SOCIAL EXCLUSION / INCLUTION
INTRODUCTION
Social exclusion is the term used to describe what happens when people or areas are excluded from essential services or every day aspects of life that most of us take for granted.
Socially excluded people or places can become trapped in a cycle of related problems such as unemployment, poor skills, low incomes, poverty, poor housing, high crime, bad health and family breakdown. It is broader than poverty, it relates to being unable to participate fully in normal social activities, or to engage in political and civic life. This may be because of people themselves, or the areas where they live, experiencing high crime, poor housing, high unemployment, low incomes etc.
Social exclusion is often connected to a person's social class, educational status and living standards and how these might affect their access to various opportunities. It also applies to some degree to the disabled, to minority men and women of all races, and to the elderly. Anyone who deviates in any perceived way from the norm of a population can become subject to coarse or subtle
Social exclusion The picture on social exclusion is constantly changing as new economic, social and demographic changes take place.
As social exclusion so severely restricts access to the services and jobs needed for a minimal standard of living, there is a high correlation between poverty and social exclusion. Even when they are not the majority of the poor, the excluded typically constitute the poorest. These telling trends make clear that poverty reduction will not be successful without also addressing the complex determinants of social exclusion.
SOCIAL EXCLUSION IN DIFFERENT MODELS OF SOCIETY
In parallel to these reviews, the theoretical work carried out indicated, as a major feature, that the notion of social exclusion is highly variable in meaning, notably because it is largely dependent on the different paradigms or modes of thinking about society. The three most pertinent paradigms to the analysis of social exclusion would be `solidarity', `specialization' and `monopoly'. These three paradigms are in reality theories of society, and exclusion has different causes and meanings in each Each paradigm attributes exclusion to a different cause, and is grounded in a different political philosophy: republicanism, liberalism and social democracy. Each provides an explanation of multiple forms of social disadvantage - economic, social, political and cultural - and thus encompasses theories of poverty and long-term unemployment, racial-ethnic inequality and citizenship" (Silver H., in Rodgers et al, 1995).
SOLIDARITY
The first paradigm, “solidarity”, sees exclusion as a breaking of the social tie, a failure of the relationship between the society and the individual. Implicitly there is a core of shared values and rights, a `moral community', around which the social order is constructed; a variety of institutions provide the mechanisms for integrating individuals in society, and exclusion reflects their failure and a possible danger to the social body. This model provides the underpinnings of the Republican notion of the French State; a similar logic is espoused by many nationalist regimes. It is within this model that the present notion of exclusion originated. It is rather obvious why: there is a clear and unitary notion of what it is that individuals and groups are excluded from.
SPECIALIZATION
The second paradigm, “specialization”, sees exclusion as resulting from individual behaviours and exchanges. Societies are composed of individuals with diverse interests and capabilities, and the structure of society is built around a division of labour and exchange in both economic and social spheres. Individuals may exclude themselves by their choices, may be excluded because of the patterns of interests or contractual relationships among other actors, or their exclusion may occur as a result of discrimination, of market failures or of unenforced rights. Society can be seen as composed of individuals who (voluntarily) participate in some domains and are excluded from others. Exclusion from one social domain does not imply exclusion from all. Thus exclusion is a much weaker concept here than in the solidarity paradigm.
MONOPOLY
The third paradigm, “monopoly”, sees society as hierarchical, with different groups controlling resources. Insiders protect their domains against outsiders by constructing barriers and restricting access - to occupations, to cultural resources, to goods and services. At the same time, they promote solidarity within the group. Membership of society is therefore necessarily unequal. But the picture may be complex, with a hierarchy of inclusions and exclusions rather than a simple dualism as in the solidarity model. The rules determining access to the more privileged groups also determine vulnerability, and determine who is excluded. The identity of the excluded is thus socially constructed. The same mechanisms may exclude immigrants in one situation, the illiterate in another and religious minorities in a third. Exclusion is a central aspect of this paradigm, a mechanism which underpins the existing structure of society.
CONTRASTING POVERTY AND SOCIAL EXCLUSION
At one extreme, social exclusion can be seen as an element within a narrow definition of poverty in terms of the minimum standard of living below which one is absolutely poor. For example, this could be implemented by having a consumption-based poverty line which would include not simply food and other basic material needs but also an amount reflecting the cost of participating in the everyday life of society. At the other extreme, social exclusion can be seen as a replacement for poverty. Between these two positions, it is possible to see social exclusion as a particular broad notion of poverty.
With this perspective, social exclusion can be thought of as a multi-dimensional concept of poverty which introduces, in particular, aspects of social participation and rights realization into its conceptualization. Material poverty can be seen as a particular form of social exclusion.
What may be most important about social exclusion as a concept, at the individual level, is that it refers to processes of impoverishment. It directs the focus to the variety of ways in which people become poor, and variety of ways out of poverty. It points particularly to the links between poverty and employment, and the ways in which particular types of citizenship rights enable social and occupational participation.
It may also be suggested that "exclusion models" offer a broad class of explanations of income inequality. Social exclusion is linked to the process of income acquisition as this involves access to assets of various kinds (including conventional factors of production and social capital) and the income streams which can be derived from them.
A critical issue is how important social exclusion is to the growth-poverty relationship and whether it affects the rate of growth itself. Analysis of this issue deserves more attention and might clarify how poverty is affected by the process of globalization of economic relationships, notably through the fragmentation of labour and credit markets, and of other institutions at the national level, induced by this process.
TYPES AND CAUSES OF EXCLUSION
Economic Exclusion"Wealth defines the social levels or classes, and folk very much socialize exclusively with others of their own social level. The interaction between the classes is such that it limits the ability for folk to get to know each other. In this case both the poor and the rich are victims because everyone could all benefit by interacting with each other in one way or another.
Children growing up in poverty are likely to become entangled in a ‘cycle’ thus passing it from generation to generation. Entailing inequality of access to resources and opportunities, and often linked to discrimination, child poverty is a denial of children’s rights. It has severe long-term consequences, restraining children from achieving their full potential, adversely affecting their health, inhibiting their personal development, education and general well-being.
Medical ExclusionPoor people are excluded from better health services as they can’t afford to pay for it. On the other no one wants to hire handicapped people, even though they are capable of doing some activities. It is a serious problem in many countries, as a result most of handicapped people are most disadvantaged and in vicious cycle of poverty. Many people do not respect them. Ethnic/Racial ExclusionSometimes there conflicting interests between the original culture of the people and that of the country where they live live. They have to decide between the language of their origin, and the language they use every day. The same goes for religions and daily customs. Geographical ExclusionThere is a whole set of social problems which occur predominantly in urban areas. By and large, they are derived from stresses related to urbanization, such as overcrowding, pollution, long-distance commuting in precarious circumstances, lack of socio-cultural bonds, lack of access to basic services, etc. Gender-related ExclusionThe women are the most vulnerable part of in many societies.
The challenges to gender equality cut across all the affected socially marginalized populations. The gains that women in the region have seen in schooling, women's health, and the earnings gap between males and females have largely not accrued to those women.
Exclusion by Age People of the same age tend to share interests, excluding people of different age group. For example youths have different interests as compared of those of aged ones. Many old retired workers are regarded as the most experienced and re-apply the industrial, administrative and engineering jobs which need much experience while youths are left behind unemployed.
Exclusion from EducationFor school pupils /students abroad, originating from a different country, for example, the "education system if based on the language that they don’t understand well, they don’t do very well because of that foreign language.
Exclusion from CommunicationConcerning the Internet, "less than 4% of Internet users are in the Third World. In India, there is 0.2 Personal Computers for 100 people ; this compares with 15 PCs in Japan, and 21 PCs per 100 people in the United States. Therefore most people in the Third world can not access information through internet. Cultural Exclusion Through varied and extensive experiences, can affirm today that the ambition of partnership with the poorest means building bridges between the world of art and the world of the very poor, who are completely cut off from the noblest forms of art.
TO TACKLE SOCIAL EXCLUSION
To tackle social exclusion in order to effectively regenerate urban environments. The Social Exclusion Report of 1998 outlines a list of aims that highlight this relationship:
I. Getting people to work: skills and literacy training, mentoring, volunteering, intermediate labour markets etc.;
II. Getting the place to work: ‘super caretakers’, security wardens, filling unoccupied houses, mixtures of tenants, dealing with anti-social behaviour, evictions, arts and sports schemes;
III. Building a future for young people – arts and sports, coordinating health and other social services at school level, alternative education for excluded/self-excluded children, involving parents – parenting skills, work experience schemes;
IV. Access to services: encouraging local services (health, transport, banks etc) and businesses (low-cost shops) into deprived areas;
V. Making the government work better: encouraging networking/partnership approaches between different agencies; bottom-up approaches involving local communities; identifying schemes that work well.
However, these may not in all cases be enough to bridge divisions between different interest groups, including age groups. (Cattell & Evans, 1999: 20).
SOCIAL INCLUSION
Social inclusion is the reverse of social exclusion. It relates to the ability to fully participate in normal social activities or engage in political and civic life. This term is often used to describe the process of combating social exclusion.
Social inclusion enables people to learn together, building relationships across the lines that can divide them.
SOCIAL INCLUTION THROUGH IMPROVING LIVES
The new report, Improving Services, Improving Lives - Evidence and Key Themes, shows that public services need to do even more to help disadvantaged people to turn their lives around. It also shows that public service reform offers a real opportunity to make services work better for those who need them most.
The report is the first in a series from the unit looking at how public services can work better for disadvantaged people. It looks at the effectiveness of mainstream public services - including education and training, health, employment and benefits and housing - and highlights promising approaches in delivering services for disadvantaged adults.
Responding to the report Ed Mayo, Chief Executive at the National Consumer Council said: “So many public services touch the lives of ordinary people and yet the voice of those most vulnerable and reliant on them is rarely heard. If it leads to better services, this work will be invaluable”.
SOCIAL INCLUSION THROUGH INNOVATION
The new report, Inclusion Through Innovation:
Tackling Social Exclusion through New Technologies, explores the potential that Information and Communication Technologies (ICT) have to improve service delivery and quality of life for the most excluded groups, and argues that effective use of ICT is a key to addressing exclusion and meeting complex needs. The report is the second in a series from the Social Exclusion Unit looking at how public services can work better for disadvantaged people. It explores how ICT can be used to make mainstream public services - including education and training, health, employment and benefits and housing - more effective, efficient, and accessible for socially excluded groups, and sets out numerous examples of innovative uses of technology to address exclusion.
THE MILLENNIUM DEVELOPMENT GOALS (MDGS) AND SOCIAL EXCLUSION
The Millennium Development Goals (MDG) represent a specific agreement for collaboration among donor countries and the developing world. Both the Bank’s social inclusion agenda as well as those of the countries of the Region could benefit substantially from this initiative if, during the initial years, consideration were given to its impact on the inequalities existing among the poor and the excluded groups. The primary objective of this area of research is to take advantage of the MDGs to promote social inclusion (e.g. by improving access and increasing opportunities) of the Fund’s target groups.
Emphasis will be placed on:
(i) encouraging consideration of the variables of race, ethnicity and disability and efforts to achieve these development goals; and
(ii) promoting innovative methodologies for measuring the potential impact if progress is made in furthering the MDGs without considerations of race, ethnicity and/or disability (e.g. policies and programs in the MDG areas benefiting only the least poor and/or those closest to achieving the established goal).
The Millennium Development Goals encourages States to gather, compile, analyze, disseminate and publish accurate statistical data at the national and local levels and to take all other related steps necessary to regularly assess the situation of individuals and groups that are victims of racism, racial discrimination, xenophobia and related forms of intolerance.
CONCLUSION
Social exclusion cannot be addressed by Government alone. Individuals and the wider community, in addition to the private and third sectors, all have a role to play. The care system, for example, is largely reliant on ordinary citizens taking up the challenge of fostering. But most of all, of course, people who are suffering social exclusion must want progress for themselves and those around them. By working together we can ensure that even the most excluded have a stake in the society and economy of tomorrow by seizing the opportunities that life offers today thus practicing social inclusion. Children born into poverty tend to remain poor for many reasons, but one is preeminent, they are much less likely to succeed in school. A critical cause of school failure among children in poverty is that they are not "ready to learn" when they enter school, and they seldom catch up. Early childhood intervention programs can help break this cycle of poverty; they can help level the playing field for disadvantaged children and help them reach their full potential. Non Governmental Organizations, Community Based Organizations, Human Right Activists and Political Parties and all other pressure groups should aim to equal opportunities to all.
Thursday, February 12, 2009
PARTICIPATION
PARTICIPATION
INTRODUCTION
FAO define participation in development as a process of equitable and active involvement of all stakeholders in the formulation of development policies and strategies and in the analysis, planning, implementation, monitoring and evaluation of development activities. To allow for a more equitable development process, disadvantaged stakeholders need to be empowered to increase their level of knowledge, influence and control over their own livelihoods, including development initiatives affecting them.
