Sustaining and Sharing Economic Growth in Tanzania.

By: Utz, Robert JContributor(s): Utz, Robert JMaterial type: TextTextSeries: World Bank Country StudyPublisher: Herndon : World Bank Publications, 2007Copyright date: ©2008Description: 1 online resource (368 pages)Content type: text Media type: computer Carrier type: online resourceISBN: 9780821371961Subject(s): Poverty -- Tanzania | Tanzania -- Economic policyGenre/Form: Electronic books.Additional physical formats: Print version:: Sustaining and Sharing Economic Growth in TanzaniaDDC classification: 338.96789 LOC classification: HC885 -- .U89 2008ebOnline resources: Click to View
Contents:
Contents -- FOREWORD -- ACKNOWLEDGMENTS -- ABBREVIATIONS -- OVERVIEW -- PART I POVERTY REDUCTION AND GROWTH: RECENT PERFORMANCE AND PROSPECTS -- 1. A DECADE OF REFORMS, MACROECONOMIC STABILITY, AND ECONOMIC GROWTH -- Improved Macroeconomic Fundamentals -- Determinants of Economic Growth in Tanzania -- Conclusions -- Notes -- 2. THE CHALLENGE OF REDUCING POVERTY -- Economic Inequality, Poverty, and Growth -- Nonmonetary Poverty Measures -- Economic Characteristics of the Poor -- Explaining Household Consumption -- Conclusions -- Notes -- 3. SPATIAL DIMENSIONS OF GROWTH AND POVERTY REDUCTION -- Overall Regional Income Patterns -- Implications for Regional Policy -- Notes -- 4. OUTLOOK ON GROWTH AND POVERTY REDUCTION -- Growth Scenarios -- Review of Tanzania's Growth Prospects in Historical and International Contexts -- Policy-Based Projections -- Input-Based Projections -- Sectoral Projections -- Reaching the MDG and NSGRP Targets -- Conclusions -- Notes -- PART II SECTORAL PERSPECTIVES ON GROWTH -- 5. AGRICULTURAL PRODUCTIVITY AND SHARED GROWTH -- Removing Constraints on Agricultural Growth -- Public Expenditures to Support Agricultural Growth -- Notes -- 6. FOSTERING GROWTH, EXPORT COMPETITIVENESS, AND EMPLOYMENT IN THE MANUFACTURING SECTOR -- Determinants of Manufacturing Sector Growth -- Enhancing the Export Performance of the Manufacturing Sector -- Conclusions and Recommendations for a Manufacturing Sector Growth Strategy -- 7. THE TOURISM INDUSTRY -- Economic Contribution of Tourism -- The Tanzanian Tourism Industry Compared with That of Other Countries -- Growth Potential -- Recommendations -- Notes -- 8. THE INFORMAL ECONOMY -- Constraints to Growth of Enterprises in the Informal Sector and Formalization -- Benefits of Increasing Formalization -- Implications for Policy -- Notes -- PART III ELEMENTS OF A STRATEGY FOR SHARED GROWTH.
