ECONOMIC DEVELOPMENT IN TANZANIA SINCE INDEPENDENCE
Since independence Tanzania has tried different ways to achieve development, but in the whole, the country is still finding it very difficult to achieve real growth and development. The following are the challenges of Tanzania‘s economic development
A.
Inadequate capital.
The absence of adequate capital is one of the crucial factors that have hindered development in the region. African countries rely on loans given by the developed countries, but these loans have conditions attached and came in small trickles thus not able to support development in Africa.
B.
Poor transport system.
Existence of poor transport systems which were mainly concentrated in productive areas led Tanzania to fail to achieve the goals of multiparty.
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Illiteracy
High levels of illiteracy are one of the factors that have contributed significantly to under development of Tanzania. The colonial education system provided education to a few people along racial and religious lines thus leaving the majority of the people illiterate. Low levels of literacy leads to limited number of skilled people in Tanzania which does not promote development.
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Corruption/ embezzlement of the government funds.
Corruption is one of the major factors that have hindered real development in Tanzania. Government officials especially the presidents have misused public funds. Many governments in Africa, Tanzania inclusively have run bankrupt because of corruption and mismanagement.
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Introduction of socialist ideology.
At the time of independence, Tanzania chooses socialism and self reliance. The government introduced codes that were similar or common in the socialist world including one party system and common ownership of property. This practice cut off Tanzania from the western world and the situation was worsening by the collapse of Soviet Union.
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Border conflicts.
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Ever since independence, there have been several conflicts, these conflicts rose from the non important issues. But they have consumed a lot of money and resources. The examples of the border wars are those between Tanzania and Uganda (1978 – 1979) and Tanzania and Malawi (1972).
G.
Massive unemployment.
Massive unemployment is a situation thrown in the countries attempt to realize economic development. Many students who complete universities and colleges do not get employment due to few job opportunities to make matters worse; most of those who find higher education are job seekers and not job creators. Massive unemployment forces people to live the country hence brain drain.
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Health
The health system in the country is still inadequate to sustain or guarantee all health ends. The doctors, hospitals, dispensaries and health centers are not enough especially in rural and some urban areas. Poor health services forces people to search for services outside the country which are usually expensive thus depleting the meager resources.
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Neocolonialism
Neo colonialism is one of the major problems that hinder development in the country. Tanzania depends on loans and grants from the developed countries but these facilities have strings attached which are always to the advantage of the developed countries.
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THE ECONOMIC SITUATION OF TANZANIA SINCE INDEPENDENCE
In 1970‟s and 1980‟s independence many African states faced economic crisis whereby they failed to provide basic necessities to their people.
During this time, foreign debt and drought were the main factors that hindered economic development. Tanzania was also hit by the economic crisis of 1970‟s. There were various factors that contributed to this crisis in Tanzania as follows;
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Long drought season.
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There was a prolonged drought in Tanzania especially between 1981 and 1984. This drought hit the agricultural sector which was the main sector of the economy. There was a sharp fall in agricultural production which affected the revenue earnings of the country since it depended on the export of agricultural products.
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The oil crisis of 1976.
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The oil crisis of 1976 was the major factor that contributed to the economic crisis in Tanzania. There was an increase in oil prices which increased the costs of production hence depleting the limited resources of the country. The resources spent on purchasing oil could have been used to finance other sectors of the economy.
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The war against Idd Amin.
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The war against Idd Amin is one of the factors that played a great role in causing the economic crisis in Tanzania. There was a full scale war in 1978 between Tanzania and Uganda, where by Tanzania spent a lot of resources financing the war in which resources would have been used to finance the economy. After the war the economy of Tanzania had been shattered.
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The collapse of east African community in 1977.
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The collapse of East African community in 1977 worsens the economic crisis in Tanzania. The special treatment given to goods from Tanzania in the form of loan, taxes was now removed. There was absence of secure market for Tanzanian goods; all these factors had a role to play in causing the economic crisis in the country.
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Nationalization of parastatal bodies.
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The introduction of the Arusha declaration forced the government to nationalize parastatal bodies. Various enterprises were put under government control which in most cases failed to effectively administer the enterprises hence leading to their collapse.
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Misuse of public office.
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The misuse of public office was one of the factors that have hindered development in Tanzania. Government officials have misused public funds hence the intended budget does not reach the required sectors of the economy.