POVERTY

Poverty refers to a non-sustainable economic system characterized by the insufficient provision of goods and services to the people. It is a widespread issue affecting many so-called developing nations, such as Tanzania.

Poverty is both a social and economic problem that impacts individuals and entire nations.

There are two levels of poverty:

  1. Individual (personal) poverty

This occurs when a person is unable to afford basic needs such as food, shelter, and clothing.

  1. National poverty

This is when a country depends economically on external assistance to finance the basic needs of its people and government expenditures.

In general, poverty means the lack of sufficient resources to meet basic living standards.

TYPES OF POVERTY

There are two main types of poverty:

  1. Absolute poverty

Absolute poverty is characterized by a severe lack of resources throughout the entire country, reaching a level where victims cannot live with basic human dignity. Typically, under absolute poverty, the per capita income is less than 1 US Dollar per day. This is the highest degree of poverty and is commonly found in rural areas of developing countries.

  1. Relative poverty

Relative poverty occurs when resources are insufficient in some parts of a country. Usually, under relative poverty, people’s income is more than 10 US Dollars per day. This type of poverty is more common in urban areas of developing countries.

Thus, types of poverty are determined by comparing the availability of resources and the income levels of the people.

INDICATORS OF POVERTY

Poverty is mainly identified through the following indicators:

  1. Low per capita income: This is the average income of the people in a country during a particular year. It is calculated by dividing the total annual income of the country by its population. The total annual income is also known as the Gross National Product (GNP) or Gross Domestic Product (GDP), usually expressed in monetary terms.
Poverty Indicator Chart
  1. Low level of science and technology
  2. Low gross domestic product
  3. High infant mortality rate
  4. High maternal mortality rate
  5. Short life expectancy
  6. High illiteracy rate

CAUSES OF POVERTY IN TANZANIA

The major causes contributing to poverty in Tanzania include:

  1. Uncertain climate conditions

Tanzania’s development heavily depends on agriculture and pastoralism, but frequent climatic changes negatively affect production, leading to low yields.

For example, in 2006, Tanzania experienced a critical shortage of electricity due to drought.

  1. Low application of science and technology

About 80% of farmers in Tanzania use traditional tools and methods, resulting in low agricultural productivity.

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  1. Poor economic plans

These plans often exclude the masses from contributing ideas on implementation, are of poor quality, and have negatively affected the country’s gross domestic product.

  1. Eruption of diseases and natural hazards

Many Tanzanians suffer from diseases such as HIV/AIDS, malaria, and tuberculosis, which reduce productivity. Natural hazards like floods and droughts destroy crops and cause loss of life, disrupting development.

  1. Practice of harmful cultural aspects

Practices such as witchcraft, excessive leisure, and the killing of albinos create social unfairness and misuse of resources.

  1. Illiteracy

Illiteracy accelerates poverty as illiterate people are more vulnerable to diseases, have many dependents, and face socio-economic challenges.

  1. Unfair competition between developed and undeveloped countries

In international trade, poor nations like Tanzania are often dominated and exploited by developed countries.

  1. Colonial legacy

This has created dependent economies in poor nations.

EFFECTS OF POVERTY IN TANZANIA

Poverty significantly affects Tanzania in the following ways:

  1. It causes inability among people to access basic needs such as a balanced diet, quality clothing, and adequate housing. Many Tanzanians suffer from insufficient basic needs and social services due to low income and high prices.
  2. It creates economic and social dependence on the government, which is not financially sustainable. Approximately 40% of the national budget is financed by donors through loans and grants, limiting the achievement of government plans.
  3. It increases mortality rates among infants, expectant mothers, and other groups due to lack of adequate medical services and high healthcare costs, leading to decreased life expectancy.
  4. It raises illiteracy rates as many people lack access to education due to school shortages, high costs, and cultural beliefs that discourage education, especially for girls.
  5. It causes regional disparities in economic and social development due to unequal distribution of resources and services, with northern, eastern, and central Tanzania being more developed.
  6. It leads to increased crime rates, especially in urban areas, as unemployment and difficult living conditions push people toward robbery, corruption, and violence.
  7. It results in insufficient and poor provision of social services such as healthcare.

STRATEGIES OF POVERTY ALLEVIATION IN TANZANIA

Since independence in 1961, the Tanzanian government has implemented several development strategies to alleviate poverty.

Tanzania faces three main enemies of development:

  • Poverty
  • Ignorance
  • Disease

To combat these, the government introduced four main development strategies from 1961 to the 1980s:

  • Focal point approach
  • Transformation approach
  • Improvement approach
  • Frontal approach (Ujamaa rural development approach)

FOCAL POINT

The focal point approach, introduced in 1961, was Tanzania’s first development strategy. It was both economic and political, focusing only on large-scale farmers, mainly settlers and African petty bourgeoisie, who promised quick returns.

The government concentrated on cash crop production for export, neglecting the majority of peasants. This led to increased rural poverty, and the strategy ultimately failed.

TRANSFORMATION APPROACH

Adopted in 1962, this strategy involved the World Bank recommending rural development improvements. The World Bank criticized peasants for rigidity and communal living, which they believed reduced individual effort.

