In Praise of Tanzanian Capitalism - The People should be Glad!

Mzee Mwanakijiji

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Mar 10, 2006
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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 Europe’s strongest economies and the world’s 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 Tanzania’s 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 fund’s 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 government’s fiscal stimulus plan.


The IMF also said inflation could fall to 8 per cent by June, down from February’s 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 Tanzania’s 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?
 
Mwanakijiji,
Waambie Watanzania kuwa siri ya kufanikiwa kwa ubepari ni accumulation of capital. Hatuwezi kufanikiwa kujenga ubepari wakati kuna capital flight.
Tutabaki kuwa mabepari wa makaratasi tu, na wakombaji wa ukoko katika sufuria.
 
MM,

If we factor Ufisadi (corruption, embezzelment, theft, mismanagement, excessive spending, etc), you will find out our GDP could grow further may be even in double digits!
 
Mwanakijiji it is ufisadi that is running the economy...that is the most rational explanation...don't you know that it is the mafisadi who run our media and other companies?
 
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 Europe's strongest economies and the world's 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 Tanzania's 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 fund's 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 government's fiscal stimulus plan.


The IMF also said inflation could fall to 8 per cent by June, down from February's 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 Tanzania's 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?

only 12% of Tanzanians are full employed.Akili yangu imegoma kabisa.au labda sielewi maana ya full employed can somebody help me please,hayo corruption nitajadili baadae,ngoja nielewe kwanza
 
yaani wanajivunia matunda ya ubepari kuwa asilimia 12 ya wananchi wako fully employed!!. how the hell do we run the economy! with 88 percent of the people in employment that can not be considered as "full"?
 
yaani wanajivunia matunda ya ubepari kuwa asilimia 12 ya wananchi wako fully employed!!. who the hell do we run the economy! with 88 percent of the people in employment that can not be considered as "full"?

LMAO...so what is the unemloyment rate? 88%? Kwa wenzetu unemployment rate ikigonga double digits tu kasheshe.....
 
LMAO...so what is the unemloyment rate? 88%? Kwa wenzetu unemployment rate ikigonga double digits tu kasheshe.....


yaani kuna kitu kinaitwa spin.. hii ya kwao ni kiboko!! Ati full employment ni 12 percent halafu wanasema tunaenda kwenye "right direction"..to where!?
 
By the way why a distinction between fully employed or self employed? Why don't they give us the exact number of people who are employed in Tanzania (self, part or full) and then within that group provide a break down who is emloyed by Sirikali, Mashirika, Kampuni, Taasisi, Vibarua, Kuli na wanaojiajiri?

Sometimes hawa Politicians wa Tanzania they like to skew the numbers and data to misrepresent the truth!

By the way, if the number of people counted as having some sort of employement is less than 30% of population (mkulima is self employed by the way!), then what in the heck is the rest of 60% (10=/- marging of error) doing? will we claim that it is Wazee and Watoto (over 55 and under 16)?
 
By the way, if the number of people counted as having some sort of employement is less than 30% of population (mkulima is self employed by the way!), then what in the heck is the rest of 60% (10=/- marging of error) doing? will we claim that it is Wazee and Watoto (over 55 and under 16)?


well.... these are the people who do the survey or are being surveyed by REDET!
 
MKJJ; Impact ya corruption kwenye economy imeshafanyiwa tafiti mbali mbali na economists,hata hivyo,we can focus exclusively on corrupt public practices ie illegal activities that reduce the economic efficiency of governments.....However It does not address private corruption, such as that practiced on individuals and private enterprises by organized crime, mafisadi wa private and public sectors etc.

Hivyo ni muhimu tuzingatie hayo kadri mjadala unavyokwenda.....Tunaweza kujadili BOTH public and private practices,ni mjadala mrefu,kwa maana kwamba kama tuki ijadili issue hii inavyotakikana,basi ni mengi ya kuandika hapa na sidhani kama unaweza kupata just a summary,kwasababu kabla ya kussumrerise ni lazima tueleweshane, hata hivyo ni mjadala wa muhimu.
 
Mnashangaa nini hgii si ndiyo nchi ambayo only 15% inalipa kodi?????????? It is somewhere in the recordz, recent recordz!
 
