War on Poverty Tanzanian Experience

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War on Poverty Tanzanian Experience

• By
• Emmanuel Luvanda
• Tumainin University at Iringa
• Tanzania

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Introduction Contents

• Meaning of Poverty
• Poverty Situation in Tanzania
• Previous strategies for Fighting poverty in
  Tanzania
• Current strategies for Fighting poverty in
  Tanzania
• Major Clusters of Poverty Reduction Outcomes
• Agriculture Growth for Poverty Reduction
• Monitoring and Evaluation in Fighting Poverty
• Challenges in fighting poverty in Tanzania
• Conclusion

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Meaning of Poverty

• The definition of poverty depends on the
  environment and cultural context.
• Maxwell (1999) defines poverty as lack of access
  to social services, it is more correctly
  understood as the inability to participate in
  society economically, socially, culturally, or
  politically.
• It is a relative to the standard of living in the
  society at the specific time.

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Meaning of Poverty

• Due to the absence of official lines, some
  studies have used their own lines.
• Lower lines denote the basic food needs based
  on specific assumption about eating habits,
  nutritional requirements, and cost
• upper line Cover in addition to such food
  requirements, other essential needs, such as
  clothing, housing, water, and health.
• A poverty line of 1 USD per day in real terms has
  been used to facilitate comparison with other
  countries.

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Poverty Situation in Tanzania

• Since independence Tanzania has been preoccupied
  with three development problems
• Ignorance, Disease and Poverty
• Despite of the effort to tackle these country
  economic and social problems, half of Tanzanian
  are considered to be poor.
• Poverty is rampant among the 33.6 of the
  population
• 50 percent of Tanzanian live in poor condition
  while 36 lives in absolute poverty.
• The GDP growth rate range from 5.5 to 6.7 per
  year

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Poverty Situation in Tanzania

• The annual inflation rate range from 6 percent in
  2000 to 4.6 percent in 2004. Currently the
  inflation rate is 9.5 percent.
• Income poverty is high, the population below food
  national poverty line is 18.7 below the national
  basic needs poverty line is 35.7
• The industry sector grew by 8.6 percent in 2003
  compared to 8 percent in 2006
• Unemployment rate stands at 2.3 million
  equivalent to 13 percent of the workforce
• Per capital income of 350 USD
• Tanzania external debt ratio was 14.4 percent of
  the GDP in 2007.

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Previous strategies and policy for fighting
poverty

• Social policy 1967 to 1985
• In 1967 Tanzania adopted a policy of socialism
  and self reliance which was promulgated in the
  Arusha Declaration
• It put a major means of production under the
  state through nationalizations
• A large part of the investment going into the
  social sectors which were deemed capable of
  contributing to human development
• Investment were made in basic social services
  such as education, health, water and sanitation

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Previous strategies and policy for fighting
poverty

• Toward the end of the 1970s and in the early
  1980s Tanzania experienced a deep economic crisis
  in which major economic variables were out of
  balance.
• Inflation was high about 30 percent, budget was
  in deficit, balance of payment was in deficit,
  shortage of good were wide spread and productive
  capacity were underutilized, and shortage of
  foreign exchange to finance imported good

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Previous Strategies and Policy for Fighting
Poverty

• Policy for Efficiency and Growth 1986 to 1995
• In response to the economic crisis of the late
  1970s and 1980s, Tanzania embarked on the
  economic recovery program.
• This was supported by IMF as well as World Bank
  sponsored Structural Adjustment Program in 1986.
• Under Economic Recovery Program 1986 to 1989
  Tanzania adopted stabilization measures,
  macroeconomic policy reforms and reform in
  exchange rate regime.
• With enhanced external support, the decline of
  the economy was halted with output growth
  recovering to about four percent

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Current strategies for fighting poverty in
Tanzania

• By the mid 1990, it become apparent that
  adjustment stabilization measures had resulted in
  erosion in the previous gain in social
  development of the country.
• To solve this, Tanzania started to address
  poverty as a major policy concern.
• Tanzania reached its turning point after
  participating Social summit in Copenhagen in 1995
• The government started to implement International
  declaration for Eradicating Poverty.
• It declared to eradicate poverty 50 percent by
  year 2010 and 100 percent by the year 2025.

