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 вЂ“
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 вЂњGuide for the Poverty Reduction Strategy Review.вЂќ
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 вЂ“
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
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 вЂњmachineryвЂќ
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.
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
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.
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.
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 вЂ“ 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
Details on the PRS review are available in the guide document which can be accessed through
http://www.tzonline.org and poverty website вЂ“