Halafu JK alisema few months ago kuwa asilimia 30 ya fedha za bajeti zinaishia kwenye mifuko ya corrupt public officials.. Now I've figured it out.. to some Tanzanians corruption is a form of economic activity.. which I think it is! So BoT probably take it into account..
 
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?
Mzee Mwanakijiji, hata mimi sio mchumi, ila huu ni mtazamo wangu, corruption in Tanzania, is the order of the day, its part and parcel of our life, our economy etc because whataver gain received through petty corruption is spent within the country.The BOT index on expenditure shows Tanzanian are spending.

Nimesema rushwa is the order of the day kwa Mtanzania kwa sababu kima cha chini cha serikali ni 104,000/= sekta binafsi 150,000/= sekta ya kilimo 65,000/= p.m. Kama watu wanalipwa hizo fedha na kuspend more than their gain, economic indicators hazirekodi kinacholipwa, zinarekodi kinachotumiwa, yaani expenditure, matumizi ni makubwa, na kuonyesha uchumi una grow kwa pesa za rushwa ndogo ndogo zote zinarudi sokoni, the money circulation is big.

Mapato ya The Grand Corruption nayo about 75% yanabaki nchini kwenye investments, only 25% ndio inaweza kuwa exported. Big hauls kama za EPA, Tangold, Meremeta ect, hazionekani kuathiri uchumi wetu kwa vile kwenye mahesabu ya uchumi wa nchi, wamesha ya-expense legally kama expenditure kulipia madeni ya taifa, hivyo hata kama fedha hizo zitahamishwa 100% nje ya nchi, economic indicators zitaonyesha growth kwenye GDP yetu hadi kutoa pongezi kwa Mr. Clean, alipata growth rate ya 6% per annum na kupokea pongezi za WB kuwa Tanzania inakuwa na uchumi imara kiasi cha kupata uwezo wa kulipa madeni yake ya nje.

Matokeo ya rushwa kubwa ni contrast kati ya taarifa za BOT uchumi unakuwa, huku hakuna pesa za kuspend ndani ya mifuko ya watu, BOT ikijigamba imedhibiti mfumko wa bei, huko market forces zikipandisha bei kila kukicha.

Matokeo yake ni walio masikini, wanazidi kuwa masikini zaidi, na waliomeza bingo, wanatajirika kiukweli, ila pia kunazuka middle class ya wafanyabiashara wa kati wenye vipato vya kati ambapo wao kila siku wanaongeza magari mabarabarani, wanaweza kunywa pombe 24/7 ndio maana kila kona kuna baa na zote zinajaa!.
 
Mwanakijiji,

Kwa mtazamo wangu;
  • Kwanini watz wengi wanasali kabla na baada ya kula? Implication yake kwenye mind/brain au family/society ni nini in real world?
  • Hivi kweli kunakujituma? tunaelewa majukumu ya mtu binafsi na ya serikali?
  • Wengi wenye ajira wamepitipia kwenye ushindani kupata hizo nafasi hasa kwenye puplic office?
  • Kwanini vijana wengi wanakimbilia serikali kuliko private sector? hawana uhakika na performance yao? Ajira ya kudumu? posho nyingi? moyo wa kuitumikia jamii?
  • Kwanini private sector wanalipa kodi ya marupurupu na posho ilhali serikalini kuanzia watunga sheria wetu hawaguswi?
Kweli rushwa imekuwa sehemu ya maisha yetu.
 
Govt spending on allowances spirals


mkulowaziri.jpg

By Lucas Liganga
The government has raised its allowance budget to a staggering Sh216 billion this financial year, a new report shows.This is an increase of Sh45 billion on the Sh171 billion allowances dished out in 2008/9, according to the findings of Sikika, an NGO that seeks to ensure government accountability in the use of public resources for healthcare.

"This is by far the largest increase of all budget items surveyed," the NGO says in its report.

In its findings from allocations for seminars, allowances, purchase of vehicles and travel based on the 2008/9 and 2009/10 budgets, Sikika identifies the biggest spenders as the National Service, Tanzania Police Force and National Assembly.

