أفغانستان

Tanzania’s poverty rate remains high, and income inequality is increasing. This report analyses the trends in poverty and inequality and examines some of the potential explanations for the different growth patterns. The report goes on to examine four policy-areas that have a direct impact on the reduction of poverty and inequality, and makes recommendations on how to strengthen their impact. The four policy-areas are tax policy, social protection, agriculture and gender equality. The report examines different possible explanations for the change in the growth elasticities of poverty and inequality, including external shocks, public services expansion, changes in the sectoral distribution of growth and the role of official development assistance as well as measurement error. It finds that the changing composition of growth, especially the slowdown in the growth of agriculture, is likely to explain a part of the shift in the growth elasticity of poverty, while more research is needed to fully account for the changes in inequality. The report then considers four policy areas, where reforms could bring progress to reduce poverty and inequality in the short- to medium-term. The tax system is progressive and already makes a significant contribution to reducing income inequality. However, Tanzania collects less tax revenue than its peers, and some of its excise taxes disproportionately hurt the poor. To strengthen the inequality- and poverty reducing impact of the tax system, Tanzania could consider reducing exemptions on the Corporate Income Tax and expanding the use of the property tax. Tanzania could also consider the introduction of a wealth tax, and broaden the tax-base by lowering the threshold for VAT. The revenue collected should then be spent on targeted pro-poor interventions.

Who could have predicted what was in store for all of us in 2020?

In the United Republic of Tanzania, nearly 30 per cent of children engage in child labour.1 About 30 per cent of children do not attend school and another 20 per cent combine school and work. Although state schools do not charge fees, households still face schooling costs, including for uniforms, shoes, books and school materials. With funding from the United States Department of Labor, researchers at the UNICEF Office of Research – Innocenti examined whether the PSSN leads to improved schooling and reduced engagement in child labour.2 To do so, the research team combined a quantitative impact evaluation with a qualitative study involving children and caregivers.

This Rapid eTrade Readiness Assessment of Tanzania was prepared by Sari Laaksonen, UNCTAD Consultant, in close collaboration with a team comprising Cécile Barayre, Iris Macculi, Dominic Leong, Mohamad Fakhreddin and Htet Myat Min under the overall guidance of Torbjörn Fredriksson. In-country technical and coordination support was provided by UNCTAD national consultant, Aron Kondoro, who was instrumental in ensuring prompt stakeholder mobilisation and providing technical inputs to this assessment.

The eTrade for all Initiative, launched at the fourteenth Ministerial Conference of UNCTAD in July 2016, is a practical example of how to harness the digital economy in support of the 2030 Agenda for Sustainable Development, notably Sustainable Development Goals (SDGs) 5, 8, 9, and 17, which address, respectively, gender equality, decent work and economic growth, industry innovation and infrastructure, and partnership for sustainable development. The initiative seeks to raise awareness, enhance synergies, and increase the scale of existing and new efforts by the development community to strengthen the ability of developing countries to engage in and benefit from e-commerce by addressing seven relevant policy areas.