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PRIVATE SECTOR DEVELOPMENT AND CROSS CUTTING ISSUES

Private Sector Development
Cross - Cutting Issues
Progress in the Implementation of the Poverty Reduction Strategy
Acronomys and Abbreviations

     

PROGRESS IN THE IMPLEMENTATION OF THE POVERTY

REDUCTION STRATEGY

 
 

Introduction

149.            In the past ten years, there has been new thrust in the efforts to combat poverty.  The third phase government established a department for co-ordinating poverty eradication initiatives in the Vice President’s Office.  The National Poverty Eradication Strategy (NPES) was prepared in collaboration with various stakeholders according to the objectives of the Development Vision 2025. The Tanzania Assistance Strategy (TAS) framework was prepared in order to manage donor resources and channel such resources to identified national priority areas. Also, the government coordinated the preparation of Poverty Reduction Strategy (PRSP) under Highly Indebted Poor Countries Initiative (HIPC) program for the implementation of National Poverty Eradication Strategy in line with Development Vision.

 

150.            Furthermore, the government established a comprehensive poverty monitoring system that links all sources of statistics.  The system encompasses four technical working groups led by key stakeholders.  These groups are: Surveys and Census Technical  Group under National Bureau of Statistics (NBS); Routine Data Technical Working Group under President’s Office, Regional Administration and Local Government (PO-RALG); Research and Analysis Technical Working Group led by President’s Office, Planning and Privatization; and Dissemination, Sensitization and Advocacy Technical Working Group under Vice President’s Office.  This system is used as a monitoring framework for Poverty Reduction Strategy and to undertake comprehensive analysis in order to know its effective implementation and to sensitize people on various poverty reduction initiatives. Since the PRS began to be implemented and official operationalisation of Poverty Monitoring System in 2001, the government prepares two important reports, which are the annual Progress Report for Poverty Reduction Strategy, and the Poverty and Human Development Report (PHDR).

 

Poverty Status in Tanzania

151.            According to the analysis of the Household Budget Survey (HBS) 2000/01 and Integrated Labour Force Survey (ILFS) – 2000/01, Tanzania still has a large proportion of people living below poverty line. The proportion of  people who cannot meet basic food requirements is 19 percent of total population.  Moreover, the proportion of people  with income which cannot satisfy basic needs i.e. food, shelter, clothes, primary education for children and essential health services is 36 percent. When this situation is compared to that of 1991/92 HBS when earlier exercise was undertaken, there has been slight progress manifesting itself in the urban areas particularly in Dar es Salaam city.  The situation in rural areas has remained almost the same.

 

152.            Further analysis reveals that 87 percent of all poor people live in rural areas compared to 13 percent in urban areas.  There is a close relationship between poverty status and education level of head of household.  51 percent of poor people was found in the households with heads of households who had not attained primary education compared to only 12 percent, who had attained primary education and above.  Also, the analysis shows that, households that depends on agriculture, particularly subsistence agriculture have high levels of poverty.  This level increases for those households with large number of members and whose heads of households have neither economic activities nor primary education.

 

153.            With regard to accessibility of basic social services the analysis reveals that the poorest people are affected most.  The proportion of primary school students from poor households is very low and had been declining during 1990’s.  Access to health services to poor people also declining particularly after reduction of public health services and introduction of cost sharing system.  Furthermore, many poor people use unsafe water and 54 percent of poor households depend on unprotected sources of water compared to only 40 percent of other households.  The average distance to water sources is much long for the poorest people.

 

Emerging issues in the Analysis of Poverty Status

154.            The Poverty and Human Development Report – 2002 identifies emerging important issues in relation to the analysis of poverty status in Tanzania.  The main challenge is how to grapple with poverty differentials manifested by sectors, regions and districts.  Although, poverty spread throughout Tanzania and affects many people, it’s clear that, poverty emerged with different dimensions and there is big difference between urban and rural areas, among regions and districts and even between men and women.  According to this reality, it is apparent that the Poverty Reduction Strategy with only national targets cannot suffice.  It is important to have sectoral and geographical area strategies and objectives aimed at specific sectors and areas according how poverty manifest itself in respective  sectors and geographical areas.

