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Is Tanzania a failed state economically?

Discussion in 'Jukwaa la Siasa' started by Muke Ya Muzungu, Oct 19, 2009.

  1. Muke Ya Muzungu

    Muke Ya Muzungu JF-Expert Member

    #1
    Oct 19, 2009
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    HIVI NI KWA NINI HAKUNA MTU ANAYEWEZA KUMCHALLENGE HUYU KILAZA JONHI MASHAKA ANMBAYE ANATUSUMBUA VICHWA??........IMETOKA KWA ISSA MICHUZI



    In Tanzania today, air-tickets, school fees, hotel accommodation, automobiles, import duty, merchandise and even rent within affluent parts of the country is being priced and paid in United States Dollar. Those unwilling to pay the dollar are required cough the local currency, based on the day's prevailing exchange rates.


    It leaves many to wonder on the country's economic direction, worthiness of her currency and the seriousness of her leadership to contain the rapidly spreading dollarization virus. Tanzania is being dollarized at whose benefit, and does this mean our country is a failed state, economically?

    By definition dollarization means an extreme situation of an economic instability in which a foreign currency –often the US dollar- replaces a country's currency in performing basic functions of money. ​

    In some countries it becomes an official policy of the government to curb economic dilemma by letting the dollar become medium of exchange.

    It also implies that the domestic central bank is no longer available as a lender of last resort. In other words some countries adopt the use of dollar so as to tie trade of their goods to world prices, so that the domestic inflation is closely related to United States Inflation. Official dollarization has been adopted in countries suffering from CHRONIC and extreme economic problems such as inflation; basically it is adopted in almost failed states.

    While in Tanzania recently, I took a short vacation to Bagamoyo. I went to one of the resorts, and was requested to pay for the services in US dollar. I adamantly refused to pay the dollar because I was in my country, alternatively was advised to pay in domestic currency based on the day's prevailing exchange rate, and believe it or not, the rate demanded was USD 1 was TSH 1355 as opposed to TSH 1315 which was the median. This sent me into a state of confusion on how useless the domestic currency has become to Tanzanians.

    Amid Zimbabwe's descent into social political turmoil, and economic nightmare characterized by historic and record breaking inflation levels, in the threshold of being a failed state, Zimbabwe was forced to dollarize her economy. Zimbabwe dollar became worthless despite the relentless effort by the central bank to stabilize and even peg the country's currency with hopes of restoring economic vitality of a nation that once stood as Africa's breadbasket.

    Zimbabweans had to swallow their pride and adopt a foreign currency –US dollar- for her survival. Comrade Mugabe, an African hero, and a dictator in the eyes of the west, succumbed to colonization, which he has been against all of his life, by letting his country use a foreign currency. American dollar, therefore, became and perhaps is still the official medium of exchange.

    Tanzania is one of the few African countries boasting peace and stability. The country's strategic wealth of natural resources should have rendered her currency to be one of the strongest around the region should it have been blessed with good and formidable management; blessed with leaders who foresee the future and ready to be sacrificial for the good of their nation, than the gluttonous, economic vultures the country is blessed with today.


    My inquisition as to why I was being charged a foreign currency in a sovereign nation brought about new discoveries; it came into my knowledge, while in Bagamoyo, that some of the frequent guests in these resorts are Cabinet Ministers and Members of parliament.

    And all of them pay for the services rendered in United States Dollar.

    And my only question is, if ministers, high ranking government officials and Members of parliament can pay their bills in US dollar, who else then, can fight for the common man whose pillars of hope are being fractured and fragmented by the introduction of the dollar social divide culture? He has no defense!

    We are going to be so na├»ve to believe that, these businesses charging foreign currencies are owned by ordinary citizens. These facilities are owned by the society elite and the KLEPTOCRATS; economic robbers–within the establishment- around the country who control the resources of the masses, collecting from the poor citizens, and even looting the public coffer just to turn around and transfer their loot into their offshore accounts.

    These few persons make life particularly harder and unattainable to the poor majority. Picture a scenario likely to be faced by a peasant, hardened by poverty from the countryside that has never touched a dollar, must go through to pay for his or her child's school fees? Picture a recent graduate, trying to find housing, and has to pay in terms of the dollar. Does this mean that the poor are marginalized in their own country, at the expensive of the rich minority who retains exclusive rights to better services and preferential treatment?

    Is it the new class Identity where dollar rules and serves as sign of power and prestige?

    Currency is a symbol of nation's sovereignty; source of cultural identity and pride. but when the very leaders we hold with high regards as custodians of our laws, and protectors of our sovereignty, lead the way by supporting the notion of our currency being worthless, then we have a problem.

    And there is no way we can resolve our economic issues unless we vote in leaders who walk the talk, not just hypocrites and inexorably feebleminded, who don't understand the negative consequences of using foreign currency in your own country. Unless this is a government project meant to stabilize or get rid of the already worthless currency, the unworthiness of our currency will only get worse.

