and evaluation; challenges to macroeconomic policies for sustainable development; and an assessment of progress towards sustainable development, with an emphasis on employment and trends in poverty and inequality. 521. Mainland Tanzania and Zanzibar are guided by the following basic documents and frameworks guiding economic development: Tanzania Development Vision 2025 and Zanzibar Development Vision 2020; the 2011/12-2025/26 Long Term Perspective Plan and the 2006-2015 Zanzibar Growth Strategy; the National Poverty Eradication Strategy, the Poverty Reduction Strategy Paper and the Zanzibar Poverty Reduction Plan; the National Strategy for Growth and Reduction of Poverty (NSGRP/MKUKUTA I and II) and the Zanzibar Strategy for Growth and Reduction of Poverty (ZSGRP/MKUZA 1 and 11); and, various supportive plans and programmes. These vision statements, strategies and plans aim to transform Tanzania into a middle-income country by the year 2025, as specified in the Tanzania Development Vision 2025. The focus of this section in the CSAR is progress towards achieving this goal and other related objectives, such as structural transformation of the economy; employment generation; poverty eradication; and, the reduction of economic inequalities. 522. To provide the background to the above concerns, Tanzania’s economic history is divided into three periods: mixed economy strategy (1961-1966); socialist (1967-1985); and economic reforms (1986 to the present). This later period is divided into two phases, namely, mild economic reforms (1986 - 1994) and intensified reforms (1995 to the present). The economic periods in Zanzibar are roughly analogous. Macroeconomic Indicators Growth rates 523. Tanzania has enjoyed high rates of economic growth in recent years. The table below presents data on GDP growth rates for Mainland Tanzania and Zanzibar. Table 4. 1: GDP Growth (Per centages) Country 2006 2007 2008 2009 2010 Average 1995-2010 Mainland 6.7 7.1 7.4 6.0 7.0 7.0 Zanzibar 6.0 6.5 5.2 6.7 6.5 6.2 Source: Tanzania Country Self-Assessment Report 524. The table above shows respectable rates of GDP growth since intensified economic reforms were introduced in 1995. This was particularly true for the Mainland, where GDP growth averaged 7.0 per cent between 1995 and 2010 and was 7.0 per cent or more in 2007, 2008, and 2010. GDP growth rates were also respectable in Zanzibar but were close to a per centage less than rates on the Mainland. Economic diversification 525. However, these growth rates, though respectable, did not translate into diversified avenues of production. Shares of the major economic sectors in proportion to total economic output remained essentially the same between 2006 and 2010. This particularly applied to agriculture and services, where GDP share remained essentially the same, while the share of industry, construction and manufacturing increased very slightly. In Zanzibar, the share of agriculture increased modestly, manufacturing fell slightly, and there were marginal increases in the service sector. In both Mainland Tanzania and Zanzibar, service sector contributions were in the region of 44 per cent of GDP, followed by agriculture, between 26 per cent and 33 per cent, respectively. The manufacturing sector accounted for an estimated 9 per cent of GDP in the Mainland and 4 per cent in Zanzibar. 114

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