 

155.            This poverty differentials also needs more efforts in targeting most vulnerable groups and areas affected most.  It is obvious that, it will be difficult for a macro strategy to reach the most vulnerable groups without deliberate efforts to target those groups.  The Agriculture Development Strategy and its implementation program as well as Rural Development Strategy are among the initiatives required to be developed faster as a measure for targeting societies and areas which are more vulnerable.

 

156.            Another challenge is related to translating the national achievements gained in to benefits to the people at the household level.  The recent years efforts particularly in the second half of 1990s succeeded to lay down conducive environment particularly in macro economic trends that facilitate war against poverty to succeed.  The Government desire to fight poverty manifest well in the national strategies that created the basis that enabled Tanzania to be among the first four countries to receive debt relief under Highly Indebted Poor Countries Initiative.  This conducive environment at the national level has not brought about immediate significant impact in reducing the level and severity of poverty status.  This is a big challenge as the way forward requires extra efforts to achieve the set targets in reducing abject poverty by 50 percent in year 2010.  Specifically, this challenge involve to have high level of sustained growth, growth with wide base, and growth of sectors that directly touch the poor.

 

Progress in the implementation of Poverty Reduction Strategy

157.            The progress in the implementation of the Poverty Reduction Strategy is described in the annual Progress Report.  Since the formulation of this strategy in 2000, there have been two implementation reports.  This report lays down basic measures for all indicators identified for monitoring income poverty and non-income poverty, and provide information on implementation of macro-economic policies and its linkage to poverty reduction efforts. There is also, in-depth description on the implementation of the Poverty Reduction Strategy for the identified priority sectors i.e. agriculture, primary education, rural roads, water, health, judiciary and HIV/AIDS.  Moreover, there is an in-depth description of implementation of cross–cutting issues such as Rural Development Strategy, environment, gender, governance, employment creation, local government reform and human resource development.  The report also analyses the government budgetary allocation for activities to fight poverty in specified priority areas and sectors.  The last section describes progress in the implementation of the poverty monitoring system in Tanzania.

 

158.            Monitoring the implementation of sector objectives of the Poverty Reduction Strategy show modest achievements.  For instance, agriculture sector targeted to create an enabling environment for improved profitability in agriculture and ensure food security. Some of the major milestones reached in pursuit of the objective include, completion of Rural Development Strategy, Agriculture Sector Development Programme and removal of barriers in the internal marketing of crops.

 

159.            Primary education sector targeted to increase student enrolment rate and raise the quality of primary education.  There has been larger increase of enrolment in primary schools.  A total of shs. 73.06 billion was disbursed to local government and 12,868 classrooms were constructed.  In addition, 82 districts completed primary school mapping exercise and more than 53 districts completed school plans for development of their schools.  With regard to health objective, was to strengthen immunization of children, malaria control, reduce maternal mortality rate and to reduce the rate of HIV/AIDS infection. The program of Integrated Management of Child Illness (IMCI) was expanded from 31 to 93 districts.  The proportion of under 2 years children who received the basic immunization increased from 74 percent to 79 percent.  Midwifery services increased by 30 percent and the community health insurance was established in 37 districts.

 

The Structure of Poverty Monitoring System

160.            The Poverty Monitoring Master Plan has been prepared in collaboration with various stakeholders and has been incorporated in the whole government decision making set up  for quick decision- making and improvement plans related to issues of the poverty reduction.  The poverty monitoring system in Tanzania encompasses; Committee of Ministers for Poverty Reduction Strategy, National Poverty Monitoring Steering Committee, Interministerial Technical Committee, and Technical Working Groups (Survey and Census; Research and Analysis; Routine Data; and Dissemination, Sensitization and Advocacy).

 
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