Posted: Friday July 26, 2013 6:28 PM BT

The implementations of a number of good initiatives that the Tanzanian government has on paper will see the country transformed into a middle income country in a short period. Mzumbe University Prof Honesty Ngowi said it is similar plans which were applied by Korea, which moved it to a high income country. He was speaking in Dar es Salaam yesterday during a half-day seminar organised by the Korean Embassy in collaboration with REPOA to share experience on the secret of Korea’s economic development.

Dr. Nam Sang-woo, a prominent Korean Economist presinting at a seminar organised by the Korean Embassy in collaboration with REPOA to share experience on the secret of Korea’s economic development.

Prof Honesty Ngowi from Mzumbe University

According to Prof. Ngowi, Tanzania has on paper all the initiatives implemented by Korea, but the problem is their implementation.

He pointed out that Tanzania had drawn up a number of initiatives on agriculture over the years such as “Kilimo cha Kufa na Kupona”, Kilimo Kwanza and many others.

He said the Kilimo Kwanza Initiative was introduced in 2009, but there are a number of things which have not been implemented yet.

Prof Ngowi pointed out for example that the agricultural bank to finance agriculture has yet to be established, wondering also whether it will be able to serve small scale farmers.
“We should also ask ourselves if it is correct to focus on agriculture while others are moving to secondary sectors,” he said.

Prof Ngowi also spoke of barriers to doing business in Tanzania citing the recent report released by Tanzania Private sector Foundation which identified power, tax administration and corruption as hurdles to businesses, saying these need to be addressed in order for the country to transform.

For his part REPOA Executive Director Prof Samuel Wangwe stressed the importance of the forum for policy dialogue in the development of the country.

He said in Tanzania the dialogue is being coordinated by the Tanzania National Business Council but they have not met for the past 18 months.

“In Korea they meet every month, but here in Tanzania we have not met for 18 months …we should ask ourselves whether we are really serious,” Prof Wangwe said.

He said Tanzania should learn from Korea on the smooth transition from parastatals to private companies, noting that in Tanzania the transition has not increased performance.
Korea managed to ensure that those who bought the enterprises did not change them to something else.

According to Dr. Nam Sang-woo, a prominent Korean Economist and Dean of the KDI School of Public Policy and Management, the secret behind Korean development is strong investment in the education sector, active participation of villagers in land reforms and efforts to change people’s mindsets and the use of economic incentives.

He said the Korean government also made serious effort to mobilize domestic savings, discourage foreign direct incentives and use of economic powers such as pension funds, corporate consortiums to finance development efforts.
SOURCE: THE GUARDIAN
Writen by Lydia Shekighenda
26th July 2013

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