Tanzania - Accountability, Transparency and Integrity Project

Page 1 PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: AB2054 Project Name Accountability, Transparency & Integrity Project Region AFRICA Sector Law and justice (70%);General finance sector (15%);Central government administration (15%) Project ID P070544 Borrower(s) UNITED REPUBLIC OF TANZANIA Implementing Agency Ministry of Finance Tanzania Ministry of Finance Ministry of Finance Tanzania Ministry of Justice and Constitutional Affairs Tanzania Ethics Secretariat Tanzania Environment Category [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) Date PID Prepared December 15, 2005 Date of Appraisal Authorization January 30, 2006 Date of Board Approval May 2, 2006 1. Country and Sector Background During the past decade the Government of Tanzania (GoT) has implemented a comprehensive program of reforms, which has yielded sustained macro-economic stability, a liberalized economy, and scope for the private sector to become the main agent of economic activity. These reforms have created the foundation for accelerated economic growth, which has averaged 5.8 percent during the past five years. Overall economic growth has been rising consistently for the past eight years (except for 2003 due to drought) from 3.3 percent in 1997 to 6.7 percent in 2004, being an annual growth rate of 5.1 percent. However, poverty still remains wide spread and at an average US$ 330 per capita (Atlas Method), Tanzania remains one of the poorest countries in the World. The Government has developed a National Strategy for Growth and Reduction of Poverty (MKUKUTA) 1 that provides an overarching framework for fighting poverty and a framework for 1 Known by its Kiswahili acronym MKUKUTA. Page 2 resource allocation. It is based on three pillars (i) growth and reduction of income poverty; (ii) improved quality of life and social well-being; and (iii) good governance and accountability. The strategy