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1. Introduction

The birth rates in rural areas are high 6. While donors and the government have used significant resources to improve the social sectors, similar necessary support has not been given to agriculture and other productive sectors. Lack of secure land tenure to ensure that the traditional users in the rural districts do not lose their land is one of the most essential issues, constraining investments that could enhance productivity. Processing of food and other agricultural produce and other forms of manufacturing is also very limited in the rural areas creating very few additional employment opportunities.

For the same reason, Tanzania is experiencing significant out-migration of young people from low productivity agriculture to urban informal service sectors, where productivity is just as low. Unemployment is high and growing rapidly, especially in the urban areas and among youth.

In addition, one-third of those employed are so-called "working poor": technically employed, but whose income is less than the basic needs poverty line of USD 0. They often work either in farming or in the urban informal service sector in low-productivity, part-time jobs. An estimated , new young job-seekers enter the labour market each year, but only a fraction of them have a realistic possibility of obtaining a stable job that can give them the possibility to provide for a family. The flow from countryside to city of rural-urban migration will continue in years ahead, and Dar es Salaam is already one of the fastest growing cities in Africa.

In sharp contrast to the largely stagnating extreme poverty, Tanzania has seen the emergence of a small, but growing urban middle class. The Government is working hard to meet these demands, through for instance, large subsidies for cheap electricity, comprehensive tax exemptions to foreign and national companies as well as government employees, and large non-taxed per diem allowances for civil servants. This can threaten the continued peace and stability as well as social cohesion in Tanzania.

However, the benefits to be derived from the exploitation of natural resources will not significantly materialize for another 10 years or so, and it is crucial to ensure macroeconomic management. In recent years, the Government has increased its use of both interest-bearing and low interest concessional borrowing. The debt continues to grow rapidly, with corresponding increase in debt servicing and repayment.

There is especially a need for greater openness in public contracts and procurement. Poverty cannot be measured simply by examining income distribution and distribution of assets alone.

2. Current and future challenges and opportunities in Tanzania

The official statistics focus only on private consumption and therefore underestimate the importance of consumption of public goods. The statistics thus underestimate the improvements achieved in recent years. The Tanzanian government has chosen to spend significant resources on provision of public goods to the population. As a consequence, access to water, education and health services have improved substantially over the last decades.

Today, Tanzania is one of the few low-income countries that are close to achieving universal primary education. In the health sector, general success has been achieved in extending access to basic health services, and the results can be seen in the increasing number of children who survive. There have been declines in both infant mortality rate the official child mortality rate as well as in mortality for children under five years of age. However, there continue to be major challenges in reducing maternal mortality.

Public spending on education has increased substantially in recent years, whereas health expenditures have declined, both in absolute value and as a share of the national budget. Across all social sectors, there are major and sustained needs to increase the quality of services offered.

The massive expansion of coverage and the attempt to reach out to everyone with education and health services, has reduced the quality of services across the board. Recent studies show comprehensive and persistent quality problems in both primary and secondary education, the consequence being that pupils leave school with entirely inadequate skills.

The quality of primary health care has been negatively affected by a range of factors, including shortage and poor distribution of health workers, poor access to essential medicines and poor infrastructure. This situation is further affected by the rapidly growing population. One of the signs that the quality of healthcare services is inadequate is seen in the fact that there has been only a very slight increase in the proportion of women, who give birth at a public health institution.

This is a significant improvement, but it is still just over half the positions which are occupied. Access to social services continues to be unequally distributed. For both health and education, there are significant disparities in access to services and in the distribution of public expenditures to different groups in society. This concerns differences between rich and poor, where one lives in the country and differences between rural and urban areas. For example, the number of nurses in the health services per capita is 30 times greater in the best endowed district in the country than the worst.

It is therefore not surprising to see that the proportion of women who choose to deliver their babies in health clinics is also three times greater than in the rest of the country. This shows how important it is to have strong focus on improving the quality and equal access for the population to social services.

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The complex relations between the semi-autonomous Zanzibar and the union which comprises Tanzania is an important theme in Tanzanian domestic politics, not least in the context of changes in the constitution. Many Zanzibaris hold strong ambitions for increased autonomy for Zanzibar. The existing structure, where the union has responsibility for key areas such as foreign and security policy, is encountering increasing popular resistance.

While the government could initially be satisfied with the strong popular support, the coalition is now increasingly perceived as inefficient. At the same time, the participation of CUF in the government has weakened popular support for the party. Populists movements are seeking to fill this vacuum, and there is a risk that the political scene in Zanzibar will be overtaken by proponents of radical organisations, such as the increasingly popular Uamsho movement, which promotes Islamic principles and total independence for Zanzibar. Zanzibar is thus currently witnessing increased religious tensions and several violent clashes between radical Islamic groups and the authorities.

