Which way forward for Tanzania’s fifth-phase government?

Again this is the second and last part of my personal advice to Tanzania’s fifth-phase government, led by Dr John Pombe Joseph Magufuli, chiefly based on deliberations at meetings by Tanzanians living and working in Geneva. It is a compilation of my personal recollections and reflections.

Macro economy figures of Tanzania show an impressive performance over the last years but this achievement is not visible at the Micro or household level. Household level improvement is the main measures for poverty eradication and for the quality of life.

Linking the Macro and Micro levels demands pro-poor growth or people – oriented approaches that will target households both in the rural areas and urban areas.

Significantly, all Tanzanians should be economically empowered, without bias. It should be possible to enable all Tanzanians to have access to credits so as to set up small and medium enterprises on the one hand and to enable farmers to add value to their products, on the other.

In particular, women entrepreneurs require support for they are the backbone of the economy. This incentive should be given without expecting political gains in return.

Liberalization has not raised all boats in Tanzania and there is evidence everywhere in the developing world that without addressing equity issues, the liberalization process creates huge gaps between the rich and the poor. It has been said that a nation that abandons its poorest, weakest citizens to the vagaries of a glorified free market should not call itself civilized. Moreover, balanced growth and poverty reduction do not necessarily flow as automatic outcomes from the liberalization process.

Rather, these objectives must be actively promoted by policies in conjunction with appropriate adjustment to the opening –up of an economy. Capital account liberalization and investment policies should ensure that there is a win-win scenario where part of the capital generated is retained in Tanzania for national development.

The new government must be the watchdog for under- invoicing or over – invoicing tricks of foreign investors that result in huge capital outflows from the country and makes it accept creditors’ conditions that are harmful to autochthonous development. The government should, therefore , ensure that there is responsible borrowing and that such financing really leads to profitable economic returns for the country. This issue must be addressed by the fifth phase government as one of its priorities.

TRADE

Trade is crucial for ensuring that the country has a guaranteed external income. Unjust trade, however, where terms do not favour Tanzania must be addressed by strengthening the trade negotiation process between Tanzania and other countries. More capacity should be given to trade negotiation by increasing the number of negotiators in the WTO, EU among others.

Trade negotiation should however not focus solely on trade liberalization policies and the negotiation of trade rules for market access for Tanzania but should underline development and equity as the main goals. It is not, for instance, helpful to import oranges for retail shops of foreign investors.

Tanzanian farmers could be empowered to supply such companies with their products. Trade liberalization should enable Tanzanian to boost their business, not lose it.

Social security

Many Tanzanians are insecure when it comes to retirement. A solid policy should be put in place that takes into account inflationary trends on retirement benefits and other savings. It is ridiculous to see our former civil servants who had worked so hard for the nation languishing in poverty in their old age, as senior citizens.

Retired teachers who gave our nation its experts by training them from their first lessons in school are now living in pathetic conditions, many receiving 600/- a month as pension. The fifth phase government could look into this problem carefully and review the country’s social security policy, especially on retirement benefits.

“It is ridiculous to see our former civil servants who had worked so hard for the nation languishing in poverty in their old age, as senior citizens.”

Perhaps one should also raise the issue of increasing beggars and street children. This phenomenon did not occur during the first phase government .This problem must be addresses forthwith. For a country rich with fertile land, livelihoods for everyone could be guaranteed. If it were possible then it can also be possible now, what with good social policies.

Water supply

Water is a key element and indeed a driving force behind all endeavours to eradicate poverty. No single sector of the economy will perform well without adequate supplies of water. Budgetary allocations for water development and supply should therefore be increased substantially (double if possible).

Emphasis should be put on good water management where communities are given the power to control water in the rural areas. Rainwater harvesting should be promoted, especially in rural areas, where its potential in terms of quantity and quality, is high.

Water scarcity in the city of Dar es Salaam is a nagging problem.

The government has to give greater attention to this problem. The solution could be to construct a dam upstream of Upper Ruvu intake, which would regulate the water flow in the Ruvu River. Another option is an inter-basin transfer from Wami to Ruvu. Water should continue to be managed and supplied by the public sector, but efficiency should be guaranteed.

