Equitable Service Delivery: Opportunities and Challenges

General Budget Support

Annual Review, 2009

24 November 2009

Contents

• Introduction• Why equity remains a focus• What has happened since last year?• A story from a district• Discussion for 2009

– Classification of challenging districts– Allocation of resources according to population– Allowances– Local decision making

• Way forward

Introduction

• In 2007 and 2008 we demonstrated the link between the lowest levels of staffing allocations the highest levels of poverty in Tanzania

• Using health and education as examples, we showed that the difference between district budgets can vary greatly

• And we showed that even where results are improving overall those improvements are not equal across Tanzania

Introduction

• Innovations from some regions to attract and retain HR were also discussed e.g. Rukwa and Mbinga

• Recommendations were made as follows: – Local level incentive packages to ensure that new staff

are attracted and retained, and that this could be funded through transfers to under served districts

– Eliminate delays in the payment of new salaries– Revision of the Medium Term Pay Policy as an entry

point to addressing in equity in the distribution of human resources

– A road map to implement the outcomes agreed on the basis of the approved MTPP

• An assessment of progress will be provided later in this presentation

Why equity remains a focus

• Need for equal access to public services

• All Governments are concerned with equity

• Social economic development as a platform for growth and development

Why equity remains a focus

• Education: – The more that is spent per child, the greater

the likelihood of success in examinations

– The allocation of grants per student can vary as much as Tsh13, 000 per student to Tsh188, 000 per student

– Allocations are determined by the number of teachers on the payroll.

Why equity remains a focus

• Health– Staffing budget per capita can vary as much as

Tsh.1, 700 to Ths.8500

– Some regions have twice the number of health workers per 10,000 people as others

Staffing budget can only be disbursed against the actual number of workers

on duty and...

Flow of resources

...allocations follow human resources.

The number of health workers varies widely between

authorities…

Health Staffing Budget 2008/9 per capita

IFMS MoFEA

Districts which are in the top 20% of resource allocation have a higher Standard VII pass rate than those in the bottom 20%:

010

2030

405060

7080

90100

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000

Education spend per 7-13 yr old - 2004 - Tsh

Stan

dard

VII

% p

ass r

ate

2004

Login Tanzania, 2001 and EMIS

If you received a low level of funding per child in 07/08 you are likely to receive a low level in 99/00

-10,00020,00030,00040,00050,00060,00070,000

- 50,000 100,000 150,000

Education spend per child 2007/ 8 - Tsh

Edu

catio

n sp

end

per

child

199

9/00

- Tsh

Source: Login Tanzania

There is a 600% difference in funding between the top and bottom levels

What has happened since last year?

Revised Medium Term Pay Policy

• Situational analysis carried out

• Built on LGRP 2005 study

• Defined the range of measures required to tackle inequitable staffing

Difficulties in attracting and retaining workers to under-served

areasKey factors identified in 2008 Progress in 2009

Continued recruitment in better resourced areas

Halt to recruitment in better resourced areas; PE Budget guidelines 08/09

8000 transferred in just over a year to better served districts

Transfers restricted; Circular issued by PO-PSM but early to assess the impact

Administrative procedures – speed, clarity

Average time to get onto payroll improved now an average of 3 months – down from 8 months

Roles and responsibilities, coordination – who does what?

Each LGA is responsible for HR management including education and health

Lack of comprehensive, accessible and regularly updated data on staffing

HCMIS software procured in 2009; aim to decentralise HR information in the coming years

What was needed in order start resolving recruitment and retention

Actions identified in 2008 Progress in 2009

Classification of under-served/better-served in relation to need

Pending – for discussion today

Development of Medium-Term Pay Policy

Draft Medium Term Pay and Incentive Policy is developed pending formal approval

Cross-Government review of administrative procedures, roles and responsibilities

Pending – for discussion today

Challenges and Opportunities

• Funds are finite and likely to become more scarce in the current economic climate and skewed in favour of growth

• Culture of allowancesBUT• Medium Term Pay and Incentive Policy

developed• Districts have the best local knowledge

on what the problems are• Stakeholders and Government are eager

to see results.

