Poverty and Human Development Report 2009 - UNDP in Tanzania

ConCluSIon to PHDR 2009
CONCLUSION
PHDR 2009 has been written during a time of global economic turbulence, which has reinvigorated
international dialogue on the appropriate role of the State in maintaining the stability and
growth of market economies. At the same time, the world is hotly debating mechanisms to
stem environmental impact associated with climate change. For developing economies such
as Tanzania, these twin crises have introduced new challenges and opportunities, and strong
leadership will be required to direct the country on its path of strategic development towards
Vision 2025.
Recent experience from emerging economies in Asia also shows that socio-economic
transformation takes time – a period of at least thirty years is required. Therefore,
long-term development strategies must be sustained beyond a single phase of government and
implementation must transcend political boundaries. Adjustments will be needed to the strategic
path due to constraints and trade-offs will have to be made, but they should not deviate from
the long-term horizon. In this way, too, incremental and sustainable progress can be achieved
that links generations in common actions for collective benefits, and underpins national peace
and unity.
The significant progress in economic and human development in Tanzania achieved by
MKUKUTA, the first phase of the National Strategy for Growth and Reduction of Poverty, provides
a solid foundation for the next phase of the country’s development. While recent growth has
not translated into immediate reductions in poverty, the increased capital investments and the
expansion in public spending, in areas such as roads, education and healthcare may underpin
longer-term benefits for households and provide the basis for future reductions in poverty.
In hindsight, given the present context of national development in Tanzania, population growth,
and the extremely low levels of consumption prevailing in the vast majority of households,
MKUKUTA’s poverty reduction targets may have been overly ambitious. The challenge, therefore,
remains to link poor households, particularly smallholder farming households, to the national
growth process. To make strong inroads into poverty rates, a focused approach to sustain
and accelerate economic growth will be required that fully exploits Tanzania’s comparative
advantages, enhances human capabilities and propels domestic employment and productivity.
Given tight constraints, it will be imperative to allocate resources and improve performance in
areas identified as the drivers of growth, and protect key investments from poor governance.
Most importantly, the strengths of all development actors working together towards the common
vision – government, development partners, civil society, the private sector and communities –
will be essential to achieve a competitive, innovative and dynamic market economy with a good
quality of life for all of its citizens.
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