9. FOSTERING INNOVATION, PRODUCTIVITY, AND TECHNOLOGICAL CHANGE -- Education -- Innovation -- Information and Communication Technologies -- Summary of Issues and Recommendations -- Notes -- 10. ENHANCING THE BUSINESS ENVIRONMENT -- Scaling Up Access to Infrastructure -- Scaling Up Access to Capital and Finance -- Enhancing the Public-Private Interface -- Notes -- 11. HARNESSING NATURAL RESOURCES FOR SUSTAINABLE GROWTH -- Contribution of Natural Resources to Growth and Government Revenue -- Public Investment in Natural Resource-Based Growth -- Untapped Growth Potential -- Potential for Local Spinoff Effects -- Potential for Poverty Reduction -- Sustainability of Growth -- Externalities -- Recommendations -- 12. ENHANCING THE CAPACITY OF THE POOR TO PARTICIPATE IN GROWTH -- Improving Human Capital of the Poor -- Building Physical Capital of the Poor -- Dealing with Vulnerability -- Conclusions -- Notes -- PART IV MANAGING POLICIES AND EXPENDITURES FOR SHARED GROWTH -- 13. SCALING UP PUBLIC EXPENDITURE FOR GROWTH AND POVERTY REDUCTION -- Domestic Resources -- Scaling Up Foreign Aid -- Debt Sustainability -- Reducing Aid Dependency -- Conclusions -- Notes -- 14. COORDINATION OF ECONOMIC POLICY FORMULATION AND IMPLEMENTATION -- Review of Institutions for Economic Policy -- Challenges -- Implementation of the Growth Agenda of the NSGRP -- Note -- BIBLIOGRAPHY -- INDEX -- BOXES -- 1.1 Overview of Structural Reforms in Tanzania -- 1.2 Government Spending and Economic Growth -- 2.1 Is Tanzania's Poverty Line Too Low? -- 3.1 Regional Differences in Coping with External Shocks -- 5.1 Organization of the Marketing Chain for Oranges and Onions -- 8.1 Examples of Voluntary Formalization -- 9.1 Benchmarking Tanzania in the Global Context -- 9.2 The United Nations Development Programme's Technology Achievement Index.
9.3 Constraints to Technology Access in the Horticulture Sector in Tanzania -- 10.1 Aspects of Governance -- 12.1 Gender Differences in Education -- 12.2 Marketing Opportunities and Crop Adoption -- 12.3 Positive Consequences of a Shock -- 12.4 A Poverty Trap in Shinyanga -- 12.5 Analysis Helps Clarify Whom to Target -- 14.1 Governance Arrangements to Strengthen the Effectiveness of Growth-Enhancing Interventions -- FIGURES -- 1.1 Annual Growth of Real GDP at Factor Cost, 1960-2005 -- 1.2 Merchandise Exports: Traditional and Nontraditional, 1990-2004 -- 1.3 Government Finance, 1991/92-2004/05 -- 1.4 Money and Inflation, 1990-2004 -- 1.5 Domestic Credit and Interest Rates -- 1.6 Capital Formation, 1995-2005 -- 1.7 Savings and Investment, 1990-2005 -- 1.8 Exchange Rate and Balance of Payments, 1990-2004 -- 1.9 Public and Publicly Guaranteed Debt and Debt Service, 1990-2005 -- 1.10 Decomposition of Economic Growth per Worker into Contribution of Human and Physical Capital Accumulation and Total Factor Productivity, 1985-2005 -- 1.11 Growth Rates of GDP Inclusive and Exclusive of Government Spending, 1990-2005 -- 1.12 Contribution of Private and Public Expenditure to Economic Growth, 1990-2005 -- 2.1 Simulated Changes in Poverty, 1992-2002 -- 2.2 Growth Incidence Curve: Nation as a Whole -- 3.1 Average GDP by Region, 1996-99 and 2000-03 -- 3.2 Average Maize and Paddy Yield per Hectare, Fiscal Years 1995-2001 -- 3.3 Interregional Output Disparities, 1980-2003 -- 4.1 Projections of GDP Per Capita and Poverty, 2003-25 -- 4.2 Average Annual Per Capita GDP Growth for Five-Year Periods, 1961-2005 -- 4.3 Average Per Capita Real GDP Growth in 185 Countries, 1994-2003 -- 4.4 Average Years of Schooling in Seven African Countries, 1960-2000 -- 4.5 Contribution of Capital Accumulation to Growth, 2005-25 -- 4.6 Projected Reduction in Consumption Poverty, 2001-15.
