Is Tanzania economic development a success story

Abstract

This thesis analyses the impact of economic growth in Tanzania on poverty reduction using Vietnam as benchmark country. The economic growth in Tanzania raises an important question whether there is a trickledown effect to poor people in improving their wellbeing through reduction in poverty. The assessment is based on review focusing in Human Development Index and agriculture as they are important development indicators given the nature of the Tanzania economy. Basing on the review of various National and international documentation for the period of 1990 – 2012, this thesis reports that, Tanzania economic growth is so far not a success story, looking to the progress made on pro-poor growth. Despite of the impressive economic growth many people are living in poverty and important sector of the economy like agriculture which affects many poor people is underdeveloped and growing income gap between urban and rural areas. Also issues regarding education, health and other important aspect for human wellbeing are narrowly defined as they do not reflect the real situation. Therefore, the policy implication from the review is that Tanzanias development strategies should focus more on pro-poor growth especially on agricultural sector because poverty is more pronounced in rural areas and majority depend on agriculture. Also more emphasis should be in human capital development as it is very important components for economic growth and development.