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Tanzania’s natural resources are the main source of peoples’ livelihoods and backbone of the country’s main productive sectors. The relationship between economic development and rational management of the environment and its natural resources is emphasized in the National Environmental Policy, (NEP) 1997 and the National Strategy for Growth and Reduction of Poverty (NSGRP) or MKUKUTA/MKUZA in Kiswahili. The NEP identifies land degradation, loss of wildlife habitat and biodiversity, ecosystem deterioration and deforestation as critical environmental problems, requiring urgent intervention. The impacts of poverty and climate change are likely to further aggravate these problems, thus increasing the vulnerability of both urban and rural communities, as well as that of the natural resources and the environment providing livelihood to the people. The Millennium Development Goal seven (7) which is aiming at ensuring environmental sustainability also recognizes the importance of addressing the adverse impact of environmental degradation on people’s livelihoods
Currently, environmental management in Tanzania is by and large done through Command and Control (CAC) instruments using laws, regulations, rules and by-laws. Generally, the use of economic instruments for environmental management is not common in Tanzania although there are efforts to introduce them in different sectors of the economy. The Environmental Management Act (Cap 191) provides for use of economic instruments for environmental management. In addition to this most sectoral laws have elements of economic instruments for environmental management (a list of the laws and regulations relevant to environmental management in Tanzania’s economy. There are some few economic instruments for environmental management currently employed in the country, particularly charges, tax allowance/exemption, information programmes, performance bonds and property rights. Most of the charges have been put in place recently and some of them are mainly meant for revenues generation rather than for inducing a change in behaviour, and more over, they are not indexed to inflation.
To respond to these critical problems, the government and the UN, under the One UN for “Delivering as One” developed a Joint Programme on Environment (JP11). This joint programme aims at increasing the capacity of the Vice President’s Office (VPO), the Prime Ministers’ Office Regional Administration and Local Government (PMO-RALG) and the Ministry of Finance and Economic Affairs (MoFEA) to coordinate and lead the implementation of key national environmental policies and plans. The Joint Programme will therefore focus on mainstreaming environmental sustainability and climate change - including disaster preparedness and risk reduction - in the policies, strategies, programmes and plans of key sectors: Energy, Water, Natural Resource Management, Agriculture and Livestock Development and Fisheries. Recognizing the importance of working with local communities and local government in order to achieve concrete results, this Joint Programme will ensure that LGAs’ plans and budgets address local environmental priorities and integrate environmental management issues. One of the outputs of this Joint Programme seeks to build capacity on the development and use of economic instruments for managing environment. As a way of implementing this programme, the government is now planning to engage a consultant to conduct a study to that end.
The Ministry of Finance and Economic Affairs (MOFEA) in collaboration with UNDP Tanzania is seeking the services of qualified consultant to undertake a study and establish mechanism that will enable the government to use economic instruments achieve a more sustainable management of natural resources and environmental conservation for poverty reduction. The consultant will assess the existing instruments to find at which extent they have contributed in achieving the national environmental management objectives. S/he will undertake the assignment in consultation with the main key partners at the national and local levels. The consultant will work very close with MOFEA, VPO-DoE, MNRT, related MDAs, UNDP CO, and other interested development partners. Consultant will have access to all required support and documents through MOFEA/UNDP to enable fulfil this assignment successfully. The quality of the work should be approved by MOFEA, UNDP together with other key stakeholders through consultative meeting prior submission of the final documents.
Objectives of the study
The study aims at providing recommendations on how Tanzania could benefit from the potential for harnessing the use of use economic instruments to achieve a more sustainable management of natural resources and environmental conservation while contributing to achieving priorities of MKUKUTA II specifically the pro-poor growth, specifically addressing priorities identified in MKUKUTA II.
The overall objective of the consultancy is to critically assess the extent to which the existing economic instruments have contributed to the achievements of environmental management objectives for which they were introduced as well as examine the causes of the failure. Furthermore, the study will establish the opportunities for the use of economic instruments in supporting poverty reduction and improved community wellbeing. The study will propose actions to improve the use of selected economic instruments in meeting national development objectives including sustainable use of environment and natural resources for growth and poverty reduction.
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Duties and Responsibilities
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Scope of the assignment
The study will focus on existing economic instruments in Tanzania and explore any additional instruments which can be used as incentives for sustainable use of natural resources and environmental conservation for poverty reduction and improved human well-being. Furthermore, the consultant should review compliance on the existing economic instruments and their impact towards behavioural change in the sustainable use of natural resources and preservation of environment, generation of domestic revenue and improved livelihood opportunities at community level.