4.7 Projected Reduction in Consumption Poverty under Alternative Compositions of Growth, 2001-15 -- 4.8 Projected Reduction in Malnutrition (Underweight), 2004-15 -- 5.1 Average Annual Agricultural Growth, 1990-2003 -- 5.2 Labor Productivity Levels in Tanzania and Comparators, 1990-2002 -- 5.3 Labor Productivity Trends in Tanzania and Region, 1990-2003 -- 5.4 Producer and Intermediary Returns as a Percentage of the Border Price -- 5.5 Cost Components of Marketing Margins -- 5.6 Cost Components of Producer Margins -- 6.1 Growth of Manufacturing Sector Output and Exports -- 7.1 Tourism Receipts, 1991-2005 -- 7.2 Total Visitor Arrivals in Kenya and Tanzania, 1996-2004 -- 7.3 World Travel and Tourism Council Competitiveness Index, 2004 -- 8.1 Size of the Informal Economy for Selected Countries, as a Percentage of Gross National Income -- 8.2 Estimated Unreported Revenue for Tax Purposes -- 8.3 Median Value Added per Worker -- 9.1 Adult Literacy Rates, 1970-2002 -- 9.2 Average Years of Schooling, 1960-2000 -- 9.3 Reading Scores and Mathematics Scores -- 9.4 Predicted Earnings in Manufacturing Sector Based on Manufacturing Firm Surveys -- 9.5 Marginal Social Returns per Year of Education Based on Integrated Labor Force Survey -- 9.6 Projected Shortfall of Health Care Workers -- 9.7 ICT Infrastructure: Telephones, Personal Computers, and Internet -- 10.1 Cost of Inefficiencies in the Business Environment as a Percentage of Sales, Various Countries -- 10.2 Cost Structure of Firms by Average Percentage of Total Costs -- 10.3 Percentage of Enterprises Rating Problems as Major or Very Severe Constraints on Enterprise Operations and Growth, 2003 -- 10.4 Effect of Low Levels of Infrastructure on Economic Growth -- 10.5 Proportion of Rural Population Living within 2 Kilometers of an All-Season Road.
10.6 Real Interest Rates for T-Bills, Lending, and Savings, 1993-2005 -- 10.7 Governance Indicators for Tanzania, 1996-2005 -- 10.8 Informality in Tanzania and in Comparator Countries -- 10.9 Percentage of Firms Inspected and Number of Inspections per Year, by Government Agency -- 10.10 Rating of Problems by Enterprises in Tanzania and Comparator Countries -- 10.11 Enterprises Reporting That Bribes to the Government Affect Their Businesses in Tanzania and Comparator Countries -- 10.12 Requests for Bribes during Inspections -- 10.13 Interaction with Institutions That Demand Bribes: Microenterprises versus Small, Medium, and Large Enterprises -- 11.1 Annual License Revenue and Number of Foreign Vessels in EEZ, 1998-2004 -- 11.2 Income to Ololosokwan Village, Ngorongoro District Council, 1999-2003 -- 11.3 Village Incomes from Hunting in Lunda-Mkwambi (Game-Controlled Area), Idodi, and Pawaga Divisions, 1996-99 -- 12.1 Primary Education Performance, 1995-2004 -- 12.2 Changes in the Distribution of Access to Education in Rural Kilimanjaro, 2001 and 2003 -- 12.3 Enrollment in Secondary Schools, 1990-2004 -- 12.4 Percentage of Undernourished Children under Age Five, 1991-2004 -- 12.5 Fraction Stunted, by Region (1992-99), and Under-Five Mortality Rate per 1,000 Live Births (2002) -- 12.6 Height of Children in Kagera in 2004 by Stunting Status in 1993 -- 12.7 Nutritional Status of Children by Age, 1999 -- 12.8 Effect of Community Interventions on Average Nutrition Scores in Kagera, 1992-94 -- 12.9 Infant Mortality, 1988 and 2002 -- 12.10 Concentration Curves for Different Health Care Consultations -- 12.11 Births per Individual Women Ages 15-49, by Wealth Quintile -- 12.12 Fraction of People Working as Own-Account Laborers in Agriculture -- 12.13 Disability and Orphanhood Relative to Primary School Attendance -- 13.1 Effective Exchange Rates, 1990-2004.
13.2 Exports of Manufactures as a Percentage of GDP and Exports of Goods and Services, 1990-2002.
Summary: Far reaching macro-economic and structural reforms combined with increases in government spending have been the primary drivers of Tanzania's growth acceleration. As growth in government spending slows, the locomotive for growth will need to shift to increased demand for exports and domestically produced goods, requiring Tanzania to strengthen substantially its international competitiveness, accelerate structural change, and safeguard the environment while maintaining macroeconomic stability. For Tanzania's poor to be able to participate and benefit from important growth, a greater focus on rural development, improved governance of the management of Tanzania's natural resources, and better targeting of social services to the poor is suggested. Successful design and implementation of a shared growth strategy will also require a strengthening of policy management and coordination in Tanzania to ensure that scarce human and financial resources are effectively deployed.