Participation in development is also seen as an organized effort within institutions and organizations to increase stakeholder access and control over resources and related decision making that contributes to sustainable livelihoods. Participation is furthermore viewed as an iterative process involving the continuous re-adjustment of relationships between different stakeholders in a society in order to increase stakeholder control and influence over development initiatives that affect their lives.
The World Bank defines Participation as “a process through which stakeholders influence and share control over development initiatives, decisions and resources which affect them. Participation can take different forms, ranging from information sharing and consultation methods, to mechanisms for collaboration and empowerment that give stakeholders more influence and control.
Participation’ as a concept is however a contested subject. The World Bank Participation Sourcebook (1998) defines participation as a rich concept that means different things to different people in different settings. The definition depends on the approaches of the development organization and their capacity to implement participatory approaches.
Since the late 1970s there has been a range of interpretations of the meaning of participation in development. The following are a number of examples: 'With regard to rural development participation includes people's involvement in decision-making processes, in implementing programmes, their sharing in the benefits of development programmes and their involvement in efforts to evaluate such programmes.' (Cohen and Uphoff, 1977). Participation is concerned with the organized efforts to increase control over resources and regulative institutions in given social situations on the part of groups and movements of those hitherto excluded from such control.' (Pearse and Stifel, 1979) 'Community participation [is] an active process by which beneficiary or client groups influence the direction and execution of a 'Participation can be seen as a process of empowerment of the deprived and the excluded. This view is based on the recognition of differences in political and economic power among different social groups and classes. Participation in this sense necessitates the creation of organizations of the poor which are democratic, independent and self- reliant!' (Ghai, 1990)
HISTORY OF PARTICIPATION
People's participation is by no means a new concept. It was formulated in the mid-1970s, amid growing awareness that development efforts were having little impact on poverty. The development paradigms of the 1960s and 1970s derived from the legacy of colonial rule, especially the planning systems of the late 1930s and post-Second World War (post-WW2) period. The conception was top down (development was something governments did for or to people), and the language military-bureaucratic - by WW2 out of US management literature: "objectives", "targets", "strategies", "capability". The formal social science methods of the late 1950s, combined with digital processing, produced much spurious (and some credible) quantification, usually at great cost. There was little stakeholder involvement of those undergoing "development", a fact which must rank high among the causes of the failures of development to improve the lives of the majority poor of the "developing" world. Participatory development arose as a reaction to this realization of failure, popularized particularly by Gordon Conway and Robert Chambers (1992), and more recently by David Korten (1996).
WHY IS PARTICIPATION IMPORTANT?
Stakeholder participation can be key for ensuring their long-term sustainability. Promoting participation helps build ownership and enhances transparency and accountability, and in doing so enhances effectiveness of development projects and policies.
DEGREE OF PARTICIPATION
Participation by Information-Receiving
Underpins all other levels of participation, and may be appropriate on its own in some circumstances. People participate by being told what is going to happen or has already happened. It is unilateral announcement by an administration or programme management without listening to people's responses. The information being shared belongs only to external professionals.
Participation in Information Giving
People participate by answering questions posed by extractive researchers and programme managers using questionnaire surveys or similar approaches. People do not have the opportunity to influence proceedings, as the findings of the research or programme design are neither shared nor checked for accuracy.
Consultation
People participate by being consulted, and external agents listen to views. These external agents define both problems and solutions, and may modify these in the light of peoples responses. Such a consultative process does not concede any share in decision making and professionals are under no obligation to take on board peoples’ views.
Joint Planning
People participate in joint analysis, which leads to action plans and the formulation of new local groups or strengthening of existing ones. It tends to involve interdisciplinary methodologies that seek multiple perspectives and make use of systematic and structured learning processes. These groups take control over local decisions, so people have a stake in maintaining structures and practices.
Decision Making
When consensus is acted upon through collective decisions, this marks the initiation of shared responsibilities for outcomes that may result. Negotiations at this stage reflect different degrees of leverage exercised by individuals and groups.
Empowerment
People participate in joint analysis, which leads to action plans and the formulation of new local groups or strengthening of existing ones. These groups take control over local decisions, so people have a stake in maintaining structures and practices. People participate by taking initiatives independent of external institutions to change systems. Such self-initiated mobilisation and collective action may or may not challenge inequitable distributions of wealth or power.
METHODS OF PARTICIPATION
Rapid Rural Appraisal - RRA
Rapid Rural Appraisal consists of a series of techniques for "quick and dirty" research that are claimed to generate results of less apparent precision, but greater evidential value, than classic quantitative survey techniques. The method is economical of the researcher's time and is essentially extractive as a process: the agenda is still that of the outside researcher.
Participatory Rural Appraisal - PRA
Participatory rural appraisal evolved from rapid rural appraisal-a set of informal techniques used by development practitioners in rural areas to collect and analyze data. Rapid rural appraisal developed in the 1970s and 1980s in response to the perceived problems of outsiders missing or miscommunication with local people in the context of development work. In PRA, data collection and analysis are undertaken by local people, with outsiders facilitating rather than controlling.
Participatory Action Research - PAR
Participatory Action Research (PAR) is a more activist approach, working to empower the local community, or its representatives, to manipulate the higher level power structures. Claimed for a variety of interventions - World Bank-supported credit unions for the relatively privileged, Grameen-type banks for the very poor, community based paralegal training and litigation, voter education drives among the marginalized - PAR can empower a community, entrench local elite, right a wrong or totally mess things up. It depends on the extent of awareness and political savoir faire of the supporting outside organization.
DIFFERENT APPROACHES TO PARTICIPATION
Different approaches to participation often reflect different motives for engaging in participatory research or development. The motives for participation stem from three broad roots:
(i) Functional motives are those concerned with the efficiency and effectiveness of research and development, and are the main driving force behind the efforts of many governments to improve participation;
(ii) Empowering motives are concerned with participation as an end in itself and are closely linked to democratic processes, they are associated much more with the approaches of community-based organizations and the NGO movement; and,
(iii) Philosophical motives which have explored the understanding of knowledge and knowledge systems between formal science and indigenous culture, and tried to encourage a greater interaction between them.
Functional motives
It has long been recognized that greater participation by those who are to be affected by research or development can improve the efficiency, effectiveness and sustainability of those processes and their outputs. Where such benefits are the reasons for encouraging participation the motive can be broadly described as functional. Chambers (1995) notes several functional reasons for the growing interest in greater participation:
The imposition of standard "top-down" interventions on diverse local realities have failed to address local needs,
The greater involvement of local people may have positive cost implications, and
The more local people are involved in development initiatives, the more likely they are to shoulder the ongoing cost of maintaining such initiatives.
Participation for functional reasons is generally passive and seen as a manageable input to an externally defined process of research or development (Oakley and Marsden, '1984). However, whilst functional participation may have started in this way it has progressively informed and influenced a more fundamental shift towards people-led development, and this includes a parallel shift in research. Chambers says that "Arguably, the big shift of the past two decades has been from a professional paradigm centred on things to one centred on people"(1995:32).
Empowering motives
There are reasons for supporting greater participation in research and development which deal with people's right to be involved in activities concerning their lives. Central to empowerment level reasoning on participation is a reaction against centralization, bureaucratization, rigidity and remoteness of the state (Midgley, 1986). In extreme cases it is a reaction to the oppression .of one group of people by another and the exclusion of their perceptions of reality from the research and development process (Freire, 1972). Participation from an empowerment perspective is seen as a process which is both a means and an end in itself. Participation, in both research and development is then seen as the driving force of the development process and not just a factor for improving the efficiency and effectiveness of "top down" activities.
Philosophical motives
There are also reasons for supporting greater participation in research and development which relate to the philosophy underpinning the way we describe, understand and explain the world we live in. The evolution of participatory processes has led some researchers to the belief that there are multiple realities and that “professional realities are constructed differently from those of local people.” (Chambers, 1998:107).
PARTICIPATORY ATTITUDES
1. Every idea counts / everybody’s view counts
A simple fact, neglected by many persons, is to recognize that different individuals and groups have – according to their respective background - different perceptions and thus assess situations differently, which then leads them to different actions. This applies to each and every single person – including facilitators and promoters of participatory processes. Everyone’s view is heavy with interpretation, bias and prejudice which implies that there are multiple descriptions and interpretations of real world phenomena, events and actions.
2. The learning attitude
Facilitators and promoters as well as any other person involved in participatory processes should adopt a learning attitude, through which they learn from the persons/groups they are working with – rather than a teaching or preaching attitude. This “learning attitude” can be enhanced by acknowledging persons/groups’ experiences in and knowledge of their own context and living conditions, by considering them as experts in dealing with their own situation and problems. Thus the role of a facilitator is to enhance the involvement of all concerned persons/groups by supporting processes (such as investigation, analysis and evaluation of problems, constraints and opportunities, and taking informed and timely decisions).
3. Transparency
Participatory decision-making requires readiness to reach a "win-win" compromise from all sides. An atmosphere of mutual trust is the basis for compromise and constructive co-operation and transparency by all stakeholders is a basic requirement. Transparency will help to avoid hidden agendas and suspicion amongst different parties and thus to prevent situations in which all parties try to protect their own interests rather than finding the most suitable compromise for all parties involved.
4. Flexibility
Being open to other persons’ ideas and opinions is often the most difficult aspect of participatory processes. Often, their views may be difficult to understand and contradictory or incompatible with one’s own ideas and beliefs. Accepting this reality requires a high degree of flexibility, as well as courage to set aside for a moment one’s own perception and neutrally follow the process, being ready to rethink and replan at any stage, if necessary.
KEY PRINCIPLES OF APPLYING PARTICIPATORY METHODS AND TOOLS
1. Leading to action and debate about change
Participatory processes lead to debates about desired changes in existing conditions and hence changes in the perceptions of the actors and their readiness to contemplate action. The process of joint analysis and dialogue helps to define desired changes and seeks to motivate people to implement them. This action includes local institution-building and strengthening, thus increasing the capacity of people to initiate collective self-help action aimed at improving their own futures.
2. Iterative Action and Stepwise Analysis
Participation is an iterative process which should continue throughout the project cycle. Decisions/agreements should be revisited periodically and checked for validity, and adjusted to changes that may have occurred in the conditions/situations/needs in the meantime. This implies that analytical processes should follow a stepwise procedure. That means: to focus on general information gathering in the beginning, then on specific topics, and finally enter into a detailed (in-depth) analysis of local problems, needs and potentials. Additionally, the facilitation team should constantly review their findings in order to determine in which direction to proceed.
3. Multiple perspectives / triangulation
Once the different points of view have been taken into consideration, the output of the analysis/discussion will be provide a more complete and accurate picture of the situation under review. Therefore, when trying to facilitate a participatory process, one should seek to mix team composition, tools and techniques, as well as sources of information/interest groups:
4. Flexibility in applying instruments and choosing degree of precision
Methods and tools should not be used mechanically but should be context specific and appropriate to address the question or topic under discussion. The selection of a particular tool should also determined by the specific characteristics of the society/community/ group the participation team is working with.
5. Visual Sharing
Through visualization within a participatory process, participants have the opportunity to follow a discussion easier, especially illiterate people and people who join a session later than others. Maps, diagrams, rankings and other forms of visualization tools also promote consensual decision-making since everybody is able to directly express their opinion on a chart or on the ground.
6. Group Learning
Participatory workshops and other complex participatory processes are best facilitated by the use of interdisciplinary teams, since the complexity of most situations will only be revealed through group analysis and interaction, thus allowing for different experts to contribute.
7. Self-critical Awareness
Promoters/facilitators of participatory processes have to be extremely careful to constantly analyze their own biases. This means to constantly reflect upon the phenomena they feel they have perceived, actually heard and observed and which they have already judged or interpreted.
PARTICIPATION IN TANZANIA
Participation in Tanzania is being practiced in various development sectors and at different levels. For examples in education sector to boost secondary school education, people have been participating in constructing school buildings.
Tanzania Social Action Fund – TASAF has been creating an environment for people to participate in many development activities; whereby people contribute manpower in various activities such as building dispensaries and health centres while TASAF contributes building materials and providing financial support.
CONCLUTION
In order to institutionalize participation and ensure that collective action does continue it is essential that the capacities of the stakeholders, in particular local institutional arrangements, are strengthened. In this respect an appropriate capacity building strategy is required to integrate relevant horizontal and vertical linkages.
Participation is the key to sustainable development initiatives, since it will lead to building on existing potentials and capacities, a greater sense of ownership on the part of the stakeholders, increased commitment to the objectives and outcomes. Participation also enables longer term social sustainability, increased self-help capacities and stronger and more democratic institutions and partnerships.
