Auditing Poverty in Tanzania
a joint approach at local government level

Preface

The central importance of poverty to Tanzania’s development policy has rightly assumed significant proportions. The 2000/2001 Household Budget Survey shows a 3% decline in poverty level in the last ten years; BUT - 36% of the population still falls beneath the poverty line and 87% of the poor are in rural areas.  ALSO - there is a growing gap between the well off and the poor. The top 20% of the population are responsible for 44% of household spending and the bottom 20% for only 7%.  Such a widening gap could have implications for social stability, peace and the nation’s attractiveness to potential investors.

 There is therefore a need (a) to address the legitimate concerns of people whose livelihoods have been badly affected by poverty and (b) to take action in advance of  key groups of people being socially excluded and dissatisfied with the authorities.

 This document proposes a participatory poverty audit approach to the Local Government Reform Programme.  This is  particularly appropriate because Local Government is responsible for interacting with the population at village, ward and district levels in social and economic areas of service delivery.  Macro-economic reforms at national level could be stillborn if they do not pay attention to the micro level realities at mtaa/ village levels.

 The poverty audit approach combines the characteristics of participatory research with the planning and budgeting mechanisms of Local Government. This is to make sure that public expenditures have a positive effect on the livelihoods of  poor people.

 The approach involves a three into one process. First a Participatory Poverty Profile (PPP) is prepared. This is based on a PRA approach and extensive local consultation. It uses a wide range of research techniques to capture how local people understand poverty.  The results of the PPPs are complemented by a Ward Statistical Profile (WSP) which summarises some of the key development indicators at ward level.  These two profiles are then linked to a Policy and Governance Profile (PGP) which finds out if Local Authority (LA) policies and budgets fully address the concerns and needs of the poor.  The fourth part of the process is the strategic plan of action. This uses the information from the three profiles to propose a series of projects and activities which are linked to an investment package focused on the expressed needs of poor communities. The LA would include these outputs in its annual work programme.

Three-into-one process

 This poverty audit approach is different from conventional PPAs. It includes a system to cross  check the community’s perceptions of poverty with statistically-based indicators drawn from the local level. It also systematically links institutional aspects of good governance to poverty concerns. And finally,  based on partnership with Civil Society Organisations, it draws up a strategic plan of action at the District and Ward levels.

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