The Government of the Republic of Tanzania issued its comprehensive National Strategy for Growth and Reduction of Poverty (commonly referred to as MKUKUTA) for the period 2005–2010 in June 2005. As part of the monitoring strategy, the second MKUKUTA Annual Implementation Report (MAIR) covering 2006/2007 was issued in
November 2007. The MAIR provides an overview of the performance, challenges, lessons learned, and the next steps within each MKUKUTA cluster: (i) growth and reduction of income poverty; (ii) improved quality of life and social wellbeing; and (iii) governance and accountability.
The production of the MAIR was coordinated by the Poverty Eradication Division of the Ministry of Planning, Economy, and Empowerment (MPEE) in collaboration with a wide range of stakeholders, including government ministries, departments, and agencies (MDAs), local government authorities (LGAs), research and academic institutions, as well as non-state actors (NSAs). The MKUKUTA Technical Committee provided oversight. This preparation involved information gathering from a range of sources, including studies for the public expenditure review (PER), the MKUKUTA Status Report (2006), the Bank of Tanzania’s Economic Survey, sector reviews, and reports by the ministries. The MAIR was discussed with stakeholders during both the Annual Review of General Budget Support in late October and during Poverty Policy Week in November. The MAIR, however, does not provide budget outturn information classified according to MKUKUTA, because current budget execution reporting is not fully aligned with MKUKUTA strategic goals and outcomes. In addition, data from the 2006/07 Household Budget Survey (HBS) will not be available until 2008.
The IMF and IDA staffs concur with the MAIR overall evaluation that Government has made significant strides in addressing issues within each of the MKUKUTA clusters. In the absence of data from the 2006/07 HBS, however, no definitive conclusions can be made regarding trends on income poverty. The MAIR highlights some of the major challenges ahead and identifies areas for improvements, including the need to strengthen monitoring and evaluation systems, sustain efforts to tackle corruption and improve governance and accountability, and focus efforts on drivers of broad-based economic growth, notably in agriculture and natural resources sectors.