Tanzania Fifth Poverty Reduction Support Credit

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The proposed poverty reduction support credit (PRSC-5) would be the second in a series of five annual operations supporting the implementation of Tanzania's National Strategy for Growth and Reduction o f Poverty (NSGRP or MKUKUTA in Kiswahili). PRSC-4, which was approved by the World Bank's Board on May 9, 2006, presented the five year PRSC program in support of the MKUKUTA. The Bank's PRSC support to Tanzania is provided within a framework for general budget support (GBS), comprising a Performance Assessment Framework (PAF), a Partnership Framework Memorandum (PFM) for GBS for the implementation o f MKUKUTA, and a streamlined review process. Discussion of the country context in Section Two focuses on progress in realizing key outcomes targeted by the MKUKUTA and supported by the PRSC, namely (1) sustained high economic growth and accelerated reduction o f income poverty, (2) improvements in non-income dimensions of poverty, especially education, health, and water, and (3) strengthened governance. Section Three outlines the government's Program followed by the discussion of the Bank's support to the government strategy in Section Four. Section Five then provides details of the program supported by the PRSC, highlighting specific reforms implemented by government and progress towards specific MKUKUTA objectives.