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UNITED REPUBLIC OF TANZANIA









NATIONAL STRATEGY FOR GROWTH AND

REDUCTION OF POVERTY

(NSGRP
) II













MINISTRY OF FINANCE AND ECONOMIC AFFAIRS


June 2
, 2010






i


PREFACE






ii

Table of Contents

ACRONYMS

................................
................................
................................
.............................

iv

CHAPTER I

................................
................................
................................
................................

1

INTRODUCTION AND BACKGROUND

................................
................................
.................

1

1
.1. Introduction

................................
................................
................................
....................

1

1.2. National Policy Context

................................
................................
................................
.

1

1.3. External economic context

................................
................................
.............................

2

1.4. Review and consultation processes

................................
................................
...............

3

1.5. Layout of the document

................................
................................
................................
.

4

CHAPTER II

................................
................................
................................
..............................

5

STATUS OF POVERTY, CHALLENGES, AND OPPORTUNITIES

................................
..........

5

2.1. Introduction

................................
................................
................................
....................

5

2.2.
Growth and Re
duction of Income Poverty

................................
................................
...

5

2.2.1. Income poverty and challenges of income distribution

................................
...........

5

2.2.2. Growth patterns

................................
................................
................................
......
6

2.2.3 Macroeconomic Management

................................
................................
..................
9

2.3.
Quality of Life and Social Well Being

................................
................................
..........

11

2.3.1. Education

................................
................................
................................
................

11

2.3.2. Health and Nutrition

................................
................................
..............................

13

2.3.3. Water and sanitation

................................
................................
............................

16

2.3.4. Decent shelter and human settlement

................................
................................
...

17

2.3.5. Social protection and wellbeing of vulnerable groups

................................
...........

18

2.4. Good Governance and Accountability

................................
................................
........

19

2.4.1. Structures and systems of governance

................................
................................
..

19

2.4.2. Gender

balanced inclusion

................................
................................
..................

20

2.4.3. Effective Public Service Framework
................................
................................
.......

20

2.4.5. Governance in natural resources

................................
................................
...........

21

2.4.6. Human rights

................................
................................
................................
........

22

2.4.7. Culture and development

................................
................................
......................

22

2.5. Implementation Arrangement

................................
................................
....................

23

2.5. Monitoring and Evaluation

................................
................................
.........................

24

2.6. Status and Challenges of Financing

................................
................................
............

24

CHAPTER III

................................
................................
................................
...........................

28

FRAMEWORK OF THE STRATEGY

................................
................................
......................

28

3.1 Introduction

................................
................................
................................
...................

28

3.2 Principles and Fundamentals of MKUKUTA II

................................
...........................

28

3.2.1. Principles of NSGRP II

................................
................................
...........................

28

1.4 Fundamentals of NSGRP II

................................
................................
........................

28

3.3 Organizing Framework for a Cluster Approach

................................
..........................

30

Cluster I: Growth and Reduction of Income Poverty

................................
.........................

31

Cluster II: Quality of life and social well being

................................
................................
.

33

Cluster III: Governance and accountability

................................
................................
.......

33

Int
erdependence of Clusters and Cross
-
cutting Issues

................................
.....................

34

3.4 Prioritization and Implementation

................................
................................
..............

34

CHAPTER IV

................................
................................
................................
...........................

36

THE STRATEGY

................................
................................
................................
......................

36

4.0. Overview

................................
................................
................................
......................

36

4.1. Cluster I: growth for reduction of income pove
rty

................................
.....................

36



iii

4.2 Cluster II: Improvement of Quality of Life and Social Well
-
being

.............................

58

4.3. Cluster III: Governance and Accountability

................................
...............................

73

CHAPTER V

................................
................................
................................
...........................

86

IMPLEMENTATION ARRANGEMENT

................................
................................
................

86

5.1 Introduction

................................
................................
................................
..................

86

5
.2. Coordination of Processes, Core Reforms and Programmes

................................
....

86

5.2 Collaboration and Linkages

................................
................................
..........................

87

5.2.1. Macro
-
micro linkage

................................
................................
..............................
88

5.2.2. Planning and Prioritization of Key Interventions

................................
................

89

5.3 P
ublic


Private partnership

................................
................................
........................

89

5.4 Capacity development

................................
................................
................................

90

5.5. Technical assistance

................................
................................
................................
.....

91

5.6. Strengthening knowledge driven economy

................................
................................

91

5.7 Mainstreaming of cross
-
cutting and employment issues

................................
...........

92

5.8 Review and develop MKUKUTA II Communication Strategy

................................
....

93

5.9 Roles and responsibilities

................................
................................
.............................

93

CHAPTER VI

................................
................................
................................
..........................

96

MONITORING AND EVALUATION

................................
................................
....................

96

6.1. Introduction

................................
................................
................................
................

96

6.2. Objectives of MKUKUTA II
Monitoring

................................
................................
....

96

6.3. Strategy for Monitoring and Evaluation

................................
................................
.....

97

6.3.1. Institutional Arrangement

................................
................................
....................

97

6.3.2. Monitoring system

................................
................................
..............................

98

6.3.3. Evaluation

................................
................................
................................
............

98

6.3.4. Monitoring Tools, Indicators, and Outpu
ts

................................
.......................

99

CHAPTER VII:

................................
................................
................................
.......................

100

BUDGET AND FINANCING FRAMEWORK

................................
................................
.......

100

7.1. Int
roduction

................................
................................
................................
................

100

7.2. Macroeconomic and Budgetary Framework: 2011
-
2015

................................
..........

100

7.2.1.
Macroeconomic and budgetary assumptions

................................
......................

100

7.2.2. Medium term budgetary framework: 2010/11


2014/15

................................
........

101

7.3. Basic considerations and Risks

................................
................................
...................

103

Annex: Result Matrix

................................
................................
................................
.............
105

CLUSTER I: GROWTH FOR REDUCTION OF INCOME POVERTY

................................
..
105

CLUSTER II: IMPRO
VEMENT OF QUALITY OF LIFE AND SOCIAL WELL BEING

.........

123

CLUSTER III: GOVERNANCE AND ACCOUNTABILITY

................................
....................

139





iv

ACRONYMS

AIDS

Acquired Immune Deficiency Syndrome

ANC

Ant
enatal care

ART

Anti
-
retroviral therapy

ARV

Anti
-
retroviral

BEST

Basic Education Statistics Tanzania

BoT

Bank of Tanzania

CBO

Community
-
based
organization

CGD

Center for Global Development

CHRGG

Commission for Human Rights and Good Governance

CSO

C
ivil society
organization

DPG

Development Partners’ Group

DPs

Development Partners

DPT
-
HB3

Diptheria, Pertussis (whooping cough) and Tetanus + Hepatitis B (3 doses)

ECD

Early Childhood Development

EIA

Environmental Impact Assessment

EITI

Extractive
Industries Transparency Initiative

EPI

Expanded Programme of Immunisation

ESDP

Education Sector Development Programme

FBO

Faith
-
based
organization

FDI

Foreign direct investment

GBS

General budget support

GDP

Gross Domestic Product

HBS

Household Budg
et Survey

HIV

Human Immuno
-
deficiency Virus

HMIS

Health Management Information System

ILFS

Integrated Labour Force Survey

ILO

International Labour Organisation

IPT

Intermittent preventive treatment (of malaria)

ITN

Insecticide
-
treated nets

LGA

Loca
l government authority

LGCDG

Local Government Capital Development Grant

LGRP

Local Government Reform Programme

MAAM

Mpango wa Maendeleo ya Afya ya Msingi (Swahili for Primary Health
Sector Development Programme (PHSDP)

