The Guardian Capitalism is deepening in the Tanzania job market, according to figures recently put out by Synovate, a research group, and the government says the development is in the right direction. A study put out this month by the research group shows that in the job market, only 12 per cent of Tanzanians are full time employed, 14 per cent are working on part time, while 17 per cent are self-employed. This suggests that the private sector is indeed taking over the commanding heights of the economy through small and medium scale enterprises (SMEs). The figures, quoted by Andrea Bohnstedt, an economic intelligence analyst and posted on Ratio, an online magazine, portrays Tanzania as gradually shifting in the capitalist direction and not otherwise. The Minister for Labour and Youth Development, Prof Juma Kapuya told The Guardian that these figures show that the nation is moving in the right direction because the figures indicate that SMEs were being hatched in good numbers. SMEs employ the most people in strong economies, Prof. Kapuya said, giving the example of Germany, where he found during one of his visits there that 80 per cent of the people holding jobs were employed by SMEs. Germany is Europes strongest economies and the worlds third. What the nation needs to do at this juncture is to strengthen the SMEs, the minister said, by empowering them through micro-finance credit schemes and equipping them with organisational skills through training programmes. And this, he added, was being done to enable them to grow to become huge corporate entities which will in turn employ more people. In the meantime, the Ratio magazine web posting also portrays Tanzanias economic growth as bursting conservative estimates this year. The economic intelligence report says the Bank of Tanzania (BoT) has announced a target GDP growth rate for 2010 of 5.7 per cent, up from 5 per cent targeted in 2009, as the country begins to recover from global crisis fallout that depressed growth last year in the mining and tourism sectors. But the International Monetary Fund (IMF) predicts 6.2 per cent GDP growth for Tanzania in 2010. The funds earlier forecast was a growth rate of 5.5 per cent, but it revised the figures upwards due to a stronger than anticipated recovery in the global economy and the governments fiscal stimulus plan. The IMF also said inflation could fall to 8 per cent by June, down from Februarys 9.6 per cent. An unfavorable business environment has however been blamed for decreased investor interest in mining. An external audit of Tanzania's Africa Peer Review Mechanism (APRM) Country Internal Assessment report says the country is declining on a number of indicators, including: doing business, starting a business, registering property, access to credit and protecting investors, the report says. Agricultural and gold exports remained strong in 2009, nonetheless, which led in part to a balance of payments surplus for that year at USD429m. A decline in oil costs also helped narrow Tanzanias current account deficit in 2009 by 24 per cent. The country has improved on trading across borders due to participation in the East African Community (EAC) integration. But auditors noted that many non-tariff barriers remain. SOURCE: THE GUARDIAN My Take: I'm not an economist.. but can somebody try to explain to me how can does corruption affect our economy because it seems to me that corruption has no effect WHATSOEVER when you look at all indexes of the economy.. what is the most rational explanation?