distribution of powers between Mainland Tanzania and Tanzania Zanzibar, evoking “Union Matters as listed in the First Schedule to the Constitution, and …non-Union matters, which are all other matters not so listed.” lviii. However, from CRM stakeholder consultations across the country, it transpired that public opinion is divided in Mainland Tanzania over the current status of the Union. Whilst some expressed the view that Zanzibar certainly enjoyed more autonomy than Mainland Tanzania, others were of the opinion that a separate government or governments should be created for Mainland Tanzania, replacing the present constitutional structure vesting matters relating to the Mainland under the legislative competence of the Union Government. In Zanzibar, there were misgivings, fuelled by the discovery of commercial quantities of crude oil in Pemba, about what Zanzibaris perceive to be their marginal position in the Union and progressive accretions in the Union Exclusive List over the years, to the disadvantage of Zanzibar. lix. Another issue of concern is the threat to social stability posed by mounting internal conflicts over land. Land disputes in the country are primarily over ownership, land acquisition, and compensation; trespassing and third party land rights which plaintiffs are unable to enjoy or derive any benefit from. During the stakeholder consultations, the audiences criticised the policy encouraging large investments in land which appeared to be at the expense of small farmers. They also claimed that the inputs and views of affected, local communities were ignored. This policy has caused some violent outbreaks in rural areas. lx. The dynamics of the new political economy, political pluralism, and multi-party politics, created new opportunities for the privileged few to amass wealth and deepened the marginalization and poverty of the people, in general. Unless these challenges are dealt with in an appropriate and timely manner, they could undermine the basic foundations of constitutional democracy, and the promotion of good political governance in Tanzania. lxi. Ideological shifts and the consequential socio-economic transformations have impacted on the lives and livelihood of the people and, above all, on their perceptions, aspirations, and expectations about their role in the evolving national developmental and democratisation processes. The realities have given rise to rumblings in both state and society. lxii. Tanzania must pursue ongoing constitutional review processes in a transparent manner that not only takes into account existing realities and those that are likely to emerge, but also ensures broad-based participation by the people. In other words, to a much greater extent than previous constitutional amendment processes, the on-going constitutional reform process should be people-driven. This means giving the people opportunities to participate fully and freely in these processes, and sound information about the issues and principles relevant to the discussions, debates and other forms of deliberations. lxiii. The challenge of democracy and political governance in Tanzania ultimately boils down to a demonstration by the national leadership of their political will to grasp the opportunity of this constitutional review process to address matters arising from the new political order. This means sticking to the course with public policy reform, implementing redistributive policies to arrest and reverse deepening social and regional inequities, thereby establishing more lasting institutional mechanisms and processes to creatively manage diversity in the Union. 3.2 Economic Governance and Management lxiv. Tanzania made good progress in promoting economic growth over the past five years, with annual growth rates averaging about 6.8 per cent. However, this growth did not engender broad-based pro-poor, inclusive development nor did it lead to structural transformations. Economic structures have not changed in recent years and industrial production remained stagnant. More importantly, poverty and inequality levels remain high, and unemployment is a major problem in rural areas and among the youth. The 2011/12 - 2015/16 economic development plan is intended to address these challenges. For significant progress towards meeting the goals of Vision 2025, Tanzania must make more vigorous policy and strategy implementation efforts, build the capacity for this, expand and deepen stakeholder consultation and coordination at all levels. Direct and explicit action must also address problems of poverty and inequality without relying on the trickle-down effects of economic growth. The prospect of imminent and significant revenue increases from new mineral discoveries offer an opportunity to actively promote broad-based, pro-poor national economic growth and development strategies. This will require sound financial discipline and focus on the part of the Government. 9