MDAs

Ministries, departments and
agencies

MDG

Millennium Development Goal

MKUKUTA (I,
II)

Mkakati Kukuza Uchumi na Kupunguza Umaskini (Swahili for National
Strategy for Growth and Reduction of Poverty (NSGRP I, II))

MAFSC

Ministry of Agriculture, Food Security and Cooperatives

MoCAJ

M
inistry of Constitutional Affairs and Justice

MoEVT

Ministry of Education and Vocational Training

MoFEA

Ministry of Finance and Economic Affairs

MoHSW

Ministry of Health and Social Welfare

MoLYDS

Ministry of Labour, Youth Development and Sports

MoWI

Ministry of Water and Irrigation

MMR

Maternal mortality ratio

MTEF

Medium Term Expenditure Framework



v

MVC

Most vulnerable children

NACP

National AIDS Control Programme

NAO

National Audit Office

NGO

Non
-
governmental
organization

NBS

National Bureau of

Statistics

NER

Net Enrolment Ratio

NMCP

National Malaria Control Programme

NSGRP

National Strategy for Growth and Poverty Reduction

(MKUKUTA)

O&OD

Opportunities and Obstacles for Development

OVC

Orphans and vulnerable children

PEDP

Primary Education

Development Programme

PEFAR

Public Expenditure and Financial Accountability Review

PER

Public Expenditure Review

PHDR

Poverty and Human Development Report

PHSDP

Primary Health Sector Development Programme (see also MAAM)

PMO

Prime Minister’s Office

PMO
-
RALG

Prime Minister’s Office


Regional Administration and Local Government

PMTCT

Prevention of mother
-
to
-
child transmission of HIV

PO

President’s Office

PO
-
PSM

President’s Office


Public Service Management

PRSP

Poverty Reduction Strategy Paper

P
SLE

Primary School Leaving Examination

RAWG

Research and Analysis Working Group

RITA

Registration Insolvency and Trusteeship Agency

SEDP

Secondary Education Development Programme

SGR

Strategic Grain Reserve

SMEs

Small and medium enterprises

TACAIDS

Tanzania Commission on HIV/AIDS

TASAF

Tanzania Social Action Fund

TAWASANET

Tanzania Water and Sanitation Network

TB

Tuberculosis

TDHS

Tanzania Demographic and Health Survey

TDS

Tanzania Disability Survey

TFNC

Tanzania Food and Nutrition Centre

THIS

Tanzania HIV/AIDS Indicator Survey

THMIS

Tanzania HIV/AIDS and Malaria Indicator Survey

TRA

Tanzania Revenue Authority

TRCHS

Tanzania Reproductive and Child Health Survey

TVET

Technical and Vocational Education and Training

URT

United Republic of Tan
zania

VCT

Voluntary counseling and testing

VETA

Vocational Education and Training Authority

VOP

Views of the People

VPO

Vice President’s Office

VRP

Vital Registration Programme

WSDP

Water Sector Development Programme




vi





1

CHAPTER I

INTRODUCTION A
ND BACKGROUND


1.1. Introduction

The second National Strategy for Growth and Reduction of Poverty (NSGRP II or
MKUKUTA II) is a continuation of the government and national commitments to
accelerate economic growth and fighting poverty. It is thus an organ
izing
framework to rally national efforts for

next

5 years (2010/11


2014/15) in
accelerating poverty
-
reducing growth

by
p
ursuing

pro
-
poor intervention and
addressing
implementation bottlenecks
.

The strategy
emphasizes
: (i)
focused and
sharper prioritiza
tion of interventions

-

projects and programmes
-

in key priority
growth and poverty

reduction

sectors
(ii) strengthening evidence
-
based planning
and resource allocation in the same priority interventions (iii) aligning strategic
plans of MDAs and LGAs to
this strategy (iv) strengthening government’s
and
national
implementation capacity (v) scal
ing

up the role and participation of the
private sector in priority
areas of

growth and poverty reduction
, (vi) improving
human resources

capacity
, in terms of skill
s
,

knowledge,
and efficient deployment
(vii) fostering
changes in
mind
-
set
toward hard

work, patriotism, and self
-
reliance
;
(viii)
mainstreaming cross cutting issues in MDAs and LGAs

processes, (ix)
strengthening the monitoring and reporting systems
; and (
x)
better
implementation of core reforms
,

including paying
strong

attention
to

further
improvement of public financial management systems.


MKUKUTA II
will remain a medium term mechanism to achieve
the aspirations of
Tanzania’s Development Vision (Visi
on 2025) and MDGs
. For the longer term, the
G
overnment is developing the
Long Term Growth and Development Plan, which is
the implementation framework for the remaining 15 years of the Tanzania’s
Development Vision 2025.
MKUKUTA II translates the Vision 20
25 aspirations into
measurable
broad outcomes
, and translated further into
sector

policies and
strategies, operational targets
.
Sectors will align their Strategic Plans with
MKUKUTA

II
, develop their Priority Action Plans
,

and

cost their sector major
progr
am
s.
D
etailed costing of interventions will be undertaken immediately after
the approval of MKUKUTA II

while preparing the MKUKUTA II implementation
plan.



1.2. National Policy Context

The commitment to accelerate economic growth and fighting poverty has

been
consistently implemented through a series of strategies and plans ranging from
sector specific strategies to multi
-
sectoral strategies. Of recent, the Government
adopted a results and MDG
-
based strategy commonly known as
the
National
Strategy for Gro
wth and Reduction of Poverty


(
NSGRP or popularly known in
Kiswahili MKUKUTA
)
. NSGRP was adopted to sustain and scale up achievements
as well as addressing the challenges to growth and poverty reduction agenda.




2

The adoption of
a
results
-
based strategy
in MKUKUTA
brought forward a number
of prerequisites in its implementation. These included:
-
(i)
r
ecognition of cross
-
sectoral contribution to outcomes and inter
-
sectoral linkages and synergies; (ii)
emphasis on mainstreaming cross cutting issues; (iii) int
egration of MDGs policy
actions into cluster strategies; (iv) adopt a five
-
year implementation period to give
ample time for the implementation and monitoring; (v) greater emphasis on the
role of economic growth
by the private sector
and good governance in

poverty
reduction; and (vi) recognition of the need to address vulnerability, human rights
and social protection issues.

Thus MKUKUTA broadened the content given the
enlarged view of poverty which better informs the policy mix and it spells out a
clear f
ramework for effective stakeholder participation/engagement particularly
the private sector in economic growth.
As such
, the design of MKUKUTA II has
been informed by this paradigm change
.
Though
MKUKUTA II

builds on the
predecessor strategy, MKUKUTA II i
s oriented more towards growth and
enhancement of productivity, with greater alignment of the interventions towards
wealth creation as way out of poverty. This orientation thus opens space for
reorientation of subsequent strategies.



Tanzania has abundan
t land, which is suitable for various economic activities and
human settlement, but most of it is un
-
surveyed and undeveloped. To successfully
implement the paradigm change, during the next five years of MKUKUTA II and
beyond, amo
ng other things the govern
ment
will involve the private sector in land
development (surveying, zoning, etc) as a means to empower its people and build
capacity for future revenue generation from land. This intervention will increase
resources available to accelerate the basic inves
tment in the land sector (an
important sector to all sectors) through public
-
private partnership initiative.


1.3.
External economic context

Recent development in the global economic conditions, such as increases in oil
and food prices, and global financ
ial and economic crisis, will continue to have
ramification to Tanzania's economy. Such shocks impact Tanzania's economy
through several channels, with trade (especially exports) and financial flows
(especially foreign direct investment) being the main tr
ansmission channels.
Slowdown of growth, reduction in financial and capital flows, were the results of
the first round effects of the crisis. The second round effects take place with a lag,
especially in the real sector. Effects of increase in food and o
il prices are reflected
in surge for large scale land acquisitions for bio
-
fuel and food production. Much as
such shocks threaten Tanzania's economy, they also open several opportunities,
e.g. in terms of increased demand for bio
-
fuel and food production.



