Labour and poverty in rural Tanzania: Ujamaa and rural development in the United Republic of Tanzania.
This study provides an up-to-date assessment of Tanzania's experience in rural development. The starting point of this study is the emphasis laid by the Arusha Declaration on agriculture as the basis of development. The analysis is based on the results of the Household and Village Survey of 600 households in 20 villages carried out by the International Labor Office (ILO) and the Department of Economics of Dar es Salaam University in 1980. The Arusha Declaration inaugurated an era of major agricultural policy interventions. 4 sets of policies-- villagization, communalization, the provision of social infrastructure, and the stimulation of agricultural output--were distinct in that the government's emphasis shifted from one to another over time. The policies were interrelated technically and politically; the concept of a Ujamaa village embraced all 4. The political concept, however, was the caught the imagination of outside observers. The Villagization Program was designed to promote growth and achieve equity, but experience suggests that these objectives have not been attained. an acute balance-of-payments problem has conditioned the performance of the economy and lack of foreign exchange has led to a reduction of essential imports. Industry runs at a very low capacity (20-30%), and the program of social services is subject to severe constraints, and public expenditure has been curtailed. The International Monetary Fund and the World Bank have asked for important structural changes, especially in the area of increasing incentives for agriculture producers and the devaluation of the currency to promote imports. The Tanzanian government has counteracted this by introducing its own program of structural adjustment to reform the economy without sacrificing existing distributional policies. Findings include the following: 1) political power in the villages is not strongly associated with overall inequalities, 2) the poor are not poor because they misuse their resources but because they have so few resources, 3) access to health and educational services is not related to poverty, and 4) communal output is substantially higher when remuneration is related to work. The authors recommend the taxation of livestock as an appropriate policy instrument to raise revenue for social services and to reduce income inequality as well-to-do households own 7 times the livestock that poorer households own.