Growth without poverty reduction in Tanzania: Reasons for the mismatch. CPRC Working Paper 207

Abstract

This paper seeks to examine why economic growth in Tanzania in recent years has not led to poverty reduction in the country. It analyses data and findings from a range of literature and national accounting data. One reason for this trend is attributed to inaccuracies in the reporting of economic data; a young, under-educated population, which is compounded by a heavy responsibility on women; and low growth rates in the agricultural sector, which accounts for the majority of the population, further exacerbate this trend. Investment to boost education and help workers move into better-rewarded sectors is vital to address poverty in Tanzania. Importantly, rural investments and training to rural farmers to increase production and processing capacities will substantially contribute rural poverty reduction and reduce rural-urban income inequality