Besides the shocks, policy developments at the global and regional levels have
continued to shape the way Tanzania interact with other economies. There are
opportunities, and sometimes, constraints associated with WTO, EPA, policies
related to global
climate change, etc. Development in regionalism, e.g. the East


3

African Common Market, SADC,
Indian Ocean Ream (IOM), Kagera Basin
Organization,
etc also among the forces that will continue to have significant
impact Tanzania's economy.
Opportunities asso
ciated with these developments
include expanded trade, joint infrastructure development, and also non
-
economic
benefits such as regional peace initiatives. Among the challenges relates to multi
-
belonging, which sometimes results in weak focus and conflict
ing objectives. In
general, however,
effects
of these developments
on trade, movement of labor and
capital will be
an
important factor in the national development

in the medium
term to long term
.
T
hese developments have provided lessons that informed the

strategic positioning of MKUKUTA II.


1.
4
. Review and consultation processes

The Government and stakeholders resolved to undertake MKUKUTA review with a
view to developing a successor strategy in the end of 200
9
. The rationale and
justification for revie
wing
MKUKUTA

is rooted in the fact that
MKUKUTA

was
scheduled to end in 2009/10.

Furthermore, the changing realities, in terms of
opportunities and challenges, domestically and in the global arena, have their toll
in the need for reviewing the Strategy. T
he review and subsequent processes

were
organized in five stages summarized below. Details of the Review Process and
Stakeholder consultations are presented in a separate report.


i.

Preparatory stage

whose objective was to establish consensus on different

aspects of review, including the scope, modality and issues for review and
coordination and management of the whole process. Key stakeholders at
this stage were the government officials from the United Republic of
Tanzania and Revolutionary Government of
Zanzibar
, DPs and
representatives from the Civil Society Organizations
. The process was
operationalized through the National
Dialogue

Structure and Division of
Labor in
the context of PER Working Groups. The output of the preparatory
stage was the Guidelin
es for the Review and Preparation of MKUKUTA II.

ii.

The Assessment Stage

was aimed at providing critical analysis and
identify reasons for under
-

or non
-

achievement of the targets. Thus, the
assessment focused on development impacts and analysis of processes

and
implementation effectiveness of MKUKUTA. The assessment stage involved
mainly the PER process and Consultants from various Training and
Research Institutions. Key output of the assessment stage was study reports,
which informed the drafting of the
MKU
KUTA II
.

iii.

Drafting and Dialogue Phase
:

This phase covered the work of literature
review, drafting and limited consultations. The stage produced the strategy
outline and framework for the design of the
MKUKUTA II
, which

was
shared to key stakeholders and c
onsensus reached on the broad and
strategic direction.




4

iv.

Stakeholder Consultation:
The Consultation process on the draft
MKUKUTA II took into account ongoing and recent stakeholder
consultations in the country on similar development processes. In
particul
ar the views from the APRM process and those gathered during the
formulation of the National Social Protection Framework have greatly
influence the approach for consultations on MKUKUTA II.

The MKUKUTA
II consultation process was conducted into two phases
, i.e, stakeholder
-
led
(Constituency) consultations and National level consultations. The
objectives of these consultations were three fold; (i) identifying gaps in the
draft (ii) enhance national ownership of development initiatives and (iii)
capacity bui
lding of the national stakeholders. Key Constituency
stakeholders engaged in the consultations were (i) Government Ministries,
Department and Agencies (ii) Local Government Authorities (iii) Civil
Society Organizations (iv) Research and Academic institutio
ns (v) The
Development Partners (vi) …


1.
5
. Layout of the document

The MKUKUTA II is presented in seven chapters and
one

appendix. Chapter II
presents the status of poverty, challenges
,

and opportunities.
The chapter covers
issues of income poverty and g
rowth, quality of life and social wellbeing, and good
governance and accountability.
Chapter III spells out the framework of the
strategy
, including principles and fundamentals of the strategy, the design, and
criteria for prioritization
. Chapter IV outl
ines the strategy in details
, showing
broad outcomes, goals, operational targets, and order of priority areas and cluster
strategies
.
Chapter V provides details for i
mplementation arrangements
including
a multi
-
phase approach for programming process, budge
ting and physical
implementation.

M
onitoring and evaluation
systems are highlighted
in Chapter
VI.

Chapter VII
projects

the
macroeconomic framework and
financing modalities
for the strategy.

Appendix 1 is the Result
s

Matrix
.



5

CHAPTER II

STATUS

OF POVERT
Y
, CHALLENGES
,

AND OPPORTUNITIES


2.1. Introduction

This chapter reviews the performance of the economy in relation to growth and
reduction of poverty, mainly during
the
MKUKUTA period. It discusses broad and
specific achievements, challenges, and opport
unities. The analysis is organised
around the three pillars of MKUKUTA, namely, growth, wellbeing and good
governance.
Highlights
on
implementation,
monitoring and evaluation, and
financing

have also been presented
.


2.2.
Growth and Reduction of Income
Poverty

2.2.1. Income poverty and challenges of income distribution

During the last ten years, Tanzania’s GDP growth rate has been impressive.
However, between 2000/01 and 2007 the incidence of income poverty
did not
change

significantly
. As Table 2.1 sho
ws, out of every 100 Tanzanians, 36 were poor
in 2000/01 compared to 34 in 2007. Income poverty (basic needs and food poverty)
was also variable across geographical areas, with the rural areas containing 83.4
percent of the poor

in 2007 compared to 87 perc
ent in 2000/01
. Households
engaged in farming, livestock keeping, fishing, and forestry, were the poor
est
.
Rural growth per annum in the period, as
proxy

by growth of the agricultural
sector was about 4.5 percent
. When this growth is contrasted with the n
ational

population growth rate of 2.9 percent

the
change in
rural per capita income
becomes small
,

thus perpetuating poverty situation in rural areas
.


Table
2.1
: Incidence of Poverty in Tanzania
(poverty headcount index)

Incidence of poverty











Year

Dar es Salaam

Other Urban
Areas

Rural Areas

Mainland
Tanzania

Food







2000/01

7.5

13.2

20.4

18.7


2007

7.4

12.9

18.4

16.6

Basic Needs







2000/01

17.6

25.8

38.7

35.7



2007

16.4

24.1

37.6

33.6

Source: URT, NBS, Household Budget Survey 2000/01, and 2007.


Employment is the main link between growth and reduction of income poverty
.
According

to PHDR
(
20
09
)
, 630,000 new jobs
were

created annually
between

2001

and 2006
, mainly in the informal sector, which matches with labo
u
r force
growth.
However, the quality of jobs created is important in explaining the
stagnation in poverty levels

T
he unemployment rate
of person aged 15 and above
declines slowly
-

from 12.9 percent 2006 (ILFS) to 11.7 percent in 2007 (HHBS)
.
Unemployment among youth (age 18
-
34) stood at 13.4 percent in 2006 (ILFS 2006).
It is highest among female youth


about 15
.4 percent compared 14.3 percent for


6

male youth

(ILFS 2006)
. Moreover, w
omen constituted 24.7 percent of paid
employees, 42.3 percent of unpaid helpers, and 53.9 percent of agricultural labour
force and only 20 percent of self employed; moreover, the unem
ployment rate was
higher for females than for males, except in
the
rural areas. In Dar es Salaam, the
unemployment rate for females was 40.3% in 2006, as contrasted to 19.2 percent
for males.


