Tanzania Poverty Reduction Support Credit 11

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The Eleventh Poverty Reduction Support Credit Program (PRSC-11) to the United Republic of Tanzania is the third and final in the series of three annual programmatic development policy operations in support of the implementation of Tanzania's Second National Strategy for Growth and Reduction of Poverty, MKUKUTA II, and complemented by Five Year Development Plan (FYDP). The two pillars of the operation also mutually reinforce each other. A better investment climate will stimulate private investment and help mobilize larger domestic revenue, which in turn will be distributed through a sound public expenditure policy so as to ensure that benefits from growth are adequately shared. Prioritized and well-managed public investments and public private partnership (PPP) projects will close existing infrastructure gaps and encourage broader based growth-generating quality jobs through private sector development in the country. Looking forward, and considering this operation being the final of the PRSC series, future development policy operations need to ensure the effectiveness of service delivery in Tanzania. Over the past few years, the quality of service delivery has declined, despite major investments in infrastructure, especially in key social sectors, such as education, health and water. This decline is visible in the deterioration of key service delivery indicators and the citizens' perception of satisfaction with public services. The decline in quality and outcomes is compounded by growing inequities in service provision across districts that are evidenced by wide disparities in public spending per capita and service delivery outcomes. Generally, financial resources are allocated on the basis of existing infrastructure and staff. As a result, unequal resource allocation is strongly correlated to unequal service delivery outcomes. Adequate reliable information on performance of public service delivery is critical for demanding accountability and effectiveness from those involved in the service delivery chain. Equally important is the efficient and effective use of public resources to achieve service delivery outcomes