMY .......................................................... 42 4.1 Introduction .................................................................................. 42 4.2 Private sector regulation ............................................................... 42 4.2.1 Mining .................................................................................. 43 4.2.2 Natural gas ........................................................................... 44 4.2.3 Tourism ................................................................................ 45 4.2.4 Land .................................................................................... 47 4.3 Regulating state enterprises and corporations .............................. 49 4.4 Conclusion ..................................................................................... 50 5.0 CSOs AND CITIZENS’ VOICE .......................................................... 51 5.1 Introduction .................................................................................. 51 5.2 Civil society ................................................................................... 51 5.2.1 Tracking the extractive industries ............................................. 51 5.2.2 Social Accountability Monitoring (SAM) ..................................... 53 5.2.3 The media ............................................................................ 55 5.3 Civil society governance ................................................................ 60 5.4 Corruption and human rights ......................................................... 60 5.5 Conclusion ..................................................................................... 61 6.0 DEVELOPMENT AID AND COMPARATIVE PERSPECTIVES ................ 62 6.1 Donors in Tanzania ........................................................................ 62 6.2 Budget support .............................................................................. 63 6.3 Governance projects and programmes .......................................... 65 6.4 Aid effectiveness ........................................................................... 66 6.5 Comparative governance indicators: Tanzania and the EAC ........... 68 6.5.1 Doing business in East Africa ................................................... 69 6.5.2 Corruption control .................................................................. 71 6.6 Conclusion ..................................................................................... 72 7.0 SUMMARY: MONITORING GOVERNANCE ........................................ 73 7.1 Summary of main findings ............................................................. 74 7.1.1 National governance................................................................ 74 7.1.2 Local governance ................................................................... 75 7.1.3 Economic regulation ............................................................... 76 7.1.4 Citizens’ voice ........................................................................ 76 7.1.5 Development aid and comparative perpectives ........................... 77 ii 7.2 Monitoring MKUKUTA/MDG governance trends............................... 77 7.2.1 Choice of indicators ................................................................. 78 7.2.2 Reliability of measurement ....................................................... 79 7.3 Some key questions ....................................................................... 79 7.3.1 How do the different dimensions of governance relate to each other?............................................................................ 80 7.3.2 Which dimensions of governance are key for growth and poverty reduction? ................................................................. 80 REFERENCES .............................................................................................. 82 APPENDICES Appendix 1: National and local governance issues timeline 2010-11 .................... 99 Appendix 2: Economic regulation issues timeline 2010-11.................................. 108 Some useful websites.................................................................................... 113 ACRONYMS................................................................................................. 114 TABLES 1.1: Electoral results 1995 to 2010 ................................................................. 5 2.1: Tanzania Revenue Authority performance 2005/06-20010/11, TShs billion..... 8 2.2: Tax exemptions FY2010/11 (billion Shs).................................................... 10 2.3: Main allowance receiving MDAs, 2010/11................................................... 17 2.4: Tanzania’s performance in the Open Budget Survey 2010ailability................. 22 2.5: PCCB performance 2002-2011................................................................. 24 2.6: CAG opinions for central government MDAs and RAs 2010/11...................... 26 3.1: Government expenditure by sector, percent............................................... 29 3.2: Comparison of Health Centre allocation of resources against workload .......... 32 3.3: Most frequent irregularities in LGAs, percent of councils involved, 2005-2010. 38 3.4: Accounting performance of LGAs, outstanding matters, 2008-09 to 2010-11.. 38 4.1: Ease of doing Business in Tanzania 2008 – 2011........................................ 43 4.2: Travel and tourism indicators, East African Community members, 2011......... 47 4.3: Tanzanian public authorities and other bodies, 2010................................... 49 5.1: TEITI Validation Report, Actions and Recommendations .............................. 52 5.2: World Press Freedom Index, East African rankings, 2010 and 2011............... 55 5.3: Ownership of Tanzanian print media ......................................................... 56 6.1: Donor support to political reform, 2000-10 ............................................... 65 6.2: Audit opinions for donor-funded projects for the year ended 30th June, 2011. 67 6.3: EAC Human Development Index 2011 ...................................................... 68 6.4: Ease of doing business in East Africa, 2011................................................ 69 6.5: Investment incentives in East Africa, percent............................................. 70 6.6: FDI flows to EAC members, 2006-10 (US$ million)..................................... 70 iii 6.7: EAC Corruption perception index 2009-11 ...............................................
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