Poverty and Human Development Report 2009 - UNDP in Tanzania
Poverty and Human Development Report 2009 - UNDP in Tanzania
Poverty and Human Development Report 2009 - UNDP in Tanzania
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orrow from outside tanzania, where more advantageous rates can be obta<strong>in</strong>ed, especially for<br />
enterprises engaged <strong>in</strong> export<strong>in</strong>g.<br />
there is a need to address <strong>in</strong>stitutional <strong>and</strong> legal weaknesses which deter banks from assum<strong>in</strong>g<br />
risk <strong>and</strong> extend<strong>in</strong>g credit. for bank <strong>in</strong>termediation to deepen, it is necessary that f<strong>in</strong>ancial<br />
<strong>in</strong>formation on borrowers is readily obta<strong>in</strong>able, collateral is sufficiently available to borrowers <strong>and</strong><br />
enforceable to lenders, <strong>and</strong> the rights of both creditors <strong>and</strong> borrowers are adequately protected<br />
through an effective judicial system with efficient <strong>in</strong>struments of conflict resolution. at the same<br />
time, greater competition among banks needs to be promoted to encourage development of<br />
new markets <strong>and</strong> f<strong>in</strong>ancial products adapted to meet local needs.<br />
Unemployment<br />
Productive employment is the pr<strong>in</strong>cipal route out of poverty, <strong>and</strong> job creation should be placed<br />
at the heart of tanzania’s development strategy. the country’s labour market is currently<br />
characterised by high participation compared with other sub-saharan african countries <strong>and</strong> low<br />
unemployment (table 6). 8<br />
Table 6: Labour Force Participation Rates <strong>in</strong> Various Countries<br />
Employment to Population<br />
Ratio<br />
(15+ years)<br />
Labour Force Participation<br />
(15-64 years)<br />
sub-saharan africa 66 74<br />
tanzania 84 90<br />
Kenya 63 82<br />
Ug<strong>and</strong>a 80 84<br />
rw<strong>and</strong>a 73 83<br />
burundi 84 93<br />
vietnam 73 80<br />
ch<strong>in</strong>a 73 82<br />
source: world development <strong>in</strong>dicators (world bank, 2008a)<br />
table 7 shows unemployment <strong>in</strong> dar es salaam <strong>and</strong> other urban areas at 3.7%, <strong>and</strong> <strong>in</strong> rural areas<br />
at 0.7%. 9 <strong>in</strong> other words, almost all people 15 years <strong>and</strong> older <strong>in</strong> tanzania are work<strong>in</strong>g, <strong>and</strong> the<br />
8 Us<strong>in</strong>g the <strong>in</strong>ternational def<strong>in</strong>ition as ‘persons with no work but actively seek<strong>in</strong>g work’.<br />
Chapter I CLUSter 1 GOaL 2<br />
9 higher rates of unemployment are reported by the <strong>in</strong>tegrated labour force survey (ilfs 2006) – 11.7% for the<br />
population aged 15 years <strong>and</strong> above. the ilfs uses a national def<strong>in</strong>ition for unemployment which <strong>in</strong>cludes people<br />
who are not actively look<strong>in</strong>g for work but are available for work <strong>and</strong> persons with marg<strong>in</strong>al attachment to employment<br />
(not sure of availability <strong>and</strong> <strong>in</strong>come of employment the next day).<br />
19
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