REFERENCES
1. FAO Rural Institutions and Participation Service (SDAR),Rural Development Division (SDA).
2. World Bank Participation Sourcebook (1998)
3. World Bank, 1994, “The World Bank and Participation,” Operations Policy Department, Washington, D.C.
INTRODUCTION
FAO define participation in development as a process of equitable and active involvement of all stakeholders in the formulation of development policies and strategies and in the analysis, planning, implementation, monitoring and evaluation of development activities. To allow for a more equitable development process, disadvantaged stakeholders need to be empowered to increase their level of knowledge, influence and control over their own livelihoods, including development initiatives affecting them.
Participation in development is also seen as an organized effort within institutions and organizations to increase stakeholder access and control over resources and related decision making that contributes to sustainable livelihoods. Participation is furthermore viewed as an iterative process involving the continuous re-adjustment of relationships between different stakeholders in a society in order to increase stakeholder control and influence over development initiatives that affect their lives.
The World Bank defines Participation as “a process through which stakeholders influence and share control over development initiatives, decisions and resources which affect them. Participation can take different forms, ranging from information sharing and consultation methods, to mechanisms for collaboration and empowerment that give stakeholders more influence and control.
Participation’ as a concept is however a contested subject. The World Bank Participation Sourcebook (1998) defines participation as a rich concept that means different things to different people in different settings. The definition depends on the approaches of the development organization and their capacity to implement participatory approaches.
Since the late 1970s there has been a range of interpretations of the meaning of participation in development. The following are a number of examples: 'With regard to rural development participation includes people's involvement in decision-making processes, in implementing programmes, their sharing in the benefits of development programmes and their involvement in efforts to evaluate such programmes.' (Cohen and Uphoff, 1977). Participation is concerned with the organized efforts to increase control over resources and regulative institutions in given social situations on the part of groups and movements of those hitherto excluded from such control.' (Pearse and Stifel, 1979) 'Community participation [is] an active process by which beneficiary or client groups influence the direction and execution of a 'Participation can be seen as a process of empowerment of the deprived and the excluded. This view is based on the recognition of differences in political and economic power among different social groups and classes. Participation in this sense necessitates the creation of organizations of the poor which are democratic, independent and self- reliant!' (Ghai, 1990)
HISTORY OF PARTICIPATION
People's participation is by no means a new concept. It was formulated in the mid-1970s, amid growing awareness that development efforts were having little impact on poverty. The development paradigms of the 1960s and 1970s derived from the legacy of colonial rule, especially the planning systems of the late 1930s and post-Second World War (post-WW2) period. The conception was top down (development was something governments did for or to people), and the language military-bureaucratic - by WW2 out of US management literature: "objectives", "targets", "strategies", "capability". The formal social science methods of the late 1950s, combined with digital processing, produced much spurious (and some credible) quantification, usually at great cost. There was little stakeholder involvement of those undergoing "development", a fact which must rank high among the causes of the failures of development to improve the lives of the majority poor of the "developing" world. Participatory development arose as a reaction to this realization of failure, popularized particularly by Gordon Conway and Robert Chambers (1992), and more recently by David Korten (1996).
WHY IS PARTICIPATION IMPORTANT?
Stakeholder participation can be key for ensuring their long-term sustainability. Promoting participation helps build ownership and enhances transparency and accountability, and in doing so enhances effectiveness of development projects and policies.
DEGREE OF PARTICIPATION
Participation by Information-Receiving
Underpins all other levels of participation, and may be appropriate on its own in some circumstances. People participate by being told what is going to happen or has already happened. It is unilateral announcement by an administration or programme management without listening to people's responses. The information being shared belongs only to external professionals.
Participation in Information Giving
People participate by answering questions posed by extractive researchers and programme managers using questionnaire surveys or similar approaches. People do not have the opportunity to influence proceedings, as the findings of the research or programme design are neither shared nor checked for accuracy.
Consultation
People participate by being consulted, and external agents listen to views. These external agents define both problems and solutions, and may modify these in the light of peoples responses. Such a consultative process does not concede any share in decision making and professionals are under no obligation to take on board peoples’ views.
Joint Planning
People participate in joint analysis, which leads to action plans and the formulation of new local groups or strengthening of existing ones. It tends to involve interdisciplinary methodologies that seek multiple perspectives and make use of systematic and structured learning processes. These groups take control over local decisions, so people have a stake in maintaining structures and practices.
Decision Making
When consensus is acted upon through collective decisions, this marks the initiation of shared responsibilities for outcomes that may result. Negotiations at this stage reflect different degrees of leverage exercised by individuals and groups.
Empowerment
People participate in joint analysis, which leads to action plans and the formulation of new local groups or strengthening of existing ones. These groups take control over local decisions, so people have a stake in maintaining structures and practices. People participate by taking initiatives independent of external institutions to change systems. Such self-initiated mobilisation and collective action may or may not challenge inequitable distributions of wealth or power.
METHODS OF PARTICIPATION
Rapid Rural Appraisal - RRA
Rapid Rural Appraisal consists of a series of techniques for "quick and dirty" research that are claimed to generate results of less apparent precision, but greater evidential value, than classic quantitative survey techniques. The method is economical of the researcher's time and is essentially extractive as a process: the agenda is still that of the outside researcher.
Participatory Rural Appraisal - PRA
Participatory rural appraisal evolved from rapid rural appraisal-a set of informal techniques used by development practitioners in rural areas to collect and analyze data. Rapid rural appraisal developed in the 1970s and 1980s in response to the perceived problems of outsiders missing or miscommunication with local people in the context of development work. In PRA, data collection and analysis are undertaken by local people, with outsiders facilitating rather than controlling.
Participatory Action Research - PAR
Participatory Action Research (PAR) is a more activist approach, working to empower the local community, or its representatives, to manipulate the higher level power structures. Claimed for a variety of interventions - World Bank-supported credit unions for the relatively privileged, Grameen-type banks for the very poor, community based paralegal training and litigation, voter education drives among the marginalized - PAR can empower a community, entrench local elite, right a wrong or totally mess things up. It depends on the extent of awareness and political savoir faire of the supporting outside organization.
DIFFERENT APPROACHES TO PARTICIPATION
Different approaches to participation often reflect different motives for engaging in participatory research or development. The motives for participation stem from three broad roots:
(i) Functional motives are those concerned with the efficiency and effectiveness of research and development, and are the main driving force behind the efforts of many governments to improve participation;
(ii) Empowering motives are concerned with participation as an end in itself and are closely linked to democratic processes, they are associated much more with the approaches of community-based organizations and the NGO movement; and,
(iii) Philosophical motives which have explored the understanding of knowledge and knowledge systems between formal science and indigenous culture, and tried to encourage a greater interaction between them.
Functional motives
It has long been recognized that greater participation by those who are to be affected by research or development can improve the efficiency, effectiveness and sustainability of those processes and their outputs. Where such benefits are the reasons for encouraging participation the motive can be broadly described as functional. Chambers (1995) notes several functional reasons for the growing interest in greater participation:
The imposition of standard "top-down" interventions on diverse local realities have failed to address local needs,
The greater involvement of local people may have positive cost implications, and
The more local people are involved in development initiatives, the more likely they are to shoulder the ongoing cost of maintaining such initiatives.
Participation for functional reasons is generally passive and seen as a manageable input to an externally defined process of research or development (Oakley and Marsden, '1984). However, whilst functional participation may have started in this way it has progressively informed and influenced a more fundamental shift towards people-led development, and this includes a parallel shift in research. Chambers says that "Arguably, the big shift of the past two decades has been from a professional paradigm centred on things to one centred on people"(1995:32).
Empowering motives
There are reasons for supporting greater participation in research and development which deal with people's right to be involved in activities concerning their lives. Central to empowerment level reasoning on participation is a reaction against centralization, bureaucratization, rigidity and remoteness of the state (Midgley, 1986). In extreme cases it is a reaction to the oppression .of one group of people by another and the exclusion of their perceptions of reality from the research and development process (Freire, 1972). Participation from an empowerment perspective is seen as a process which is both a means and an end in itself. Participation, in both research and development is then seen as the driving force of the development process and not just a factor for improving the efficiency and effectiveness of "top down" activities.
Philosophical motives
There are also reasons for supporting greater participation in research and development which relate to the philosophy underpinning the way we describe, understand and explain the world we live in. The evolution of participatory processes has led some researchers to the belief that there are multiple realities and that “professional realities are constructed differently from those of local people.” (Chambers, 1998:107).
PARTICIPATORY ATTITUDES
1. Every idea counts / everybody’s view counts
A simple fact, neglected by many persons, is to recognize that different individuals and groups have – according to their respective background - different perceptions and thus assess situations differently, which then leads them to different actions. This applies to each and every single person – including facilitators and promoters of participatory processes. Everyone’s view is heavy with interpretation, bias and prejudice which implies that there are multiple descriptions and interpretations of real world phenomena, events and actions.
2. The learning attitude
Facilitators and promoters as well as any other person involved in participatory processes should adopt a learning attitude, through which they learn from the persons/groups they are working with – rather than a teaching or preaching attitude. This “learning attitude” can be enhanced by acknowledging persons/groups’ experiences in and knowledge of their own context and living conditions, by considering them as experts in dealing with their own situation and problems. Thus the role of a facilitator is to enhance the involvement of all concerned persons/groups by supporting processes (such as investigation, analysis and evaluation of problems, constraints and opportunities, and taking informed and timely decisions).
3. Transparency
Participatory decision-making requires readiness to reach a "win-win" compromise from all sides. An atmosphere of mutual trust is the basis for compromise and constructive co-operation and transparency by all stakeholders is a basic requirement. Transparency will help to avoid hidden agendas and suspicion amongst different parties and thus to prevent situations in which all parties try to protect their own interests rather than finding the most suitable compromise for all parties involved.
4. Flexibility
Being open to other persons’ ideas and opinions is often the most difficult aspect of participatory processes. Often, their views may be difficult to understand and contradictory or incompatible with one’s own ideas and beliefs. Accepting this reality requires a high degree of flexibility, as well as courage to set aside for a moment one’s own perception and neutrally follow the process, being ready to rethink and replan at any stage, if necessary.
KEY PRINCIPLES OF APPLYING PARTICIPATORY METHODS AND TOOLS
1. Leading to action and debate about change
Participatory processes lead to debates about desired changes in existing conditions and hence changes in the perceptions of the actors and their readiness to contemplate action. The process of joint analysis and dialogue helps to define desired changes and seeks to motivate people to implement them. This action includes local institution-building and strengthening, thus increasing the capacity of people to initiate collective self-help action aimed at improving their own futures.
2. Iterative Action and Stepwise Analysis
Participation is an iterative process which should continue throughout the project cycle. Decisions/agreements should be revisited periodically and checked for validity, and adjusted to changes that may have occurred in the conditions/situations/needs in the meantime. This implies that analytical processes should follow a stepwise procedure. That means: to focus on general information gathering in the beginning, then on specific topics, and finally enter into a detailed (in-depth) analysis of local problems, needs and potentials. Additionally, the facilitation team should constantly review their findings in order to determine in which direction to proceed.
3. Multiple perspectives / triangulation
Once the different points of view have been taken into consideration, the output of the analysis/discussion will be provide a more complete and accurate picture of the situation under review. Therefore, when trying to facilitate a participatory process, one should seek to mix team composition, tools and techniques, as well as sources of information/interest groups:
4. Flexibility in applying instruments and choosing degree of precision
Methods and tools should not be used mechanically but should be context specific and appropriate to address the question or topic under discussion. The selection of a particular tool should also determined by the specific characteristics of the society/community/ group the participation team is working with.
5. Visual Sharing
Through visualization within a participatory process, participants have the opportunity to follow a discussion easier, especially illiterate people and people who join a session later than others. Maps, diagrams, rankings and other forms of visualization tools also promote consensual decision-making since everybody is able to directly express their opinion on a chart or on the ground.
6. Group Learning
Participatory workshops and other complex participatory processes are best facilitated by the use of interdisciplinary teams, since the complexity of most situations will only be revealed through group analysis and interaction, thus allowing for different experts to contribute.
7. Self-critical Awareness
Promoters/facilitators of participatory processes have to be extremely careful to constantly analyze their own biases. This means to constantly reflect upon the phenomena they feel they have perceived, actually heard and observed and which they have already judged or interpreted.
PARTICIPATION IN TANZANIA
Participation in Tanzania is being practiced in various development sectors and at different levels. For examples in education sector to boost secondary school education, people have been participating in constructing school buildings.
Tanzania Social Action Fund – TASAF has been creating an environment for people to participate in many development activities; whereby people contribute manpower in various activities such as building dispensaries and health centres while TASAF contributes building materials and providing financial support.
CONCLUTION
In order to institutionalize participation and ensure that collective action does continue it is essential that the capacities of the stakeholders, in particular local institutional arrangements, are strengthened. In this respect an appropriate capacity building strategy is required to integrate relevant horizontal and vertical linkages.
