Employment 526. Employment figures are somewhat outdated and date back to 2006. From these figures, 88.3 per cent of the economically active population was employed in 2006 but in the, capital Dar es Salaam, employment as a per centage of the total population was only 58.6 per cent, compared to 72.7 per cent in other urban areas and 84 per cent in rural areas. The overall employment ratio is said to have increased from 69.3 per cent in 2001 to 89 per cent in 2006 for the population aged 10 years and above. Poverty 527. The CSAR also indicates that respectable growth rates did not generate significant improvements to poverty levels. In 2000/01, 35.7 per cent of the population lived below the poverty line, compared to 33.6 per cent in 2007. Poverty rates decreased from 38.7 per cent to 37.6 per cent in rural areas, and from 17.6 per cent to 16.4 per cent in Dar es Salaam during this same period. For Zanzibar, 13 per cent of the population were estimated to live below the food poverty line and 49 per cent of the population below the basic needs poverty line. The CSAR concludes by noting that, “the mismatch between relatively high economic growth and marginal reduction in poverty is a serious issue for concern in both the Mainland and Zanzibar.” 528. Other significant poverty-related conclusions in the CSAR are that the number of people living below the poverty line increased as a result of population increases. Poverty is largely a rural phenomenon, with an estimated 87 per cent of the poor located in rural areas. It is also noted that poverty is distributed unevenly in the country: the highest levels of poverty being in the Mwanza, Shinyanga, Singida, and Manyara regions, with the lowest levels of poverty to be found in Dar es Salaam, Arusha and Mbeya. Inequality 529. Closely related to poverty as an issue is economic inequality. According to the CSAR, there has been a gradual increase in the degree of inequality in the country. The Gini Index increased from 0.34 in 1991/92 to 0.35 in 2000/01 and was at that same level in 2007, meaning that inequality was greater in 2007 than in 1991/92. In rural areas, the Gini Index remained at 0.33 during these three periods, while in Dar-es-Salaam it stood at 0.33 in 1990/91, 0.36 in 2000/01, and 0.34 in 2007. In 2007, the wealthiest 20 per cent of the population received 42.4 per cent of national income as compared with 7.3 per cent that went to the poorest 20 per cent of the population: an income distribution ratio of seven to one. Measures to support economic growth 530. The CSAR describes sectoral policies; reforms and initiatives to support economic growth and private sector development; decentralisation and local government reforms; land policies; the cooperative, micro and informal sectors; small and medium enterprises; and, agriculture and rural development. Micro, small and medium enterprise (MSMEs) policies are described as failures. Those for private sector development as a whole are said to have been successful. In support of these conclusions, the CSAR points out that almost all micro, small and medium enterprises remain informal or semi-formal, serve essentially low income groups, have limited access to formal markets, and are characterised by limited incidence of upward mobility. The reasons given for this poor performance are: limited awareness and capacity of operators; limited access to financial and other services; and the absence of an enabling environment in the form of legal and regulatory frameworks. 531. In comparison, the private sector is said to have developed - as measured by increased direct foreign investment flows - increasing from $308.2 million in 2003 to $573.3 million in 2010; private sector dominance in the financial, mining and manufacturing sectorrs; and, increases in credits to the private sector. Yet, the private sector faces a number of challenges: limited integration into the global economy; low international competitiveness; poor negotiating skills; little access to IT; and, inadequate funding. The CSAR also lists, but does not evaluate, private sector institutional strengthening, through creations such as the Business Environment Strengthening in Tanzania (BEST) Programme, the Tanzania National Business Council (TNBC), and the National Economic Empowerment Council (NEEC). 115