List of Acronyms and Abbreviations.
1. SACCOS – Savins and Crecit Cooperatives
2. MFI – Micro Finance Institutions.
3. TZ PPA – Tanzania Participatory Poverty Assessment.
4. SRPN – Southern African Regional Poverty Networking.
5. PRSP- Poverty Reduction Strategy Paper
6. HIV – Human Immunodeficiency Virus
7. AIDS- Acquired Immunodeficiency Syndrome
8. NPES – National Poverty Eradication Strategy (1997).
9. MDGs – Millennium Development Goals.
10. PRS – Poverty Reduction Strategy.
11. NSGRP – National Strategy for Group and Reduction of Poverty.
12. MKUKUTA – Mkakati wa Kukuza Uchumi na Kuondoa Umaskini Tanzania.
13. ZSGR – Zanzibar Strategy for Growth and reduction of Poverty
14. MKUZA - Mkakati wa Kuondoa Umaskini Zanzibar.
15 IK – Indigenous Knowledge.
16.WHO – World Health Organization.
17.CED – Community Economic Development.
18.ASDP – Agricultural Sector Development Programme.
19.RDS – Rural Development Strategy.
20.ASDS – Agricultural Sector Development Strategy.
21. O and OD- Obstacles and Opportunities to Development
1.0 Introduction
1.1 Outline: This paper will examine the conceptual framework and analyze theoretical review of what is in the literature regarding poverty, knowledge and human capital - as solutions to poverty and what has transpired over time especially in Tanzania. This is in regard to the core factors of poverty in terms of causes, manifestations indicators, levels and possible solutions and strategies to be applied to reduce poverty. The paper will also analyze some observations or empirical experiences of poverty reduction using the factors of Indigenous Knowledge and Human Capacity (Capital) as possible solutions. Finally, there will be a discussion of underlying policies and strategic frameworks which aim at addressing poverty in the community ending with my own perspective on the implication of poverty in Community Economic Development.
1.2 Conceptualization: Poverty: In the country analysis of Tanzania SARPN (www.sarpn.org.za/documents) remarks that the definition of poverty is complex, multi-dimensional, wide scoped and dynamic. Therefore poverty is broadly defined as a state of “deprivation, denial of decent life, which includes exclusion, isolation vulnerability, income poverty parameters include poverty and food poverty; but also how utilization of technology, environmental degradation, unemployment, rural, urban migration and poor communication. Recent definitions of poverty incorporate problems of self esteem, vulnerability to internal and external risks, exclusion from the development process and lack of social capital. Both quantitative and qualitative definitions of poverty held to identify who the poor are, the extent of their poverty where they live and how they earn their living. Relative poverty means the incidence of absolute poverty among different population group and Absolute poverty line is the income required to meet a minimum calorific consumption level. Vulnerability to poverty means people’s chances of being poorer tomorrow than they are today due to forces that prevent people from getting their basic needs. Human capital as per Wikipenda dictionary means the stock of productive skills and technical knowledge embodied in labour, usually labeled one of the factors of production. It originated from the writings of Jacob Mincer when he wrote” the Journey of Political Economy (1958). Knowledge was also defined by then as something expandable and self generating with use generated through experience, transportable and shareable.
Indigenous Knowledge has been defined by several people as the local knowledge that is unique to a given culture or society not knowledge generated by universities, research institutions (Mosimege M, 2005). It is the basis of local level decision making in agriculture, health care food preparation, education, natural resource management and a host other activities in rural communities (Warren, 1991). It is a synonym of traditional and local knowledge developed by a community. (Warren, 1992). It is unique, traditional local existing within and developed in geographic area. (Louise Grenier, 1998).
2.0 Theoretical Literature
2.1 Socio economic indicators of poverty: On the Tanzania National Website, earlier definitions focused on “the cost of meeting basic needs necessary for maintaining a minimum standard of living and later included socio-economic indicators of well being, high morbidity and mortality rates, prevalence of malnutrition illiteracy, high infant and maternal mortality rates, low life expectancy, poor quality housing, inadequate clothing, low per capita income and expenditure, poor infrastructure and social services. Others - high fertility, lack of access to basic services such as safe water, food insecurity and poor technology. A poor household is the one characterized by some or all of the mentioned indicators.