Participation is the key to sustainable development initiatives, since it will lead to building on existing potentials and capacities, a greater sense of ownership on the part of the stakeholders, increased commitment to the objectives and outcomes. Participation also enables longer term social sustainability, increased self-help capacities and stronger and more democratic institutions and partnerships.
REFERENCES
1. FAO Rural Institutions and Participation Service (SDAR),Rural Development Division (SDA).
2. World Bank Participation Sourcebook (1998)
3. World Bank, 1994, “The World Bank and Participation,” Operations Policy Department, Washington, D.C.
COMMUNITY ECONOMIC DEVELOPMENT
SCHOOL OF COMMUNITY ECONOMIC DEVELOPMENT
photo courtesy of the Peace Corps
About the School Southern New Hampshire University’s School of Community Economic Development is an internationally recognized leader in education, public policy, research and institution-building in the field of community economic development. The school has served more than 1,200 development practitioners from around the world with its educational and professional development programs during the last 25 years. Our programs provide policymakers and practitioners representing community-based organizations with skills in planning, management and finance and with development tools that enable them to build their communities. With its highly acclaimed degree and certificate programs offered on campus in the U.S. and in partnership with universities in East Africa, the School of CED has demonstrated the importance of the practice of community economic development domestically and internationally.
Our Programs SCED’s International Academic and Professional Development Programs provide “stand alone” professional development training oportunities which can be combined to earn an M.S. in Community Economic Development. The Microenterprise and Development Institute and/or Graduate Certificate in Microfinance Management courses may fulfill the elective course requirements of the School’s International M.S. Program.
Program Features The school serves a diverse community, with courses designed for the microfinance and microenterprise “beginners” as well as advanced practitioners. Features of the program include:
• year-round programs with opportunities to earn “portable” academic credits, a master’s degree, a certificate of specialization in international microenterprise development or a graduate certificate in microfinance management.
• world-renowned faculty affiliated with major development and academic organizations.
• continuous online support as you complete assignments in your home community.
Participants School of CED programs are intended for international development practitioners and policy makers. Our students have typically spent two years in the field, working for international and national nongovernmental community-based and relief organizations. A number of SCED students work for larger NGO’s such as CARE, Catholic Relief Services, MEDA while others work for smaller indigenous people’s organizations. Their areas of expertise include microenterprise and microfinance, women’s empowerment to development finance. SCED students come from numerous countries in Africa, Europe, the Americas and Asia.
Partnerships The School believes in supporting our students in every way possible. One way we do this is through strategic partnerships with like-minded organizations. The Peace Corps Master’s International (PCMI) and Fellows/USA programs at the School combine interdisciplinary coursework with Peace Corps service.
It equips participants with skills designed for professional practice in developing countries or with disenfranchised communities in the United States.
These programs are available to SCED students before going to their Peace Corps assignment, or upon their return from service.
Students nominated for Peace Corps service are given special consideration for admission and scholarship. For more information on the Peace Corps visit www.peacecorps.gov/gradschool.
Academic and Professional Development Programs 2008 Stephanie Stuart has researched alternative fuel sources in the Himalayas in Nepal; created a forestry program in Syracuse,
N.Y.; and operates a jewelry design company in St. Paul, Minn. Now a master’s degree program student in the School of CED, her goal is to help communities with economic development.
“Having started my own business, a small business, I definitely understand the struggles of getting loans and the startup that you need to be successful,” Stephanie says.
Stephanie’s path to CED began when she joined the board of a microenterprise organization.
She attended the university’s Microenterprise and Development Institute and was hooked.
“The curriculum, the facilitators, the participants were unparalled.
It was an amazing experience,” she says.
“I think that you don’t have to change the world to have made a contribution,” she says. “I think just to have a positive impact on a family, on a community … helping a family bring in more income into their household so that they can pay the school fees for their children to go to school … if I could do that for one family, it would be amazing.”
School of Community Economic Development “I think that you don’t have to change the world to have made a contribution.”
Stephanie Stuart Students may pursue a Master of Science in International Community Economic Development through our Summer Intensive Program, for international students working abroad, or our weekend program, for U.S.-based students.
Weekend Format This 22-month format allows students who reside in the U.S. to work full time while still attending classes during a three-day weekend once a month. Courses take place at our Manchester, N.H., campus and online.
Summer Intensive Format International practitioners attend classes on campus for up to seven weeks in the summer at our Manchester campus. After the first term they will return to their communities to carry out a community economic development project and complete course work online.
They then will return to campus for a final seven week summer term.
CED Master’s Projects All master’s degree students are required to plan and implement
a CED project in their communities. This learning-by-doing approach ensures that students benefit from a hands-on, applied and practitioner-oriented experience. Each student must complete a final report on the project to graduate. This serves as a graduate thesis.
The Curriculum
The curriculum focuses on providing the following:
Knowledge – Students learn about development theories and economics.
Skills – Students develop project design and management as well
as organizational and financial management skills.
Specialization – Participants may specialize in International Microenterprise
Development and Cooperatives and Credit Unions.
Students must complete 39 academic credits to successfully graduate. These include the required on-campus courses and online course work. Students must complete a minimum of 32
required and seven elective academic credits.
Visit www.snhu.edu/1744.asp online for additional information about course requirements
and content. Please contact Academic Program Chair Catherine Rielly at
c.rielly@snhu.edu for additional information about ICED master’s degree programs.
Term 1 Term 2 Term 3 Term 4 Sept. to Dec. Jan. to April Sept. to Dec. Jan. to April
Term 1 Summer Intensive Session On-Campus
Term 2 Online Session Field-Based
Term 3 Online Session Field-Based
Term 4 Summer Intensive Session
On-Campus When Summer 2008 ( 7 weeks) Sept. to Dec. 2008 (16 weeks) Jan. to April 2009
(16 weeks) Summer 2009 (7 weeks)
Where In residence at the SNHU campus, Manchester, N.H.
In your home community (Internet access required)
In your home community (Internet access required)
In residence at the SNHU campus, Manchester, N. H. Course Requirements Required and
elective courses Required and elective courses Required and elective courses
Required and elective courses
Master of Science Program Microenterprise and Development Institute (MDI-NH) MDI-NH was founded in 1999 to focus on practitioner skill-building in financial systems and business development services. The institute has provided specialized professional development training for more than 900 participants from 90 countries.
Institute courses place a keen emphasis on the “triple double bottom line” of development:
• building programs that support strong local economies • engaging stakeholders in highly participatory processes
• creating sustainable livelihoods which have a positive environmental impact.
The MDI offers approaches for addressing the financial needs of poor families and their communities as well as building effective financial institutions that assure broad-ba sed and long-term social and economic participation in the benefits that these institutions provide.
Participants in the New Hampshire program will learn from some of the top microfinance and development practitioners in the field and network with peers from all over the globe.
2008 MDI-NH Design and Course Offerings The MDI is geared to practitioners in the community development, microfinance and microenterprise development fields who
seek an educational program that is highly relevant and flexible to meet their professional development needs.
In 2008 we will celebrate the 10th anniversary of the MDI-NH with exciting course offerings and program format changes.
The MDI-NH will be expanded to embrace a multidisciplinary and practical curriculum:
• Knowledge Tracks including: ProPoor Enterprise Development, Microfinance Financial Management, Institutional Development, Cooperatives and Other Member Owned Institutions, Topics in CED
• Academic Credit and learning assessments will be a standard feature of every course.
• Leaders of the development and MF/MED fields will facilitate courses and plenary discussions.
• Grameen Bank founder and 2006 Nobel Peace Prize Laureate Dr. Mohammed Yunus has been invited to attend.
A full listing of MDI-NH courses and schedules is available at www.mdi-nh.org.
Graduate Certificate in Microfinance Management The graduate certificate in microfinance management is the first School of CED program to be offered completely online. It provides
a unique opportunity for busy microfinance practitioners who cannot leave their communities but still wish to acquire new skill sets and earn academic credit. A student who completes
this program can earn either a certificate of participation or a graduate certificate. Students may also transfer credits into the international CED master’s program. Each 11-week
online course is taught by experts in the field.
Course Offerings for 2007 – 2008 (Academic year) Practical Microfinance (ICD 525) by Prof. Malcolm Harper Sept. 17 – Dec. 8, 2007
Registration: Aug. 6 – Aug. 31, 2007
Performance Evaluation & Client Assessments in Micro finance (ICD 527) by Dr. Gaamaa Hishigsuren Jan. 7 – March 22, 2008
Registration: Nov. 26 – Dec. 24, 2007
Financial Analysis for Management of MFIs (ICD 526) by Mr. Kadry Furany March 31- June 14, 2008
Registration: Feb. 18 – March 17, 2008 Apply online at www.snhu.edu/914.asp.
Course information and course descriptions are available online at www.snhu.edu/856.asp. Please contact Puneetha Palakurthi at p.palakurthi@snhu.edu for more information about the GCMM program. Learn more about Southern New Hampshire University’s Online programs at www.snhu.edu/online. Professional Development Programs When Aly Diakhate enrolled in the School of Community Economic Development at Southern New Hampshire University, he knew only that he wanted to help people in need.
“I was raised in some difficult conditions by a single mom who struggled,” says Aly, who was born and grew up in Senegal, Africa. “Until I got admitted into this program, I never thought about how much I can do just in the field of economic development. (The School of CED) is
allowing me to focus on some specific skills and essential, crucial skills that I need to get the work done.”
Professionally, Aly is working with Faith Fund and Neighborhood Housing Service of Baltimore on a unique mortgage and small business lending program for members of Baltimore’s Islamic community.
Having been away from home for seven years, he looks forward to returning to Senegal, where he will apply all that he has learned and rejoin his “supportive” – and patient – fiancée.
“Everything that I am doing from school to work is designed around the idea of going home one day. If I can help a woman who, in the midst of an African village where there’s not much hope or
expectation … to provide to her own children and to herself and have activities that will be self-sustained, I would say that I have made a big change in a life,”
Aly says. “Even if it happens with one single person in my lifetime, I think I’ve succeeded.”
“Until I got admitted into this program, I never thought about how much I can do just in the field of economic development.”
Master’s Programs An applicant must:
• be a community economic development practitioner.
• hold a bachelor’s degree or have equivalent field experience.
• be computer literate and have a working knowledge of
Microsoft Office Suite or equivalent software.
• have reliable Internet access.
International applicants must be proficient in English and have a TOEFL score of 550 or an IETLS score of 6.0 or higher.
Required admissions documents include:
• a completed application
• official academic documents, transcripts, mark sheets, etc.
• a professional resume or curriculum vitae
• two letters of recommendation
• a personal statement
International applicants must provide an affidavit of support (documentation of adequate financial support to cover all expenses for the program) and must have a medical form and
chest X-ray when arriving in the United States.
Additional information about international admission is available online at www.snhu.edu/40.asp or by contacting the School of CED admissions office at 603.644.3123 or k.kennedy@snhu.edu.
Graduate Certificate in Microfinance Management
• Current SCED students should contact the School of CED office at 603.644.3103.
• Current SNHU graduate students not enrolled in a SCED program should register online at www.snhu.edu/1143.asp.
• Prospective students who are seeking academic credit (course work only) but are not enrolled in an SNHU graduate program should complete an application online at www.snhu.edu/1740.asp.
• Participants interested in taking the course who are not enrolled in an SNHU graduate program and do not wish to earn academic credit should e-mail r.cote1@snhu.edu. Microenterprise and Development Institute The MDI-NH registration is a two-part process. The preapplication
process must be completed online at www.mdi-nh.org and consists of a questionnaire about your experience, language skills and ability to pay for tuition, room and board and travel.
Qualified applicants will then be sent a link to the full registration application.
A deposit of USD $500 will be required when the full registration application is submitted. Detailed registration information can be found online at www.mdi-nh.org.
You may register for one or two weeks and you will be asked to select first and second choices. Since space is limited in each class, preference will be given to individuals registering for two
weeks of the Institute and will be decided on a first-come, firstserved basis. Applicants will be notified of class availability no later than May 15, 2008.
Aly Diakhate Admissions MDI Tuition Discounts MDI offers significant discounts when registering multiple students from the same organization. Please contact the MDI-NH
staff at mdi@snhu.edu or 01.603.644.3124 for more details.
For additional information about MDI visit www.mdi-nh.org.
Visa Applications
Due to homeland security measures, the process of applying for
a visa for entry into the United States may be quite long and difficult.
It is imperative that you begin the process early.
The U.S. government requires that all international students
acquire an F-1 Student Visa. Visit www.unitedstatesvisas.gov online
for visa information.
Microenterprise and Development Institute participants are
advised to request a Business/Tourist (B-1/B-2) visa for entry to
the United States. See www.snhu.edu/5594.asp online for additional
visa information.
