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Poverty and Human Development Report 2009 - UNDP in Tanzania

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pOVertY aND hUMaN DeVeLOpMeNt repOrt <strong>2009</strong><br />

to technical <strong>and</strong> management know-how, capital <strong>and</strong> f<strong>in</strong>anc<strong>in</strong>g, <strong>and</strong> connections to local <strong>and</strong><br />

<strong>in</strong>ternational markets. <strong>in</strong>tegrated producer schemes <strong>and</strong> farmer cooperatives are two such<br />

<strong>in</strong>stitutional arrangements that have been tried, with vary<strong>in</strong>g levels of success to date.<br />

on the market<strong>in</strong>g side, current constra<strong>in</strong>ts have resulted <strong>in</strong> a lack of market <strong>in</strong>tegration, price<br />

volatility, <strong>and</strong> limited <strong>in</strong>vestment <strong>and</strong> production. bus<strong>in</strong>ess licens<strong>in</strong>g, registration <strong>and</strong> import/<br />

export procedures need to be simplified, <strong>and</strong> processes for commercial dispute resolution<br />

improved. enforcement of local taxes has also been <strong>in</strong>consistent, thus creat<strong>in</strong>g unfair competition.<br />

the role of market<strong>in</strong>g <strong>in</strong>stitutions (broadly def<strong>in</strong>ed to <strong>in</strong>clude <strong>in</strong>stitutions <strong>and</strong> their regulatory <strong>and</strong><br />

legal framework) <strong>in</strong> support<strong>in</strong>g commodity exchange requires exam<strong>in</strong>ation to ensure that these<br />

<strong>in</strong>stitutions can effectively reduce transaction costs.<br />

Kilimo Kwanza (agriculture first) is a “new” push <strong>in</strong> the agricultural sector <strong>in</strong>itiated by the private<br />

sector. this <strong>in</strong>itiative seeks commitment from the government <strong>and</strong> agricultural stakeholders<br />

to pursue action geared towards agricultural transformation. it outl<strong>in</strong>es necessary policies<br />

<strong>and</strong> strategies that tanzania must now pursue to achieve a green revolution <strong>in</strong> agriculture. it<br />

encompasses a range of proposals for government consideration on issues, such as appropriate<br />

<strong>in</strong>stitutional arrangements to effectively govern the agricultural sector, strategic uses of l<strong>and</strong> to<br />

meet the requirements of modern agriculture as well as the needs of both small- <strong>and</strong> large-scale<br />

farmers, f<strong>in</strong>anc<strong>in</strong>g agriculture, <strong>and</strong> the necessity of an <strong>in</strong>dustrialisation strategy geared to the<br />

transformation of agriculture.<br />

Goal 6 Provision of Reliable <strong>and</strong> Affordable Energy<br />

a reliable <strong>and</strong> affordable power supply for producers <strong>and</strong> consumers underp<strong>in</strong>s economic<br />

growth, facilitates productive employment <strong>and</strong> contributes to quality of life. electrification,<br />

however, is still low <strong>and</strong> unreliable <strong>in</strong> tanzania. the national grid is the ma<strong>in</strong>stay of power<br />

transmission <strong>in</strong> the country but it still has limited coverage.<br />

three <strong>in</strong>dicators are used to assess progress <strong>in</strong> this area:<br />

26<br />

•<br />

•<br />

•<br />

Percentage <strong>in</strong>crease <strong>in</strong> the number of customers connected to the national grid <strong>and</strong><br />

off-grid sources of electricity<br />

Percentage of households <strong>in</strong> rural <strong>and</strong> urban areas us<strong>in</strong>g alternative sources of energy to<br />

wood fuel (<strong>in</strong>clud<strong>in</strong>g charcoal) as their ma<strong>in</strong> source of energy for cook<strong>in</strong>g<br />

total electricity generat<strong>in</strong>g capacity <strong>and</strong> utilisation<br />

these <strong>in</strong>dicators primarily reflect changes <strong>in</strong> household energy use. the follow<strong>in</strong>g section<br />

describes trends <strong>in</strong> energy use, but also <strong>in</strong>cludes a brief analysis of the sector’s progress <strong>and</strong><br />

potential as a growth facilitator.

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