Political Economy of Tanzania - Essay Example

?INTERNATIONAL POLITICAL ECONOMY- A case study of Tanzania Introduction Tanzania is a medium-sized poor country located in eastern part of Africa andborders with Kenya and Uganda among other countries. During the last four decades, the country has enjoyed general political stability and national unity in a region wrecked by ethnic conflicts (Cunningham, 2010). Tanzania is a socially diverse country with nearly125 ethnic groups (Buchert, 1994). Tanzania is as a result of a union between mainland (Tanganyika) and the islands of Zanzibar, Pemba and a number of other smaller islands which was formed in 1964 (Tripp, 1997). To this date, the islands are semi-autonomous with their own president and legislature and are mainly inhabited by Arabs and Africans with Islam as the main religion (Cunningham, 2010). Tanzania’s first president was Julius Nyerere who led a single party state and nationalized all core industries and formed Ujamaa. This was a rural-based collective movement of African socialism and self-reliance (Tripp, 1997). The movement faced increasing popular discontent and was slowly abandoned in the 1980s (Green, 2003). Nyerere was succeeded by Ali Mwinyi. Under Mwinyi’s leadership, the country underwent various reforms and a slow and gradual transition to a market economy, partly due to economic downturn brought on by Ujamaa and centralized economic management (Tripp, 1997). Tanzania’s Economy Tanzania’s economy depends greatly on agriculture, which accounts for 50% of GDP of which 10% is contributed by livestock (Cunningham, 2010). Agriculture accounts for 85% of Tanzania’s exports and employs more than 80% its working population (Cunningham, 2010). Topography and climatic conditions however, limit cultivated crops to merely 4% of the total land area (Green, 2003). The Industrial sector is mainly characterized by processing of agricultural goods and light consumer products. Currently, Breton wood institutions and international donors have offered funds to revitalize the country’s obsolete economic infrastructure and reduce poverty. Growth in the last two decades characterized a lift in industrial production and a considerable rise in output of minerals led by gold (Cunningham, 2010). Current banking reforms have also facilitated an increase in private sector growth and investment (Green, 2003). Sustained donor aid and sound macroeconomic trade policies and regulations supported real GDP growth to around 6.4% annually in 2010 as noted by Cunningham (2010). The populace of Tanzania is concentrated along the coast region and islands, the fertile northern and southern highlands as well as areas bordering Lake Victoria. The arid and semi-arid central region is sparsely concentrated (Buchert, 1994). Likewise is much of the fertile and well watered far west, comprising of the shores of Lake Tanganyika and Lake Malawi. Nearly, 80% of its population lives in rural communities (Green, 2003). Tanzania’s Educational sector Tanzania recognizes the role of the education sector in realizing the overall growth and development goal of enhancing living standards of its citizens. Numerous policy and structural reforms have been started in the country to enhance quality of education and ensure universal primary education for all (Cunningham, 2010). Abolition of primary school fees through PRS1 was the first step toward this goal. This was to reinforce the relationship between education offered at all levels and the socio-economic development of the country (Buchert, 1994). In mid 1990s, the government undertook to develop the Education Sector Development Programme (ESDP) to tackle the existing problems and face the new challenges emanating from on-going socio-economic reforms initiated earlier and the rising demand for manpower development in line with rapidly transforming technological advancement (Buchert, 1994). The government adopted PRS1 that led to introduction of Complimentary Basic Education in Tanzania (COBET). COBET addresses educational needs for the out-of- school children and youths who have not accessed primary education so that they may attain functional primary education out of the formal school system (Cunningham, 2010). Within vocational education and training, the government developed VETA to regionalize the educational sector. The regional VETA board determines regional priorities for vocational education and training to ensure the creation of plans to meet the regional priorities and oversee implementation of the plans at regional level (Setel, 1998). Tanzania’s Health system In Tanzania, HIV/AIDS is the most serious health problem. Tanzania’s HIV/AIDS infection rate at around 8.8% in 2010 is relatively higher than that of her neighbors like Kenya and Uganda. Globally, the country is ranked 12th with between 1.6 - 2 million infected persons (Cunningham, 2010). The most hit by the HIV pandemic are those in the urban areas mostly on the mainland. Zanzibar and the other islands had a low infection rate of about 0.6% in 2010 (Cunningham, 2010). In 2000, the government declared AIDS to be a national disaster and later developed TACAIDS and a separate Zanzibar AIDS Commission (ZAC) (McElrath, 2002). These institutions formulate and implement national anti-AIDS efforts. Tanzania has a low life expectancy of 47 years for men and 54 for women. Tanzania is featured by high rate of maternal mortality that ranges between 300 in every 100,000 persons (Cunningham, 2010).Through pyramid healthcare system currently in play, it is estimated that 80% of the Tanzanians will be able to access healthcare services. The government is working to prevent the spread of AIDS by enhancing the treatment of sexually transmitted diseases (McElrath, 2002). Tanzania’s poverty level The country has a high prevalence of poverty. The poverty is tremendously concentrated in rural areas where 87% of the poor live and it is highest among those who depend on agriculture (Deborah, 1999). The chronic poverty in Tanzania has led to widespread of child labour and consistent degradation of natural resources. It has also led to high rate of infant and maternal mortality rate and low life expectancy. The government introduced PRS1 in 1999 that was supported by Breton wood institutions as a HIPC provision. PRS1 encouraged