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Current strategies for fighting poverty in
Tanzania

• In 2000 the Poverty Reduction Strategy Paper was
  launched in Tanzania
• According to the paper, the financing poverty
  reduction program will derive mainly from
  domestic sources, central government budget, and
  external funding mainly from the World Bank and
  IMF. The strategy is aimed at
• Reducing income poverty
• Improving human capabilities, survival, and
  social well being
• Containing extreme vulnerability among the poor

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Current strategies for fighting poverty in
Tanzania

• National Strategy for Growth and Reduction
  poverty
• Is the second national organizing framework after
  PRSP
• It is informed by the aspirations of Tanzanians
  development vision 2025 for high and shared
  growth, high quality livelihood, peace, stability
  and unit, good governance, high quality
  education, and international competitiveness.
• It is committed to the Millennium Development
  Goals MDGs, as international agreed target for
  reducing poverty, hunger, diseases, illiteracy,
  environmental degradation, and discrimination
  against poverty by 2015.
• The NSGRP builds on the poverty reduction
  strategy paper
• NSGPR is expected to last 5 years from 2005 2010.
  the end point coincides with the National Poverty
  Eradication Strategy 2010
• It is two third of the way toward the MDGs 2015,
  12 years toward targets of vision 2025

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Major Clusters of Poverty Reduction

• Growth and Reduction of Income Poverty
• Reduction poverty requires sustained growth rate
  of GDP of at least 6 to 8 percent per annum over
  the next decade.
• In this regard, focus will be on scaling up
  investments towards modernizing small, medium and
  large scale agriculture for increased
  productivity and profitability, promotion off
  farm activities, including small and medium time
  enterprises.
• It also gives particular attention to trade,
  services and marketing infrastructure, and
  creating conducive environment to attract private
  investment
• Support of the fast growing sectors like tourism
  and mining
• Safeguards will be devised to protect the
  environment from undue depletion caused by such
  activities.

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Growth and reduction of Income Poverty

• Also it focuses on
• Investment in human capabilities such as
  provision of education, health and nutrition
• Investment in physical capital with focus on
  efficient and cost effective provision of
  infrastructure for transport, power, ICT and etc
• Increased factor productivity
• Private sector development
• Attracting Foreign Direct Investment (FDI)
• Addressing geographical disparities
• Equal and universal access to public services

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Improvement of Quality of Life and Social well
being

• It addresses human capability, survival and well
  being.
• A social protection framework is necessary to
  address vulnerability and provide for social
  security, health insurance, and specific
  vulnerable group
• Effective system to ensure universal access to
  quality and affordable public services
• Increased access to clean, affordable and safe
  water, sanitation, decent shelter and a safe and
  sustainable environment and thereby reduced
  vulnerability from environment risk
• Improved survival, health and well being of all
  children and women and especially of vulnerable
  groups.

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Governance and Accountability

• The third cluster provide a bedrock for the first
  and second cluster
• For broad based growth and improvement of quality
  of life and social well being to take place good
  governance has to prevail.
• It centers on the issues such as economic
  structure use of public resources, financial,
  information and natural resources
• Management system, personal security, tolerance,
  and inclusion, and participation in the decision
  making
• Human rights, a functioning and fair justice
  system and war against corruption.
• Improved personal and material security, reduced
  crime, eliminate sexual abuse, and domestic
  violence
• Rights of the poor and vulnerable groups are
  protected and promoted in the justice system

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Agriculture growth for Poverty Reduction

• According to vision 2025 modernization of
  agriculture is expected to lead the
  transformation toward semi industrialized
  economy.
• Stimulating agriculture has a substantial
  multiplier effect through increased demands for
  consumer goods and services
• Large bulk of the poor are primary engaged in
  agriculture.
• An agriculture focused growth strategy stands out
  to be the best option for sustainable growth and
  poverty reduction in Tanzania
• Government prepared agriculture development
  strategy as an integral part of the economy which
  is being implemented through Agriculture Sector
  Development Program (ASDP/DADP) since 2006/2007.
• Attract investors in agriculture sector
• This has been integrated in the Rural Development
  Strategy which has several dimensions such as
  attaining high quality livelihood, creating
  enabling environment for peoples empowerment,
  attaining self reliance and trade and
  international competitiveness
• Diversification of agriculture in the rural areas

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Monitoring and Evaluation in Fighting Poverty

• In monitoring the implementation of NSGRP and
  evaluation of the process will be done under the
  poverty monitoring system PMS which was
  established in the year 2001,
• This is done through Poverty Monitoring Master
  Plan in the line with NSGRP
• The PMMP is intended to improve data collection,
  reporting and use, align indicator monitoring
  program to fight poverty.

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Challenges

• Tanzania economy remain vulnerable to high aid
  dependence to the extend that substantial amount
  of budget will continue to depend on donors
  support over the immediate future.
• System do not provide adequate opportunities for
  participating as critical voices were silenced
  and the policies were directed by top leaders of
  government and lending parties.
• Policies have also influenced by external forces
  especially dominant donors.
• Target of the GDP growth rate of 6 to 8 percent
  per annum over the period of 2005 to 10 is
  challenging to be reached.

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Conclusion

• Successful poverty eradication requires focusing
  on the three major issues such as Income poverty
  eradication, well being of the society and
  corporate governance.
• The successful poverty eradication need to be
  designed to fit the environment and cultural
  context of the society.
• Agriculture is one of the leading sector in the
  poverty elevation process.

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• Many thanks for Listening
• End of Presentation