T
he majority of those in poverty lack social protection, inc
luding the unemployed
given the absence of unemployment or other benefits for those who lose their jobs.

Affordable m
easures to address the lack of protection among the unemployed

remain one of the challenges in ensuring social security.
The challenge is

linked to
the fact that
94


of the Tanzanian labour force works in the informal sector
. This
has implications
for
both
the size of the revenue base and the type of policy
interventions geared to extending social protection in Tanzania
.




In terms of so
urces of livelihood, the share of household farm income declined
from 51.4 percent in 2000/01 to 39.7 percent in 2007. Correspondingly, the share of
non
-
farm incomes increased

although not to the extent of

leverag
ing

people out of
poverty. Poverty incide
nce among government or parastatal employees is around
10 percent, and it is 20 percent among other paid employees. A higher percentage
in the latter indicates inadequate decent jobs
in terms of adequate pay
in those
sectors, particularly
in
the private se
ctor.


2.2.2. Growth patterns


Overall GDP Growth and the GDP Structure
:

The GDP growth trend since the 1990s has been rising, except for
such
shocks

coming from
food crisis
, power crisis and lately, the global economic and financial
crisis. Since

2005, Tanzania’s GDP annual growth rate averaged 7 percent, which is
in line with MKUKUTA target of 6


8 percent per annum.
In
2009 however, GDP
growth
was

6.0

percent, the decline being partly due to the global financial crisis
.
As a result of the cri
sis, volume and prices of exports went down, flows of capital
and investment fluctuated, tourist and demand for tourism products were
reduced. These effects worsened
the
balance of payments and exert
ed
inflationary
pressures on the economy.

The severity o
f the impact of this slow down in GDP
will, however, vary between sectors. Indeed, those sectors which are either export
or import intensive will suffer most. Tourism and mining have already shown signs
of slowdown.



The structure of the Tanzania's econo
my in terms of GDP composition has been
changing gradually (which is also the case with sectoral employment proportions,
as per the Integrated Labo
u
r Force Survey 2006).
Th
e share of agriculture in GDP
(Figure 2.1) and its proportion in total employment h
a
s

been
declining relative

to
the services sector, and manufacturing and

construction (taken together).


7

However
, the majority of Tanzanians still depend on agriculture for their
livelihoods. Services constitute the main sector of the economy, and its gro
wth
will continue to be critical for sustaining higher economic growth.


Agriculture:

Agriculture is still dominated by small
-
scale farmers; about 70
percent of farming is dependent on the hand hoe, 20 percent on ox
-
ploughs, and
10 percent on tractors.
N
otwithstanding

this
, the sector has been identified as a
growth driver
. Due to its

diverse climatic zones
it has
potential
for many crops,

livestock and forestry products
, sufficient water for both irrigation and livestock,
and large size of arable land.
Thus, given its role in supporting the rural poor and
in reducing malnutrition, it
has the potential for

lifting many of them out of
poverty
.

Moreover, food demand from the neighbo
u
ring countries indicates
opportunities for increased food exports to these

countries.



Figure 2.1: Shares of Major Sectors in GDP 2005 and 2009

27.6
20.8
42.5
25
20.8
45
0
5
10
15
20
25
30
35
40
45
50
Agriculture
Industry and
construction
Services
percent
2005
2009

Source: MOFEA (2010) Guidelines for the Preparation of Medium Term Plan and
Budget Framework for 2010/11

2012/13.


Agriculture growth averaged about 4
percent between 2005 and 2008.
The sector’s
sluggish growth is a result of a combination of many challenges. These include
poor infrastructure to support agriculture, inadequate extension services, poor
technology of production, low value addition,

lack of

appropriate financing
mechanism
s

for agriculture,
un
reliable market
,

unfair
and uncompetitive
farm
gate
prices
,

and environmental degradation.


Fisheries Sector:

The fisheries sector has maintained modest growth since 2000,
attaining a rate of 5

percent
in 2008
. It then declined to 2.7 percent
in
2009.
Tanzania has immense fishery resource potentials


both in fresh and marine


8

waters, which if unleashed would contribute to improving the stakeholders’
livelihoods, including their nutrition. The main chal
lenges include illegal fishing
and trafficking of fish and fisheries products across borders, which reduce the
sector’s contribution to growth and reduction of poverty and undermine its
sustainable development. Specific constraints for small and medium sca
le fishing
include credit facilitation
,

resource degradation
, and poor fishing technologies
.


Manufacturing sector:

Manufacturing development constitute
s

an integral part
of industrial transformation to facilitate growth and
generation

of
employment
.
The
sector’s forward and backward linkages facilitate improvements of other
sectors, for example, agriculture and mineral sectors; in turn, these linkages will
spur more growth in the manufacturing sector itself.

Hence, manufacturing has
potentials for driving

growth
and employment
.

In

200
9
, it grew
by

8.0 percent
,
compared to
growth
rate of
9.9 percent in 2008,
mainly due to

the global financial
crisis. Despite th
is relatively

good performance, the sector is constrained by high
costs of doing business

and bu
reaucratic and infrastructure impediments, the
latter

mainly due to unreliable supply of utilities (water, power, etc), leading to
capacity underutilization; ineffective transport networks and other ICT
&STI

infrastructure; and small domestic markets, with
intense import competition
, and
inadequate export drive
.



Mineral

sector
: Tanzania has deposits of gold, diamond, tanzanite, ruby, tin,
copper, nickel, iron, phosphate, gypsum, coal, natural gas and potential for
petroleum extraction. Mining involves la
rge and small scales, both of which are
important. Before 2007, the sector grew at about 15 percent annually, which
dropped to 2.5 percent in 2008
and further to 1.2 percent in 2009
due to the
decline

in

export of diamonds and gold production (as the larg
est gold mine faced serious
infrastructural problems). Such wide fluctuations in growth are one of the
challenges facing the sector. Other

challenges include
weak linkages between the
sector and local supply chains, hence low domestic value addition; lim
ited
multiplier effects and employment creation; environmental
-
related conflicts; and
technical and institutional capacities for effective management of the sector.
Nevertheless, the vast mineral deposits in the country point to a high potential of
the se
ctor’s contribution to growth and socio
-
economic transformation. Hence,
the sector has been identified as a driver of growth.


Tourism sector
: Tanzania has some of the world’s finest tourist attractions and
game reserves
.

Equally famous are trekking exped
itions
(notably Mount
Kilimanjaro) and coastal tourism. These attractions, among others, qualify tourism
as a growth sector, as they offer immense opportunities for expansion of the
sector.



Growth of tourism
sector
was
2.3

percent in 2009. This explain
s the risks of its
reliance
on foreign tourists

(domestic tourism is rather small)
, which

makes it


9

susceptible to swings of the global economy The sector also faces
in
sufficient

technical, managerial, and entrepreneurial skills for a modern tourism industr
y
and infrastructural bottlenecks and poor tourist supporting services (health,
finances, insurances, ICT, etc), which have resulted in substantial under
-
exploitation of the nation's tourism potential. Addressing these constraints will
lead to expansion of

not only natural resource based tourism, but also cultural
tourism
, sports tourism, and conference/convention tourism
.

Institutional set
-
ups
in dealing with tourism sector, e.g. hunting block rights, need to be reviewed and
strengthened.


Infrastructur
al development:
There have been modest improvements in
growth
-
related infrastructure such as roads,
ports (sea and air), energy, but
there
has been
little progress in railway sector
. The percentage of roads in fair and good
conditions has increased since

2005,
but
the time taken to discharge cargos at the
ports has declined
. I
nstalled energy production capacity

has increased

but lagged
behind the growth in demand;
exploration

of

fossil fuel continue
s
. However some
challenges need to be addressed, includi
ng frequent power shortages, port
congestion, and poor conditions of rural roads. Tanzania could act as a regional
transport,
trade and logistic hub if it were to exploit its advantageous geographical
location and immense potential for power generation.

