Is the Current Booming Growth in Africa Worth Celebrating? Some Evidence from Tanzania

Bitrina Diyamett and Musambya Mutambala

No 9, Southern Voice Occasional Paper from Southern Voice

Abstract: Economic growth is an important factor in poverty alleviation, and in Africa where most of the world’s poorest countries are located, there is currently booming growth. This is partly the reason why this growth is widely celebrated. With a focus on Tanzania, this paper unpacks this growth, especially on its long-term potential in poverty alleviation and achievement of Millennium Development Goals (MDGs). The paper finds a missing link in the relationship between growth and long-term poverty reduction, which is perceived to have resulted from a premature structural transformation from agriculture to the services sectors which are less skill-intensive and less employment-generating. As a way forward, the paper proposes an alternative policy focus for poverty reducing growth. Much of the emphasis has been put on normal structural transformation, towards more employment and skills enhancing manufacturing sector, and building associated technological capabilities around it.

Keywords: Tanzania; economic growth; structural transformation; poverty alleviation; Africa (search for similar items in EconPapers)
Pages: 21 pages
Date: 2014-05
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Persistent link: https://EconPapers.repec.org/RePEc:svo:opaper:9

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