Tanzania to remain one of least developed countries – UNCTAD

BY SYLIVESTER DOMASA

25th November 2013

United Nation Conference on Trade and Development (UNCTAD)

Tanzania's plans to become a middle economy have been undermined by the United Nation’s rating of its development noting that the country lags behind 49 other least developed countries (LDC) and will stay there not short of a decade.

“Tanzania is not likely to graduate from LDCs group, not until the second half of the next decade (2025),” the Executive Director at the Centre for Harnessing Knowledge for Development, Ambassador Marcel Namfua, projected.

The disappointing report was released late last week in Dar es Salaam at a conference to launch ‘The Least Developed Countries Report 2013’ published by the United Nation Conference on Trade and Development (UNCTAD). 
It is reported that despite impressive performance in the UN’s economic vulnerability criterion by 111 percent of the graduation threshold in 2012, “Tanzania is not any where near to qualifying for graduation from LDC status,” Ambassador Namfua said.

According to the UN, LDC is that which exhibits the lowest indicators of socioeconomic development and with the lowest Human Development Index ratings of all countries in the world.

For a country to graduate, it has to meet either two of the three criterions per capita income, human assets and economic vulnerability.
At least 34 countries from Africa including Tanzania have been again listed as LDCs.

Ambassador Namfua emphasised that the LDC’s young population need quality jobs to earn decent livelihoods and that employment generations in LDCs has been disappointing, notwithstanding fast economic growth since 2000. Namfua advised the government to revisit macroeconomic, industrial, rural and infrastructure policies to promote employment generations and development of productive capacities.

He further suggested that proper mechanisms be put on board to rise above 50 percent of per capita income, which in 2012 was estimated at USD570.

On his part, the United Nations Resident Coordinator in Tanzania, Alberic Kacou, said efforts are needed to maximise production of the fast growing labour force.
At least 70 percent of the country’s population comprises the youth, according to the report while globally, the youth population is expected to soar from 169 million in 2010 to 300million in 2015.

“This means the countries have to increase investments in the productive sectors especially agriculture and natural resources to improve their domestic revenues,” Kacou noted.

In his statement, Kacou maintains that there are worrying signs that the improvement of the real domestic product (GDP) from 4.5 percent in 2011 to 5.3 in 2012 among LDCs has not been inclusive and that its contribution to poverty reduction is limited.

The report by itself recommends a policy framework that links investment with growth and employment creation to generate inclusive and sustainable development.

In an effort to establish a strong link between growth, employment creation and development of productive capacities, the report proposes policies on employment creation, development oriented fiscal, financial and credit policies and development of agriculture to become a central element of national industrial policy.
Maryvonne Pool Honorary Consul Republic of Seychelles on her contribution challenged the quality of education and skills amongst Tanzanians graduates saying “it is a major issue to be addressed.”

She said quality of schools in rural Tanzania for example is yet another area that undermines the kind of professionals required in the employment market, the extent which has been forcing majority institutions to outsource foreigners.

“It’s important to see job creations and employment are corresponding with the growing population in the country,” Mariam Khan Deputy Representative United Nations Population Funds (UNFPA) noted.

Speaking on behalf of the Tanzania’s Private Sectors Foundation (TPSF) Board Chairman Dr Reginald Mengi, TPSF Executive Director Godfrey Simbeye expressed dismay in the country’s slow pace to implement much needed policies. 

SOURCE: THE GUARDIAN