O
ther challenges include
congestion in cities, high construction costs, climate change (leading to
destruction of infrastructure and life span of the infrastructure)
, as well as
environmental issues in construction sites
. At local level, small scale infrast
ructure
development
has been facilitated by c
ommunity participation
in the construction
of
small dams

and
bridges, etc) through various programs such as TASAF
, PADEP,
etc
. Among the challenges in MKUKUTA II is how to scale

up such community
contribution.




2.2.3 Macroeconomic Management

Tanzania’s macroeconomic management during MKUKUTA was geared at
improving public finance management, keeping spending in line with the national
development priorities

and resource constraints
, and instituting supportive
monetary policy to ensure macroeconomic stability.
Maintenance of

macroeconomic stability

was achieved
, despite several external and internal
shocks.


Inflation:

The inflation rate, which had dropped to just below 5 percent during
the early years of 2000
s, gradually started to rise in 2005, and kept on an upward
trend to 12.
1

percent by December 2009. This rise was due to drought
-
instigated
food shortages in Tanzania and neighbouring countries; shortage in electricity
supply, which increased production co
sts as producers shifted to using generators;
and increase
s

in petroleum prices, which raised the import bill and production
costs. However, even though
inflation targets were not realized, the economy
recorded high and sustained growth and revenue mobil
ization increased. Toward


10

the end 2008, global oil and food prices
fell
, but domestic
prices remained high,
partly because of weaknesses in regulatory capacities for ensuring fair competition
and consumer protection.



The national debt stock:

The nationa
l debt stock has been growing (in absolute
terms) mainly due to new disbursements, particularly through issuance of new
government bonds to finance long term investments; exchange rate fluctuations,
specifically the depreciation of the shilling; and accumu
lated interest arrears,
particularly to Non
-

Paris Club Member Countries.



Credit to the private sector
: The
ratio

of domestic credit to the private sector as
a percentage of GDP evidences efforts to foster the private sector. Though this
proportion has

been rising from 4.6 percent of GDP in 2001 to 13.8 percent in 2007,
it is still relatively small because small
-

and medium
-
scale enterprises (SMEs) and
the agricultural sector are under
-
served by banks, for commercial viability reasons,
in particular the

weaknesses in legal and regulatory systems, especially with
respect to enforcement of contracts and property rights. This is reflected
in
slow
decline in

interest rate spread (lending vs. deposit rate)

between 2005 and 2008
.



Foreign Direct Investment
(FDI)
: The value of Foreign Direct Investment (FDI)
has been increasing since 2005, averaging USD 603


million annually, although the
global economic crisis
effects
may reverse this
positive
trend. The largest share of
FDI inflows
went

to mining and tour
ism. The mining sector, despite the benefit of
large FDI inflows, is yet to substantially trigger domestic processing and make use
of local supply chains. FDI
has

also
been
affected by the low level of human
resource development in terms of quality and sk
ills, which limit the exploitation of
advantages associated with FDI. Indeed, improvements in the business
environment can unleash the investment potentials in all sectors, including
agriculture.


External balance
: Since 2005, the exchange rate has been

fluctuating, with
negative effects on the import bill, official reserves, and macroeconomic stability.
Moreover, the import bill has been expanding faster than export earnings, thereby
causing increases in the trade deficit. Since 2005, the proportion of

exports as a
percentage of GDP has ranged between 21.7 percent and 23.1 percent, mainly
sustained by increases in exports of non
-
traditional commodities


largely minerals
and a modest increase in the export of manufactured goods. The rapid increase in
g
old price, which accounts for a considerable share of non
-
traditional exports, is
largely driven by the global financial crisis; hence it is likely to be short
-
lived.
Likewise, the decline in gold production signals the danger of relying heavily on a
singl
e product. Unlike gold, other main export goods and services have been
adversely affected the global financial crisis





11

2.3.
Quality of Life and Social Well Being


The implementation of MKUKUTA interventions in Cluster II focused on
achieving two broad o
utcomes, namely: (i) improved quality of life and social
wellbeing, particularly of the poorest and most vulnerable groups in the
population; and (ii) reduced inequalities (e.g., in education, survival, and health)
across geographic areas, income, age, gen
der and other categories. To that effect,
the interventions have recorded
considerable

improvements on the delivery of
social service
s

notably
in
education, health, water, sanitation and social
protection. The investments in education and health in the re
cent past have
enabled Tanzania to record improvement on
the
Human Development Index
(HDI) ranking, from position 163 in the pre
-
MKUKUTA period to 151 in 2009,
thereby
graduating

from
the
low human development group of countries to
the
mid human developmen
t group of countries. The most formidable challenge now
rests with further extension of the reach and improvement in quality.


2.3.1. Education

The interventions in education sector were guided mainly by Primary Education
Development Programme (PEDP), Se
condary Education Development Programme
(SEDP),
Adult and Non
-
formal Education Strategy,
vocational education and
higher education policies.
Communities have also actively participated through
these policies or other related policies such as TASAF in ensu
ring expansion in
access to education services.
The main result has been increased access to
education in terms of enrolments at all levels. The rapid increase in enrolment has
also thrown
up
challenges with regard to quality because of overstretched
edu
cational infrastructure as well as human resource capacity.
For instance,
education
quality at the primary education level manifested itself
in

high
pupil/teacher ratio (52:1 in 2006 and 54:1 in 2009)
; the percentage of pupils passing
the primary school l
eaving examination (PSLE)
(
70.5
% in 2006
and
52.7
% in 2008
)
.



Inequity in resource allocation was another challenge that faced the primary
education sub
-
sector.
For instance,
teachers were unequally distributed both
between and within regions, and betwe
en and within districts. Poorer regions had
fewer teachers than wealthier regions and schools in remote areas had fewer
teachers than schools in urban centres.
Other
challenges in
clude

low, though
improving, transition rates to secondary education and
a
h
igh drop out rate
which
stands
at around 33 percent
.


Although enrolment rate of girls in secondary schools
is similar to that of boys, the drop outs are significant for girls. As a result, a clear
gender gap in enrolment emerge
d

during the last years of
secondary education.
Of
special concern is that the d
rop out due to pregnancy increased from 6.5 percent
in 2006 to 10.3 percent in 2008 of the total reasons for drop out.


The challenges of quality at secondary education are reflected in declining pass

rates at both ordinary and advanced levels, dropping from 89.1 percent in 2006 to
83.7 percent in 2008 and 96.3 percent in 2006 to 89.6 percent in 2009, respectively.


12

Variations across subjects were also high; only a quarter of candidates passed basic
ma
thematics. The pass rate for science subjects was also low

and balance between
science and non
-
science subjects remains a challenge.

This is largely due to
inadequate quality teachers in mathematics and science subjects, and inadequate
laboratories.


Con
siderable progress has also been made in
the
implementation of Adult and
Non
-
formal education programs within the Adult Education and Non
-
formal
Education (AE
-
NFE) Strategy. Half a million out
-
of
-
school children and youth got
their education through COBET
programs since 2005. ICBAE
learners'

enrolment
increased from 675,000 in 2005 to 957,289 in 2009. Likewise, enrolment in ODL
increased from 6,782 in 2005 to 38,036 in 2009. However, there
been

an increase in
illiteracy rate from 28 percent in 2005 to 31 p
ercent in 2009
. This is mainly due to
increase in the rate of
drop out of school children and youth
, low enrolment, lack
of awareness of the importance of education in some communities and poor
performance
.