Where necessary a private/public mix in water supply could be established but care should be taken to ensure that the ownership of water remains in public hands. In Europe and the US water is more than 80 per cent publicly managed. This allows all people to have access to water.

Irrigation should be accorded greater attention to make Tanzania self-sufficient in food and crop production and to generate surplus for export.

Urban and rural development

Analysts project that by 2050, half of Africa’s population will be urbanized. The fifth phase government will require long-term urban development plans, particularly in terms of infrastructure development.

Cities will become crowded, slums will increase, and sanitation will almost be non- existent if proper town planning is not done now in big cities. Individualised sewerage should be changed into a centralised system. Small towns in districts will also need improvement .Traffic management particularly for the city daladalas needs improvement.

Communication and transport

The communication and transport sector has probably recorded the highest improvement but still more needs to be done in improving road conditions to ensure that Dar-Dodoma-Singida-Nzega-Mwanza-Bukoba road is changed to tarmac. Eventually, even the link Nzega-Tabora-Mbeya should be tarmac. More work should also be done to improve rural access roads to enable farmers to transport their product.

Energy

This is a very important sector. Without energy, domestic needs, environmental protection and adding value to agricultural products will not be achieved.

Tanzania must shift from exporting raw material to the manufacture of goods at home. Farmers will have to shift from the traditional hand hoe to mechanised agriculture.

Small industries will have to be promoted that link with agriculture for food processing. It is, therefore, imperative to promote renewable energies in the rural areas and where possible, small hydropower plants for generating electricity could be constructed.

Other areas of policy considerations for coherent management of national economy:
• Establishing Presidential Economic Management Advisory Council as a sounding board for the President on sound economic management to ensure:

.Coherence in strategies for realising defined national development goals including eradication of poverty.
.Proper sequencing of priorities for achieving agreed economic and social reforms:

.Set realistic benchmarks for assessing progress towards agreed national objectives and goals:
.Co-ordination of national policy and appropriate advice on international economic relations, including on international binding agreements consistent with defined national development objectives.

Efficiency, accountability

Any successful management of the national economy and the country as a whole requires not only strong in situations but also accountable persons heading those institutions.

Such accountability is best assured in a situation where there is no divided loyalty. Above all, persons heading such institutions must always identify themselves with broad national interests as opposed to parochial/constituency or partisan interests.

With the current practice of cabinet members being appointed by the President from elected MPs,devided loyalty is inevitable and cannot contribute efficient and accountable Ministers .Some Ministers spend 75 percent of their day’s work on dealing with constituency agenda and 25 percent on matter on the national agenda.

.The President should use his first term of office to bring this matter to a national debate and collect views with the intention of amending the constitution to allow the President to pick his Ministers from all walks of life other that MPs.
.Modalities for ensuring the best qualified for cabinet positions could be worked out later.

Revitalising national self reliance

“Uhuru na Kujitegemea” was the first Independence-era slogan introduced by the Father of the Nation and late Mwalimi Julius K.Nyerere.This was meant to rally the people to face together the development challenge.

The slogan defined the Tanzanian people’s true understanding of independence .

There can be no better rallying slogan today too far a nation that relies, for 55 per cent of its development expenditure, on donor funds.

Even though Tanzania today accounts for the highest aid per capita in Africa, the dependence gap has not narrowed. Why? “Uhuru na Kujitegemea” has remained a mere political slogan and has not been translated into practical steps in our development strategies.

The people as well as in the management of natural resources are our greatest assets for giving “self-reliance” a true meaning. The elements of this strategy and its implementation should be defined now taking into account the reality of the world as we know it today.

This should inspire the nation to believe in itself and to set goals for graduating from its present LDC status. Self- reliance does not mean abandoning cooperation with Tanzania development partner.

Indeed cooperation with them should be an integral part of the elements for a new strategy for self-reliance. Define and establish peoples self-reliance forums at every level kijiji, kata na tawi.

Brain drain

The income regime should devise a mechanism of attracting the many Tanzanians daughters and sons to return home and join in building our country. With the economic improvement promising, let the powers that be build in same incentives in remuneration.
And/Or tax rates to and thus encourage patriots to invest their resources (financial and human) in Tanzania.

.There are many issues which could be raised for the development of our country, but these are the burning ones that need quick response from the Fifth Phase Government.

May God bless Tanzania!