Tackling rural poverty, together

Extract

The present report is an attempt to systematise recent experience from Tanzania in the field of new aid modalities and their interplay with donor harmonisation. It is based upon the experience of the two economists in the Embassy of Norway (1999-mid-2003) and Embassy of Sweden (2001-mid-2003).
As some of the processes have been taken further in Tanzania than in many other countries, an empirical input in the ongoing discussion on these issues may be of interest. The report focuses on the links between the harmonisation efforts and programme aid modalities. It covers issues like improvements in donor-government relationship, consequences for transaction costs, harmonisation of budget support and links to the Public Expenditure Review.