School inspection


at pre
-
primary, primary,
and secondary levels, is a crucial area
for monitoring inputs, processes and learning outcomes in school. Inspectorate
services were low at less than 25 percent of the target over the years due in part to
a lack of adequate resources. The consequence is a

reinforcement of other forms of

inequity; schools that probably are mostly in need of regular inspection and
support in ‘hard to reach’ areas, happened to be the least visited (supervised). This
aspect has made it difficult to verify routine data.


T
here has also been significant expansion in enrolment at teacher training
colleges, higher education
,

and vo
cational and technical levels.
This has been
associated with increase
s

in the number of public and private institutions of higher
learning (tertiary

education)
, including
converting technical colleges into
universities
.
Like in other education levels, expansion of enrolment
in public
institutions of higher learning
overstretched available resources, with the potential
of compromising quality. Moreove
r, vocational and technical training were
allocated a declining share of public funding, despite the increased enrolment and
the critical role it plays in human resource development

and economic growth
. As
a result, many youth were left behind with low ba
sic skills and reduced
employability.
Currently
there are large inequities in enrolment geographically,
and by gender. Monitoring and evaluation of vocational and technical training was
less developed compared to other education levels.


Gender imbalance

at post secondary school level remains a challenge. During
2008/09, for example, females made up only 32.1 percent of total enrolment in
public universities and university coll
eges compared to 32.2% in 2006.

Low
participation rate of women in tertiary ed
ucation does deprive women in terms of
level and nature of their participation in decision making processes.



13


Generally, there has been substantial increase in education funding during
MKUKUTA
I
, with students from the wealthiest wealth quintiles benefiti
ng
disproportionately from public spending in tertiary education.
Waiv
ing of

tuition
fee for special degree programs (e.g. medicine, education)

has been used to attract
students to those disciplines.


2.3.2. Health
and Nutrition

MKUKUTA implementation
scaled
-
up interventions in health with
generally
positive results.


Life expectancy and mortality rates:

Life expectancy
has increased to

55 years
(54 years for male and 56 years for females), mainly due to declines in HIV
prevalence and child mortality.

The neonatal mortality rate has improved only
marginally (Figure 2.2). This is partly due to
disappointing
improvements in
maternal health,
Factors contributing to poor maternal health include:

long
distance to delivery facilities, high costs (including
purchase of medical materials),
poor nutrition, high workload of expecting mothers
, malaria incidences, poor
quality of service at the delivery facilities (particularly, quality of obstetric care


in
terms of access to skilled assistance at delivery capab
le of providing life
-
saving
procedures), poor referral systems, and teenage pregnancies
(which carry a higher
risk of maternal death). The challenge is that maternal mortality is characterized
by wide disparities across regions, and between rural and urba
n areas, education
groups, and wealth groups.


Figure 2.
2.

Infant and Under
-
Five Mortality, 1999, 2004/05 and 2007/08


Sources: PHDR 2009.




14

Improvement in infant and under
-
five mortality rate has been largely due to gains
in malaria control through impro
ved diagnosis and treatment of malaria, as well as
prevention through increased use of insecticide treated nets. In addition, success
of other preventive measures, such as measles vaccination, vitamin A
supplementation, and implementation of Integrated Ma
nagement of Childhood
Illnesses (IMCI) have enhanced child survival. However, disparities persist,
between and within regions and districts, urban and rural areas, and by wealth
status. Children living in rural areas and those in poverty stricken familie
s are
more disadvantaged both in terms of service uptake and outcomes than those in
urban areas and wealthier households.

Thus, challenges to sustain the gains which
have been achieved in child health include addressing these disparities and
focusing on s
trengthening health systems and early childhood nutrition to
improve maternal and neonatal health.


Other challenges include the high level of malnutrition, which is responsible for
more that one third of child mortality
.

Four out of every 10 children u
nder five
years of age are stunted and about one out of every five is underweight.
Malnutrition is caused by food insecurity, poor caring practices, an unhealthy
living environment, and inadequate access to quality health services. For children
under the a
ge of two years, who are most vulnerable to malnutrition, the major
determinants are poor breastfeeding and complementary feeding practices,
combined with poor maternal nutrition and micronutrient deficiencies
.


Child
malnutrition fuels illnesses, undermin
es learning, erodes human capital and
reduces labour productivity, ultimately affecting growth and labour market
outcomes at the adult age.


Malaria, TB, and HIV and AIDS
: Malaria, TB, and HIV and AIDS continue to
affect Tanzanians in many dimensions, i
n particular health and economic
dimensions. In 2007/08 malaria prevalence in children (6
-
59 months of age)
ranged between 5 percent and 30 percent. However, there has been a decline in
malaria transmission, severe anaemia, fever incidences, malaria inpati
ent
admissions and the proportion of fever cases due to malaria. This is partly
explained by improvements in the coverage of insecticide
-
treated nets (ITNs), even
though the coverage is still lower in rural areas than urban areas. Other malaria
intervent
ions include the introduction of highly
-
effective artemisinin
-
based
combination therapy “ALU”, Rapid Diagnostic Tests (RDTs), larviciding
,

and
indoor residual spraying.


HIV and AIDS continue to be a national challenge
.
According to the data from
Tanzania HIV/AIDS and Malaria Indicator Survey (THMIS) 2007
-

2008
, the
national prevalence among the sexually active populations (between 15 and 49
years of age) is 5.7%. The data shows m
ore women (6.6%) are infected than men
(4.6%). Compared with HIV prevalence data from the Tanzania HIV/AIDS
Indicator Survey (THIS 2003
-
04), there has been a slight decrease in overall


15

prevalence of HIV among sexually active population between 15 and 49 y
ears of
age from 7.0% (2003
-
04) to 5.7% (2007
-
08). There is also a decrease in prevalence
from 6.3% (2003
-
04), to 4.6% (2007
-
08) for men and 7.7% (2003
-
04) to 6.6% (2007
-
08) for women. Promiscuous sexual behaviour, interge
ne
rational sex, concurrent
sex
ual partners,
and
presence of other sexually transmitted infections are the main
factor behind these developments.


National efforts to address this challenge have been scaled
-
up under the National
Multisectoral Strategic Framework (NMSF) on HIV and AID
S. Nevertheless, m
ore
than 60 percent of the demand for ART is not met, and there are serious
weaknesses in service delivery, particularly in rural areas. The coverage of the
program for
P
reventing
M
other
-
to
-
C
hild
T
ransmission (PMTCT) of HIV has
increased

since 2005, but it still remains fairly low, in spite of the rapid increase in
the number of sites in the program. For example, only 37% of pregnant women
attending Antenatal Clinics (ANCs) were reached by PMTCT services in the first
half of 2009. These p
roblems coupled with fewer than 600 Counselling and Testing
Centres (CTCs) for the whole country have contributed to more than 60 percent of
adults remaining untested for HIV. Yet, many people die of HIV and AIDS
-
related
opportunistic infections without ev
er knowing their HIV status.


There has been an increase in a number of people that have taken HIV tests,
following the national campaign for voluntary counselling and testing (VCT).
However, self
-
reported sexual behaviour (age at sexual debut, condom us
e,
multiple partners, and higher
-
risk sex) between 2003 and 2007 has only changed
marginally as compared to larger changes between 1999 and 2003. This lack of
inertia in behavioural change is constraining the sustenance of further decline in
HIV prevalenc
e rate.


Progress has also been recorded in controlling other diseases, such as TB and
leprosy, through the National TB and Leprosy Control Program. Encouraging
results in controlling these diseases emanates from increased coordination
between

in
the Nat
ional TB and Leprosy Control Program

and HIV and AIDS
interventions,
because TB case
-
load is also AIDS
-
related (following a modest
decline in HIV prevalence and the introduction of ARV treatment).