The report seen by The Citizen says, for example, that the National Service allowance budget was almost doubled from Sh14.923 billion in 2008/9 to Sh28.568 billion in 2009/10, an increase of Sh13.644 billion.

The approved budget for allowances for the Police Force for 2008/09 was Sh21.775 billion, but the 2009/10 figure was Sh27.719 billion, an increase of Sh5.946 billion.

In 2008/9, Parliament approved Sh21.373 billion as allowances for the Bunge Office, and this figure shot up to Sh26.893 billion in the 2009/10 estimates, an increase of Sh5.520 billion.

"Sikika focused on these allocations because we believe that if the government reduces the budget for such items (which benefit relatively few people), it can reallocate these funds to the provision of essential social services, such as health and education," the report says.

While the budget for domestic travel dropped by Sh21 billion in the 2009/10 estimates, the smaller budget for international travel increased by 40 per cent from Sh31 billion in 2008/9 to Sh43 billion.

At the same time, the budget for fuel, oil and lubricants increased by 10 per cent from Sh51 billion in 2008/09 to Sh56 billion, the report says, naming the biggest spenders as the Police Force, Ministry of Defence and National Service and Prisons Department.

The report notes that these revelations come in the wake of concern about government extravagance, particularly in seminars and vehicle purchases, raised recently by Prime Minister Mizengo Pinda.

Last year, Mr Pinda announced drastic measures to reduce government expenditure on workshops and seminars, and directed that all ministries and regions must get clearance from his office before organising seminars and workshops.

Money to be saved would be channelled to programmes and projects that directly benefited Tanzanians, particularly those in rural areas, he said.

The report says low salaries and high allowance incentives have contributed to making travel and seminars more desirable among public servants.

"When allowances are only loosely related to actual costs incurred and when they are highly relative to basic salaries, they become an incentive instead of a reimbursement," the report says, adding:

"And when allowances become an incentive, the pursuit of allowances is likely to induce and reward behaviour that is counterproductive to the provision of quality services by public servants."

The report recommends that budget data for seminars needs to be broken down to enable the public to hold the Prime Minister to account over his commitment to reduce expenditure in this area.

The report says unnecessary expenditure in the form of allowances is just part of financial impropriety that inflates the national budget, and cites as an example the revelation by the Controller and Auditor General that Sh326 million were paid to ghost workers by the Ministry of Health and Social Welfare alone in 2007/8.

The report says the government should match its words with action in the 2010/11 Budget by drastically reducing expenditure attributed to seminars, travel, allowances, hospitality, fuel and vehicle purchases.

It also recommends reallocation of the allowance budget to raise the salaries of lower and middle-level civil servants, saying this would, in turn, help to improve the provision of public services such as healthcare and education.

The report also highlights the need to seek alternative training opportunities instead of relying on workshops and seminars that target a small number of individuals at a high cost and with limited impact.

Reacting to the report yesterday, the chairman of the Parliamentary Public Accounts Committee (PAC), Mr John Cheyo, said controlling allowance over-expenditure was proving difficult because civil servants with low salaries depended on the stipends to supplement their wages.

He said the most effective solution was to handsomely increase civil servants' salaries and lower taxes levied on the wages.

"It will be useless if the government raises salaries and at the same time imposes heavy taxes on them," Mr Cheyo told The Citizen by telephone.

Neither the Finance and Economic Affairs minister, Mr Mustafa Mkulo, nor his two deputies were immediately available for comment yesterday.
Source: The Citizen
 
capitalism is deepening in the tanzania job market, ................ Says the development is in “the right direction.”
says who..........synovate and the government............what do you expect them to say???
Right direction........mmh,madeni,njaa,ufisadi,uadilifu sifuri,tume isiyo huru ya uchaguzi,bilioni 40 zitakazoleta uwiano hasi kwenye uwanja wa mapambano,rushwa................