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Contents -- FOREWORD -- ACKNOWLEDGMENTS -- ABBREVIATIONS -- OVERVIEW -- PART I POVERTY REDUCTION AND GROWTH: RECENT PERFORMANCE AND PROSPECTS -- 1. A DECADE OF REFORMS, MACROECONOMIC STABILITY, AND ECONOMIC GROWTH -- Improved Macroeconomic Fundamentals -- Determinants of Economic Growth in Tanzania -- Conclusions -- Notes -- 2. THE CHALLENGE OF REDUCING POVERTY -- Economic Inequality, Poverty, and Growth -- Nonmonetary Poverty Measures -- Economic Characteristics of the Poor -- Explaining Household Consumption -- Conclusions -- Notes -- 3. SPATIAL DIMENSIONS OF GROWTH AND POVERTY REDUCTION -- Overall Regional Income Patterns -- Implications for Regional Policy -- Notes -- 4. OUTLOOK ON GROWTH AND POVERTY REDUCTION -- Growth Scenarios -- Review of Tanzania's Growth Prospects in Historical and International Contexts -- Policy-Based Projections -- Input-Based Projections -- Sectoral Projections -- Reaching the MDG and NSGRP Targets -- Conclusions -- Notes -- PART II SECTORAL PERSPECTIVES ON GROWTH -- 5. AGRICULTURAL PRODUCTIVITY AND SHARED GROWTH -- Removing Constraints on Agricultural Growth -- Public Expenditures to Support Agricultural Growth -- Notes -- 6. FOSTERING GROWTH, EXPORT COMPETITIVENESS, AND EMPLOYMENT IN THE MANUFACTURING SECTOR -- Determinants of Manufacturing Sector Growth -- Enhancing the Export Performance of the Manufacturing Sector -- Conclusions and Recommendations for a Manufacturing Sector Growth Strategy -- 7. THE TOURISM INDUSTRY -- Economic Contribution of Tourism -- The Tanzanian Tourism Industry Compared with That of Other Countries -- Growth Potential -- Recommendations -- Notes -- 8. THE INFORMAL ECONOMY -- Constraints to Growth of Enterprises in the Informal Sector and Formalization -- Benefits of Increasing Formalization -- Implications for Policy -- Notes -- PART III ELEMENTS OF A STRATEGY FOR SHARED GROWTH.

9. FOSTERING INNOVATION, PRODUCTIVITY, AND TECHNOLOGICAL CHANGE -- Education -- Innovation -- Information and Communication Technologies -- Summary of Issues and Recommendations -- Notes -- 10. ENHANCING THE BUSINESS ENVIRONMENT -- Scaling Up Access to Infrastructure -- Scaling Up Access to Capital and Finance -- Enhancing the Public-Private Interface -- Notes -- 11. HARNESSING NATURAL RESOURCES FOR SUSTAINABLE GROWTH -- Contribution of Natural Resources to Growth and Government Revenue -- Public Investment in Natural Resource-Based Growth -- Untapped Growth Potential -- Potential for Local Spinoff Effects -- Potential for Poverty Reduction -- Sustainability of Growth -- Externalities -- Recommendations -- 12. ENHANCING THE CAPACITY OF THE POOR TO PARTICIPATE IN GROWTH -- Improving Human Capital of the Poor -- Building Physical Capital of the Poor -- Dealing with Vulnerability -- Conclusions -- Notes -- PART IV MANAGING POLICIES AND EXPENDITURES FOR SHARED GROWTH -- 13. SCALING UP PUBLIC EXPENDITURE FOR GROWTH AND POVERTY REDUCTION -- Domestic Resources -- Scaling Up Foreign Aid -- Debt Sustainability -- Reducing Aid Dependency -- Conclusions -- Notes -- 14. COORDINATION OF ECONOMIC POLICY FORMULATION AND IMPLEMENTATION -- Review of Institutions for Economic Policy -- Challenges -- Implementation of the Growth Agenda of the NSGRP -- Note -- BIBLIOGRAPHY -- INDEX -- BOXES -- 1.1 Overview of Structural Reforms in Tanzania -- 1.2 Government Spending and Economic Growth -- 2.1 Is Tanzania's Poverty Line Too Low? -- 3.1 Regional Differences in Coping with External Shocks -- 5.1 Organization of the Marketing Chain for Oranges and Onions -- 8.1 Examples of Voluntary Formalization -- 9.1 Benchmarking Tanzania in the Global Context -- 9.2 The United Nations Development Programme's Technology Achievement Index.