A District story

The cost of collecting your salary

DaudiDaudi, a Ward Extension Officer (WEO) is based in Mbwera village within the Rufiji delta in Rufiji District. He is one of 44 Extension Officers that man agricultural extension work in the district - too few to meet the demand. Although he is supposed to be in charge of 3 villages, he works for 11 villages within the whole Division because no other WEO’s are available. Daudi takes his salary at NMB Bank in Ikwiriri. He is, however, never sure whether the salary is there or not so he waits until a late date to travel from Mbwera to Ikwiriri to check with the bank. A typical journey takes a whole day or two depending on the weather. He first starts with a boat then a bicycle, then he walks on foot for several kilometres in the lowlands before getting another bicycle that takes him to the main Lindi- Dar es Salaam highway from where he boards a car. By the time he arrives at Ikwiriri, the bank is closed and even if his salary was in his account, he cannot access it as the ATM machine does not work outside office hours. The bank depends on generator which is switched off after official banking hours. By this time, he has parted with about TSh. 10,000.00 to travel from his home to the bank. He then goes to a local guest house where he must part with another Tsh. 5,000 or so for accommodation. If all goes well, he will pick up his salary the next day and travel back the same day. In most cases however, he finishes banking too late to catch the bus and thus he spends another day away from work. When salaries are delayed - which is not unusual, he has to make a painful decision on whether to wait for more days or whether to travel back to Mbwera.

It takes Daudi an average of 3 days and about 10% of his salary to collect his wages.

Lida

Lida is teacher. She spends about three days collecting her salary from Kibiti. Sometimes her salary goes into the bank on 30th of the month, other times not.

In July 2009, two new teachers are employed in her school which has helped.

It takes Lida an average of 3 days to collect her salary.

Lida doesn’t feel that she has seen any substantial changes over the past two years.

Kalinga

Kalinga is an Extension Officer. He travels about 100km from Mwera to Kibiti to collect his salary. Kalinga spends his own money on transport, accommodation, and meals.

By the time he gets back to his working station, he is very tired; he will spend one more day resting at home

Kalinga spends at least four working days plus expenses in the process of chasing his salary.

The effect on remote districts

• 36 days* per person per year are lost just collecting salaries – on average

• A minimum of Tsh.18,000 spent per person per year collecting their salary – approximately

*Based on 20 working days a month, 36 working days lost per year

What this means for the community

At best• Two months without a teacher • Two months with no nurse

At worst• No teachers or nurses will work in your

community• You cannot afford to travel to the clinic, so you

leave it until you are really ill, by which time you will need more medication and your family duties will have suffered

• Exam pass rates go down; parents don’t enrol children in school – what’s the point?

What do the workers say about what is needed?

I. Higher salaries are their number one request*

II. Increased budgets and better tools rank second

*MTPP Situational Analysis 2009

Proposed way forward over the next year

I. Identify districts with the highest challenges

II. Give those districts the resources they need according to their population – formula based allocation

III.Channel overspends and disproportionate central allowances to workers in challenging districts

IV. Encourage districts and regions to use their flexibility to put money towards attracting and retain staff

Identify districts with the highest challenges

Where we are nowEducation have ranked districts according to spend per 7-13 year old

Health have ranked districts according to spend per head of population

The Local Government Special Budget have identified 36 districts that are eligible to receive extra funds

What we can do in 2010

What should the criteria be identifying districts with the highest challenges?

Allocate resources according to population

needsWhere we are now

GoT set out a formula based on population needs in 2004

What we can do in 2010

Is the current formula based allocation relevant?

Should the Government start allocating all budgets against population need?

Channel central allowances savings to workers in challenging districts

Where we are nowSome allowances consolidated into salaries

High levels of allowances – 18% of wage bill; remunerative allowances and honoraria grew significantly faster than the wage bill

Allowances disproportionately concentrated at the centre – 19% average of basic wage for all workers but 26% for central staff*

No financial incentives for those who most need them, disincentives for those who do

What we can do in 2010What are reasonable allowances – rates and type?

What measures can be taken to enforce the rules and minimise discretion?

What is the best method for financial incentives for challenged districts - salary plus a premium or separate incentive package?

What is the most efficient way of channelling funds to the districts, given the existence of multiple sources of funds?

*Public Expenditure Review Rapid Budget Analysis, PER Macro Group, 2008

Districts flexibility to put money into attracting and

retaining staffWhere we are nowStaffing allocations made by Central Government

Resources follow staffing

Workers in remote areas need special attention

What we can do in 2010Can the districts use the Special Budget and other additional funding to attract and retain staff ?

What is the medium term plan for the Special Budget?

How to assess whether the resources allocated are having a positive impact on equitable staffing?

Way Forward?

• Realistic, achievable and clear actions for 2010

• Agree Temporary Process Action for 2010 Performance Assessment Framework

• Agree assessment criteria for those actions