Accommodations
On-campus housing is in a private room in an apartment shared
with up to three additional students. Each apartment is
equipped with a kitchen with full cooking facilities, cooking
utensils, a refrigerator, a living area and a shared bathroom.
Each bedroom has a phone and Internet connection (a cable is
required). Participants who prefer cooking their own meals may
purchase inexpensive food and additional cooking supplies at
local supermarkets. Facilities are cleaned routinely and students
are provided a set of sheets and towels for the duration of the
stay. Washers and dryers are available on campus.
The approximate accommodation cost per student is $300 per
week. A refundable key and excessive cleaning deposit of $50 is
required for those living on campus.
Weekend M.S. Program lodging: The School will send incoming
students hotel information for the Manchester, N.H. area before
classes begin. The CED rate at our preferred vendor (Holiday
Inn - Brown Avenue) is $75 per night per room. This does not
include the 8% rooms and meals tax. Two students usually share
a room to cut costs.
Additional information about SNHU housing is available online
at www.snhu.edu/1125.asp.
Learn more about the School of CED online at www.snhu.edu/ced
or contact:
Anthony Poore or Kathleen Kennedy
2500 N. River Road
Manchester, NH 03104
Phone: 603.644.3103
Fax: 603.644.3130
a.poore@snhu.edu
k.kennedy@snhu.edu
snhu.edu on campus. on location. online.
Nonacademic Credit Charge Academic Credit Charge Tuition Term Charge
ICED Program N/A N/A $3,400*
GCMM
(per course charge) $500 $1,497** N/A
MDI***
1 Week - $1,300
2 Weeks - $2,500
up to 3 academic credits - included
up to 6 academic credits - included N/A
* Flat “per-term” tuition charge (7 to 15 academic credits). Additional per-credit tuition costs are applicable should a student wish to take more than 15 credits per term.
** 3 academic credits per course
*** includes all books, reading materials, lunches Monday through Friday and one dinner per week.
Tuition
SOUTHERN NEW HAMPSHIRE UNIVERSITY •
1982 – 2007 25th Anniversary
• SCHOOL OF COM MUNI T Y ECONOMIC DEVE LOPMENT •
photo courtesy of the Peace Corps
About the School Southern New Hampshire University’s School of Community Economic Development is an internationally recognized leader in education, public policy, research and institution-building in the field of community economic development. The school has served more than 1,200 development practitioners from around the world with its educational and professional development programs during the last 25 years. Our programs provide policymakers and practitioners representing community-based organizations with skills in planning, management and finance and with development tools that enable them to build their communities. With its highly acclaimed degree and certificate programs offered on campus in the U.S. and in partnership with universities in East Africa, the School of CED has demonstrated the importance of the practice of community economic development domestically and internationally.
Our Programs SCED’s International Academic and Professional Development Programs provide “stand alone” professional development training oportunities which can be combined to earn an M.S. in Community Economic Development. The Microenterprise and Development Institute and/or Graduate Certificate in Microfinance Management courses may fulfill the elective course requirements of the School’s International M.S. Program.
Program Features The school serves a diverse community, with courses designed for the microfinance and microenterprise “beginners” as well as advanced practitioners. Features of the program include:
• year-round programs with opportunities to earn “portable” academic credits, a master’s degree, a certificate of specialization in international microenterprise development or a graduate certificate in microfinance management.
• world-renowned faculty affiliated with major development and academic organizations.
• continuous online support as you complete assignments in your home community.
Participants School of CED programs are intended for international development practitioners and policy makers. Our students have typically spent two years in the field, working for international and national nongovernmental community-based and relief organizations. A number of SCED students work for larger NGO’s such as CARE, Catholic Relief Services, MEDA while others work for smaller indigenous people’s organizations. Their areas of expertise include microenterprise and microfinance, women’s empowerment to development finance. SCED students come from numerous countries in Africa, Europe, the Americas and Asia.
Partnerships The School believes in supporting our students in every way possible. One way we do this is through strategic partnerships with like-minded organizations. The Peace Corps Master’s International (PCMI) and Fellows/USA programs at the School combine interdisciplinary coursework with Peace Corps service.
It equips participants with skills designed for professional practice in developing countries or with disenfranchised communities in the United States.
These programs are available to SCED students before going to their Peace Corps assignment, or upon their return from service.
Students nominated for Peace Corps service are given special consideration for admission and scholarship. For more information on the Peace Corps visit www.peacecorps.gov/gradschool.
Academic and Professional Development Programs 2008 Stephanie Stuart has researched alternative fuel sources in the Himalayas in Nepal; created a forestry program in Syracuse,
N.Y.; and operates a jewelry design company in St. Paul, Minn. Now a master’s degree program student in the School of CED, her goal is to help communities with economic development.
“Having started my own business, a small business, I definitely understand the struggles of getting loans and the startup that you need to be successful,” Stephanie says.
Stephanie’s path to CED began when she joined the board of a microenterprise organization.
She attended the university’s Microenterprise and Development Institute and was hooked.
“The curriculum, the facilitators, the participants were unparalled.
It was an amazing experience,” she says.
“I think that you don’t have to change the world to have made a contribution,” she says. “I think just to have a positive impact on a family, on a community … helping a family bring in more income into their household so that they can pay the school fees for their children to go to school … if I could do that for one family, it would be amazing.”
School of Community Economic Development “I think that you don’t have to change the world to have made a contribution.”
Stephanie Stuart Students may pursue a Master of Science in International Community Economic Development through our Summer Intensive Program, for international students working abroad, or our weekend program, for U.S.-based students.
Weekend Format This 22-month format allows students who reside in the U.S. to work full time while still attending classes during a three-day weekend once a month. Courses take place at our Manchester, N.H., campus and online.
Summer Intensive Format International practitioners attend classes on campus for up to seven weeks in the summer at our Manchester campus. After the first term they will return to their communities to carry out a community economic development project and complete course work online.
They then will return to campus for a final seven week summer term.
CED Master’s Projects All master’s degree students are required to plan and implement
a CED project in their communities. This learning-by-doing approach ensures that students benefit from a hands-on, applied and practitioner-oriented experience. Each student must complete a final report on the project to graduate. This serves as a graduate thesis.
The Curriculum
The curriculum focuses on providing the following:
Knowledge – Students learn about development theories and economics.
Skills – Students develop project design and management as well
as organizational and financial management skills.
Specialization – Participants may specialize in International Microenterprise
Development and Cooperatives and Credit Unions.
Students must complete 39 academic credits to successfully graduate. These include the required on-campus courses and online course work. Students must complete a minimum of 32
required and seven elective academic credits.
Visit www.snhu.edu/1744.asp online for additional information about course requirements
and content. Please contact Academic Program Chair Catherine Rielly at
c.rielly@snhu.edu for additional information about ICED master’s degree programs.
Term 1 Term 2 Term 3 Term 4 Sept. to Dec. Jan. to April Sept. to Dec. Jan. to April
Term 1 Summer Intensive Session On-Campus
Term 2 Online Session Field-Based
Term 3 Online Session Field-Based
Term 4 Summer Intensive Session
On-Campus When Summer 2008 ( 7 weeks) Sept. to Dec. 2008 (16 weeks) Jan. to April 2009
(16 weeks) Summer 2009 (7 weeks)
Where In residence at the SNHU campus, Manchester, N.H.
In your home community (Internet access required)
In your home community (Internet access required)
In residence at the SNHU campus, Manchester, N. H. Course Requirements Required and
elective courses Required and elective courses Required and elective courses
Required and elective courses
Master of Science Program Microenterprise and Development Institute (MDI-NH) MDI-NH was founded in 1999 to focus on practitioner skill-building in financial systems and business development services. The institute has provided specialized professional development training for more than 900 participants from 90 countries.
Institute courses place a keen emphasis on the “triple double bottom line” of development:
• building programs that support strong local economies • engaging stakeholders in highly participatory processes
• creating sustainable livelihoods which have a positive environmental impact.
The MDI offers approaches for addressing the financial needs of poor families and their communities as well as building effective financial institutions that assure broad-ba sed and long-term social and economic participation in the benefits that these institutions provide.
Participants in the New Hampshire program will learn from some of the top microfinance and development practitioners in the field and network with peers from all over the globe.
2008 MDI-NH Design and Course Offerings The MDI is geared to practitioners in the community development, microfinance and microenterprise development fields who
seek an educational program that is highly relevant and flexible to meet their professional development needs.
In 2008 we will celebrate the 10th anniversary of the MDI-NH with exciting course offerings and program format changes.
The MDI-NH will be expanded to embrace a multidisciplinary and practical curriculum:
• Knowledge Tracks including: ProPoor Enterprise Development, Microfinance Financial Management, Institutional Development, Cooperatives and Other Member Owned Institutions, Topics in CED
• Academic Credit and learning assessments will be a standard feature of every course.
• Leaders of the development and MF/MED fields will facilitate courses and plenary discussions.
• Grameen Bank founder and 2006 Nobel Peace Prize Laureate Dr. Mohammed Yunus has been invited to attend.
A full listing of MDI-NH courses and schedules is available at www.mdi-nh.org.
Graduate Certificate in Microfinance Management The graduate certificate in microfinance management is the first School of CED program to be offered completely online. It provides
a unique opportunity for busy microfinance practitioners who cannot leave their communities but still wish to acquire new skill sets and earn academic credit. A student who completes
this program can earn either a certificate of participation or a graduate certificate. Students may also transfer credits into the international CED master’s program. Each 11-week
online course is taught by experts in the field.
Course Offerings for 2007 – 2008 (Academic year) Practical Microfinance (ICD 525) by Prof. Malcolm Harper Sept. 17 – Dec. 8, 2007
Registration: Aug. 6 – Aug. 31, 2007
Performance Evaluation & Client Assessments in Micro finance (ICD 527) by Dr. Gaamaa Hishigsuren Jan. 7 – March 22, 2008
Registration: Nov. 26 – Dec. 24, 2007
Financial Analysis for Management of MFIs (ICD 526) by Mr. Kadry Furany March 31- June 14, 2008
Registration: Feb. 18 – March 17, 2008 Apply online at www.snhu.edu/914.asp.
Course information and course descriptions are available online at www.snhu.edu/856.asp. Please contact Puneetha Palakurthi at p.palakurthi@snhu.edu for more information about the GCMM program. Learn more about Southern New Hampshire University’s Online programs at www.snhu.edu/online. Professional Development Programs When Aly Diakhate enrolled in the School of Community Economic Development at Southern New Hampshire University, he knew only that he wanted to help people in need.
“I was raised in some difficult conditions by a single mom who struggled,” says Aly, who was born and grew up in Senegal, Africa. “Until I got admitted into this program, I never thought about how much I can do just in the field of economic development. (The School of CED) is
allowing me to focus on some specific skills and essential, crucial skills that I need to get the work done.”
Professionally, Aly is working with Faith Fund and Neighborhood Housing Service of Baltimore on a unique mortgage and small business lending program for members of Baltimore’s Islamic community.
Having been away from home for seven years, he looks forward to returning to Senegal, where he will apply all that he has learned and rejoin his “supportive” – and patient – fiancée.
“Everything that I am doing from school to work is designed around the idea of going home one day. If I can help a woman who, in the midst of an African village where there’s not much hope or
expectation … to provide to her own children and to herself and have activities that will be self-sustained, I would say that I have made a big change in a life,”
Aly says. “Even if it happens with one single person in my lifetime, I think I’ve succeeded.”
“Until I got admitted into this program, I never thought about how much I can do just in the field of economic development.”
Master’s Programs An applicant must:
• be a community economic development practitioner.
• hold a bachelor’s degree or have equivalent field experience.
• be computer literate and have a working knowledge of
Microsoft Office Suite or equivalent software.
• have reliable Internet access.
International applicants must be proficient in English and have a TOEFL score of 550 or an IETLS score of 6.0 or higher.
Required admissions documents include:
• a completed application
• official academic documents, transcripts, mark sheets, etc.
• a professional resume or curriculum vitae
• two letters of recommendation
• a personal statement
International applicants must provide an affidavit of support (documentation of adequate financial support to cover all expenses for the program) and must have a medical form and
chest X-ray when arriving in the United States.
Additional information about international admission is available online at www.snhu.edu/40.asp or by contacting the School of CED admissions office at 603.644.3123 or k.kennedy@snhu.edu.
Graduate Certificate in Microfinance Management
• Current SCED students should contact the School of CED office at 603.644.3103.
• Current SNHU graduate students not enrolled in a SCED program should register online at www.snhu.edu/1143.asp.
• Prospective students who are seeking academic credit (course work only) but are not enrolled in an SNHU graduate program should complete an application online at www.snhu.edu/1740.asp.
• Participants interested in taking the course who are not enrolled in an SNHU graduate program and do not wish to earn academic credit should e-mail r.cote1@snhu.edu. Microenterprise and Development Institute The MDI-NH registration is a two-part process. The preapplication
process must be completed online at www.mdi-nh.org and consists of a questionnaire about your experience, language skills and ability to pay for tuition, room and board and travel.
