Tuesday, April 4, 2017

Why education is a key concept for industrialization process in Tanzania

The industrialization growth for Tanzania economy is an important concept which the current fifth phase government has prioritized with a view to widen up the existing gap which exists between the rich and the poor citizens in the country. Industrialization plays a vital role in the economic growth of an underdeveloped country because by having many industries people get the chances to acquire the available employment opportunities which help them cater their daily needs. The historical facts reveal that all the developed countries of the world broke the vicious circle of underdevelopment by industrialization. Tanzania being among such countries has shown an interest to engage in industrialization process in all sectors to achieve higher standards of living for its masses in order to achieve its goals. Under the industrialization process, there are certain elements which are required in order to make an effective economic growth among the people in the country. Among the most important elements needed of all is the general education. Education is the most key concept for its role is to advocate the general idea of the whole concept about the industrialization process and what it entails as it is being undertaken by nations all over the world.  Without education, industrialists say that the awareness on how the industrialization process is required to grow actually becomes a difficulty task indeed.  Tanzania is one of the poor countries and about 30 percent of its populace lives under the poverty line depending on 1 US Dollar per pay. This means that, there is still a high level of poverty stricken situation sweeping among the people in the country with the high level especially in rural areas. Efforts currently being undertaken by the Tanzania’s fifth phase government to spearhead the industrialization process in the country, aims at alleviating people’s poverty so as to raise their standards of living although its a long term process. In order to successfully achieve its ambition, the government needs to educate its people thoroughly on the most basic fundamental industrial issues so that it achieves its goals in order to become a middle income nation in the world. In view of this, the government work close with private institutions or organization under its programme titled Public Private Partnership (PPP) and carry various research activities in collaboration with privately owned firms for industrial development. Various institutions have a key role to play in mobilizing appropriate resources to enable the industrialization objectives to be achieved. But sometimes institutions fail to force their efforts through due to a number of impediments, and among these corruption has been said to have been a stumbling block which have drawn back the status of institutional developments in terms of industrial development.  It is from this point of view that a famous research institution specializing on poverty alleviation in Tanzania known by its acronym ‘REPOA’ has been occasionally engaged itself with a number of economic research activities to show the government its economic standing point. Usually REPOA conducts its annual workshops whereby it highlights mostly important research activities on a particular topic which it does for the development of the country. Going for its 22nd Annual Research Workshop for this year 2017, the institution organized a workshop in mid of this week  that centered a debate on the industrialization process and how institutions matters for the growth of industrial growth. The two day workshop programme  that took place in Dar es Salaam was graced by the Minister for Finance Dr. Phillip Mpango had a theme titled, “Why institutions matter for industrialization-led development” and attended by over 300 delegates from both inside and outside the country. Dr. Mpango highlighted various priority areas the government is concentrating on at the moment in order to remove obstacles for Direct Foreign Investment (DFI) to pave the way for industrialization development in the country. He said that, the ongoing crackdown on corruption, tax evasion, embezzlement and other mischief in public sector are meant to attract local and foreign investors so as to build an industrialized economy. In Tanzania he said the move towards industrialization process is going well following intervention to improve the investment environment through scaling up infrastructure and power supply that should go in line with transparency and high standard level of cooperation between government and private sector. However in order to ensure the plan is successful, the finance minister  underscored the need for the country to have a system that would enable to realize its industrialization strategic plan is put in place to ensure its effective implementations. Introduction of training incentives, business regulations and the removal of some unnecessary taxes, introduction of skills for development programmes for youths get jobs are among the key areas of cooperation between the government and the private sector towards industrialization process in Tanzania. The institutional development is crucial for the formation of an industrialized economy since it involves improving laws and policies that influence both the government and the people in the country Presenting a key note speech, Professor Lant Pritchett from Harvard Kennedy School in USA said young countries like Tanzania need to ensure high cooperation between their governments and private institutions to draw a better channel to industrialization process. He further noted that, education and training are most important to ensure specific policies of industrialization by people and those countries should avoid staggering on many issues but identify key development issues and areas that would draw and lead the way to industrialization development. “An industry might grow bigger according to how the economy has put in place the kind of industrial policy adopted by developing nations and how they are adopted to reduce bad attitudes towards industrialization process”, he said and added that nation’s willingness might be the cause to make them become industrialized. On his part, the Bank of Tanzania (BOT) governor Professor Benno Ndulu noted that, Tanzania has been on the learning curve for years an aspect that has brought about consistent improvements in the economy. The Managing Director of the TIB Development Bank Mr. Charles Singili said in his paper presentation titled, “The Role of Financial Institutions” that as Tanzania eyes the journey into industrialization experiences from the pioneer countries have a lot to share. He says Tanzania now has 56 banks in total and out of these, his bank has played a fundamental role in supporting the manufacturing sectors and is charged with making long term loans to projects with national development impact promoted by both private and public sectors.

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