From a regional perspective, Tanzania continues to have a relatively positive human rights record. Tanzania has ratified most of the international human rights instruments and established institutional frameworks to support democratic. However, despite the positive general framework, there remains.

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The constitution provides for basic civil and political rights, including freedom of assembly and freedom of speech. Civil society and media outlets have played a much greater role in domestic politics in recent years, and this has led to increased surveillance of media by the government. Through the Workforce Development Authority WDA and other agencies, a number of programmes like the National Employment programme have been rolled out.

Yet the challenge of creating decent jobs for the population persists, as government statistics recently showed, with 30 percent of the population categorised as underemployed. The EAC, which President Kagame currently chairs, is perceived to be central to creating a larger market for goods manufactured within Rwanda.

The strategy of regional industrial policy harks backs to the s, when similar attempts were made in East Africa. Eventually, tensions between members contributed to the collapse of the Common Market in For Rwanda, with a very small domestic market, hopes of encouraging manufacturing sector growth are perceived to depend on regional industrial policy through the strengthening of the EAC.

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However, as in the s, tensions between members have highlighted challenges to sustaining possibilities for a strengthened regional community. In recent months, it is the two landlocked countries — Uganda and Rwanda — whose future may depend most on a strong EAC, that have been the source of the greatest tension within the region. Yet, political tensions within the country are as important.

For successful latecomers, strong reciprocal relationships between the government and business actors have been central to sustaining transformation. For all governments, private business actors are both a source of anxiety and opportunity. Private financiers can fund opposition movements, but they can also provide a source of financial support to the presiding government. In East Asia, Korea and Taiwan dealt with the challenge of managing state—business relationships differently. Korea organised its private business community into family-owned conglomerates known as the chaebol that retained a close relationship with the state.

Later, these companies grew into global diversified business groups, which became household names Samsung, Hyundai. In Taiwan, the state took a leading role in investing the economy, but developed close linkages with private small- and medium-sized enterprises, which collectively grew in importance. Stable food availability at the national, regional and household level can bring profound nutritional benefits.

Even when the first priority of agricultural development is raising aggregate production of selected food and nonfood commodities, increasing consumption levels of poor households and generating sustainable livelihoods should be explicit goals; otherwise the nutritional benefits may not be attained. Often who produces, what they produce, how they produce and where they produce may be as important as how much is produced. The mix of staple, secondary and non-food cash crops influences access to food in rural areas. Cash crops can complement food crops and provide income to purchase food.

In addition to increasing foreign exchange earnings, cash crops can raise and perhaps stabilize household incomes, either directly or through jobs created on or off the farm.

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Better production technologies which are often adopted for cash crops may spread to the food crop sector, raising food production as well. Improvements in dietary intake will not occur if the earnings from new crops are spent on items not related to food. Women's participation in new enterprises and control of the income is important if nutritional benefits are to be realized. When a mother has a controlling hand in household expenditures, children usually receive more benefits. Agro-industries, such as this food-processing firm in Costa Rica, provide employment-a basic step towards solving nutrition problems.

Change in dietary energy supply by region. The full nutritional benefits of commercialized agriculture can only be realized if prices of food in local markets remain affordable and a diversity of food crops is attained. When planners contemplate introducing cash crops or other farm enterprises, the socio-economic effects must be carefully assessed, and counteracting interventions must be made where needed to assure food security, especially for poor households.

Approximately two-thirds of the population of developing countries live in rural areas where crop and animal production, fisheries and forestry are direct sources of food and income. The employment requirements of agriculture may be key determinants of nutritional well-being. The high amounts of energy spent in farming and household activities can be significant. Labor-saving technologies may be beneficial, but in areas of high unemployment they should not be labor displacing.

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When the wages of landless laborers are irregular and uncertain, the threat of food insecurity may be great In countries where land reforms are needed, the tenants on small farms form another highly vulnerable group. The benefits of food crops such as roots and tubers, pulses and legumes are often not fully realized because of lack of research to improve production and storage, transport and processing problems.

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Since these traditional foods are well adapted to local environments, they can reduce the risk of food shortages. Increased cultivation of these crops by small producers could directly improve food supplies for nutritionally vulnerable households. Roots and tubers serve as staples in many diets, while legumes, oilseeds, vegetables and fruits are primary sources of oils, vitamins and minerals.

Improvements in post-harvest management can often significantly increase overall food availability and reduce costs for producers, distributors and consumers. The postharvest operations where major losses are most likely to occur are storage, marketing and food handling in the home.


Adequate storage is essential in rural areas, particularly among semi-subsistence farming households which are directly dependent upon stored foods for their food security. It is also important in urban areas where retail food distribution and marketing occur.

Marketing facilities generally improve nutrition because they provide relatively easy access to cheaper and more diverse foods. Adequate transport and marketing facilities and liberal, non-interventionist domestic trading policies are essential for food markets to function well. Producers and consumers should be able to reach markets without excessive expenditures of time or money.