Tag Archives: Aid

Tanzania- Addicted to Aid and seeking a new vision?

2011 marked the 50th year of Tanganyikan independence (becoming Tanzania in 1964). The  African Economic Outlook (AEO) for 2011 notes that Tanzania is the recipient of the highest levels development assistance in Africa.  At the same time, donors also hail Tanzania as a development success- it has had a number of years of  strong economic growth.  It has attracted foreign investment and opportunities for private enterprise are expanding.  The AEO report does note that some of the economic growth is also due to large inflows of aid and suggest that a budget deficit is also growing.

Aid has always played a significant role in Tanzania and Tanzania has danced successfully to the donors tune- during the Nyerere era, then market liberalisation, through to the preparation of Poverty Reduction Strategies (MKUKUTA) in the new millennium.

Mwalimu Nyrerere stated in the 1967 Arusha Declaration that:

It is stupid to rely on money as the major instrument of development when we know only too well that our country is poor. It is equally stupid, indeed it is even more stupid, for us to imagine that we shall rid ourselves of our poverty through foreign financial assistance rather than our own financial resources.

World Bank figures suggest that Tanzania received 46$ per person in ODA in 1990, falling to 31$ in 2000 and rising again to 55$ per person in 2009.  Dependence on aid to fund social programmes is growing not falling.

Where aid has changed social indicators:

Tanzania is highly likely to meet the MDG on Primary School Enrollment- debt cancellation and direct budget support led to a rapid expansion in primary school enrollment through abolition of fees and a programme of classroom building.  Yet education quality has been eroded and classrooms offer few useful skills.  A two tier system is increasing inequality with those who can pay putting their children into English language private schools and the rest left behind in classes of 100……..

The MDG on Infant mortality (but not maternal mortality) may also be achieved. Hans Rosling on the wonderful gap minder website hails Tanzania as reducing infant mortality faster than Sweden ever did but he does acknowledge that this is largely due to aid spending.

However income poverty has remained persistent- reducing in the urban areas but falling only marginally in the rural area (37.6% in 2007 from 38.7% in 2001) but due to population growth it is estimated that there are 1.3 million more individuals living in poverty in Tanzania than a decade ago.  The World Bank figures also suggest that 34% of the population is undernourished as compared to 28% in 1990.  Inflation in the consumer prices index stands at 19.8% and puts pressure on family spending.

So what is going wrong?  Why is poverty still so persistent?  I remember buying a book at the University of Dar-es-Salaam in 2004 (with contributions by a range of eminent Tanzanian intellectuals) which was titled: “Why is Tanzania still poor after 40 years of independence?”  In 2012 – this title still rings true only another decade has passed.  Aid is clearly not the answer and in fact is part of the problem but I will return to this another time.

Using the power of social media I asked students studying Masters Degrees as part of the Bradford-Mzumbe collaboration for their assessment of Tanzania@50 and received many interesting answers which I have tried to summarise:

Tanzania can be proud of being a peaceful country for the last 50 years but now there is a lack of leadership and vision.  Direct criticism of Kikwete see him as continuously engaged in foreign trips for the purposes of begging for more aid- this set of comments on his recent trip to Davos have been circulated far and wide on the internet. External aid and loans fund the lifestyles of the political and aid class- fueling spending on sitting allowances and luxurious cars.  Leaders, Civil Society Activists and Intellectuals have a duty to challenge this.

Inequality is growing- the rich can pay for services but the poor must make do with what is left behind.  Power shortages, unemployment and poor infrastructure are holding the country back.

Tanzania is rich in resources (land and minerals) yet the government has allowed foreign companies to rush in and take what they want and to enjoy long tax holidays and bribes.  Economic growth has been in aid, mining and tourism not in the sectors that would reduce poverty such as agriculture.

So what will we be saying in another 10 years?  Will a new vision for the future emerge?  A swell of criticism of the government in both the traditional and social media suggests a new generation gaining in voice and in a collective momentum to challenge the status quo…. will this be enough?

Rights are more than words on paper

A couple of weeks ago we released a briefing paper summarising some on-going research in Northern Tanzania on a small project working with groups of People Living with HIV/AIDS to claim their rights as defined by the 2008 Tanzanian HIV/AIDS Act.  We are now pleased to present the full working paper which you can download on the publications page.

The paper shows how a small NGO project could act as a catalyst in starting processes of change without creating dependency on aid and through working directly with existing state institutions.  Using a rights-based approach requires long-term commitment and HIV/AIDS magnifies inequality in both poverty and gender.  Reflecting on this research I am left with the conclusion that further work on rights is required but those rights are not just for those living with HIV/AIDS but broader rights and entitlements which fundamentally challenge gender inequality and poverty in Tanzania.  This is a challenge for a country such as Tanzania in which inequality and the numbers of people living in poverty is growing despite record economic growth.  I will be returning to this topic in my next post but in the meantime you might be interested in the latest African Economic Outlook report on Tanzania.

M-pesa- the first steps to a revolution?

Being a critic of the aid industry I have often found myself attracted to discussion on alternatives to endless log-framed, SMART indicatored and workshop driven projects which  aim to ‘mainstream’ this or develop ‘policy’ on that.  They seem little more than creating work for the sake of it  and  an excuse to drive around in large imported vehicles feeling like a crusader come to liberate the poor.

This is why I wanted to share a post on Duncan Green’s blog (He is head of Research at Oxfam UK)…the post discusses the work of a US project which transfers cash  directly to the poor (identified through survey data) using the m-pesa mobile phone banking system.  It is said that more people in the rich world want to give in this way- directly cutting out that aid industry workshopping (see also the success of KIVA).  Duncan’s view is:

“While they help with short term consumption and investment, cash transfers don’t directly tackle the kinds of systemic problems that underpin poverty and inequality – dealing with those requires a more complex approach based on partnering with local civil society organizations, and all that brokering and convening stuff I write about on this blog. And what about gender – who owns the phones and gets access to the $500? It would be interesting to see if there’s a difference between how men and women phone-holders spend the money – I wonder if GD have included that in their monitoring and evaluation?”

Ok- I take his point that this isn’t going to necessarily solve structural issues of poverty and inequality but really is ‘partnering with local civil society organizations’ going to achieve that?  All that has done so far is to create a mostly aid-dependent civil society in Sub-Saharan that attempts to mimic those same workshopping, big vehicle driving international NGOs that Duncan works for.

I’ve written here before about my current research on attempts by People living with HIV/AIDS to claim their rights…well that m-pesa system could work very well as a way of sending small cash transfers to enable people to travel to get their medication or purchase food rather than waiting for food aid from WFP.  M-pesa makes it so much easier to redistribute cash and families in Kenya and Tanzania are already using it for this- m-pesa is not an innovation of US NGOs but  a private sector led technological innovation with  social impacts.  It could relatively easily be adopted by governments for cash transfer systems of social protection.

Reducing poverty and inequality does also need effective states which take these things seriously but where are they?  (Perhaps Rwanda is an exception?).  States with good economic growth don’t necessary reduce poverty and often increase inequality.  Development activity cannot be left to the aid industry- they will only have more meetings.  86% of the aid spent on HIV/AIDS in 2008/9 in Tanzania is spent outside of the state systems and then we wonder why the reality on the ground experienced by PLWHA is a chaotic patchwork of NGOs, and Religious organisations….

So perhaps m-pesa (and other technology that put more power in people’s hands) can be the start of doing things differently?