2.2 Manifestations of Poverty: Kazaura (1995) cites low and increasingly declining per capital income, high unemployment, increasing malnutrition, high infant mortality rates, low life expectancy, poor housing facilitates and inadequate accessibility to social services and facilities.
2.3 On the Causes of Poverty at the National Website, reinforcing factors include lack of productive resources to generate material wealth illiteracy, prevalence of diseases, natural calamities like floods, drought and wars. Others at the international level where there is an unequal economic and political partnership. This is reflected in unfavourable terms of trade. Others are traditions and norms which prevent effective resource utilization and participation in increasing income. SARPN shares, impoverishing forces which arise from social, economic and political processes leading to risks caused by economic, environmental, health, governance age-related and cultural conditions also climate change, orphan hood, disability and ageing which can threaten to push people into poverty or cause them to become poorer than they were before. Kazaura (1995) also gave lack of access to basic services, low level of influence and participation in the political process, lack of political will by the government.
2.4 Poverty Levels and Trends: Poverty can be assessed by levels and trends but this is challenged by inconsistency information and unavailable official poverty lines. On The National Website some studies have shown “lower lines” to denote basic food needs eating habits, nutritional requirement and cost and “upper lines” in which there is access to other essential needs such as clothing, housing, water and health. Usually, a poverty line of One US $ per day is used for inter country comparisons. All in all poverty is predominantly visible in rural areas although the urban poor and the unemployed are increasing fast. In both rural and urban areas the poor are less educated of ill health, with large families and their, vulnerability is increased by presence of diseases especially HIV and AIDS
2.5 Solutions of poverty: Kazaura (1995) observes that since the causes, poverty were broad, the solutions were also required to be multidimensional citing the review of the existing economic reforms to accelerate economic growth. He also suggested collaboration and coordination in tackling poverty leading to the maximum use of scarce resources, greater harmonization between national policies programmes and more efficient and effective programme implementation. SARPN added the accessing of knowledge. If people can access information on what poverty is, it will increase their level of meaningful participation in the government poverty reduction strategies and help build ownership and commitment as well as improve poverty reduction policies and practices.
Provision of Credit Finance: There are various credit schemes for increasing access to capital and generating income. Some of these include those offered by Tanzania Gats by Trust, Rural Community Banks used as intermediary microfinance institutions providing funding and technical assistance to individuals ,the Group Loan Schemes operate when funds are provided to groups whereby 80% of these are women. This is based on the traditional savings and credit societies popularly known as Upatu or Kibati.
Uliwa and Fischer (2004) also refers to ‘Upatu” as the simplest financial institution. The members of these rotating savings and Credit association or (ROSCA) group save their own money and then lend it out to each member in succession. Some farmers groups use this approach too. They also mention the creation by the Banking and Financial Services Act of 1991 known as Savings and Credit Cooperatives (SACCOs) which have become the main financial institutions in rural areas. The Opportunities and obstacles to Development (O and OD) Methodology whereby the community positively identifies available resources to overcome obstacles fostering the spirit of self reliance. This is the initiative of the President’s Office.
2.6 The Effects of Human Capital on Economic Development.
More educated people earn more than less educated people Compare with brain drain. Improving higher educated quality in Africa would reduce problem, reflected in census data of developed countries. In “The Socratic Movement” edited by Waerdt. Socrates believed that knowledge of nature is entirely “beyond human capacity” he also believed that “some knowledge of nature of the universe may be attained by human beings but not the causes of celestial phenomena. He believed that human beings may not be able to discover everything about nature. He called his philosophical opponents “madmen” who fail to recognize the limitations of human knowledge. Human Capacity is a tool that brings development by using human brain. There is need to organize capacity to make it more useful in society. For example man can increase level or capacity of production if it is well organized with proper training.
2.7 The case of Tanzania towards addressing poverty: The Presidents office publication an O and OD (2004) narrates the Historical perspective on Participatory Planning in Tanzania. In 1961- Participatory economic Planning / bottom up planning envisioned. 1961 – 1966 – Independence vision – goal to attain higher standards of living by fighting illiteracy, diseases and poverty. Motto for people. hand work, self help projects to build the nation, catchword “UHURU NA KAZI” Independence and Work” “it can be done play your part Julius K. Nyerere. 1967 – 1992 period led by the Arusha Declaration which articulated the so-economic liberation philosophy on socialism and self reliance. According to IFAD, in 1988 nearly 12 million rural Tanzanians, or 60% of the rural population were living below poverty line.
