The Impact of Energy Use on Poor Urban Livelihoods in ... - DfID

A Study <strong>of</strong> the <strong>Impact</strong> <strong>of</strong> <strong>Energy</strong> on Poor Urban Livelihoods in Arusha, Tanzania
Currently, because a number <strong>of</strong> taxes have been lifted the AMC is experiencing a
reduction in its budget. 3 This has resulted in late payment <strong>of</strong> civil servants salaries.
At the same time the Municipality is enhancing its efforts at revenue collection and
this is having a negative impact in one <strong>of</strong>f the study wards (section 5).
C.2 Economy
'Emerging from former President Nyerere's (Chinese) socialist model <strong>of</strong> development
in 1985, Tanzania was particularly hard-hit by the (then) series <strong>of</strong> global recessions
and ensuing structural adjustment policies (SAP) prescribed by the IMF and the
World Bank. <strong>The</strong> impact <strong>of</strong> SAP has been particularly resonant amongst the majority
<strong>of</strong> the population who are dependent on small-scale agriculture, and whose resulting
migration to the urban areas has further worsened conditions amongst a growing
urban population'. (Kaijage and Tibaijuka:1996 cited in DPU a 2002). Unemployment
is a serious problem, particularly for youth (10 to 34 years?) and women who are
more vulnerable to unemployment than men.
Despite GDP growth <strong>of</strong> 6.2% in 2002 (Kigoda:2003), Tanzania remains highly
indebted and has a weak economy. In 2001 the country qualified for debt relief
amounting to approximately US$3 billion over the next 20 years and nearly half (45%)
<strong>of</strong> the government budget is drawn from foreign aid. (Mramba:2003)
<strong>The</strong> informal sector is the most dynamic part <strong>of</strong> the Tanzanian economy in both
employment generation and provision <strong>of</strong> relatively cheap basic commodities. By
1990 the informal sector was contributing between 20-30% <strong>of</strong> GDP.
Arusha is an important centre for tourism and the location <strong>of</strong> international NGOs. In
2000/1, 60% <strong>of</strong> its employment was agriculturally related. (HBS:2000/1). In addition
to small-scale agriculture and commerce its economy also benefits from medium-size
industry including textile spinning, brewing, and mining <strong>of</strong> precious and semi-precious
minerals. In 2002 it was identified as among the nine highest urban centres <strong>of</strong>
industrial growth in Tanzania. However since then some industries have closed due
to lack <strong>of</strong> raw materials, poor management, financial constraints and stiff competition
for their products from imported commodities 4 . <strong>The</strong>re is local awareness <strong>of</strong> the
slowing <strong>of</strong> economic growth in the town. 5
C.3 Socio-economic conditions and services
C.3.1 <strong>Impact</strong> <strong>of</strong> urbanisation
In Tanzania, as in other African countries, lack <strong>of</strong> human capacity and material
resources has resulted in the failure <strong>of</strong> the public sector to provide adequate social
services and infrastructure for the rapidly growing urban areas. This lack <strong>of</strong> delivery
is leading to urban poverty and decay. (Box A) <strong>The</strong> public sector’s inaction is being
filled by the residents’ spontaneous actions which are frequently contrary to the plans
<strong>of</strong> public authorities. Such actions have led to the development <strong>of</strong> the 'informal' city. 6
Both rich and poor are living in the ‘informal’ areas <strong>of</strong> Tanzania's cities.
Box A: Problems associated with urbanisation
creation <strong>of</strong> employment and IG (income generating) opportunities for growing
3
Development levy, market dues and highways tax
4
Arusha Municipal Council, 2002, ‘Arusha Municipal Non-Formal Education Strategy’ 2002-
2006 Arusha Municipal Council
5
Mayor – interview December 2003
6
<strong>The</strong> informal city comprises informal settlements, informal economic activities, unregulated
and not provided for urban development; a breakdown <strong>of</strong> law and order, slums and poor
urban environment.
Development Planning Unit, UCL London
Dr. Sheilah Meikle and Patrice North