Finding an approach to make Tanzania’s economic growth inclusive



By Jacob Mosenda

Dar es Salaam. Although Tanzania entered the lower middle-income economy earlier than expected, stakeholders – including researchers – are proposing a different approach for the country’s rapid growth to benefit the people.

They say the country’s economic growth is not reflected in national economic development.

The group argues that some Tanzanians cannot afford a single meal and die due to a lack of health services and that the level of ignorance appears to have increased as the country’s facilities are not sufficient to meet the needs. an increased number of students enrolled in primary school. education. They further claim that the education system also does not match the demands of the job and that the agricultural sector, which is seen as the backbone of the country’s economy, is not producing adequate results.

“This situation calls for new approaches, a new philosophy, a new direction and a new thinking for the benefit of present and future generations”, notes Dr Charles Kitima, researcher and lecturer at St Augustine University of Tanzania (Saut) .

He says it is deemed necessary now that the country needs a new economic order to achieve its goals.

“The lessons learned from Germany, other EU countries and other countries of the world and our own experiences through all the reforms since independence lead us towards a model of social market economy, which proves the success of inclusive economic development, “said Dr Kitima in an interview with The Citizen. .


Former vice-chancellor de Saut said Tanzania can take it to the next level and become a strong and competitive economy in regional and international markets if the country adopts the model according to its own circumstances.

“This is because our country is experiencing encouraging economic growth rates but very disappointing economic development. The majority of citizens still live in abject poverty, ”he insists.

The reasons for success and failure, he says, can be complex, but the main ones can be approach, philosophy and ideology and all of this can be explained by the type of business model being used.

He notes that successful countries may be role models for others to follow, although circumstances and conditions may be different.

The model comes after scientific research and analysis by economists from Mzumbe University, St. Augustine University of Tanzania (SAUT) and University of Dar es Salaam under the coordination of religious leaders in Tanzania.

The suggested economic system, they say, dates back to Alfred Muller Armack, Walter Eucken, Leonhard Miksch, Franz Bohm, Wilhelm Ropke, Alexander Rustow, Konrad Adenauer and Ludwig Erhard who had the vision of strengthening and building individual economies under their own government. .

“We need a clear economic ideology that directs the country’s development activities towards an inclusive economy in which free trade and competition are balanced,” notes Dr Kitima.

He said the system would affect the informal sector which has the potential to employ more people at a time when unemployment is constantly a crisis both locally and globally.

“Since the formal sector has not done well in terms of the economy compared to the informal sector which includes many people, this is why we came up with the idea of ​​a social market economy to further stimulate the economy. ‘existing economy in these sectors,’ he says.

Also in a recent workshop which brought together experts from Germany, which is one of the best performing countries thanks to the social market economy model, religious leaders and representatives of Tanzanian lawmakers, stakeholders felt that every Tanzanian could experience some economic growth if the model is adopted.

“The social market economy combines private enterprises with regulation and state intervention to establish fair competition – maintaining a balance between high economic growth rate, low inflation, low levels of unemployment, good working conditions and social welfare, ”observes Gordon Hoffmann, secretary general of the outgoing CDU party.

“Unlike other economic models, the social market economy includes local populations, allowing them to participate and positively contribute to the economic growth of their country,” he adds in an interview with the magazine. The Citizen’s business week.

Mr. Hoffmann further notes that for them (Germany) the history of the social market economy is a success because it brings together different aspects, economic strength but also the care of people who need support, an achievement which guarantees the inner peace of all society.

“This makes me very proud because the CDU has implemented the social market economy model in Germany and has proven to be very successful. It is therefore very exciting that this model is spreading all over the world, including in Tanzania, ”he notes.

He says however that he is not in Tanzania to say how to do it but only to share the experience and the importance of such a model for a “fast” developing country like Tanzania.

“I’m here just to give you some perspective on Germany’s experience with this model and I hope you can find some aspects that you can adopt in your country and that you can adapt to your country”, he said.

He says that through this model, they were able to unite the country economically and make everyone feel like one of the nation’s development partners by establishing a system of educating young people and giving them the opportunity to contribute to their national economy.

He says they have different laws eg companies and corporations are responsible for educating young people (employees) and if they don’t they pay a fee.

“We also support young people who have special needs so that they can participate successfully in the growth of society and this is a major aspect of the social market economy, in which you do not only care about the strong. but also of those who need a little support, ”he notes.

Mr. Hoffmann believes that the model studied since 2016 by Tanzanian experts will allow Tanzania to create a sustainable economy for individuals.

“The uniqueness of this model lies in the way in which it links the market economy and the role of the government in controlling the economic growth of the country if it is to guarantee justice for all and promote fair competition,” explains he does.

“It’s a system that takes a little longer to work out, Germany has succeeded by enacting laws and regulations that provide equal economic opportunity between the haves and have-nots,” Hoffman adds.

Since independence, Tanzania has never had a system to steer the type of economy needed, they argue, asserting that between 1961 and 1985 the country followed the economy of African socialism; 1985-1995 the liberal economy system; from 1995 to 2015 the privatization system; and from 2015 to the present day it is the industrial economy.

“This makes Tanzania a nation that lacks economic leadership,” says SAUT lecturer Pansian Ntui.

Mufindi South MP David Kihenzile, who is also Speaker of the National Assembly and chair of the Parliamentary Committee on Trade, Industry and Environment, said the model would help ensure that the many resources of the country reflect the livelihoods of the people.

He says that although Tanzania is rich in many resources, including livestock, minerals and even among the largest egg exporters, “but the question is how far are all of these resources that God has blessed us touching?” the lives of individuals? He questions.

“This is why the social market economy model must receive special attention so that it can support the government’s efforts to improve the lives of its citizens,” he notes, adding that he will table a motion. on the same to speed up its adoption. in the countryside.



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