3.4 Socio-Economic Development lxxxiii. Tanzania has taken significant steps towards sustained socio-economic development since achieving independence in 1964. National socio-economic development processes can be classified into three broad distinct phases. The first phase which began at the time of the Arusha Declaration in 1967 was the period of Ujamaa socialism. lxxxiv. This policy placed the economy under state entrepreneurship and control: the blueprint and framework for socioeconomic development and self-reliance. The policy implied that the economy would be determined by socialistoriented economic and political policies. This led to the creation of a one-party system and state control over the economy. All major enterprises were nationalised. The capitalist, private sector, market-led economy inherited from colonial Britain at independence was replaced by a state-owned, centrally planned and controlled economy. lxxxv. The extensive compulsory ‘villagization’ programme of the Ujamaa development philosophy promoted a certain degree of equity in society. Investments in social services at this phase of the country’s socio-economic development have been fundamental to the current economic development and change in the country. They touched on all levels of education and health facilities. Although the period registered human capital growth, the economy and per capita incomes grew by 0.7 per cent per annum. Poor economic growth led to rising poverty. lxxxvi. During the second phase of its socio-economic development, Tanzania abandoned those policies underpinned by state ownership and control over means of production and embraced a World Bank-supported Structural Adjustment Programme (SAP) that had been resisted up until then. The SAP introduced market-oriented and private sector-led growth policies as defining characteristics of national socio-economic development policy. Thus, between 1986 and 1995, Tanzania introduced partial reforms and liberalisation policies. These included: liberalisation of former state-owned enterprises nationalised during the Ujamaa era; liberalisation of exchange and trade regimes, agricultural marketing systems and domestic prices; and, the initiation of financial systems, parastatal and civil services reforms, and even political reforms with the introduction of multi-party democracy. Despite these reforms, large swathes of the economy were still dominated by public monopolies. Large fiscal deficits and low growth rates persisted throughout most of 1986 to 1995. Macroeconomic stabilisation and full structural reforms were introduced in 1996 to address these challenges to socio-economic development. lxxxvii. Since then, the socio-economic development framework focus has been to re-organise and restructure economic institutions through well-articulated institutional frameworks, strategies and plans. One of the most significant plans in this regard is Tanzania Vision 2025: the overall policy and strategic framework for long-term socioeconomic development. It was implemented on the basis of human-centred development for poverty reduction by 2025. lxxxviii. Building on this plan, the government inaugurated a National Strategy for Growth and Reduction of Poverty (NSGRP I) known in Kiswahili as Mpango wa Kukuza Uchumi na Kuondoa Umaskini Tanzania (MKUKUTA I) for the period 2005/06 to 2009/10. This Strategy aimed at promoting high and shared growth, high-quality livelihoods, peace, stability and unity, good governance, high quality education, and international competitiveness. This Strategy has since been replaced by NSGRP II (MKUKUTA II) for the period 2010/11 – 2014/15. lxxxix. Government has also acceded to some international and regional standards and codes in order to benchmark progress in socio-economic development against accepted international norms and practices. In some respects, Tanzania has put this into practice by establishing policies, institutions, programmes, and other mechanisms to ensure the implementation of adopted or ratified standards and codes. However, there has been no systematic and comprehensive approach to ratifying and implementing standards and codes. xc. There is also a general lack of awareness among citizens about standards and codes signed, ratified or domesticated. More could be done, therefore, particularly in terms of increasing awareness and effective stakeholder participation through, among other things, adequate and appropriate civic education. Nonetheless, Tanzania has made appreciable progress towards achieving some major socio-economic targets set out in the Millennium Development Goals (MDGs). xci. Ministries, Departments and Agencies (MDAs), local authorities and other stakeholders have implemented 12

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