The National targets as per (NPES) are to reduce the current levels of poverty by 50% by the year 2010 and eradicate absolute poverty from 36% in to 0% by 2025. The National Vision 2025 envisages Tanzania’s graduation from a least developed into a middle income country having eliminated abject poverty. After a comprehensive review report in 2004 the Tanzanian government formulated the National Strategy for growth and Reduction of Poverty (NSGRP) known by its Kiswahili acronym (MKUKUTA). This was approved in 2005 for 2005/05 to 2009/10 to continue moving towards the implementation. This is focusing on 3 broad clusters of Growth and reduction of income poverty. Improvement of quality of life and social well being. Governance and accountability. Zanzibar also adopted a counterpart strategy or MKUZA.
Constraints to fighting poverty: These include the debt burden which incapacitates ability to allocate adequate resources for poverty reduction measures, the refugee problem. Also SARPN adds environmental degradation, rural-urban migration, over crowding in urban areas, high population growth HIV and AIDS, gender inequality and income inequalities.
3.0. Empirical Literature:
3.1. Developing Human Capital has been practiced in several ways. One of them is “Farming for Change”, whereby FARM – Africa, a non governmental organization works to reduce poverty by enabling marginal Tanzanian farmers and herders to manage their natural resources more effectively to improve their incomes by providing sustainable and innovative solutions to problems identified by farmers. .
Source: www.farmafrica.org.uk
3.2. Also seen on Pambazuka News www.rural poverty portal.org
We are told that some poor farmers in Tanzania are now using modern information and communication technologies like mobile phones and internet to get access to market information and knowledge on market chains from producer to consumer.
3.3. Another example is on utilization of Indigenous knowledge in the fields of food security, medicine and vegetables. The Tanzania Development Gateway (2006) shares that the vision of a truly global knowledge partnership will be realized when people in the developing countries participate as “Contributors and users of knowledge”.
Some cited examples are on: Preserving indigenous knowledge for food security among the Maasai and Barbaig pastoralists of Tanzania whereby they use extensive knowledge of livestock and biodiversity to sustain themselves across changing environmental conditions. Another example an same website is the Malaria herbs which has become a top cash crop in Tanzania, as a major source of artemesinin a key ingredient in the new generation of ant malarias recommended by World Health Organization (WHO).
3.4 Makonde Carvings: www.makondecarvings.com.
Makonde carving is probably the best known art work produced in East and Central Africa. The Makonde use the African Blackwood, the ‘mpingo”. These are mode in Southern Tanzania which is the home of the World Famous Makonde. By having their products purchased, learning the English Language to avoid middlemen, there is a more to support poverty reduction and livelihood for rural communities.
3.5. Looking at the human capacity Development needs, Homewood (2005) reports that livelihood diversification for Maasai pastoralists is increasing pressure on land from conservation whereas agriculture and tourism and pushing Maasai pastoralists to the marginal areas. This make them stop traditional livelihood activities and are planning to engage in tourism to earn extra income.
3.6. In his speech the President of Tanzania his Excellency Jakaya Mrisho Kikwete on achieving the MDGs in Tanzania during the meeting with SIDA in February 2007 he emphasizes the approach of addressing poverty by massive investments and modernization of employment rich sectors. ….
3.7 Remarkable success in human capacity is in primary education which has led to a crisis of demand for places in secondary school which are currently on expansion as well as tertiary.
3.8. The Fast Track Initiative: In an assessment of a Public-Private Partnership Process on developing the Fertilizer value chain in Tanzania (2206) it was revealed that several problems were encountered during the SAP implementation period. That the SAP policies had negative impacts for most small holder farmers due to high prices of farm inputs and lack of credit so they abandoned use of fertilizers and other inputs between 1992 to 2000.
4.0: Poverty Related Policies.