Human resources in health sector
: Although medical scho
ols and enrolment
have increased over the years, there is still a shortage of health professionals,
especially the more skilled cadres. The shortage of skilled health professionals,
which is most felt in rural areas, is estimated to be 65 percent. This sh
ortage poses
a challenge to the implementation of the Primary Health Services Development
Program (PHSDP, or MMAM in Swahili) in terms of addressing th
e human
resources constraint.
Moreover, existing health professionals are unevenly
distributed, with sig
nificant disparities within regions and within districts, with
remote

districts
having less

health
professionals.
Related challenges include



16

health systems strengthening and improving health care delivery, human
resources management, supply chain managem
ent and general management
(including governance and accountability issues)
.


2.3.3. Water and sanitation

Access to water supply and sanitation is very important for improved quality of life
and social wellbeing, especially when linked with other social

services, as well as
economic growth. During the past five years, key structural developments have
been initiated
in the
water sector; these include the Water Sector Development
Programme (WSDP)

which started in July 2007. WSDP is
a 20 year nationwide
pr
ogramme for improving the provision of water supply and sanitation services,
and ensuring water for productive activities through integrated water resource
management for socio economic development. For efficiency and effectiveness of
interventions, the WS
DP strives to strengthen the overall sector institutional and
personnel capacity.


Water supply:


The WSDP h
as
led to

a significant increase of financial resources to the sector.
Through its quick
-
win subprojects; an additional 8285 water points
have bee
n
developed
, providing water supply to over 1.89 m
illion additional beneficiaries
.
As
a result,
access to water supply services in rural settlements
has increased
from
55% in 2005 to 58.7% in December 2009. Progress in improving urban water supply
services

in regional major urban centres managed by Urban Water and Sewerage
Authorities has also been strong, mainly through development of new water
sources; rehabilitating and expanding the water supply networks
. This has
resulted in
increas
ed

access coverage
from 74% in 2005 to 84% in December 2009.
However, access in
small towns and district headquarters is still
a major
challenge
for it needs
heavy investments in new water sources and rehabilitation and
expansion of networks.

Likewise,
water supply service
coverage
in Dar es Salaam
has remained at 68% since 2005
, mainly due slow increase in
water production
compared 8 percent population growth rate.

In terms of
use of facilities

(estimated from survey data), prior to the WSDP
, the household survey (HBS07)
s
hows

a decline in water supply services, from 90% in 2000/01 to 79% in 2007 for
urban water supply, and from 46% to 40% over the same timeframe for rural water
supply.
The cause of the decline needs to be investigated but could be due to
inadequate
mainten
ance and sustainability strategies
which
led to the facilities to
fail operating within designed capacities.



Meanwhile in terms of equity, the poor still spends a significant share of labour
and time (especially in rural areas) and income (especially in

urban areas), on
accessing water. Better understanding the relationships between facilities invested
and actual access increased is critical to increasing the effectiveness and efficiency
of sector investments.




17

Sanitation and Hygiene:


According to hou
sehold survey data (estimated by the
Joint Monitoring Programme, 2010) only 24% of households use improved
sanitation facilities. Accurately assessing this figure is difficult, as household
surveys do not disaggregate between improved and basic latrines. A
ccess to basic
latrines may be as high as 90%, but these can lack the basic necessities to protect
health, such as a covering slab. Hygiene is also constrained by shortages of water
and soap and poor waste disposal practices. Water
-
borne diseases, especial
ly
diarrhoea and dysentery, remain significant health challenges in this environment,
and dehydration caused by severe diarrhoea is a major cause of morbidity and
mortality among Tanzanian children.


Adequate sanitation and hygiene facilities for education
,

health institutions
, and
other public places such as passengers' stations,

are also critical. In schools, about
58 female pupils share one latrine against the target of 20 per latrine and 61 male
pupils share a latrine against the target of 25 per latrin
e
.
School children in the
poorest urban areas are at a higher risk due to high population density, coupled
with poor water and sanitation infrastructure.


Preparation of a sanitation policy has started, which will promote
enabling
environment for sanit
ation

by providing
clear policy statement to set out exactly
how the upgrading and installation of new household facilities, expansion of
institutional sanitation, and development of sound hygiene practices will be
achieved.
It will also
clear
ly

delineati
on roles and leadership responsibilities
among ministries (MoHSW, MoWI, MoEVT and PMO
-
RALG), as well as local level
agencies such as LGAs

on matters related to
delivery of sanitation and hygiene
activities on the ground.

It will also enhance
finance
and

e
ffectiveness of different
interventions.



2.3.4. Decent shelter and human settlement

The concern about decent shelters has been noted in both rural and urban areas in
Tanzania. However, it is more pronounced in urban areas because urban centres

exper
ienc
e
high population increase, which is outstripping increase in the
provision of services.

Hence, most urban settlem
ents are increasingly developed

outside the formal planning and management system. Peri
-
urban areas are
increasingly being sub
-
divided i
nto smaller plots by land owners and development
takes place without paying regard to plans for provision of basic community
facilities and services. Unplanned settlements have increased tremendously as to

include developments on hazard
-
prone lands such as

steep slopes, flood plains,
river valleys, and dumpsites. Also, Commercial Business Districts (CBDs) of most
urban centres are increasingly becoming congested.


Rapid urbanization is largely explained by rural
-
urban migration. Thus,
addressing challenge
s of decent shelters in urban area is linked to addressing
issues of rural
-
urban migration. Other challenges

facing settlement planning and


18

management in Tanzania include inadequately serviced land for shelter and
human settlements, especially for women,
youth, the elderly, disabled and
disadvantaged
. Other challenges include

poor infrastructure and
poor
social
services, inability to create employment opportunities, low capacity for training
professionals for land use planning and technical, financial and

managerial
responsibilities.


2.3.5. Social protection and wellbeing of vulnerable groups

The
National Social Protection Framework (NSPF)
identifies vulnerable groups,
whose rights are unprotected, to include street children, widows, people living
with
HIV, youths , orphans, young mothers, people with disabilities, and eligible
elders over the age of 60.
Based on the definition according to the
Convention
61/106 of the United Nations on the Rights of Persons with Disabilities
, d
isability
prevalence
was
7.8 percent

in 2008. The prevalence is
higher in rural areas (8.3
percent) than in urban areas (6.3 percent)

and tends to increase with age (Figure
2.3). People with disabilities have difficulties in accessing
access transport;

information,

problems with

attitudes of others at home;

and
the attitudes of others
at work or school
. Thus, d
irectly or indirectly, these factors reduce the chances of
vulnerable groups to accessing standard/traditional social serv
ices relati
ve to other
groups.

Figure 2.3.
Over
all Percentages of Persons with Disabilities by Age and Sex (7 Years
and older)


Source:
2008 Tanzania Disability Survey

Key Results and Last Year GBS Review




19

T
here are practices that have adverse effects on vulnerable groups. These include
customs, norms
, taboos an
d values, unhappy marriages
; domestic and gender
-
based violence, drunkenness and drug abuse. Other factors causing poverty and
vulnerability include natural calamities, HIV and AIDS; low incomes; lack of
education and skills; lack of access to c
lean and safe water; and indecent shelter.



The NSPF and other social protection related policies such as
on social security
policy, ageing, and disability,

show the status of other vulnerable groups, including
orphans and

most vulnerable children and sp
ecify strategic measures to address
them. However, the NSPF is still in the process of finalization and these other
policies (e.g. on social security, ageing, disability) have not been implemented
adequately.
All these challenges point to the need for
i
nterventions customized
to
address
social protection issues

of those
who are economically deprived and
insecure due to life contingencies, poverty traps or various kinds of livelihood
shocks.



