Does Tanzania have a Job Creation Policy?

[Rev. Kishoka]

Nimetoka kusikiliza Symposium ya Baraza la Wachumi Tanzania na Benno Ndulu nikajiuliza swali hili dakika ya nne baada ya kumsikiliza Benno.

Je Tanzania kuna sera ya Job Creation ambayo ni Dynamic? Maana HapaKaziTu si sera ya ajira au kuwa na malengo ya kuzalisha ajira, Tanzania ya viwanda si sera ya Job Creation, ni wapi ilipo hii sera?

 

[TUJITEGEMEE]

Policy definition: The declared objectives that a government or party seeks to achieve and preserve in the interest of national community.
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To me, job creation is a cross-cutting issue. For that matter, it is addressed by a number of Tanzanian government policies, indirectly. For instance, scrutinizing with '3D vision eye', you may find Employment policy( 2008), Energy Policy(2015) and other policies aim at job creation issue. Furthermore, a number of strategies already put forward by URT are targeting at the same issue too. Therefore, I think there is no need of setting aside resources, which are scarce for establishing the 'Job creation policy'.

 

[Rev. Kishoka]

Policy definition: The declared objectives that a government or party seeks to achieve and preserve in the interest of national community.
===
To me, job creation is a cross-cutting issue. For that matter, it is addressed by a number of Tanzanian government policies, indirectly. For instance, scrutinizing with '3D vision eye', you may find Employment policy( 2008), Energy Policy(2015) and other policies aim at job creation issue. Furthermore, a number of strategies already put forward by URT are targeting at the same issue too. Therefore, I think there is no need of setting aside resources, which are scarce for establishing the 'Job creation policy'.

How are these two citings you have listed related to Tanzania Mpya, MATAGA and HapaKaziTu? or even Ilani ya CCM?

 

[TUJITEGEMEE]

Dear Rev. Kushoka, I guess you are in a better position to explain this, taking into account that you have got enormous knowledge and expiriences in these ilani za vyama, MATAGA and others. Therefore, if there is any fault in my just above stated opionion, it is your opportunity to iron them out explicitly right here.

You're welcome.

 

[Mlenge]

Dear Rev. Kushoka, I guess you are in a better position to explain this, taking into account that you have got enormous knowledge and expiriences in these ilani za vyama, MATAGA and others. Therefore, if there is any fault in my just above stated opionion, it is your opportunity to iron them out explicitly right here.

You're welcome.

MATAGA ndio nini?

 

[Mzuvendi]

Nimetoka kusikiliza symposium ya Baraza la Wachumi Tanzania na Benno Ndulu nikajiuliza swali hili dakika ya nne baada ya kumsikiliza Benno.... Je Tanzania kuna sera ya job creation ambayo ni dynamic? Maana HapaKaziTu si sera ya ajira au kuwa na malengo ya kuzalisha ajira, Tanzania ya viwanda si sera ya job creation, ni wapi ilipo hii sera?

Rev. Kishoka.

I think there's no job creation policy. And the reason I am saying that is in order to have a policy, you need have tools to execute it. For example, in countries with developed economy, they use fiscal and monetary policies to create jobs when unemployment rate is above the threshold. One of the the tools in fiscal policies is lower tax rates. At business level, when tax rates are lower, business entities buy new machines or bring in new employees, etc.

At personal level, lower tax rates, encourages people to spend on big ticket items such as building a house or car. This also stimulate the economy and create jobs as the money spent will go directly into buying and selling products, the key ingredient of economic growth.

Now, when it comes to monetary policies, the best tool is the interest rates. If the central bank keeps low interest rate, public sectors and private sectors will borrow money from the banks at very higher volumes. In other words, the central bank will increase liquidity and cash flow which will help organizations and individuals build infrastructures, buy big ticket items, commission big projects etc etc.

To conclude, if you take into account what I mentioned above and compare it to what we have in Tanzania, I am not sure whether our monetary and fiscal policies work in the same manner or are executed to achieve the same goals as in the developed economies. In theory, you could say yes. But in practice, there are some doubts.

This is because in Tanzania now and then, the main goals of the government is to enact policies which try to give its people a head start of modern life through education, health and other rudimentary social programs. For example, it is in our government's DNA to think that if you enroll in school, you have automatically given the individual education and the key to success. We have equated student school enrollment with education which gives people success.

Therefore. the expectation is once you have primary or now secondary school education, you can go out there and be somebody. So with this in mind, the role of government isn't to formulate policies that spur job growth, but rather to make sure that it corrects enough taxes, even at very higher rates, so students could go to school, any school.

The problem here is that higher tax rates aren't good for the economy or job creation. They make things very expensive to buy and operate. The encourage tax cheaters and black market.

Now with respect to monetary policies, in theory and in practical, they could be used in job creation. However, we have always had higher interest rates and therefore, our central bank hasn't played a role as a job creator.

 

[TUJITEGEMEE]

MATAGA ndio nini?

Rejea post namba 3 ya uzi huu.