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?
corruption brings about unequal play between those trying to eradicate poverty in a state that is not liberal like ours,mfano rahisi wawekezaji wandani na wa nje,angalia wachimbaji madini wadogo na wakubwa.corruption inasababisha hata policy makers watengeneze sera kulingana na matakwa ya mwenye kutoa.
Muheshimiwa sana yuko pale na atakuwepo na umasikini utaendelea as long as hiyo 40b wataita.
Umasikini utaisha????rushawa haina impact kwenye uchumi???this thing is so wide...............
 
says who..........synovate and the government............what do you expect them to say???
Right direction........mmh,madeni,njaa,ufisadi,uadilifu sifuri,tume isiyo huru ya uchaguzi,bilioni 40 zitakazoleta uwiano hasi kwenye uwanja wa mapambano,rushwa................


corruption brings about unequal play between those trying to eradicate poverty in a state that is not liberal like ours,mfano rahisi wawekezaji wandani na wa nje,angalia wachimbaji madini wadogo na wakubwa.corruption inasababisha hata policy makers watengeneze sera kulingana na matakwa ya mwenye kutoa.
Muheshimiwa sana yuko pale na atakuwepo na umasikini utaendelea as long as hiyo 40b wataita.
Umasikini utaisha????rushawa haina impact kwenye uchumi???this thing is so wide...............

Kama kuna mchumi anaeweza kufanya modelling ya uchumi wetu TZ basi huyo atakua genius! How can it be possible to model the economy of which more than half is peasantry, consumer prices are rated in forex and wages are rated in local currency....Is a mix of a lot labda tuje na economic model zetu zilizopo, haziendani na practices zetu na ndiyo maana whatever is projected does not reflect the realities on ground. Mfano gunia la mahindi lina pewa uzito wa 100kg (Official scale) mtu mmoja aje aniambie Tz yetu wapi hilo gunia linapatikana.. Kama siyo rumbesa from local supliers na less kgs from middle men.

Mfano mwingine mfanyakazi wa hotel analipwa kwa rate ya local currency na anae consume service yake malipo yake yako rated kwa forex.. serikali ina rate kodi ya hiyo biashara kwa local currency...mchumi atachukua price index ipi ili are estimate hizo transactions zenye mchanganyiko kama uji wa power? Hata formular ya PPP nadhani haitafanya kazi kwa mtindo huu. Kwasababu bei ya hotel inafanana na USA na goods zinakua purchased kwa bei ya TZ....Huu uchumi ni made in TZ tu no where else in this world can be found.
 
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 Europe’s strongest economies and the world’s third.

Naomba kupewa mwanga wa mfano wa SME mbili za Ujerumani na SME mbili za hapa kwetu tanzania. Je zinajishughulisha na nini? masoko yake yako wapi? Zinatumia rasilimali gani kuzalisha ?

Kama tuna import Magari na spare zake, mpaka seat cover wakati ngozi tunayo, kama tuna import finshed product za gold wakati dhahabu tunayo hapa, kama bado kuna uhaba wa chakula na watu wanakufa njaa wakati kilimo kwanza tunayo. idadi ya bidhaa za ngozi tulizonano inatoka nje japo ngozi yenyewe tunayo. Idadi ya ngombe waliopo botwswana inalingana na idadi ya ngombe wa mkoa wa arusha pekee. yet botswana ina epxort meat product kuliko tanzania.

Utashangaa kwenye super market kuna maboski ya juice za uarabuni, Uk na maziwa ya china zimbabwe na RSA yaani hata bidhaa za chakula hazifiki kwenye masoko ya tanzania penyewe mhhh. So My take Most Tanzania SME are More engaged in administrative jobs than Real Productio Jobs

Without kuzalilisha finished product tutaridhishwa na maneno matamu ya takwimu. kama hatuwezi kuzalisha na ku epxort high tech product tumeshindwa hata ku export juice za machungwa , Tumeshindwa ku export nyama. achana hata ku export hata juice au maziwa ya kutumia sisi wenyewe.

Hizi takwimu inabidi zieleze challenge zaidi ya kusifia.
 
Sasa kama watanzanian corruption is a form of economic activity.Nani anatoa au kupokea ruhswa wakati wote ahawana kitu?si tunafahamu kuwa watanzania wengi tu maskini na tumeshaambiwa hapa kuwa ni asilimia 12 ya watanzania ni full employed.Hizi rushwa za fedha na vitu(bidhaa) zinatoka wapi?
 
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