• Low levels of accountability and transparency; • Environmental irresponsibility; • Inappropriate and inadequate CSR contributions; • Low labour impact and human rights abuse; • Low integration with other economic sectors; • Crowding out local investors and weak economic impact; and, • Government’s lack of capacity to effectively regulate and administer the sector. cxv. The Government of Tanzania should consider re-examining the new mining industry laws so as to to re-aasure stakeholders and the public at large that governance ills in the sector are being addressed. e. Aid Dependency and the Challenge of Sustainable Development cxvi. Tanzania is one of the highest recipients of aid in Africa. Although ongoing private-public partnerships in Tanzania will increase national self-reliance, more needs to be done to wean the country off foreign aid. Heavily dependent on international aid in a multidimensional, structural, and dynamic manner, Tanzania’s finance, policy choices, institutional building, the culture of civil service and civil society organizations, all are affected. The same applies to the development and dynamics of political institutions and the economy. The fundamental question in the Tanzania case therefore no longer becomes how to manage aid dependency but how to drastically reduce it. Critical to this is how to use aid itself to help achieve this goal. cxvii. The APR Panel suggests that Tanzania should seriously begin to address the issue of using aid to build strong and dynamic productive capacities. The outcomes of the Fourth High Level Forum (HLF-4) on Aid Effectiveness offer the United Republic of Tanzania an opportunity to ensure that it creates strong partnerships with development partners for effective development cooperation. But this will require strengthening country systems in terms of governance, proper planning and policies so that the country can make better use of its own resources, and the resources that come from development partners. cxviii. The country should continue strengthening mechanism to cut bak aid and also seriously begin working on changing the structure and dynamics of its public expenditure to support and crowd in private investment and develop viable, sustainable, and competitive productive and trade capacities. f. Governance within the Regional Framework of the EAC and SADC cxix. The APR Panel notes that Tanzania’s destiny has always been determined by its regional environment. This is for geographical, historical, social and cultural, ideological and political, and strategic reasons. These fundamentals have not changed and are not likely to do so in the foreseeable future. They are also inter-related and tend to reinforce each other. A key challenge facing the present political leadership and other key stakeholders in Tanzania is managing and shaping its regional environment to ensure that it plays a positive role in achieving the goals and aspirations of the people of Tanzania by maximising benefits to the country from regional integration. cxx. Tanzania finds itself surrounded by eight African countries (Kenya, Uganda, Rwanda, Burundi, Democratic Republic of the Congo, Zambia, Malawi and Mozambique). Any developments affecting its neighbours are bound to impact on the situation within Tanzania, for better or for worse. This has become even more apparent with globalisation and the emergence of the global village. Improvements in transport and communications between Tanzania and its neighbours are reinforcing this trend. As a result, events affecting neighbours have an almost instantaneous impact on Tanzania, even if only for demonstration purposes. Comparisons are, and will inevitably be made which will, in turn, affect the expectations and demands of the people of Tanzania. Accordingly, whatever one may say about non-interference in the domestic affairs of other countries, Tanzania cannot remain indifferent to whatever happens to its neighbours. cxxi. The current focus of attention among the political leadership, stakeholders, the media, and the general public in Tanzania is on weighing the pros and cons of Tanzania’s membership of the new and enlarged EAC and SADC. Among key questions debated at discussion forums are the progress and pace of integration within the EAC, 16