[{"bbox": [92, 153, 1162, 232], "category": "List-item", "text": "- **Accountability:** CSOs' role in domestic accountability and anti-corruption needs to be strengthened to promote efficiency in public expenditures and delivery of social services. Experience from ongoing EU support to BSAAT²⁵ shows that more effort is needed to strengthen coordination and capacity in the criminal justice system."}, {"bbox": [92, 233, 1162, 313], "category": "List-item", "text": "- **Public-private dialogue:** learning from the IBEE²⁶ and ongoing BEGIN²⁷ programmes, the ability of PSOs to contribute to change in business climate strongly depends on general policy making and is directly influenced by the political economy in Government, hence the need for continuous engagement of private sector in public policy."}, {"bbox": [86, 327, 398, 357], "category": "Section-header", "text": "## 3.5 The Intervention Logic"}, {"bbox": [98, 374, 1137, 427], "category": "Text", "text": "This Action contributes to creating a conducive environment for sustainable development and growth with sound fiscal governance, accountability, and well-functioning financial market systems that unlock Tanzania's potential."}, {"bbox": [98, 439, 1160, 728], "category": "Text", "text": "**For fiscal governance, outputs are focussed on domestic revenue mobilisation and PFM.** If reforms are well-designed, sequenced and implemented through budget support and capacity building, tax administration and domestic revenue policy will be more effective, efficient and inclusive (output 1.2), budget credibility will improve and expenditure management will be more effective and transparent (output 1.1). Such reforms will enable the Government to mobilise more domestic revenues in a sustainable way (outcome 1), meaning from a broader tax base and reduced illicit financial flows while promoting equitable and green outcomes²⁸. A tax to GDP ratio of 15% is a tipping point at which countries are able to sustainably fund basic services and a well functioning PFM system contributes to improved service delivery and better public investment outcomes. If academic courses in Tanzania respond to market needs and teaching staff are qualified to train students in data science, artificial intelligence and applied statistics (output 1.3), financial institutions in the public and private sector will have access to skilled staff that meets their human resource needs²⁹."}, {"bbox": [98, 744, 1160, 1035], "category": "Text", "text": "**Unlocking Tanzania's developmental potential will also require substantial increases in private investment which is dependent on functioning financial market systems (outcome 2).** This action will achieve this through a combination of legal and regulatory reforms, strengthening of key financial governance institutions, developing and scaling innovative and digital solutions in financial services and products, improving market infrastructure, and financial literacy with a specific focus on women and youth. The action will seek to address the main financial market failures comprehensively, focussing on financial inclusion, capital markets development for long-term financing and financing start-ups, reducing inefficiencies and the cost of financial intermediation, and tackling knowledge gaps in new areas such as green finance. The component will address systemic challenges and pave the way for investments foreseen under sector programmes, such as sustainable cities, gender, and blue economy. The action will also facilitate deployment of EFSD+ guarantees due to better working financial systems and by creating favourable conditions for deployment of innovative financial products, such as green / blue bonds."}, {"bbox": [98, 1048, 1160, 1366], "category": "Text", "text": "**Domestic accountability is key for public and private finance to lead to improved development outcomes (outcome 3).** If media and CSOs have opportunities for public participation and are capable of playing their roles as facilitators of public debate, educators and awareness raising about fiscal governance (output 3.2), budgets as well as financial products and services respond better to citizens' needs - provided that the environment for media and CSOs remains open. Lower levels of corruption encourage investment, improve access to social services and encourage a more equitable distribution of resources in society. If the law enforcement system is strengthened, the detection of corruption activities improves. If the criminal justice system has more capacity, the handling of corruption cases and recovering of crime proceeds will improve. The assumption is that the improved deterrence in criminal justice will reduce the perception and incidences of corruption. Eventually, for reforms to adequately address the needs of the economy, Tanzania requires credible private sector organisations to have high quality dialogue with the government, sustained by research and evidence for decision-making. Output 3.3 will focus on enhancing the capacity of private sector organisations to join hands with the Government and positively influence and accompany economic growth."}, {"bbox": [86, 1405, 466, 1429], "category": "Footnote", "text": "²⁵ the Building Sustainable Anti-corruption Action"}, {"bbox": [86, 1429, 528, 1451], "category": "Footnote", "text": "²⁶ Investing in Business Enabling Environment programme"}, {"bbox": [86, 1451, 593, 1472], "category": "Footnote", "text": "²⁷ Business Environment, Entrepreneurship, Growth and Innovation"}, {"bbox": [86, 1472, 1120, 1602], "category": "Footnote", "text": "²⁸ In turn, PFM reforms coupled with domestic accountability, ensure that resources are increasingly spent according to gender-sensitive plans and budgets, with reduced fiduciary risk. Both rest on the assumption that there is political will and strategic leadership to prioritise medium-term gains over short-term tax collection targets, and to address complex, structural weaknesses in the PFM system. According to the IMF, a tax to GDP ratio of 15% is a tipping point at which countries are able to sustainably fund basic services and a well functioning PFM system contributes to improved service delivery and better public investment outcomes (outcome 1). Therefore, both are central elements to improve fiscal governance for sustainable economic growth."}, {"bbox": [86, 1602, 1094, 1646], "category": "Footnote", "text": "²⁹ This assumes that over time, the pool of graduates will be sufficient to serve both the public and the private sector and that the public sector is able to offer competitive opportunities."}, {"bbox": [1028, 1681, 1142, 1705], "category": "Page-footer", "text": "Page 17 of 31"}]