Taking the back seat : harmonization and the Tanzania CFAA

43285 MARCH 2004 N U M B E R 4 Taking the Back Seat: H armonization is a critical first step for implementing the financial management agenda in building country capacity. A common Harmonization assessment of a country's financial management situation is a prerequisite for reliance on the country's own system. So, how do we get there from and the here? Sometimes, by letting others lead the way. Tanzania The Mandate jointly planning and conducting the stakeholders workshop, at which the report CFAA In August 2003, in briefing the Executive Directors was discussed and the next steps agreed upon; on harmonization, Bank Management gave and unambiguous guidance on the World Bank's role: "Management has given clear direction to staff to jointly taking the findings of the CFAA forward lead, follow, or partner -- whichever is needed for into the revised Public Financial Management successful development outcomes." Reform Program, which now forms part of the Poverty Reduction Support Credit in Tanzania. The most significant Early Work on the Ground In the final analysis, the most significant aspect of aspect of the process the process was that the Government of Tanzania was that the Clearly the Tanzania country team was way ahead owned the CFAA process and issued the report as Government of of the harmonization power curve. In late 2000 the its own document. For Bank staff, the message is Tanzania owned the Bank took the back seat as the United Kingdom's that sometimes following is leading. Department for International Development (DFID) CFAA process and initiated a Country Financial Accountability issued the report as Assessment (CFAA) in connection with a budgetary Following Through: Other Modalities its own document. For support loan to the Government of Tanzania. This for Harmonization Bank staff, the was the first time in Africa that a bilateral message is: development partner had taken the lead on In more recent years, many country teams have conducting a Bank diagnostic instrument. sometimes following adapted their work programs and styles to take advantage of partners' expertise, experience, and is leading. Although the Bank had not planned for a CFAA in comparative advantage, particularly around country its Tanzania work program for that fiscal year, Bank diagnostic work, and to rely on country institutions staff leapt at the opportunity to join in the effort, where these are strong. For example, about one- particularly because, from start to finish, the half of all CFAAs -- mainly those in Africa and Latin Government of Tanzania displayed such active and America -- are now carried out jointly with one or strong ownership of the process. Staff contributed more other donors. Sometimes the Bank is in the in various ways -- participating in missions, lead, sometimes partner institutions are in the supervising the CFAA team, assisting with the lead, and sometimes the country or subnational preparation of the report, helping to present a entity is in the lead. stakeholders workshop, and serving on the quality review team with members from the Government Gambia provides a recent example of harmonized and from DFID. diagnostic work, with different features from the Tanzania experience. In the Gambia CFAA, the Notable aspects of the three-way collaboration Government's hands-on involvement was less included intense than in Tanzania. Rather than appoint a jointly drafting the Initiating Memorandum; counterpart team, the Government nominated one person to act as coordinator, liaising with jointly agreeing on the objectives and nature of government counterparts and assisting the CFAA the diagnostic work; team to ensure effective collaboration. In Gambia, the Bank and DFID were equal partners in the jointly drafting the final CFAA report; CFAA work, and the African Development Bank was  also actively involved. As a fully involved involvement or by funding some of partner, the World Bank took a leading the tasks. All subsequent role in some aspects of the overall communications were shared among process. For example, the participating the participating partners. development partners agreed that the World Bank's official quality review When participating partners conduct process would serve as the final quality diagnostic reviews jointly, they should assurance. However, the outcome of the agree on and document the extent of process was transparently shared with collaboration at an early stage in the participating development partners; planning process. For Tanzania, the indeed, each draft chapter of the quality Government and the partners review report was reviewed by another prepared a joint Initiating team member, in most cases by a Memorandum; in Gambia it was member from another development agreed that the World Bank would partner. In other aspects, different prepare the memorandum while partners stepped up to lead: since the other stakeholders would submit CFAA team had had only limited time in comments. A common understanding the country for its work, it was considered of the prominent issues is key to important for a consultant to take the finding common approaches to the draft report back to Gambia to check its work. accuracy. DFID funded this one-week consultancy, which supported the process So -- lead, follow, or partner -- somehow of Government buy-in and maximized the get on board the harmonization train. value of the workshop that presented the There is no question that harmonized CFAA findings and follow-up action plan. approaches, built around country systems as much as possible, is our destination. Staff already have their ticket to ride: the Lessons Bank's guidelines to financial management staff on country and project Two lessons emerge from the Tanzania diagnostic work and on financial reporting and Gambia experiences: and auditing now make specific reference to working with other donors to find The World Bank should promptly harmonized solutions that take country share information about planned institutions into account. As the diagnostic work. In Tanzania and experience in Tanzania and Gambia Gambia, information was shared even illustrates, there can be a number of before the Initiating Memoranda were routes to take -- sometimes with Bank prepared. Early in the process, staff driving the engine or sometimes development partners were invited to with Bank staff acting as conductor and participate either through direct tooting the horn. Project teams. Tanzania CFAA: Marius Koen (team leader, AFTFM) and Mercy M. Sabai (AFTFM, Tanzania). Gambia CFAA: Marius Koen (team leader, AFTFM), Mercy M. Sabai (AFTFM, Tanzania), Fily Sissoko (AFTFM, Senegal), and Hoon S. Soh (AFTP4). Authors: Marius Koen and Mercy Sabai (AFTFM) This note series is issued by the Financial Management Anchor to summarize good practice and key policy findings on FM-related topics. OPCSOPCS OPERATIONS POLICY & COUNTRY SERVICES