Qualified applicants will then be sent a link to the full registration application.
A deposit of USD $500 will be required when the full registration application is submitted. Detailed registration information can be found online at www.mdi-nh.org.
You may register for one or two weeks and you will be asked to select first and second choices. Since space is limited in each class, preference will be given to individuals registering for two
weeks of the Institute and will be decided on a first-come, firstserved basis. Applicants will be notified of class availability no later than May 15, 2008.
Aly Diakhate Admissions MDI Tuition Discounts MDI offers significant discounts when registering multiple students from the same organization. Please contact the MDI-NH
staff at mdi@snhu.edu or 01.603.644.3124 for more details.
For additional information about MDI visit www.mdi-nh.org.
Visa Applications
Due to homeland security measures, the process of applying for
a visa for entry into the United States may be quite long and difficult.
It is imperative that you begin the process early.
The U.S. government requires that all international students
acquire an F-1 Student Visa. Visit www.unitedstatesvisas.gov online
for visa information.
Microenterprise and Development Institute participants are
advised to request a Business/Tourist (B-1/B-2) visa for entry to
the United States. See www.snhu.edu/5594.asp online for additional
visa information.
Accommodations
On-campus housing is in a private room in an apartment shared
with up to three additional students. Each apartment is
equipped with a kitchen with full cooking facilities, cooking
utensils, a refrigerator, a living area and a shared bathroom.
Each bedroom has a phone and Internet connection (a cable is
required). Participants who prefer cooking their own meals may
purchase inexpensive food and additional cooking supplies at
local supermarkets. Facilities are cleaned routinely and students
are provided a set of sheets and towels for the duration of the
stay. Washers and dryers are available on campus.
The approximate accommodation cost per student is $300 per
week. A refundable key and excessive cleaning deposit of $50 is
required for those living on campus.
Weekend M.S. Program lodging: The School will send incoming
students hotel information for the Manchester, N.H. area before
classes begin. The CED rate at our preferred vendor (Holiday
Inn - Brown Avenue) is $75 per night per room. This does not
include the 8% rooms and meals tax. Two students usually share
a room to cut costs.
Additional information about SNHU housing is available online
at www.snhu.edu/1125.asp.
Learn more about the School of CED online at www.snhu.edu/ced
or contact:
Anthony Poore or Kathleen Kennedy
2500 N. River Road
Manchester, NH 03104
Phone: 603.644.3103
Fax: 603.644.3130
a.poore@snhu.edu
k.kennedy@snhu.edu
snhu.edu on campus. on location. online.
Nonacademic Credit Charge Academic Credit Charge Tuition Term Charge
ICED Program N/A N/A $3,400*
GCMM
(per course charge) $500 $1,497** N/A
MDI***
1 Week - $1,300
2 Weeks - $2,500
up to 3 academic credits - included
up to 6 academic credits - included N/A
* Flat “per-term” tuition charge (7 to 15 academic credits). Additional per-credit tuition costs are applicable should a student wish to take more than 15 credits per term.
** 3 academic credits per course
*** includes all books, reading materials, lunches Monday through Friday and one dinner per week.
Tuition
SOUTHERN NEW HAMPSHIRE UNIVERSITY •
1982 – 2007 25th Anniversary
• SCHOOL OF COM MUNI T Y ECONOMIC DEVE LOPMENT •
TANZANIA ECONOMIC PERFORMANCE
The United Republic of Tanzania
MINISTRY OF INDUSTRY, TRADE AND MARKETING
INDUSTRIAL SECTOR
PERFORMANCE IN
TANZANIA
NATIONAL BUREAU OF STATISTICS
MINISTRY OF PLANNING, ECONOMY AND EMPOWERMENT
August, 2007
August 2007
i Table of Content
iiList of Tables
iiiAppendices
ivList of Acronyms and Abbreviations
vGlossary
A transition economy is an economy whish is changing from a planned economy to a free market.
Transition economies undergo economic liberalisation, letting market forces set prices and
lowering trade barriers, macroeconomic stabilisation, where immediate high inflation is brought
under control, and restructuring and privatisation, in order to create a financial sector and move
from public to private ownership of resources. Transition process is usually characterised by the
changing and creating of institutions, particularly private enterprises; changes in the role of the
state, thereby, the creation of fundamentally different governmental institutions; and the promotion of private-owned enterprises, markets and independent financial institutions.
Absolute advantage refers to a situation where by a country’s output per unit of input of particular goods and services produced is higher than that of another country.
Agroprocessing industry refers to the subset of manufacturing that processes raw materials and
intermediate products derived from the agricultural sector. Agroprocessing industry thus means
transforming products originating from agriculture, forestry and fisheries.
Assembly line is a manufacturing process in which interchangeable parts are added to a product
in a sequential manner to create a finished product.
Balance of payments (or BOP) measures the payments that flow between any individual country
and all other countries. It is used to summarise all international economic transactions for that
country during a specific time period, usually a year. The BOP is determined by the country’s
exports and imports of goods, services, and financial capital, as well as financial transfers. It
reflects all payments and liabilities to foreigners (debits) and all payments and obligations received from foreigners (credits).
Balance of trade (or net exports) is the difference between the monetary value of exports and
imports in an economy over a certain period of time. A positive balance of trade is known as a
trade surplus and consists of exporting more than is imported; a negative balance of trade is
known as a trade deficit or, informally, a trade gap.
Business environment is the social, technological, economic and political environment in which
a business functions. The business environment affects organisational decisions, strategies,
processes and performance.
Capacity utilisation measures the rate at which firms make use of their capital productive
capacities, such as factories and machinery. Capacity utilisation generally rises when the economy is healthy and falls when demand softens. As such, it is useful as an economic trend indicator, reflecting overall growth and demand. High rates of capacity utilisation generally exert inflationary pressures owing to scarce resources facing high levels of demand. However, it may also lead to new capital investments (i.e. new factories or plants) which promote future growth.
Foreword by the Minister
Acknowledgements
This publication shows the performance of industrial sector following an industrial survey that was undertaken by the Ministry of Industry, Trade and Marketing (MITM). It provides industrial statistics that reflect the contribution of the sector to economy. More specifically, the publication evaluates the industry sector by looking at a number of variables, including capacity utilisation, revenue generation, export earnings, employment levels, ownership pattern, size and spatial regional distribution of industries, return on investments, and contribution to corporate social responsibility.
This survey would not have been possible without the strong support and guidance by Dr. S. L. Tax, the Permanent Secretary, MITM, and Dr. F. M. Turuka, the Deputy Permanent Secretary, MITM. The survey team was guided and supervised by Mr. A. A. Nyiti, Director of Industry Development and Ms. E. S. Sikazwe, Assistant Director. The field work, data analysis and report writing was carried out by Mr. E. P. Mhede, Mr. A. K. Likwelile, Ms. A. Z. Kibuga, Mr. E. D. Kitundu, Mr. F. Romani,
Mr. E. Mkandya, Mr. A. Philip, Mr. A. M. Mnyenyelwa, Mr. D. Yohana, Mr. R. Senya, and
Mr. M. Shayo. The Ministry of Industry, Trade and Marketing is indebted to a number of institutions and people who supported the Ministry of Industry, Trade and Marketing in many ways while carrying out the industrial performance survey. Their great support and contributions enables the Ministry to complete the survey successfully.
A special note of gratitude is extended to the National Bureau of Statistics (NBS) for its unfailing
technical support to this survey. Our appreciations go to Ms. A. Chuwa, the Director General for her commitment and guidance during the entire process. We are equally indebted to the members of the Survey Team from NBS particularly Ms. J. Sawe, Mr. A. M. Makbel, Mr. G. Mwiza and Mr. A. Kinyage for their tireless efforts and great contributions at different stages of the Survey.
We are also thankful to the Prime Ministers’ Office through Regional Administration and Local
Government authorities in all twenty one (21) regions in Tanzania Mainland where this survey was carried. Specifically, the Ministry highly appreciates the invaluable support received from the Regional Commissioners, Regional Administrative Secretaries, District Commissioners, Regional Trade Officers, District Trade Officers and Ward Executive Officers for their assistance and facilitation in many ways while undertaking the survey. We also thank the Ministry of Finance and the Ministry of Planning, Economy and Empowerment, the Tanzania Investment Centre (TIC) and Bank of Tanzania for their invaluable inputs and contribution to this report.
We also acknowledge the role played by representatives of the private sector, through their associations such as Confederation of Tanzania Industries (CTI) and Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA), and through individual investors and industrial entrepreneurs, for their inputs that ensured that findings in this report reflect the reality on the ground.
Special thanks are extended to Dr. P. J. Makungu, Director General, CAMARTEC; Dr. J. Kweka,
Senior Economist, World Bank Tanzania; Prof. E.M. Senkondo, Sokoine University of Agriculture
and Mr. B. Lyimo, Chief Executive Officer, Better Regulation Unit, for their invaluable comments
and inputs on the several drafts of this report.
While the inputs and support of each and every individual at different levels are sincerely appreciated, the Ministry of Industry, trade and Marketing take full responsibility for any shortfalls in this report.
Executive Summary
Chapter 1: Introduction
Chapter 2: Methodology
Chapter 3: Survey Results
There were great
regional differences in
terms of industrial
establishment and
development. About 74
percent of the surveyed
industries were located
in ten (10) regions.
3.1 Spatial Distribution of Industries
This section presents an overview of the spatial distribution and other
characteristics of the surveyed industries and related establishments. Among other
things, the results in this section show the regional distribution of the surveyed
industries in terms of numbers, size, type of industries and ownership patterns.
3.1.1 Geographical distribution of surveyed industries by regions
The survey findings show that there were great regional differences in terms of
industrial establishment and development. About 74 percent of the surveyed
industries were in ten (10) regions (Dar es Salaam, Mwanza, Arusha,
Kilimanjaro, Tanga, Morogoro, Manyara, Mbeya, Singida and Mara); only 26
percent of the surveyed industries were in the remaining eleven (11) regions.
Regions that were found to be least developed industrially were Lindi, Rukwa,
Ruvuma, Pwani, Kigoma and Tabora. Together they constituted only 4.99 percent
of the surveyed industries (Table 4). This indicates that there are factors that
hinder the development of the industrial sector in these regions.
7
A large proportion of large scale industries (74 percent) dominate and located in Dar es
Salaam, Tanga, Arusha, Mwanza and Morogoro.
Information from other sources shows that Dar es Salaam is the dominant location for Tanzanian industrial sector in terms of number of establishments, employment and MVA (URT, POPP, NBS, 2003). About 45 percent of the total industrial establishments are located in Dar es Salaam, which also contributes around 34.5 percent and 59 percent of the total industrial employments and MVA respectively. The other regions are followed by Tanga, Arusha, Kilimanjaro and Mwanza (UNIDO, 2006). The disparities in these findings are largely explained by the number of industries which responded to the questionnaire. As noted in limitations section, a number of industrial establishments in Dar es Salaam did not respond to the questionnaire.
3.1.2 Distribution of industries by size The Small and Medium Enterprises Development Policy (URT, 2003) defines the criteria for categorisation of industries by size in Tanzania as stipulated 3.1.3 Distribution of industries by type In the course of establishing the different types of industries encountered during the survey, this study categorise d industries into processing, manufacturing and assembling undertakings. Processing industry refers to the subset of
manufacturing that processes raw materials and intermediate products mainly
derived from the agricultural sector. Agroprocessing industry thus means
transforming products originating from agriculture, forestry and fisheries. On the
other hand manufacturing is a mechanical or chemical transformation of inorganic
or organic substances into new products. This transformation can be performed
by power driven machines or hand; and done in a factory or in the worker’s home.
Assembling of the component parts of manufactured products is considered
manufacturing except in cases where the activity is approximately classified in
construction.
Earlier findings published by UNIDO in 2001 indicate that Tanzania’s industrial
sector development pattern was dominated by processing industries reflecting the
role of agriculture as the mainstay of the Tanzanian economy. However, findings
from the current study reveal a shift from this pattern. Results show that over the
last few years a gradual growth of the manufacturing sub-sector is occurring and
thus reducing the predominance of processing industries. Out of the 340 surveyed
industries, 52.94 percent were manufacturing industries, 42.94 percent were
processing industries and 4.12 percent were assembling industries (Table 8).
Manufacturing (53 percent) and processing (43 percent) dominate industrial activities.
There are very few assembly and related industries.
3.1.4 Ownership pattern of industries and year of establishmentPrivately owned industries dominate Tanzania industrial sector and constitute97.65 percent compared with the publicly owned industries constituting only 2.35 percent of the industries surveyed. These results verify the positive impact ofmacroeconomic policy reforms and SIDP implementation during Phase I which was characterised by massive privatisation of formerly state-owned industries/enterprises as an instrument for their rehabilitation and expansion of
the installed capacities.
