THE World Bank has challenged Tanzania to step up the campaign against graft, including taking swift measures against perpetrators, in order to remove any impression that its government condones impunity. In a statement made available to the Daily News yesterday, the bank said the country’s slow pace on public finance reforms, transparency and accountability, had led to a drop in rankings that its lending arm, the International Development Association (IDA), uses to assess low income borrowers.
“This will partly contribute to Tanzania receiving about $312 million less in the 2010 and 2011 fiscal years. Its resources from IDA will go down by 15 per cent from 1,450.6 million US dollars to 1,146.6 million US dollars for the 2010 to 2011 fiscal years,” the bank said.
“IDA recognises that the government has taken positive actions…however, remedial action has not yet been proportional to the gravity of the facts and not deep or fast enough to seriously dent the perception of impunity,” the bank said.
IDA uses its Country Policy and Institutional Assessment (CPIA) rating and other criteria to determine how much it can lend to a country in a given year. The ranking places heavy emphasis on public finance management and reform.
World Bank says Tanzania’s rank dipped to 3.8 in 2008 from 3.9 a year. The average rating among all IDA borrowers is 3.3.
The CPIA ranks countries on 16 different factors, including macro-economic management, fiscal policy, regulatory environment, gender equity, property rights, quality of public administration and transparency.
Daily News
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