1. Introduction
Poverty Reduction Strategy paper in Tanzania and other developing
countries of Africa and the rest of the world is a new medium-term
funding mechanism for funding priority areas of poverty reduction
agreed upon by respective Government Cabinets, civil society, Parliaments,
the World bank and IMF Boards.
Tanzania was the third country in Africa and fourth in the world to have qualified for the Highly Indebted Poor Countries initiatives, famously known as HIPC. This achievement is attributed to great political will, active government participation, active civil society participation, and having met the conditionalities for reaching the decision point and completion point respectively. At this point, it is worth to note that PRSP is a medium-term strategy of poverty reduction, developed through broad consultation with national and international stakeholders, in the context of the enhanced Highly Indebted Poor Countries (HIPC) initiative. As such, PRSP is an integral part of the HIPC process, focusing mainly on poverty alleviation, subject to a relatively hard (central government) budget constraint, starting in financial year 2000/2001. Nevertheless, the PRSP encompasses poverty-oriented extra-budgetary activities, and various non-financial considerations that have an important bearing on poverty reduction.
The preparation of PRSP entailed broad consultation among the stakeholders -
a factor that has contributed to underlying consistency in the country's
development policy objectives, including the strategy for poverty alleviation.
First, substantial efforts toward poverty reduction by international
partners are still being implemented outside the framework of the
central Government budget. To ensure maximum progress toward poverty
reduction and improved predictability of budgets, these efforts would
need to be rationalized and realigned progressively, to reflect the
PRSP priorities. Second, a large amount of international resources
is being channelled through specific donor-driver projects, sometimes
entailing duplication. An effective struggle against poverty will
require continued efforts to channel these resources in the context of
sector wide development strategies. Third, a key step in the area of
public sector reform, notably the Medium-Term Expenditure Framework (MTEF)
exercise for financial year 2000/2001 (July - June) preceded the formulation
of the PRSP. The priority objectives of the latter will, therefore,
need to be reflected more fully in the MTEF for 2001/2002 and the
subsequent years. Finally, major reforms in key areas, especially
Local Government, education and agriculture, were still being formulated
by then. Implications of these sectoral reforms to poverty reduction
and resource requirements could not be assessed accurately by then.
Since Poverty Reduction Strategy is a living document, the Government
will, therefore, continue to review and adjust the poverty reduction
strategy in order to reflect the ramification of these reforms.
As noted earlier, PRSP was formulated through a process of consultation
mainly through Committee of Ministers, Inter-Ministerial Technical Committee,
researchers, editors; the zonal workshops that picked views of "grassroots"
stakeholders; Members of Parliament which established reactions to the
findings of the zonal workshops-also it saved the role of seeking their
views. The Regional Administrative Secretaries while the Cabinet approved
had their say in final PRSP in September 2000. Also joint consultations
with international partners took place through consultative meetings
with donors and through the national workshop.
Projections to some of the selected economic and financial indicators,
1998-2002, indicates that by end of 2002 real GDP will be 6.0%, real
GDP per capita 3.1%, consumer price index annual average 4.0%,
domestic revenue 12.0%, expenditure 16.8%, Gross domestic savings 6.6%,
investment 17%. Tanzania PRSP has earmarked 7 sectors as priority areas
for poverty reduction, these are: education (basic education), health (primary health care),
water, agriculture (research and extension), rural roads, good governance,
and HIV/AIDs. Studies indicate that poverty is more widespread and
deep in rural areas than in urban areas. Basic needs rural poverty
incidence is estimated at 57 percent. Tentative estimates for year 2000
suggest that the incidence of poverty in the rural areas may have
increased. According to the 1991/92 HBS, the poverty incidence for
households whose heads work in own farms is 57 percent. Studies
also indicate that urban poverty is also widespread and increasing.
The basic needs poverty for Dar es Salaam was 5.6 percent and 41 percent
according to the 1991/92 HBS. The Government intends to continue to seek
fuller representation of the poor and other stakeholders in the implementation,
monitoring and evaluation of the poverty reduction strategy, and in
subsequent revisions of the PRSP.
The youth, the old and large households are more likely to be poor. The 1993 HRDS data indicates that households of 6-10 people are nearly twice as likely to be poor than households of 1-5 people. Although female-headed households are not necessarily poorer than male-headed households, women are generally perceived to be poorer than men.
The more recent deterioration in the poverty situation is probably attributable to worsening income inequality, and relatively low rate of economic growth, particularly in the rural areas. Regarding non-income poverty, this was analyzed to include education, survival, nutrition, water, social well-being and vulnerability.
Broad based primary school education plays a major role in strengthening human capabilities and reducing poverty. Tanzania's literacy rate was estimated at 84 percent in 1997, with the rate for women being somewhat lower than that for men. Primary school gross enrolment rate is currently estimated at 78%, reflecting approximately equal rates for boys and girls (79 percent and 77 percent respectively). The overall net enrolment rate is, however, much lower (57%) illiteracy among the poor increased.
High mortality rates (especially among infants and under-five children) and corresponding low life expectancy is an important dimension of poverty. In 1999, infant mortality was estimated at 99 per 1000 live births, and under-five mortality was 158 per 1,000 live births. Maternal mortality rate is still high, estimated at 529 per 100,000 live births. Recent estimates put the average life expectancy at birth at 48 years of age, compared to 52 years in 1990 and 45.3 years in 1970, the more recent decline being largely attributable to the impact of HIV/AIDs and other communicable diseases.
Official international reserves at the equivalent of approximately 4 months of imports of goods and non-factor services.
Rural sector development and export growth
- Support and develop the rural sector
Private Sector Development
- Strengthen the economic infrastructure through privatization of utilities and transport services within regulatory frameworks.
- A national strategy for primary school education to be in place.
- A national agricultural sector development strategy prepared.
- A Rural Development Strategy: involving promoting widely shared growth, prevention of HIV/AIDs, and promoting good governance.
- Complete Local Government Reform process with development of district-specific poverty reduction plans by the end of financial year 2002/2003.
- Support income-generating activities amongst poor people in rural and urban areas by developing a micro-finance policy and promoting savings and credit scheme.
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