The statistics in Appendix 3 show that 180 (more than 52.9 percent of surveyed industries) were established between 1996 and 2005 as private entities. The broader economic reforms which also redefined the fundamental role of the private sector as the main actor in production and commercial activities is one of the important factors responsible for this change in the industrial ownership pattern. As a result the positive outcomes resulting from the policy and paradigm shift, the Government has deepened implementation of its mandates in promoting
industrial growth and performance by putting in place and operationalising policies and strategies for creating conducive business environment and for the private sector to invest in new industries and participate in developing the requisite physical infrastructure.
The distribution of privately owned industries across regions shows that some regions have not been able to attract private investment in industries. Out of 332 private industrial establishment surveyed, the five regions of Lindi, Pwani, Kigoma, Rukwa and Tabora have the aggregate share of only 8.13 percent which is less than that of Mwanza region alone with a share of 11.45 percent. These differences can be attributed to, among other things, the relative differences in level of infrastructure development between the two groups of regions given in the example above. Another example is that of Dar es Salaam, Mwanza, Arusha, and Mara which have relatively good infrastructure and which presumably as a result have the aggregate share of 36.74 percent of total surveyed private industries.
3.1.5 Public-Private Partnership (PPP) Public-Private Partnership (PPP) is a model of development co-operation focusing on collaboration between the public and the private sector. PPP recognises the importance of the private sector in fighting poverty and reaching other development goals by promoting business, creating income, providing jobs as well as developing a sense of corporate social responsibility. At an advanced level, PPP for economic development is a more formal relationship between the Government, the business community and civil society, including the academic institutions and other support institutions (UNIDO, 2001).
For sustainable PPP, each of the partners should develop mutual trust through continuous and
transparent dialogue. Partners should be willing to share information freely, contribute time and
resources to ensure sustainability. With time both the public and private sector would be responsive to each other’s needs and the population at large would benefit through a vibrant economy. A low level of policy awareness to development stakeholders is one of the stumbling blocks towards an equitable and efficien t public-private partnership (Todaro, 2005).
Public owned industries constitute only 2.35 percent, largely as result of broader economic reforms which redefined the fundamental role of the public sector in production and commercial activities with many industries having been established between 1996 and 2005.
Average capacity utilisation was about 36.6 percent and 42.6 percent in 2005 and 2006
respectively. But there are wide variations in capacity utilisation between regions, sectors
as well as size of industries. Large scale industries exhibit relatively large capacity
utilisation. 3.2 Capacity Utilisation and Labour Productivity 3.2.1 Installed capacity and capacity utilisation Generally capacity utilisation of the surveyed industries indicated that, the capacity utilisation falls short of the installed capacity to a very great extent. Average capacity utilisation of the surveyed 340 industries was 36.55 percent in 2005 and increased slightly to 42.56 percent in 2006 (Table 12).
3.2.2 Labour productivity Annual labour productivity varies by industrial sub-sector as well as by firm size within a particular sub-sector as shown in Table 15 and Table 16. Overall, labour
productivity increased between 2005 and 2006. Large scale industries have higher labour productivity than other industry categories on average which rose from TZS 74,097.01 in 2005 to TZS 81,710.62 in 2006. Labour productivity show wide variation between regions, sectors and industrial scale with large scale industries showing higher labour productivities compared to small, medium types.
On average, the fishery sub-sector emerged with the largest annual labour productivity in 2005 while textile sub-sector was leading in 2006 (Table 16). Sub-sectoral annual labour productivity is closely associated with levels of capital investment per size of industrial firm. This trend is partly attributed to the fact that large industries employ advanced technology that significantly reduces human labour.
On the other hand however, large industries that were using poor technological production techniques also recorded low productivity levels.
3.3.2 Sales revenue The statistics from the surveyed industries showed that non-metallic and
mineral products sub-sector, brewing and sugar sub-sectors have recorded comparatively high sales performance in the country (Table 18). The dominance of the non-metallic sub-sector in the local sales can be attributed to the booming construction sector which recorded a growth of
10.0 percent in 2006 (NBS, 2007). A large proportion of the industries serve the local (domestic) market. Export oriented industries surveyed are linked to traditional export and new non-traditional exports such as in the commodities fishery sector. Large scale industrial establishments are more likely to produce for export than the other categories.
Just like the gross margins returns to investment vary between sectors and industrial sizes. Large scale industries exhibit high levels of returns to investment, presumably due to ttainment of economies of scale. 3.3.4 Returns on Investment The industrial sub-sectors were generally characterised by low returns on industrial investment indicating that many industries had effective but not efficient resource combination and utilisation pattern. This had a variety of causes. Some arose from high costs of utilities, poor infrastructure, a low level of entrepreneurial, management and technical skills. High levels of returns on investment were depicted in large
industries which have already attained economies of scale in the industrial processes. For example, sugar sub-sector industries recorded highest returns on industrial investment worth TZS 70,311.20 in 2005 and TZS 62,361.49 in 2006 (Table 22). 20 3.4 Economic Analysis
3.4.1 Revenue generation buy industrial sub-sectors2 The amounts of tax revenue contributed by the surveyed industries were TZS 367,849.98 millions in 2005 and TZS 309,890.77 millions in 2006 (Table 23). The observed decline in the amount of revenue could be explained by the associated decline in the revenues generated by these entities during the same period. Dar es Salaam region was the largest tax revenue contributor as expected. Other significant contributors to the government revenue vide tax are Mwanza, Arusha, Tanga, Kilimanjaro
and Morogoro (Appendix 4). In both 2005 and 2006, VAT accounted for more than 75 percent of the government revenue from the surveyed industries. Based on the size of industries, the large scale industries contributed more to the government revenue than other category of
industries (Table 24). Value added tax constitutes the largest source of government revenue paid by industrialists, with large scale industries paying more than the other
categories.
21 By April 2007, the surveyed industries had employed 97,130, of whom about 28 percent
were females and non- Tanzanians accounting for 1.4 percent.
3.4.2 Employment Survey results show that a total of 97,130 employees were employed in
the surveyed industries up to April 2007 (Table 25) compared with 88,713 employees in 2006 (NBS, 2007), an increase of 8.7 percent. This increase in number of employment opportunities was partly attributed to the commissioning of new industrial projects.
22 employed to cover management posts. The statistics from the surveyed industries
show that foreigners constitute only 1.36 percent of the total employees.
3.4.3 Corporate Social Responsibility While Corporate Social Responsibility (CSR) does not have a universal definition, many regard it as the private sector’s way of integrating the economic, social and environmental imperatives of their activities. The idea of CSR goes beyond what the
corporate bodies and companies are statutorily required to do by law. It incorporates moral and social obligations by the companies to communities concerned. Also, it involves creating innovative and proactive solutions to societal and environmental challenges, as well as collaborating with both the Government, and internal and external stakeholders to improve CSR performance. In the survey, participation of industries in community development aspects through CSR revealed that 61.14 percent of the privately owned industries and 75.0 percent of public industries wereparticipating in community development in the years 2005 and 2006 (Table 26). Participation in Corporate social responsibility among industrialists cover largely
education sector, presumably due to the recent drive by the government to build more primary
and Secondary School classrooms.
3.5 Challenges Facing the Industrial Sector The constraints and obstacles to industrialisation for a low income country like Tanzania are many and structural in nature. Some of the constraints
require long term solutions while others need short to medium term solutions. The major challenges facing the development of the industrial sector in Tanzania have been summarised in Table 30. Whereas these challenges face the industrial sector in general, the binding nature of these constraints depends also on the sector and in some cases the region on the survey (Tables 31 and 32): A wide range of challenges face the industrial sector including power, technology,
infrastructure, legislation and related challenges. However, technology and related challenges seem to affect more publicly owned industries compared to other types of industrial ownerships.
Chapter 4: Conclusion and the Way Forward
Permanent Secretary
Ministry of Industry, Trade and Marketing
NSSF Waterfront Building, Sokoine Drive
P. O. Box 9503, DAR ES SALAAM,
Tanzania
Tel: +255 22 2127898
Fax: +255 22 2125832
Email: ps@mit.go.tz
MINISTRY OF INDUSTRY, TRADE AND MARKETING
INDUSTRIAL SECTOR
PERFORMANCE IN
TANZANIA
NATIONAL BUREAU OF STATISTICS
MINISTRY OF PLANNING, ECONOMY AND EMPOWERMENT
August, 2007
August 2007
i Table of Content
iiList of Tables
iiiAppendices
ivList of Acronyms and Abbreviations
vGlossary
A transition economy is an economy whish is changing from a planned economy to a free market.
Transition economies undergo economic liberalisation, letting market forces set prices and
lowering trade barriers, macroeconomic stabilisation, where immediate high inflation is brought
under control, and restructuring and privatisation, in order to create a financial sector and move
from public to private ownership of resources. Transition process is usually characterised by the
changing and creating of institutions, particularly private enterprises; changes in the role of the
state, thereby, the creation of fundamentally different governmental institutions; and the promotion of private-owned enterprises, markets and independent financial institutions.
Absolute advantage refers to a situation where by a country’s output per unit of input of particular goods and services produced is higher than that of another country.
Agroprocessing industry refers to the subset of manufacturing that processes raw materials and
intermediate products derived from the agricultural sector. Agroprocessing industry thus means
transforming products originating from agriculture, forestry and fisheries.
Assembly line is a manufacturing process in which interchangeable parts are added to a product
in a sequential manner to create a finished product.
Balance of payments (or BOP) measures the payments that flow between any individual country
and all other countries. It is used to summarise all international economic transactions for that
country during a specific time period, usually a year. The BOP is determined by the country’s
exports and imports of goods, services, and financial capital, as well as financial transfers. It
reflects all payments and liabilities to foreigners (debits) and all payments and obligations received from foreigners (credits).
Balance of trade (or net exports) is the difference between the monetary value of exports and
imports in an economy over a certain period of time. A positive balance of trade is known as a
trade surplus and consists of exporting more than is imported; a negative balance of trade is
known as a trade deficit or, informally, a trade gap.
Business environment is the social, technological, economic and political environment in which
a business functions. The business environment affects organisational decisions, strategies,
processes and performance.
Capacity utilisation measures the rate at which firms make use of their capital productive
capacities, such as factories and machinery. Capacity utilisation generally rises when the economy is healthy and falls when demand softens. As such, it is useful as an economic trend indicator, reflecting overall growth and demand. High rates of capacity utilisation generally exert inflationary pressures owing to scarce resources facing high levels of demand. However, it may also lead to new capital investments (i.e. new factories or plants) which promote future growth.
Foreword by the Minister
Acknowledgements
This publication shows the performance of industrial sector following an industrial survey that was undertaken by the Ministry of Industry, Trade and Marketing (MITM). It provides industrial statistics that reflect the contribution of the sector to economy. More specifically, the publication evaluates the industry sector by looking at a number of variables, including capacity utilisation, revenue generation, export earnings, employment levels, ownership pattern, size and spatial regional distribution of industries, return on investments, and contribution to corporate social responsibility.
This survey would not have been possible without the strong support and guidance by Dr. S. L. Tax, the Permanent Secretary, MITM, and Dr. F. M. Turuka, the Deputy Permanent Secretary, MITM. The survey team was guided and supervised by Mr. A. A. Nyiti, Director of Industry Development and Ms. E. S. Sikazwe, Assistant Director. The field work, data analysis and report writing was carried out by Mr. E. P. Mhede, Mr. A. K. Likwelile, Ms. A. Z. Kibuga, Mr. E. D. Kitundu, Mr. F. Romani,
Mr. E. Mkandya, Mr. A. Philip, Mr. A. M. Mnyenyelwa, Mr. D. Yohana, Mr. R. Senya, and
Mr. M. Shayo. The Ministry of Industry, Trade and Marketing is indebted to a number of institutions and people who supported the Ministry of Industry, Trade and Marketing in many ways while carrying out the industrial performance survey. Their great support and contributions enables the Ministry to complete the survey successfully.
A special note of gratitude is extended to the National Bureau of Statistics (NBS) for its unfailing
technical support to this survey. Our appreciations go to Ms. A. Chuwa, the Director General for her commitment and guidance during the entire process. We are equally indebted to the members of the Survey Team from NBS particularly Ms. J. Sawe, Mr. A. M. Makbel, Mr. G. Mwiza and Mr. A. Kinyage for their tireless efforts and great contributions at different stages of the Survey.
We are also thankful to the Prime Ministers’ Office through Regional Administration and Local
Government authorities in all twenty one (21) regions in Tanzania Mainland where this survey was carried. Specifically, the Ministry highly appreciates the invaluable support received from the Regional Commissioners, Regional Administrative Secretaries, District Commissioners, Regional Trade Officers, District Trade Officers and Ward Executive Officers for their assistance and facilitation in many ways while undertaking the survey. We also thank the Ministry of Finance and the Ministry of Planning, Economy and Empowerment, the Tanzania Investment Centre (TIC) and Bank of Tanzania for their invaluable inputs and contribution to this report.