9.3 Constraints to Technology Access in the Horticulture Sector in Tanzania -- 10.1 Aspects of Governance -- 12.1 Gender Differences in Education -- 12.2 Marketing Opportunities and Crop Adoption -- 12.3 Positive Consequences of a Shock -- 12.4 A Poverty Trap in Shinyanga -- 12.5 Analysis Helps Clarify Whom to Target -- 14.1 Governance Arrangements to Strengthen the Effectiveness of Growth-Enhancing Interventions -- FIGURES -- 1.1 Annual Growth of Real GDP at Factor Cost, 1960-2005 -- 1.2 Merchandise Exports: Traditional and Nontraditional, 1990-2004 -- 1.3 Government Finance, 1991/92-2004/05 -- 1.4 Money and Inflation, 1990-2004 -- 1.5 Domestic Credit and Interest Rates -- 1.6 Capital Formation, 1995-2005 -- 1.7 Savings and Investment, 1990-2005 -- 1.8 Exchange Rate and Balance of Payments, 1990-2004 -- 1.9 Public and Publicly Guaranteed Debt and Debt Service, 1990-2005 -- 1.10 Decomposition of Economic Growth per Worker into Contribution of Human and Physical Capital Accumulation and Total Factor Productivity, 1985-2005 -- 1.11 Growth Rates of GDP Inclusive and Exclusive of Government Spending, 1990-2005 -- 1.12 Contribution of Private and Public Expenditure to Economic Growth, 1990-2005 -- 2.1 Simulated Changes in Poverty, 1992-2002 -- 2.2 Growth Incidence Curve: Nation as a Whole -- 3.1 Average GDP by Region, 1996-99 and 2000-03 -- 3.2 Average Maize and Paddy Yield per Hectare, Fiscal Years 1995-2001 -- 3.3 Interregional Output Disparities, 1980-2003 -- 4.1 Projections of GDP Per Capita and Poverty, 2003-25 -- 4.2 Average Annual Per Capita GDP Growth for Five-Year Periods, 1961-2005 -- 4.3 Average Per Capita Real GDP Growth in 185 Countries, 1994-2003 -- 4.4 Average Years of Schooling in Seven African Countries, 1960-2000 -- 4.5 Contribution of Capital Accumulation to Growth, 2005-25 -- 4.6 Projected Reduction in Consumption Poverty, 2001-15.

