We use methods developed by the Commitment to Equity and data from the 2011/12 Household Budget Survey to assess the effects of government taxation, social spending, and indirect subsidies for poverty and inequality in Tanzania. We also simulate several policy reforms to assess their distributional consequences. We find that Tanzania redistributes more than expected given its relatively low income and inequality, largely because both direct and indirect taxes are more excellent targeting mechanism. If the program were expanded to a size that is typical for lower-middle income countries, it could reduce poverty significantly. On the other hand, electricity subsidies are regressive despite attempts to make them more pro-poor with a lifeline tariff.
Can Smallholders benefit from the new market opportunities from the extractive industry in Tanzania?
The recent discovery of huge oil and gas reserves in Tanzania has created a new opportunity for economic growth and development of the country. Tanzania is expected to be one of the leading producers and exporters of natural gas in the coming decade. However, 88 percent of poor Tanzanians live in rural areas and two-thirds […]
This study has explored how quality issues in delivering family planning services (supply side), and attitudinal and behavioural issues of the potential users (demand side) merge together to influence adoption of family planning methods. The subject was explored by blending Bruce’s (1990) quality of care of family planning services framework with an access framework with […]
The Invisibility of Wage Employment in Statistics on the Informal Economy in Africa: Causes and Consequences
Through a Tanzanian case study, this paper challenges the claim, along with the statistics that support it, that self-employment is the dominant employment status in the informal economy. The paper begins by reviewing key insights from the relevant literature on the informal economy to argue that conventional notions of ‘wage employment’ and ‘self-employment’, while unfit […]
Challenges and the way forward Tanzania’s industrial sector has evolved through various stages since independence in 1961, from nascent and undiversified to state-led import substitution industrialization, and subsequently to de-industrialization under the structural adjustment programmes and policy reforms. The current development agenda, however, has brought industrial development back to be one of the policy priorities.