We also acknowledge the role played by representatives of the private sector, through their associations such as Confederation of Tanzania Industries (CTI) and Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA), and through individual investors and industrial entrepreneurs, for their inputs that ensured that findings in this report reflect the reality on the ground.
Special thanks are extended to Dr. P. J. Makungu, Director General, CAMARTEC; Dr. J. Kweka,
Senior Economist, World Bank Tanzania; Prof. E.M. Senkondo, Sokoine University of Agriculture
and Mr. B. Lyimo, Chief Executive Officer, Better Regulation Unit, for their invaluable comments
and inputs on the several drafts of this report.
While the inputs and support of each and every individual at different levels are sincerely appreciated, the Ministry of Industry, trade and Marketing take full responsibility for any shortfalls in this report.
Executive Summary
Chapter 1: Introduction
Chapter 2: Methodology
Chapter 3: Survey Results
There were great
regional differences in
terms of industrial
establishment and
development. About 74
percent of the surveyed
industries were located
in ten (10) regions.
3.1 Spatial Distribution of Industries
This section presents an overview of the spatial distribution and other
characteristics of the surveyed industries and related establishments. Among other
things, the results in this section show the regional distribution of the surveyed
industries in terms of numbers, size, type of industries and ownership patterns.
3.1.1 Geographical distribution of surveyed industries by regions
The survey findings show that there were great regional differences in terms of
industrial establishment and development. About 74 percent of the surveyed
industries were in ten (10) regions (Dar es Salaam, Mwanza, Arusha,
Kilimanjaro, Tanga, Morogoro, Manyara, Mbeya, Singida and Mara); only 26
percent of the surveyed industries were in the remaining eleven (11) regions.
Regions that were found to be least developed industrially were Lindi, Rukwa,
Ruvuma, Pwani, Kigoma and Tabora. Together they constituted only 4.99 percent
of the surveyed industries (Table 4). This indicates that there are factors that
hinder the development of the industrial sector in these regions.
7
A large proportion of large scale industries (74 percent) dominate and located in Dar es
Salaam, Tanga, Arusha, Mwanza and Morogoro.
Information from other sources shows that Dar es Salaam is the dominant location for Tanzanian industrial sector in terms of number of establishments, employment and MVA (URT, POPP, NBS, 2003). About 45 percent of the total industrial establishments are located in Dar es Salaam, which also contributes around 34.5 percent and 59 percent of the total industrial employments and MVA respectively. The other regions are followed by Tanga, Arusha, Kilimanjaro and Mwanza (UNIDO, 2006). The disparities in these findings are largely explained by the number of industries which responded to the questionnaire. As noted in limitations section, a number of industrial establishments in Dar es Salaam did not respond to the questionnaire.
3.1.2 Distribution of industries by size The Small and Medium Enterprises Development Policy (URT, 2003) defines the criteria for categorisation of industries by size in Tanzania as stipulated 3.1.3 Distribution of industries by type In the course of establishing the different types of industries encountered during the survey, this study categorise d industries into processing, manufacturing and assembling undertakings. Processing industry refers to the subset of
manufacturing that processes raw materials and intermediate products mainly
derived from the agricultural sector. Agroprocessing industry thus means
transforming products originating from agriculture, forestry and fisheries. On the
other hand manufacturing is a mechanical or chemical transformation of inorganic
or organic substances into new products. This transformation can be performed
by power driven machines or hand; and done in a factory or in the worker’s home.
Assembling of the component parts of manufactured products is considered
manufacturing except in cases where the activity is approximately classified in
construction.
Earlier findings published by UNIDO in 2001 indicate that Tanzania’s industrial
sector development pattern was dominated by processing industries reflecting the
role of agriculture as the mainstay of the Tanzanian economy. However, findings
from the current study reveal a shift from this pattern. Results show that over the
last few years a gradual growth of the manufacturing sub-sector is occurring and
thus reducing the predominance of processing industries. Out of the 340 surveyed
industries, 52.94 percent were manufacturing industries, 42.94 percent were
processing industries and 4.12 percent were assembling industries (Table 8).
Manufacturing (53 percent) and processing (43 percent) dominate industrial activities.
There are very few assembly and related industries.
3.1.4 Ownership pattern of industries and year of establishmentPrivately owned industries dominate Tanzania industrial sector and constitute97.65 percent compared with the publicly owned industries constituting only 2.35 percent of the industries surveyed. These results verify the positive impact ofmacroeconomic policy reforms and SIDP implementation during Phase I which was characterised by massive privatisation of formerly state-owned industries/enterprises as an instrument for their rehabilitation and expansion of
the installed capacities.
The statistics in Appendix 3 show that 180 (more than 52.9 percent of surveyed industries) were established between 1996 and 2005 as private entities. The broader economic reforms which also redefined the fundamental role of the private sector as the main actor in production and commercial activities is one of the important factors responsible for this change in the industrial ownership pattern. As a result the positive outcomes resulting from the policy and paradigm shift, the Government has deepened implementation of its mandates in promoting
industrial growth and performance by putting in place and operationalising policies and strategies for creating conducive business environment and for the private sector to invest in new industries and participate in developing the requisite physical infrastructure.
The distribution of privately owned industries across regions shows that some regions have not been able to attract private investment in industries. Out of 332 private industrial establishment surveyed, the five regions of Lindi, Pwani, Kigoma, Rukwa and Tabora have the aggregate share of only 8.13 percent which is less than that of Mwanza region alone with a share of 11.45 percent. These differences can be attributed to, among other things, the relative differences in level of infrastructure development between the two groups of regions given in the example above. Another example is that of Dar es Salaam, Mwanza, Arusha, and Mara which have relatively good infrastructure and which presumably as a result have the aggregate share of 36.74 percent of total surveyed private industries.
3.1.5 Public-Private Partnership (PPP) Public-Private Partnership (PPP) is a model of development co-operation focusing on collaboration between the public and the private sector. PPP recognises the importance of the private sector in fighting poverty and reaching other development goals by promoting business, creating income, providing jobs as well as developing a sense of corporate social responsibility. At an advanced level, PPP for economic development is a more formal relationship between the Government, the business community and civil society, including the academic institutions and other support institutions (UNIDO, 2001).
For sustainable PPP, each of the partners should develop mutual trust through continuous and
transparent dialogue. Partners should be willing to share information freely, contribute time and
resources to ensure sustainability. With time both the public and private sector would be responsive to each other’s needs and the population at large would benefit through a vibrant economy. A low level of policy awareness to development stakeholders is one of the stumbling blocks towards an equitable and efficien t public-private partnership (Todaro, 2005).
Public owned industries constitute only 2.35 percent, largely as result of broader economic reforms which redefined the fundamental role of the public sector in production and commercial activities with many industries having been established between 1996 and 2005.
Average capacity utilisation was about 36.6 percent and 42.6 percent in 2005 and 2006
respectively. But there are wide variations in capacity utilisation between regions, sectors
as well as size of industries. Large scale industries exhibit relatively large capacity
utilisation. 3.2 Capacity Utilisation and Labour Productivity 3.2.1 Installed capacity and capacity utilisation Generally capacity utilisation of the surveyed industries indicated that, the capacity utilisation falls short of the installed capacity to a very great extent. Average capacity utilisation of the surveyed 340 industries was 36.55 percent in 2005 and increased slightly to 42.56 percent in 2006 (Table 12).
3.2.2 Labour productivity Annual labour productivity varies by industrial sub-sector as well as by firm size within a particular sub-sector as shown in Table 15 and Table 16. Overall, labour
productivity increased between 2005 and 2006. Large scale industries have higher labour productivity than other industry categories on average which rose from TZS 74,097.01 in 2005 to TZS 81,710.62 in 2006. Labour productivity show wide variation between regions, sectors and industrial scale with large scale industries showing higher labour productivities compared to small, medium types.
On average, the fishery sub-sector emerged with the largest annual labour productivity in 2005 while textile sub-sector was leading in 2006 (Table 16). Sub-sectoral annual labour productivity is closely associated with levels of capital investment per size of industrial firm. This trend is partly attributed to the fact that large industries employ advanced technology that significantly reduces human labour.
On the other hand however, large industries that were using poor technological production techniques also recorded low productivity levels.
3.3.2 Sales revenue The statistics from the surveyed industries showed that non-metallic and
mineral products sub-sector, brewing and sugar sub-sectors have recorded comparatively high sales performance in the country (Table 18). The dominance of the non-metallic sub-sector in the local sales can be attributed to the booming construction sector which recorded a growth of
10.0 percent in 2006 (NBS, 2007). A large proportion of the industries serve the local (domestic) market. Export oriented industries surveyed are linked to traditional export and new non-traditional exports such as in the commodities fishery sector. Large scale industrial establishments are more likely to produce for export than the other categories.
Just like the gross margins returns to investment vary between sectors and industrial sizes. Large scale industries exhibit high levels of returns to investment, presumably due to ttainment of economies of scale. 3.3.4 Returns on Investment The industrial sub-sectors were generally characterised by low returns on industrial investment indicating that many industries had effective but not efficient resource combination and utilisation pattern. This had a variety of causes. Some arose from high costs of utilities, poor infrastructure, a low level of entrepreneurial, management and technical skills. High levels of returns on investment were depicted in large
industries which have already attained economies of scale in the industrial processes. For example, sugar sub-sector industries recorded highest returns on industrial investment worth TZS 70,311.20 in 2005 and TZS 62,361.49 in 2006 (Table 22). 20 3.4 Economic Analysis
3.4.1 Revenue generation buy industrial sub-sectors2 The amounts of tax revenue contributed by the surveyed industries were TZS 367,849.98 millions in 2005 and TZS 309,890.77 millions in 2006 (Table 23). The observed decline in the amount of revenue could be explained by the associated decline in the revenues generated by these entities during the same period. Dar es Salaam region was the largest tax revenue contributor as expected. Other significant contributors to the government revenue vide tax are Mwanza, Arusha, Tanga, Kilimanjaro
and Morogoro (Appendix 4). In both 2005 and 2006, VAT accounted for more than 75 percent of the government revenue from the surveyed industries. Based on the size of industries, the large scale industries contributed more to the government revenue than other category of
industries (Table 24). Value added tax constitutes the largest source of government revenue paid by industrialists, with large scale industries paying more than the other
categories.
21 By April 2007, the surveyed industries had employed 97,130, of whom about 28 percent
were females and non- Tanzanians accounting for 1.4 percent.
3.4.2 Employment Survey results show that a total of 97,130 employees were employed in
the surveyed industries up to April 2007 (Table 25) compared with 88,713 employees in 2006 (NBS, 2007), an increase of 8.7 percent. This increase in number of employment opportunities was partly attributed to the commissioning of new industrial projects.
22 employed to cover management posts. The statistics from the surveyed industries
show that foreigners constitute only 1.36 percent of the total employees.
3.4.3 Corporate Social Responsibility While Corporate Social Responsibility (CSR) does not have a universal definition, many regard it as the private sector’s way of integrating the economic, social and environmental imperatives of their activities. The idea of CSR goes beyond what the
corporate bodies and companies are statutorily required to do by law. It incorporates moral and social obligations by the companies to communities concerned. Also, it involves creating innovative and proactive solutions to societal and environmental challenges, as well as collaborating with both the Government, and internal and external stakeholders to improve CSR performance. In the survey, participation of industries in community development aspects through CSR revealed that 61.14 percent of the privately owned industries and 75.0 percent of public industries wereparticipating in community development in the years 2005 and 2006 (Table 26). Participation in Corporate social responsibility among industrialists cover largely
education sector, presumably due to the recent drive by the government to build more primary
and Secondary School classrooms.
3.5 Challenges Facing the Industrial Sector The constraints and obstacles to industrialisation for a low income country like Tanzania are many and structural in nature. Some of the constraints
require long term solutions while others need short to medium term solutions. The major challenges facing the development of the industrial sector in Tanzania have been summarised in Table 30. Whereas these challenges face the industrial sector in general, the binding nature of these constraints depends also on the sector and in some cases the region on the survey (Tables 31 and 32): A wide range of challenges face the industrial sector including power, technology,
infrastructure, legislation and related challenges. However, technology and related challenges seem to affect more publicly owned industries compared to other types of industrial ownerships.
Chapter 4: Conclusion and the Way Forward
Permanent Secretary
Ministry of Industry, Trade and Marketing
NSSF Waterfront Building, Sokoine Drive
P. O. Box 9503, DAR ES SALAAM,
Tanzania
Tel: +255 22 2127898
Fax: +255 22 2125832
Email: ps@mit.go.tz
Wednesday, February 11, 2009
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