Poverty and Human Development Report 2009 - UNDP in Tanzania

implications. Such framework still makes sense today if considered within the context of an
isolated resource-poor country.
However, a new era of global environmental governance has introduced an additional variable
into the equation. The environment is now a global rather than a national issue; an issue of global
concerns and global solutions. Environmental management can, therefore, be a resource for
growth and development. Resource-poor countries should recognise this trend and proactively
incorporate this opportunity into their development agenda. In this proactive approach, sound
environment management practices yield high returns and valuable resources; rather than cost
burdens where the solutions are to strengthen oversight and regulations to encourage sound
farming, livestock and fishing practices, thereby reducing resource degradation. Proactively
conceived environmental initiatives can easily be sold to actors to strengthen environmental
protection but also reduce the cost of enforcement and regulation.
Conclusion
Chapter 3
This chapter has outlined the role of a state, after consideration of the historical perspective
of Tanzania as a developing country, experiences from other developing countries, and recent
thinking on the role of developmental states. The overall conclusion is that a developmental role
is appropriate for the Tanzanian government during this stage of the country’s socio-economic
growth and transformation. The Government should navigate the country’s course towards
realising the goals of Vision 2025 within the context of a defined medium-term development
strategy, surviving the necessary adjustments along the course.
The steering role of the state does not mean direct ownership or implementation of all development
activities by the state. Rather state ownership and implementation of specific activities will depend
upon the comparative advantage of the state in relation to the other development actors. Direct
state participation can be expected for those activities requiring large and lumpy investments or
which are public consumption in nature, while public-private partnerships with non-state actors
in the private business sector and civil society can facilitate the provision of public services.
It is crucial that markets continue to develop and that they interact with non-market institutions
to deliver developmental goals. To this end, market institutions should be supported and allowed
to co-evolve with socio-economic transformation. The state should not attempt to replace the
market, even in the event of market failure.
Furthermore, the state must acknowledge and promote the private sector as a key partner in
national development. In Tanzania, the private sector is still widely perceived as solely and selfishly
interested in profit-making at the expense of the welfare of society. This must be remedied.
Private investors in Tanzania, as is the case everywhere, are driven by financial incentives –
profits in reward for investment and risk-taking. If the state maintains macro-economic stability
and creates an enabling business environment, the private sector can significantly contribute to
the well-being of all Tanzanians, through expanded production of quality goods and services,
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