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General Category

The Government of the United Republic of Tanzania, through the Ministry of Finance and Economic Affairs, has decided to carry out a study to analyze the effectiveness of decentralization by Devolution (D by D) looking specifically at financial resources versus absorptive capacity of LGAs.The importance of LGAs cannot therefore be over emphasized. LGAs constitute an important link between the central government and the people in the development process in general and poverty alleviation in particular. Such a critical link needs to be solid and capable of meeting its obligations including building its capacity to discharge its obligation.

The objective of the consultancy is to analyze the effectiveness of Decentralization by Devolution in terms of matching deployed financial resources with the absorptive capacity at the LGAs. The study focuses mainly on two main service sectors: health ande ducation. The study aims to critically examine the factors that enhance and diminish absorptive capacity on both the supply (e.g. functioning of transfer systems) and the demand side (e.g. governance and administrative systems at local level).