  • The World Bank proposed the transformation approach or settlement scheme, supervised by the Village Settlement Agency (V.S.A).
  • The government encouraged peasants and unemployed urban people to live in settlements and engage in agriculture, building houses and farming allocated plots.
  • Support included food aid, removal of poll tax, increased crop prices, and permission to settle in forest reserves. Despite this, the approach failed.

Problems facing the Transformation Approach

  1. Close government supervision by village settlement agents made the program unpopular.
  2. Food aid led to laziness among peasants, resulting in low production.
  3. Excessive investment in machinery compared to available land caused underutilization of labor.
  4. Settlers were unwilling to cover costs, expecting government support, leading to scheme collapse.
  5. Misuse of settlement funds occurred, especially after Israeli experts left; cooperative unions misappropriated funds.

IMPROVEMENT APPROACH

After the failure of the transformation approach, the government introduced the Improvement approach, which relied on persuasion rather than compulsion.

The main objectives were:

  1. To establish self-governing peasant communities with minimal government interference.
  2. To expand rural production and develop markets through cooperative unions.
  3. To prevent exploitation of peasants by untrustworthy buyers by encouraging sales through cooperatives.
  4. To facilitate the provision of social services in rural areas to improve living standards.
  5. To make villages the nucleus of national development and defense.

Problems of Improvement Approach

The Improvement approach faced several challenges:

  1. Lack of education: Most peasants were illiterate and unskilled, hindering adoption of changes.
  2. Destruction of forests and reserved areas: Peasants were paid to establish new farms, encouraging forced settlement.
  3. Educated individuals refused to participate in agriculture, focusing only on a few progressive farmers, resulting in low income.
  4. The government failed to promote agricultural education broadly, concentrating on few farmers, limiting impact.

FRONTAL APPROACH

This was a five-year development plan under the Arusha Declaration, based on Ujamaa villages. On 6th November 1973, the government introduced the Ujamaa village program emphasizing self-reliance, encouraging local efforts to eradicate poverty. Some resisted moving from traditional villages to Ujamaa villages but were eventually compelled.

The objectives were:

  1. To establish strong economic units in rural areas by mobilizing collective efforts.
  2. To simplify provision of social services at low cost, including primary education, health services, water supply, and transport.
  3. To expand agricultural production through collective labor, increasing food crop production for export. Some villages owned plantations, ranches, and small industries.
  4. To eliminate middlemen in cash crop purchasing by buying crops at fair prices through cooperative unions.
  5. To function as a grassroots government level, empowering villages to decide on social and economic development through committees.

EFFECTS OF FRONTAL APPROACH

  1. Millions of people lived in Ujamaa villages.
  2. Many gained closer access to social services such as schools, hospitals, and security.
  3. Government campaigns and directives reached people more effectively.
  4. National solidarity, integrity, and stability increased.

NEGATIVE EFFECTS

  1. Private shops collapsed due to the introduction of village and cooperative shops, economically affecting some people.
  2. Shortages of goods like salt, sugar, kerosene, and soap occurred; corruption was used to obtain goods from cooperatives and village shops.
  3. Demolition of houses and public utilities in traditional villages occurred when people were forced to move.
  4. Farms with permanent crops were abandoned due to forced relocation.

Therefore, the frontal approach accelerated poverty.

  1. Elimination of primary school fees in government schools.

The government removed fees to enable children from poor families to access primary education.

  1. Communities and stakeholders are required to construct classrooms, teachers’ houses, health centers, water facilities, and maintain rural roads through self-help schemes.
  2. Creation of more employment opportunities by promoting informal private sectors and mobilizing foreign and local investors.

EFFECTIVENESS OF STRATEGIES OF POVERTY ALLEVIATION IN TANZANIA

The effectiveness of poverty alleviation strategies in Tanzania can be assessed as follows:

  1. Promoting self-reliance or self-employment has faced challenges due to low capital, lack of a conducive environment, and low levels of science and technology.

For example, in Dar es Salaam, many small-scale traders lack designated areas for their activities, leading to conflicts with city authorities.

  1. Tanzania has made fair progress in promoting modern science and technology in production, especially in urban industrial areas. However, rural areas still rely on traditional tools and methods, so the application of modern technology remains low.
  2. Population growth control has been more successful in urban areas where medical services and family planning education are accessible. In rural areas, remoteness and lack of health centers contribute to high population growth rates.
  3. The country has secured loans and grants from the International Monetary Fund (IMF), World Bank, and other developed countries to promote economic development. However, donor conditions have led to heavy debts with high interest rates, increasing the national debt burden.
  4. Debt exemption, cancellation, and rescheduling have helped reduce Tanzania’s foreign debt. For instance, in 2000, donor countries canceled Tanzania’s debt, advising the government to use the funds for economic and social development.
  5. Life expectancy has improved through programs aimed at reducing disease spread, such as free medical services for HIV/AIDS victims, elderly people, and malaria campaigns providing medicated mosquito nets. However, these services mainly benefit urban areas.



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