SEA of poverty reduction credit, Tanzania (budget support)
From SEA.unu.edu/wiki
Background and objectives
In 2004, Tanzania developed its second poverty reduction strategy: the National Strategy for Growth and Reduction of Poverty (NSGRP). It followed an extensive consultative review that built on the outputs from the national poverty monitoring system, and involved a wide range of stakeholders down to the village level. The NSGRP was strongly outcome-focused with increased attention to growth and governance. It set out to incorporate key cross-cutting issues, including the environment, as integral to the strategy and not as an after-thought.
Tanzania has benefited from increasing levels of direct budget support with the World Bank’s contribution through a poverty reduction strategy credit (PRSC). In 2004, Tanzania undertook an SEA of the second PRSC (PRSC 2) to assess the cumulative environmental and socio-economic impacts of PPPs supported by the PRSC 2, and to suggest appropriate mitigation and monitoring as well as additional capacity strengthening measures.
Approach
The first challenge was to determine which PPPs the SEA should focus on since, technically, PRSC funds could be used to support the implementation of any Government PPP. It was decided to concentrate on programmes highlighted as “triggers” for the release of PRSC funds. These were detailed in the Performance Action Framework, which identifies key actions agreed between the Government, the World Bank and other development partners providing budget support. It was agreed that the SEA would address reform of the Crop Boards, the development of a strategic plan to operationalise implementation of the Land Act and Village Land Act, introduction of a Road Act to support the maintenance and rehabilitation of district roads, and a new business licensing system. The SEA would also consider the capacity for environmental management and assessment.
Outcomes
The study identified potential impacts and mitigation measures regarding the adverse effects of the reforms on the environment. It found that whilst Tanzania has many PPPs that could reduce identified environmental impacts, the main obstacle is limited capacity to implement, enforce and monitor plans and programmes.
Source: Eric Mugurusi, Division of Environment, Tanzania, and David Howlett (UNDP, Tanzania).
(Reproduced with permission of OECD.)