2.
4
.
Good Governance and Accountability


MKUKUTA Cluster II
I

interventions are aimed at three broad outcomes: (i) good
governance and the rule of law are ensured; (ii) leaders and public servants are
accountable to the people; (iii) democracy, political and social
tolerance is

deepened; and (iv) peace, political s
tability, national unity and social cohesion are
cultivated and sustained.
Good
progress

was

made
in several areas
but challenges
remained.


2.4.1. Structures and systems of governance


Following
the
implementation of numerous political, economic, lega
l, and social
reforms over the past

decades,

Tanzania is now considered a functioning
democracy with political stability, peace, respect for human rights and rule of law.
This has enabled Tanzania to get a satisfactory
to
good

governance rating
by
experts,

international agencies, and
its
own
citizens, including those in the private
sector.


Several initiatives
have been undertaken
to strengthen

good governance and
accountability under the National Framework on Good Governance and other
relevant policies
. N
otable

progress has been
made. For instance,
investigation
s

of
706 cases associated with corruption

were completed.
This assessment, however,
is constrained by weak monitoring indicators. For example, it is difficult to
conclude whether or not the increa
se in corruption cases is due to greater
diligence in prosecuting corruption, an increase in corruption itself, or increase in
the reporting of corruption.

With regard to public procurement, the percentage of
procuring entities complying with the Procureme
nt Act was only 39 percent in
2006/7 and 43 percent in 2007/08
.

Also, significant development in the
effectiveness of Parliamentary oversight function has been recorded; as well, the
role
s

of
the
media, civil society, and other watchdogs ha
ve

risen.



20


Acc
ountability for the use of public funds has also improved

during the
MKUKUTA period
. The percentage of ministries, departments and agencies
(MDAs) that received a clean (unqualified) audit certificate was 71 percent in
2007/08
, whereas

the share of
LGAs
t
hat
received clean audit certificate

w
as only

54 percent
.
Despite these notable achievements, the state of Public Finance
Management, public administration and service delivery, business environment
and the policies, legal, and regulatory framework is sti
ll weak and calls for deeper
and concerted efforts in reform and implementation measures.

Studies under
MKUKUTA Review and reports of various international rating

institutions

such as
the World Bank (the Doing Business Report),
Transparency

International,

the
PEFA reports, the Controller and Auditor General's reports,

and assessment under
GBS/MKUKUTA/PER process indicate that the quality of public finance
management, accountability, business environment, corruption, and service
delivery and legal services
is
satisfactory

but in need of further improvement
.



2.4.2. Gender

balanced inclusion


Constitutional amendment
s

in 2005 set a target of 30 percent for women’s
participation in Par
liament, as per SADC benchmark.

The

number and percentage
of
female

me
mbers of parliament
increased
from 21.5 percent in 2000
Elections
to
30.3 percent in the 2005
E
lections. Out of the 323 seats, women held 97 seats, out
of
which
, 18 were elected from the constituencies which is
(an increase from 12 in
2000 and

compared to
only 8 in 1995
)
. Another 75 were elected f
or

the special
seats

(
an increase from 48 in 2000
)
. Furthermore, 3 women were appointed by the
president
(
as compared to 2 in the 2000
E
lections
)
. More women were appointed
to the cabinet, with some of them hold
ing very strategic positions such as Minister
of Finance, Minister
for Justice and

Constitutional Affairs, Minister of Education
and Culture and Minister of Foreign Affairs.


Thus, gender balance has improved; but there
are

still avenues and need for
furt
her improvement. The percentage of women in leadership positions (including
MPs) in public service has only increased marginally from 20 percent in 2004/05 to
22 percent in 2008/09; only 5 percent of
the LGA councillors are women. As

D
ecentralization
by

D
e
volution (D
-
by
-
D)

continues to be implemented,
more
development interventions
will be

under the oversight of the LGA councillors
;
hence,
gender balance
at the LGA

level will be critical for sustain
able

development.
As such, women empowerment has to be exte
nded beyond political positions, to
include other spheres in the society.


2.4.3. Effective Public Service Framework

To ensure governance for growth, s
ystems for quality and efficiency of service
delivery (e.g.
,

certificates, property rights, etc
.
) have
continued to improve
,

.

In
2007, only 7.1

percent

of rural households reported having certificates
for

rights of
ownership and use of land
;

birth certificates in 2007/08

constituted only

20


21

percent of
all
births
, with
regional variations rang
ing

from 5 pe
rcent to 75 percent.
Assigning property rights (
e.g.,

land

ownership
,
etc.) is

critical
for

economic
governance
and
high and sustained growth.

Vital

registration

need to be
improved, by strengthening
linkages and communication between families and
service

delivery points,

particularly

local government authorities and health
services.


The participation of citizens in local government institutions
and

other
community groups
,
has improved
, for example,

in specific local committees

-

school committees,
water committees, public works committees, farmers’ groups
;
and in preparation of village/ward plans.

Citizen

involvement in local leadership
rose from 17.3

percent

in 2003 to 22.9

percent

in 2006. However, only
about
53
percent of citizens participate in

the
village assembly
,

despite being one of
the
most important decision
-
making organs
; hence, more effort is required in

broadening

and sustaining
the participation
in the village assembly.


2.4.4. Equitable allocation of national resources

Equitable

reso
urce allocation has two
sides
: the collection and
expenditure sides
.

The collection side involves

good tax (and non
-
tax) systems (which observe equity
principles, fairness, progressivity, and ability). The
expenditure side

focuses on
the
distribution of

the collected revenues.
Currently,
tax

revenues

(
15 percent of GDP
)

are collected from a
narrow base
, mainly due to wide spread informal sector,
thereby

causing substantial distortions in the economy. The informal sector
continues to be largely outside
the tax net, which
affect

many issues of good
economic governance.
On the expenditure side, the need
s
-
based formula
allocation of resources to LGAs has been effective in many areas. However, the
issue still remains with allocation of staff, as disparitie
s exist between urban and
rural LGAs. For instance, most urban LGAs have relatively more agricultural
extension staff, teachers, and health workers than rural LGAs. There is a need to
rationalize allocation of staff in line with the existing facilities and

staff
requirements
.


2.4.5. Governance in natural resources

Sound economic governance of natural resources is critical for poverty reduction,
not only for the communities
in the locality
, but also for the
whole nation
.
The
poor depend significantly on t
he environment and natural resources for the basic
needs and livelihoods. However, due to limited incentives for sustainable
management (property rights etc), limited alternative livelihoods and
unsustainable land management practices the environment is d
egraded


which
further propagates the poverty cycle. Over utilisation of environment and natural
resources is also driven by commercial interests, weak regulation and fragmented
policy frameworks. These point to significant
impact

of

poor environmental
governance
on

environmental degradation.
The
economic value of
revenues
received from concessions and licenses from mining, forestry, fishing and wildlife


22

commodities
is

low.
Tanzania’s recent joining in
the Extractive Industries
Transparency Initiative
(EITI), is timely, since it will avail

opportunities to enhance
governance in natural resources.


2.4.6. Human rights

Protection of human rights has continued to improve
,

but more needs to be done
to speed
up
and sustain the gains. Between 2004 and 2008
, the percentage of cases
pending for two years or more was
24
-

29

percent.

A

number of cases for
infringement of human rights filed at the Commission for Human Rights and Good
Governance
increased
from 2,789 cases in 2004/05 to 4,948 in 2006/07
, a
conse
quence of
an outr
each program by the Commission.

I
n 2008/09,
the number
of cases declined to 2,341 which may be
due to
the Commission’s
active outreach