| Tanzania on Stairways to Economic Heaven – World Bank Report |
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22/02/2012 05:54 (90 Day 20:02 minutes ago) | |||||
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The FINANCIAL -- Tanzania can achieve her vision of accelerated and shared growth through the combination of fiscal prudence, cost-effective reforms in the education sector, and smart policies aimed at promoting the transformation of firms, says the latest World Bank analysis.
The first Tanzania Economic Update titled Stairways to Heaven: Fiscal Prudence, Value for Money in Education, and Economic Transformation of Firms, to be launched tomorrow, February 22, shows that the country has been performing well over the past few years due to effective demand policies but warns against complacency.
The report forecasts that Tanzania could grow at around 6 percent in 2011/12 but quickly adds that this good performance would nevertheless represent the lowest rate achieved since the early 2000s and a slowdown compared to 7.3 and 6.5 percent observed in 2009/10 and 2010/11.
According to The World Bank Group, the report notes that this deceleration is partly the result of the new restrictive fiscal and monetary stance, rightly adopted by the Government of Tanzania after the deterioration of several indicators during the second half of 2011.The first economic update on Tanzania underlines that education has been a national priority where the Government has invested as much as 20 percent of its budget every year, but the next challenge will be to produce more graduates with limited fiscal resources and fast growing school populations.
The Bank also considers that signs of economic transformation have emerged from the private sector with technological and educational improvements as main drivers. Small and medium firms are now the fastest source of employment growth and manufacturing exports have been booming since 2005. The good signs can be further encouraged by smart supportive policies.
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