public administrative and financial reforms as drivers of policy implementation (McElrath, 2002). PRS1 has special attention in vulnerability and cross-cutting issues such as gender and environment. PRS1 pointed out that there was need to improve agricultural production through community run irrigation, reforestation as well as facilitating credit access to farmers. It also called for employment creation to assist vulnerable groups via training (Green, 2003). Poverty continues to be rife in Tanzania since process distributing economic benefits has been uneven and the poor have seen little or no improvement in their welfare (Lugalla, 1996). The country may need a long period of sound economic growth to alleviate poverty and improve basic amenities (Buchert, 1994). Formulating economic policies that benefit the marginalized poor in rural areas is the solution. Ujamaa Declaration Tanzania was colonized by Britain. Julius Nyerere was the first president of Tanzania from independence until his retirement in 1985. While in power, Nyerere implemented a socialist economic programme, Ujamaa. The Ujamaa required Tanzania’s leaders to refuse capitalism and all its ideologies. However, Ujamaa was rejected by a considerable fraction of the populace (Tripp, 1997). When the main basis of Ujamaa collapsed, agricultural productivity was expected to be increased via collectivization but instead, it fell to less than 50% of what was attained on independent farms (Deborah, 1999). Ujamaa further led to crippling of industry and banking sectors of the economy. The country had become one of Africa’s poorest countries dependent on international aid towards the end of Nyerere’s rule (Green, 2003). Collapse of Socialism, IMF and World Bank Intervention Present Tanzania is better off than earlier socialist state. Under Nyerere, the concept of socialism led to nationalization of all core industries. The Ujamaa led to collapse of industry and banking sectors, the key driver of the economy which in turn to economic decline. Towards the end of Nyerere’s rule, the country had economy had deteriorated to a level that to survive it had to depend on international aid. The current reforms have led to gradual transition to a market economy. Breton wood institutions interventions are significantly eradicating Tanzania’s poverty. This is because they are providing the much needed funds that can revitalize its economy. Neo-Liberal Theory of Market Liberalization This theory calls for borderless trade and it is a brain child of Adam Smith. It demands that trade should be free without any caps. This in essence will allow natural harmony of interests, which in turn will produce maximum economic benefits for all as circumstances permit (Deborah, 1999). Based on this theory, freely working markets without any restrictions from governments can produce outcomes which maximize both individual and social benefits. This is what Tanzania needs to develop economically. Structural Adjustment Plans - Con’s Breton woods institutions sponsored SAPs are thought to expose Tanzania to global competition as a result of liberated trade. As a consequence, countries like Tanzania may be locked into a series of sustained agricultural exploitation at the expense of growth of domestic industry and commerce (Cunningham, 2010). The SAPs also introduces school fees for basic education which is anticipated to lower school enrolment. They also call for cost sharing in the Tanzania health system which may lead to a rise in prevalence of HIV/AIDS and other illnesses. Structural Adjustment Plans - Pro’s The reforms in Tanzanian trade policies and regulations towards liberalization of its trade can open it to the global world. This in essence can allow free mobility of capital, information, labour and technologies which are necessary ingredients for economic growth. Improved economic efficiency due to globalization may in the long run alleviate the country’s chronic poverty. Currently, most structural reforms are focused at the marginalized groups of whom big proportion live in rural areas. It anticipated that these reforms may open training and employment opportunities for the needy in the rural Tanzania. Moreover reforms in the Tanzania health care system may lead to widespread provision of affordable quality health care. This in essence may lower infancy mortality rate and also improve life expectancy from birth which is at the moment very low. Conclusion The earlier socialist economic policies adopted by Tanzania led to substantial economic decline. Tanzania has undergone various reforms and a gradual transition from a socialist economy to a liberalized market economy. In the last decade, the country has taken bold steps toward macro-economic stabilization and structural reforms (Bissell, 2010). The emergence of sound fiscal policies supported by IMF and other partners were influential in accelerating fiscal reforms and boosting a turnaround in fiscal performance. Reforms in the health system are anticipated to boost the country’s health care provision. Bibliography Askew, K. (2002) Performing the nation: Swahili music and cultural politics in Tanzania. Chicago: University of Chicago Press Buchert, L. (1994) Education in the Development of Tanzania, 1919-90. London: James Currey; Dar: Mkuki na Nyota; Athens: Ohio UP. Cunningham, B. W. (2010) Urban Design, Chaos, and Colonial Power in Zanzibar. Bloomington: Indiana University Press. Deborah, B. F. (1999) “Maize Marketing Policies in Tanzania, 1939-98: From Basic Needs to Market Basics”. Aldershot: Ashgate. Green, M. (2003) Globalizing Development in Tanzania. Critique of Anthropology, 23 (2) 123-143. Lugalla, J. (1996) Crisis, Urbanization, and Urban Poverty in Tanzania: A Study of Urban Poverty and Survival Politics. Lanham, Md.: University Press of America. McElrath, K. (2002) HIV and AIDS: A Global View. Westport, Conn.: Greenwood Press. Setel, P. H., Kitange, K. A and Moshiro, C. (1998) “The Policy Implications of Adult Morbidity and Mortality in Tanzania: From Data Analysis to Health Policy-preliminary experiences”. Global Forum for Health Research. Geneva: World Health Organization. Tripp, A. M. (1997) Changing the Rules: The Politics of Liberalization and the Urban Informal Economy in Tanzania. Berkeley: University of California Press. Read More