(i))Poverty Policies: According to SARPN and the Tanzania National Website. Immediately after Independence, the government of Tanzania (by then Tanganyika) put in place some public policies and measures to fight poverty (and the other 2 enemies). Some of these intervention measures included socio and economic policies addressing poverty at a national and individual levels. The first National Poverty Eradication Strategy (NPES) spelling out a vision for a society without abject poverty and improved social condition in 1997. Temu ( 2006) wrote about the Translation of the National Strategy into Sector Policies. On (ii)The National Trade Policy(2003) that trade development has been incorporated into various cluster strategies of MKUKUTA. Under Cluster 1 strategies, 6 refer to trade and / or exports. MKUKUTA highlights the importance of SME promotion and creating an enabling private sector environment for better growth and trade. However, this has not trickled to the rural areas. He continues that, (iii) The National Agriculture Policy (1997)is the main policy vehicle for implementing the agriculture component of the country’s vision 2025. However in many parts of Tanzania the hand hoe is still in used, farm sizes are small and also there is very little extension service to the farmers. Nyoni discloses that while the agricultural sector’s growth rate has been at 4%, the mining sector growth rate has risen to >15%. The question is does Tanzania take advantage of this resource ? Can the gain from mining feed into the agriculture sector ?
(iv) The Water Policy,(2002) Arvidson and Nordastrom shares that, 30% of rural water schemes were not functioning properly. I think this could be due to either laxity or lack of proper Monitoring and Evaluation Frameworks for many community economic development programmes which excludes an integration of sustainable development and management of water resources. The same authors inform us that the annual renewable water resources of Tanzania were 2,700 cubic meters per person in 2,000 while the global average was 7,300 cubic meters. Now, with the Current Annual Population Increase of about 1.8% this figure is likely to drop leading to water crisis for domestic, livestock, agriculture, industry, mining energy fisheries, environment, wildlife, tourism, forestry and other areas. Although the original 1991 National Water Policy set a goal of providing clean and safe water to the population within 400 meters of their household by 2002, only 50% of rural population and 70% of urban population was reached. (v) The National Population Policy (2006) has goals of providing a framework and guidelines for integration of population variables in the development process. Although he main goal of the current policy is to direct development of other policies, strategies and programmes that ensure sustainable development of the people as it is with other policies there are hardly any no resources allocated for implementation. (vi) The National Employment Policy (1997) identifies 2 categories of employment namely wage employment and self employment. The objective is to in increase per capital income to reduce the state of poverty in Tanzania. It also identifies strategies for exploiting existing wealth in the country. The level of unemployment is unfortunately still high in Tanzania The unfortunate experience is that although Tanzania formulates good policies, many of them end up unimplemented due to lack of clear implementation procedures during policy formulation stage, but also due to insufficient political will during resource allocation for policy implementation
1.0 My own perspective
6.1 What is the value of export trade to the community? It seems poverty is here to stay. Another reality is that in the Daily News of October 2nd 2007, “Africa touted on the export trade”. It stipulates that Africa has very little to offer in international markets calling for radical measures to be taken urgently to redress the situation . This was part of the opening speech of the Vice president of Tanzania Dr Mohamed Shein at the high level trade meeting in Dar es Salaam.. The WTO Director General urged African leaders to work out how to trade “competitively”. Moreover, in 2005, Africa’s share in the global trade was only 1.7%. The Civil society has raised a lot of noise but nobody is listening to them. As representatives of the poor majority, they have raised several petitions on the postponement of the signing of the EPA due 31st December 2007 but this goes on as planned. This is not healthy at all.
6.2 Community Economic development through people centred economics: Poverty is a legacy of colonialism. What is transpiring in Tanzania currently could be compared to what happened in Arichat Cape Breton, Nova Scotia (1992 when the fishing industry declined leaving 1,000 people jobless and the community economic development was born, Cameron (1998) cautions that CED challenges such as requiring a lot of volunteer time seed money and investment capital. Therefore, CED needs to be internalized in the Tanzania Development Policy to attract a deeper government commitment with a long term strategy for funding marketing, training, communication, technology, research, securities and peoples’ access to credit and savings.
6.3 Address the cause: The war that started at the Tanzania’s Independence in 1991 has neither ended nor been won. I am convinced that Tanzania can manage to eradicate ignorance through human capital development and proper utilization of indigenous and modern knowledge. Sufficient resources are also needed. These in turn will lead to a knowledgeable community empowered to address the multiple faces of poverty. Tanzania without poverty is possible. Someone has to give the community genuine power to act.
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