4.7 Projected Reduction in Consumption Poverty under Alternative Compositions of Growth, 2001-15 -- 4.8 Projected Reduction in Malnutrition (Underweight), 2004-15 -- 5.1 Average Annual Agricultural Growth, 1990-2003 -- 5.2 Labor Productivity Levels in Tanzania and Comparators, 1990-2002 -- 5.3 Labor Productivity Trends in Tanzania and Region, 1990-2003 -- 5.4 Producer and Intermediary Returns as a Percentage of the Border Price -- 5.5 Cost Components of Marketing Margins -- 5.6 Cost Components of Producer Margins -- 6.1 Growth of Manufacturing Sector Output and Exports -- 7.1 Tourism Receipts, 1991-2005 -- 7.2 Total Visitor Arrivals in Kenya and Tanzania, 1996-2004 -- 7.3 World Travel and Tourism Council Competitiveness Index, 2004 -- 8.1 Size of the Informal Economy for Selected Countries, as a Percentage of Gross National Income -- 8.2 Estimated Unreported Revenue for Tax Purposes -- 8.3 Median Value Added per Worker -- 9.1 Adult Literacy Rates, 1970-2002 -- 9.2 Average Years of Schooling, 1960-2000 -- 9.3 Reading Scores and Mathematics Scores -- 9.4 Predicted Earnings in Manufacturing Sector Based on Manufacturing Firm Surveys -- 9.5 Marginal Social Returns per Year of Education Based on Integrated Labor Force Survey -- 9.6 Projected Shortfall of Health Care Workers -- 9.7 ICT Infrastructure: Telephones, Personal Computers, and Internet -- 10.1 Cost of Inefficiencies in the Business Environment as a Percentage of Sales, Various Countries -- 10.2 Cost Structure of Firms by Average Percentage of Total Costs -- 10.3 Percentage of Enterprises Rating Problems as Major or Very Severe Constraints on Enterprise Operations and Growth, 2003 -- 10.4 Effect of Low Levels of Infrastructure on Economic Growth -- 10.5 Proportion of Rural Population Living within 2 Kilometers of an All-Season Road.

10.6 Real Interest Rates for T-Bills, Lending, and Savings, 1993-2005 -- 10.7 Governance Indicators for Tanzania, 1996-2005 -- 10.8 Informality in Tanzania and in Comparator Countries -- 10.9 Percentage of Firms Inspected and Number of Inspections per Year, by Government Agency -- 10.10 Rating of Problems by Enterprises in Tanzania and Comparator Countries -- 10.11 Enterprises Reporting That Bribes to the Government Affect Their Businesses in Tanzania and Comparator Countries -- 10.12 Requests for Bribes during Inspections -- 10.13 Interaction with Institutions That Demand Bribes: Microenterprises versus Small, Medium, and Large Enterprises -- 11.1 Annual License Revenue and Number of Foreign Vessels in EEZ, 1998-2004 -- 11.2 Income to Ololosokwan Village, Ngorongoro District Council, 1999-2003 -- 11.3 Village Incomes from Hunting in Lunda-Mkwambi (Game-Controlled Area), Idodi, and Pawaga Divisions, 1996-99 -- 12.1 Primary Education Performance, 1995-2004 -- 12.2 Changes in the Distribution of Access to Education in Rural Kilimanjaro, 2001 and 2003 -- 12.3 Enrollment in Secondary Schools, 1990-2004 -- 12.4 Percentage of Undernourished Children under Age Five, 1991-2004 -- 12.5 Fraction Stunted, by Region (1992-99), and Under-Five Mortality Rate per 1,000 Live Births (2002) -- 12.6 Height of Children in Kagera in 2004 by Stunting Status in 1993 -- 12.7 Nutritional Status of Children by Age, 1999 -- 12.8 Effect of Community Interventions on Average Nutrition Scores in Kagera, 1992-94 -- 12.9 Infant Mortality, 1988 and 2002 -- 12.10 Concentration Curves for Different Health Care Consultations -- 12.11 Births per Individual Women Ages 15-49, by Wealth Quintile -- 12.12 Fraction of People Working as Own-Account Laborers in Agriculture -- 12.13 Disability and Orphanhood Relative to Primary School Attendance -- 13.1 Effective Exchange Rates, 1990-2004.

13.2 Exports of Manufactures as a Percentage of GDP and Exports of Goods and Services, 1990-2002.

Far reaching macro-economic and structural reforms combined with increases in government spending have been the primary drivers of Tanzania's growth acceleration. As growth in government spending slows, the locomotive for growth will need to shift to increased demand for exports and domestically produced goods, requiring Tanzania to strengthen substantially its international competitiveness, accelerate structural change, and safeguard the environment while maintaining macroeconomic stability. For Tanzania's poor to be able to participate and benefit from important growth, a greater focus on rural development, improved governance of the management of Tanzania's natural resources, and better targeting of social services to the poor is suggested. Successful design and implementation of a shared growth strategy will also require a strengthening of policy management and coordination in Tanzania to ensure that scarce human and financial resources are effectively deployed.

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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2018. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.

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