Specific tasks under the assignment
- To assess the adequacy of the policy, legal, institutional, political, socio-cultural and economic environment in which economic instruments are being implemented. Specifically, the task will involve the description of the adequacy of the monitoring system in place to periodically review the extent to which economic instruments are meeting their set objectives;
- To establish evidence on the success or failure of using selected economic instruments in key sectors with respect to environmental sustainability and poverty reduction including the revenue generating potential and distribution of benefits;
- Toprovide recommendations on the best ways for enhancing the use of existing instruments for revenue generation and to promote behavioural change towards sustainable use of environment and natural resources;
- To propose changes government should make in existing economic instruments to ensure that they are inline with time value of money (inflation index);
- To assess the economic potential of the proposed economic instruments in achieving sustainable management of natural resources and poverty reduction; and
- Torecommend any additional economic instrument(s) to be used by the government to induce behavioural change toward environmental conservation.
- To develop an action plan for enhancing the use of selected economic instruments to promote sustainable use of environment and natural resources for growth and poverty reduction with key recommendations at national, sector and local levels.
Methodology and Approach
The individual consultant shall prepare a detailed work plan within one week of the commencement of the study indicating key milestones at each stage of this assignment. The consultant shall carry out the tasks in a participatory manner through a combination of processes. Considering the primary purpose of the consultancy is to improve the use of economic instruments i.e. taxes or charges that are linked directly to environmental resources; for this to happen all stakeholders must fully understand and identify with the product of this consultancy. The consultant is shall use but not limited to the following:
- Review of key national policies, strategies (mainly in the water, forestry, fishery, mining) and the associated legislations on existing economic instruments. Strengths and weakness of the instruments shall be highlighted including identifying any gaps. Existing knowledge and skills on these economic instruments will also be articulated.
- Review reports on current practices in applying economic instruments for environment management in Tanzania and any other information available, where it deems necessary
- Analysis of existing data, information to provide evidence where fiscal instruments could become cost effective means to promote environmental goals and highlights in which cases taxes and other types of fiscal instruments can usefully complement each other to achieve environmental targets
- Stakeholder’s consultation: The results of the above analysis should be shared in consultative meetings to generate more knowledge and experiences from various stakeholders. The consultant shall develop specific approach to achieve the goals of this assignment
- Benchmarking best practices from elsewhere
To build national capacity and ensure effective implementation, the consultant will conduct this study in close collaboration with the National Working Group.
Reporting
The individual consultant will be reporting to the Permanent Secretary-MoFEA and Country Director, UNDP Tanzania. The consultant will be supervised on a day to day basis by the National Coordinator of the Joint Programme on Environment (JP11).
Output
- The consultant shall provide the project partners and the PIU with a comprehensive report setting out the following as per Section 3: Task and scope of the assignment Clearly detailed current existing economic instruments related to natural resources management, policies, strategies, programmes and their existing gaps
- Tangible evidence of success or failure of the existing economic instruments in key sectors with respect to environmental sustainability and poverty reduction
- Established more cost effective economic instrument to be used by the government in achieving sustainable management of natural resources and poverty reduction. The proposed instrument should take into account time value of money.
- Additional recommendations of other economic instruments that could be used by the government to induce behavioural change toward environmental conservation.
The draft report will be reviewed by a technical committee comprising participants from key sectors, UNDP and PEI Africa prior to finalisation. The consultants shall produce a well synthesized report of findings with clear recommendations. This report will be a property of the government and will be kept under the custody of the Ministry of Finance and Economic Affairs (MOFEA), which will work on the report and recommendations provided in collaboration with its relevant affiliated institutions.
Timing
The assignment will be carried out through a period of 22 working days.
Deliverables
- Submit 5 hard copies and a soft copy of draft report three weeks after signing the contract
- Submit 5 hard copies and 1 soft copy of the final report, one week after consultative meeting.
Report Annexes
- TORs
- Itinerary
- List of persons interviewed
- List of documents reviewed
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Competencies
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- Extensive expertise, knowledge, and experience of not less than seven (7) years on natural resources and environmental management related issues at national and sector levels, including thorough understanding of economic instruments and their application in several countries;
- Knowledge and understanding of international and country-level implementation of sustainable use of natural resources and its relation to environment preservation and poverty reduction;
- Extensive experience in national development policies, monitoring and budgeting processes (MKUKUTA development and monitoring, natural resources management and environment related policy, Multilateral Environmental Agreements (MEAs), legislation and strategies; and
- Experience of working in Developing Countries would be an added advantage.?
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