    Unnecessary imports must be curtailed to encourage domestic innovation, and thus lessen demand for foreign currencies. The parliament must make sure all corrupt individuals who are threatening the economy, by having so much money in circulation are arrested and expeditiously tried, with their assets either frozen or confiscated.


    This will in the long run, bring stability into the economy by letting the market play fairly following natural economic laws, reversing the current artificial environment created by the few rich who have inflated prices basically for everything to unrealistic levels, while demanding foreign currency for the services they offer.

    I inexorably believe that, the Bank of Tanzania, has the power, and an upper hand, through its monetary policies to tame the problem if it decides and has the will to do so, especially by compelling depository and other financial institutions to cooperate in an effort to contain the dollarization pandemic. Country's leadership, especially the parliament through passage of sweeping financial reforms and laws, can have far reaching effects in the efforts to rid the country of this problem.

    The will to bring change must exist amongst the lawmakers; they must also understand the consequences of the dollarization to an economy. Alternatively, monetary experts may need to consider "currency pegging" as known in the economic circles or capital markets, in order to bring a temporary corrective measures while exploring long term solutions to the problem


    The greatest solution of all is the citizenry who has more powers than any other institution .An ordinary citizen has the ability to refuse paying a dollar for the services rendered. This effort is the most effective and has far reaching consequences if can be pursued and adapted, because in the long run, it will bite where it hurts the most; the pocket of the perpetrator. An ordinary citizen has the power to boycott all businesses conducting their trade or services in foreign currency, and above all, has the power to vote out leaders who do not represent their interest and are part of the corruption syndicate .

    There is no salvation available to the common man than his own self; Consumer Protection Agency which would have organized mass action, boycott, or institute legal action against these businesses is either dead or does not exist, or has been infiltrated by corruption, and rendered useless by the Kleptocrats, and I guess ordinary citizens are praying for the rise from dead Edward Sokoine, Julius Nyerere, and a few other true patriots who hated corruption with passion, to save their country.


    If only we could unite and get rid of our enemy FEAR, we will see the re-birth of the Nyereres and Sokoines, of our generation, and the wind of change will blow our way.

    Reminiscent to recent Zimbabwe's, and Latin America's dollarization of their economies in the turn of the decade, the musky and nascent cloud of dollarization of Tanzanian economy, is spelling the chronicle of failure foretold; collapsing of an economy at some point, unless immediate vigorous measures are taken.


    Without being careful, and working aggressively to combat the growing dollarization, we may find ourselves in a state where all we have worked for becoming worthless, in exchange for sacks of banknotes to buy a loaf of bread. We must STOP the usage of dollar in our country, else we are handing our country over to the vultures of corruption

    Mungu Ibariki Tanzania
    John Mashaka
     
  2. Gelange Vidunda

    Gelange Vidunda JF-Expert Member

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    Oct 19, 2009
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    Kwani tatizo lipo wapi? Yeye anavoice his opionion which he is entitled to in the first place, just like you and I are entitled to ours.

    Ukitaka kumchallenge si anza kutoa sera na opinion zako according to you, FISADI - ORIGINAL?!!
     
  3. Pakawa

    Pakawa JF-Expert Member

    #3
    Oct 19, 2009
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    Wewe anakusumbua nini? mbona kuna wengi tunafaidika na michango yake. Anza wewe kumchallenge basi!! You either read it or leave it(don read it)
     
  4. J

    Jasusi JF-Expert Member

    #4
    Oct 19, 2009
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    The problem in Tanzania is not economic direction. The problem is leadership and the commitment of those who purport to lead us. Haya ya kulipa fees in dollars ni illegal lakini hatuna uongozi wa kukemea.
     
  5. Bluray

    Bluray JF-Expert Member

    #5
    Oct 19, 2009
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    If you have a systemic leadership problem, obviously that will translate itself not only into the economy, but also all aspect of Tanzania.

    The concept of a failed state is a total one and I do not see how can one limit this to the economy and employ the term, a more appropriate terminology would be to categorize Tanzania's economy as a failure, which is not the same thing as the ambiguous "failed state economically" because the known criteria for the term "failed state" does not limit itself to economics.we may even have some Nobel laureates in the dismal science hiding behind Michuzi (lol)

    Tanzania is a failing state, but is not yet a failed state. We have it within our powers to either rescue her or abandon ship.
     
  6. J

    Jasusi JF-Expert Member

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    Blueray,
    I agree with the bolded statement wholeheartedly. To us optimists abandoning ship is not an option.
     
