There are two MCA structures operating concurrently but rather separately in Tanzania--one structure and team supporting the Threshold Program and a different structure and team supporting development of a Compact proposal. The United States Government (USG) and Government of Tanzania (GoT) officials involved in the two processes are different, as are the strategies for engaging with non-government actors, and the sectors being addressed. At first glance, this separation seems odd, but according to both USG and GoT officials, it has not been a problem in Tanzania. Officials argued that the separation makes sense because each program builds on the relative strengths of USAID and the MCC, as well as the relevant government ministries.
The Threshold Program
The Threshold Program is squarely under the jurisdiction of USAID, and is coordinated on the GoT side by a senior Ministry of Finance official. The program design reflects collaboration between USAID, the MCC, GoT officials and members of civil society. The program builds on USAID's existing Democracy and Governance (DG) programming in Tanzania, and on the strong civil society networks active in DG programs. It aims to increase the capacity of civil society (including NGOs, the private sector and the media) to monitor the activities of the government. It also seeks to provide an external check on the internal government mechanisms already in place to curb corruption. The Threshold agreement was signed in May 2006, and funds have started to flow. The $11.15 million over two years will go through USAID and represents a massive increase in resources for its DG unit in Tanzania (up from $3.4 million over three years, according to USAID's 2006 budget justification).
The Compact Proposal Process
The Compact proposal development process is very young in Tanzania--just three months old at the May 2006 interviews for this report. A senior MCC team made a kick-off visit to Dar es Salaam in February, and a flurry of activity has followed. The GoT named an MCA coordinator (separate from the GoT Threshold Program coordinator) to be the main point of contact, and created an Inter-Institutional Steering Committee (IISC) to shape the proposal. The focus of the proposal is drawn heavily from the county's 2005 Poverty Reduction Strategy (PRS, called the Mkukuta in Tanzania) and is expected to target three sectors: water, energy and transportation (likely roads and airports). The IISC is designed to reflect this focus, with high-level representation from the relevant government ministries, as well as from the private sector and NGOs. The IISC is supported by a technical working group tasked with the nuts and bolts of drafting the proposal. It is pushing hard, recently spending two solid weeks locked in a conference room to hammer out the "zero draft." The current goal is to submit a formal proposal to the MCC in July. (For simplicity, this report refers collectively to Tanzania's MCA point of contact, the IISC, and the technical committee as MCA-TZ.)
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