This brief examines how the process of decentralization by devolution in Tanzania affects local democracy and the efficiency and effectiveness of service delivery. The most common arguments for democratic decentralization in the literature are two, an efficiency argument and a normative argument. The efficiency argument is based on the fact that knowledge about needs and challenges in the local communities, and thereby the ability to act on that knowledge, is embedded better at the local administrative level. Local governments can interact better with local citizens than central governments due to their geographic proximity. People’s demands and needs are channelled to public officials more easily than in a centralized system. The normative argument for decentralization is one of democracy: true decentralization involves the devolution of real power: elected local councils can decide over the allocation of resources in their respective units. In that way, people can decide how local resources should be spent and hence they can influence decisions about resource allocation that have a direct impact on their lives.
Tanzania has achieved sustained rates of economic growth for the past ten years and is moving towards middle income status. Maintaining these gains while ensuring that development is inclusive is a core objective of the second National Five-Year Development Plan which places industrialisation as the key pillar of national development strategy.
A broader tax base will enhance tax compliance in Tanzania Huge reservoirs of natural gas have been discovered offshore the southern coast of Tanzania. The country might become a large producer of gas, and a potential exporter of liquefied natural gas (LNG) during the next decades.
Targeted Not Blanket Allocation, is key to improving effectiveness of input use through voucher schemes
Agriculture development strategies continue to play an integral role in the economies and livelihoods of the poor in Sub-Saharan Africa (SSA) because of their predominantly agrarian economies and agriculture provides employment to large proportions of the population. Despite their importance to local economies, these strategies have historically been driven by funding from international development agencies. […]
The literature on political economy of decentralization underscores the importance of intergovernmental transfers as a vehicle for achieving national social, economic and political policy goals when administrative and financial powers are devolved to lower levels of government. Decentralization left without considering the capacity of authorities to raise enough resources and address needs will enhance inequity […]