  7. SHERRIF ARPAIO

    SHERRIF ARPAIO JF-Expert Member

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    Apr 25, 2012
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    THE PRESIDENT:He's always on the road, enjoying traveling the world, doesn't give a damn about wadanganyika. ....A frequent flier and the most travelled president in the world.
    The PRIME MINISTER: Coward, lack confidence to make critical decisions for the interest of his country.
    The VICE PRESIDENT: Always on the road doing nothing but excessively spend tax payers' money.
    CABINET MINISTERS: Aggressively and busy looting this country BILLIONS OF US $$$...the likes of Maige, Nundu, Nyalandu et el
    HOUSE SPEAKER: Arrogant, small-minded, corrupt, runs the bunge like a dictator......Doesn't have a clue on how to run the legislature.
    MP's/CONGRESSMEN: When you have witch doctors (Maji Marefu) as your MP's what do you expect......a sign of hopelessness and aura of gloom among the wananchi.
    RELIGIOUS LEADERS: Bogus and spreading fear mongering and udini. They are in the payroll, remain silent even when the politicians in power continue to loot this country.
    EDUCATION SECTOR: When you have a std 7 leavers who can't read or write, while shule za kata continue breeding vilaza then we have major issues. We are becoming a nation of fools and illiterates.
    FOOD SECTOR: Farmers continue to be supplied with fake/toxic fertillizers. Some day all our arable land will become barren! Fake eggs, expired beers, fake infant/baby formula etc. have flooded the streets. TBS doesn't care!
    HEALTH SECTOR: Fake drugs are everywhere in the streets poisoning and killing innocent people. Hospitals are dilapidated, doctors are ignored and ill-compensated.
    INFRASTRUCTURE: Traffic jams all over the streets of Dar. While TRC, TAZARA, and ATCL are all but defunct.
    ENERGY SECTOR: Power rationing continues as IPTL company continue to get paid millions of $$$ every month. No clean water for wananchi. Vehicles get filled with diluted gasoline at gas stations........mmmmnnnhhh!
    TOURISM SECTOR: Wildlife continues to be destroyed, someday we may end up having national parks with just miti and majani, and wonder if there will be any more tourists visiting Tanzania.
    MINNING SECTOR: Minning companies continue to pay only 2% of the revenue to the government while enjoying long term tax exemption!
    WANANCHI/WADANGANYIKA: Gentler, kinder and nduguz-attitude have transformed wadanganyika into chronic fools……...... who would continue to support CCM at any cost even in 2015!
    THE YOUNG GUNS/YOUNG GENERATION of PUPETS: Peter Serukamba, Nape, January, Bibo etc.....kimyaaaaaaa……..which is why there's an old saying that every man has his own price....................mmeshanunuliwa!
    TANZANIANS IN DIASPORA: Busy opening CCM branches all over US, UK, EUROPE day in day out...that says a lot about how hopeless, retarded and feeble minded we have become even after getting the western or oveseas exposure!

    THE TRUE HEROES FOR THIS NATION: Zitto Kabwe, Filikunjombe and other 71 MP's.....may God bless you all!!
     
  8. Janjaweed

    Janjaweed JF-Expert Member

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    Good article of despair.... would be better if you could give a few solutions, otherwise you'd be just another failed member in the failed state
     
  9. SHERRIF ARPAIO

    SHERRIF ARPAIO JF-Expert Member

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    Who cares!
     
  10. kukomya

    kukomya JF-Expert Member

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    Apr 25, 2012
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    Salutations Mkuu. A syllogistic approach of Tanzania's problems from a genuine great thinker!
     
  11. BAK

    BAK JF-Expert Member

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    ...very good analysis of what is going on in our beloved country.
     
  12. Kaunga

    Kaunga JF-Expert Member

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    Ukweli mchungu!
     
  13. Kichuguu

    Kichuguu Platinum Member

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    Why write the obvious ?
     
  14. Janjaweed

    Janjaweed JF-Expert Member

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    I do!! and what you posted is a reality

    ---tusaidie basi na a few proposals on how to get out of our failure??
     
  15. J

    Jasusi JF-Expert Member

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    Get rid of CCM. Get rid of Kikwete. That will be the first step.
     
  16. Janjaweed

    Janjaweed JF-Expert Member

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    thanks

    but what next?? if watendaji wngine wote ni walewale?
     
  17. J

    Jasusi JF-Expert Member

    #17
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    Tunaanza upya. Tunaitisha mkutano wa kitaifa na kuweka blueprint ya kile tunachotaka kifanyike. Politically kwanza lazima CCM iondoke madarakani. Wamepoteza moral right ya kuongoza. Tunapanga uongozi ambao utatupa mwelekeo mpya hasa katika suala la rushwa, uwekezaji, elimu, afya na kilimo. CDM wana mawazo mazuri zaidi ya CCM katika masuala hayo yote.
     
  18. paty

    paty JF-Expert Member

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    " apathy "
    ndo sifa yetu kubwa watanzania " just another failed member in the failed state"
     
  19. Janjaweed

    Janjaweed JF-Expert Member

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    thanks!!!

    i tried to be civil, but its not possible... even the complainant himself/herself doesnt care...

    Yes he/she is talking about a failed state... "forgetting about a failed everything":target:
     
  20. H

    Haika JF-Expert Member

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    we care, we really do, i tell you, but not enough to to anything, that is the most imporntant recipe of failure.
    We know we are falling, we hate whre we are going, but we do not want to do anything.
    Are we hopeless?
    I hope not.
    The guys like those who can go forward like zitto fujikombe and their teams are our hope. Lets pray for them, that they dont fail so soon.
     
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