Summary Tanzania Human Development Report 2014 United Republic of Tanzania Economic Transformation for Human Development Summary Tanzania Human Development Report 2014 Economic Transformation for Human Development United Republic of Tanzania Implementing Partner Summary i Tanzania Human Development Report 2014 Economic Transformation for Human Development Copyright © 2015 Published by Economic and Social Research Foundation 51 Uporoto Street (Off Ali Hassan Mwinyi Road), Ursino Estates P.O Box 31226, Dar es Salaam, Tanzania Tel: (+255) 22 2926084, 2926085, 2926086, 2926087, 2926088, 2926089, 2926090 Mobile: +255 754 780133, +255 655 780233 Fax: +255 22 2926083 Emails: [email protected] or [email protected] Website: http://www.esrf.or.tz, http://www.thdr.or.tz United Nations Development Programme Tanzania Office 182 Mzinga way, Off Msasani Road Oysterbay P. O. Box 9182 Dar-Es-Salaam, Tanzania Tel (+255) 22 2112576, +255 686 036 436 UNDP Resident Representative & UN Resident Coordinator Office: Tel: +255 686 036 436, +255 686 036 436 UNDP Country Director Office: Tel: +255 686 036 475, +255 686 036 475 Email: [email protected] Website: http://www.tz.undp.org Government of the United Republic of Tanzania Ministry of Finance P. O. Box 9111 Dar es salaam Phone: +255 22 2111174-6 Fax: +255 22 2110326 Website: http://www.mof.go.tz All rights reserved, no parts of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without prior written permission ISBN 978-9987-770-01-4 Artistic design of the cover by Mr. Haji Chilonga La petitie Galerie Oysterbay Shopping Centre Toure Drive-Masaki P.O. Box 105160 Dar es Salaam, Tanzania Designed and Printed by Jamana Printers, Tanzania. ii TANZANIA HUMAN DEVELOPMENT REPORT 2014 Preface The release of the first Global Human Development Report (GHDR) in 1990 signalled a paradigm shift in the conceptualization of development. This report and those that followed, issued by the United Nations Development Programme (UNDP) over the past 20 years, have significantly altered the way most governments approach the challenge of development. Today, many countries have adopted the human development paradigm in addressing development challenges by putting people at the centre. Since then, several countries and territories have produced their own country- or region-specific human development reports at regular intervals: in total, more than 600 regional, national and subnational human development reports have been launched by more than 143 countries. These reports are strategic advocacy tools created through a process of active engagement within these countries and across regions in addressing cutting-edge issues and articulating people’s priority needs. These reports provide an important source for innovation and advancement in development policies and practices. The current release of the Tanzania Human Development Report (THDR) 2014 is the first THDR issue, with a theme of Economic Transformation for Human Development. Over the last decade, there has been a change in the focus of development policy away from mere quantitative changes in the rate of output towards a concern for the changing qualitative nature of economic growth encapsulated in the concept of economic transformation. Economic transformation is particularly relevant for Tanzania since, while Tanzania witnessed impressive GDP growth rates of more than 6% since 2000, this growth has not led to a commensurate reduction in income poverty. At the same time, the Government of Tanzania has set an ambitious target of reducing poverty significantly and becoming a middle-income country by 2025. This requires not only sustained economic growth in quantitative terms, but also a significant economic transformation involving a fundamental change in the economy’s structure. This report analyses the economic transformation necessary for Tanzania to achieve the stated objective of becoming a middle-income country by 2025, as aspired by the national development vision 2025. The main report contains four chapters and a statistical annex. The first chapter presents a snapshot of the status and progress of human development in Tanzania. The second chapter discusses what is meant by economic transformation and illuminates the nature of the on-going processes of transformative growth in Tanzania. The third chapter discusses the kind of economic transformation we want, whereas the fourth chapter concludes with a commentary on how to make economic transformation work for human development. The statistical annex provides a rich overview of key indicators/indices of socio-economic and human development. THDR 2014 was produced under the aegis of the UNDP Human Development Initiative, which embraces a network of