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UNDAF PILLAR 1: Poverty Reduction & Governance

2.1 UNDAF Outcome: Good governance and economic and social growth are jointly enhanced to reduce poverty, unlock human potential, protect rights and improve core public functions.
Rationale.

The realization of this outcome should contribute to sustained high levels of growth, which are needed if Tajikistan is to meet its MDG 1. In turn, this will make it feasible to generate the public resources needed to pay for the social services upon which so many MDGs, and indeed this UNDAF, depend. Therefore, the inclusion of this UNDAF Outcome is fundamental. The UNCT has a comparative advantage in this area in terms of the good expertise and long term engagement in this sector with its ability to work with both high-level governments and at the grass-roots level.

The government recognises two major challenges in this area. First, the environment for entrepreneurial activity and investment is very unfavourable. Currently, the investment environment is constrained by bureaucratic hurdles, overly complex tax codes, restricted capital and strong interests opposed to developing a legitimate private sector. Second, government and public administration at all levels have limited transparency and accountability. Local self-government remains poorly developed as the result of constrained capacity and resources, as well as over-centralisation (a complex and conflicting framework of roles and relations governing four levels of government: national, regional, district and village). Capacity limitations of local authorities have been identified through assessments and projects’ lessons learned. These negatively impact the quality and quantity of social services and communal services (public service utility) at the local level, which in turn impede development of the local economy and human potential. Capacity development on its own will not address systemic and institutional shortcomings. The issue of overcentralization must also be addressed. Accordingly, the UNCT and its partners have identified two agency outcomes: (i) enhanced poverty reduction and economic development programmes and (ii) increased government capacity to implement sound democratic governance practices.

Results. First, it is expected that by 2015, poverty reduction and economic development programmes will be enhanced to become more inclusive and responsive to vulnerable individuals. Furthermore, it is expected that policy and regulations will be developed with gender/sex segregated data and a range of business support services to create a more conducive environment for economic and social growth, particularly for the rural poor, women and marginalized people. To achieve this, the UNCT will work with partners to ensure that:

The second outcome anticipates that by 2015, the government at the national and local levels will have the (i) capacity to implement democratic governance practices grounded in international standards and law and the (ii) capability to effectively plan, finance and implement development initiatives in an inclusive and participatory manner. Governance capacity development will focus on ensuring greater transparency and accountability; responding to emerging issues in foreign policy development; implementing a comprehensive national labour migration management strategy; and securing borders while promoting the rights of those requiring international protection. As mentioned earlier, capacity development on its own will not address the systemic and institutional shortcomings. UNCT will also address the issues of conflicting mandates and overcentralization within the local authorities. Improved capacities with respect to development initiatives will be predicated upon three inter-dependent results:

• Key national government institutions will have greater capacities in management and administration, particularly in clarifying the roles and responsibilities of local authorities and operating accountability and transparency mechanisms to effectively manage and deliver core social and communal services.
• Sub-national authorities at the district and jamoat levels will have greater capacities in the governance, management (both individual skills and gaps in organizational procedures) and administration of core social and communal services. They will work with community-based organisations (CBOs) as co-partners implementation agencies for municipal plans. The capacity of CBOs will also be developed to enable them to act as implementation partners. This should help revive local economies by involving local contractors, thereby providing income and employment.
• Civil society members, including women, will take an active role in local development processes. The members will participate alongside the private sector to make decisions, execute projects, and monitor results.

The UNCT will work closely with other donors in this area (particularly the EU and WB) to complement their work in building key management capacities in public administration. The objective is to eventually push forward donor assistance to sector-wide approaches (SWA) and direct budgetary assistance. This will include close cooperation with donors in introducing a medium-term expenditure framework as part of the government’s regular budgeting process.

Partners and Coordination. The main partners are the Executive Office of the President; the Ministry of Economic Development and Trade (MoEDT); the Ministry of Finance (MoF); the Ministry of Foreign Affairs (MFA), the Ministry of Security (MoS), the Ministry of Labour and Social Protection (MoLSP), the Committee on Environmental Protection (CoEP), the Majlisi Oli (Parliament), the Agency on Anti-Corruption, oblast and district Hukumats and Jamoat authorities, and micro-finance / business advisory services. Coordination will be facilitated by the Border International Group, the Local Governance Working Group, the Public Finance Management Theme Group (operated out of the Ministry of Finance), as well as ad-hoc policy and working groups, as needed.