global, regional and country reports, and was explicitly designed to draw upon local expertise and to seek widespread nationally based consultation and feedback from a variety of actors within the field of development policy and action, including close collaboration with various government structures. The report’s production involved a network of scholars drawn from the national research and university system with funding from the UNDP. The Economic and Social Research Foundation (ESRF) was the implementing partner for the THDR, working in close collaboration with key partner institutions, including the National Bureau of Statistics (NBS), the Office of Chief Government Statistician Zanzibar (OCGS), and the Department of Economics at the University of Dar es Salaam (UDSM). The project manager and secretariat of the THDR initiative carried out the day-to-day activities in the report’s production in close collaboration with a core team composed of experts from the UNDP, ESRF, NBS and UDSM. In addition, a broader working group, composed of 35 experts drawn from a variety of national institutions and development agencies, provided further support, feedback and guidance throughout the report’s production process. This process involved commissioning and writing ten background papers, which constituted the core materials for writing up the final report. In parallel, the report’s production further involved collecting large and diversified amounts of data on socio-economic development, and compiling tables with key indicators/indices of human development, as presented in the statistical annex. SummaryPreface iii We would like to thank Dr. Hoseana Lunogelo, Executive Director of ESRF, for giving the opportunity for ESRF to be the implementing partner for the THDR initiative. Special thanks are due to Dr. Tausi Kida, the Director of Programmes at ESRF and Project Manager for the THDR initiative, for the technical and coordinating role she played in directing the whole process of preparing and producing the report. Special appreciation is due to Professor Marc Wuyts (ISS) for the intellectual guidance he provided throughout this process. Special thanks are further due to the core THDR team for their commitment to the project. This team is composed of Dr. Rogers Dhliwayo (UNDP), Mr. Amon Manyama (UNDP), Dr. Tausi Kida (ESRF), Dr. Jehovaness Aikaeli (UDSM), Dr. Kenneth Mdadila (UDSM), Mr. Ahmed Markbel (NBS), Mr. Sango Simba (NBS), Mr. Deogratias Mutalemwa (ESRF), Ms. Monica Githaiga (UNESCO) and Prof. Marc Wuyts (ISS). We would also like to record our appreciation to Dr. Amarakoon Bandara – former economic advisor for UNDP Tanzania – who played an important role during initial stages of preparing the report prior to his reallocation to the UNDP office in Zimbabwe. Our sincere gratitude goes to the report’s drafting team, composed of the following experts: Dr. Tausi Kida and Prof. Haidari Amani (chapter 1); Dr. Hazel Gray (chapter 2); Prof. Gelase Mutahaba, Prof. Ernest Mallya and Dr. Jehovaness Aikaeli (chapter 3); Prof. Gelase Mutahaba, Prof. Ernest Mallya and Prof. Haidari Amani (chapter 4), and Dr. Kenneth Mdadila and Dr. John Mduma (statistical annex)1. The preparation of statistical annex benefited greatly from the active support given by the national statistical offices of both Tanzania Mainland and Zanzibar. In this regard, we are indebted to Dr. Albina Chuwa – Director General of the NBS – and Mr. Mohamed Hafidh – Chief Government Statistician of the Revolutionary Government of Zanzibar – for their support in preparing THDR 2014. We thank Dr. Richard Whitehead – Managing Director of Edit to Publish – for the splendid work in copy-editing the final manuscript. We would like to express our gratitude to Mr. Nicolai Schulz for his contribution to the summary report and Mr. Rashid Chuachua for translating the summary report from English to Kiswahili. Special thanks to the contemporary Tanzanian artist, Mr. Haji Chilonga, for the vivid painting he produced to serve as the report’s cover page. We would also like to thank Ms. Margareth Nzuki and the entire Knowledge Management team at ESRF for their support on dissemination component for this report. Finally, we thank Mr. Danford Sango (ESRF) and Mr. Yasser Manu (ESRF) for the technical and administrative role they played in their capacity as members of THDR secretariat. We would like to express our gratitude to the following authors of the THDR 2014 background papers: (i) Dr. Tausi Kida and Prof. Haidari Amani – authors of background paper # 1, “The status and progress of human development in Tanzania”; (ii) Prof. Marc Wuyts and Dr. Blandina Kilama – authors of background paper # 2, “Economic transformation in Tanzania: vicious