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Repoa calls on govt to implement effective tax system

Policy Research for Development (REPOA) executive director Donald Mmari threw the challenge in Dar es Salaam when briefing journalists on the 21st Annual Research Workshop scheduled for April 6 and 7 themed: “Making industrialization work for socio-economic transformation.”

Mmari said that corruption was one of the many challenges facing the country’s second phase of the five-year Development Plan which was aimed at deepening industrialization.
He said that the role of natural resources in industrialization provided a timely discussion, considering the recent developments concerning Tanga-Uganda pipeline, discoveries of gas in the Ruvu basin and finalization of the liquefied natural gas (LNG) location in Lindi.
“With these developments come high expectations as well as increased fear of corruption,” he said.
He said a recent survey by REPOA, CMI and the Norwegian School of Economics (NHH) which included 3,000 respondents in Dar es Salaam, Mtwara and Lindi showed that an increase in expectation from the gas sector also increases citizen’s expectations of corruption.
Mmari also said that individuals who expect corruption were also more likely to become corrupt themselves.
“This vicious cycle needs to be addressed by focusing on disseminating clear, accurate and accessible information especially the older population about the oil and gas sector as well as strengthening institutions of accountability,” Mmari said.
According to Mmari, industrial sector is crucial for socio- economic transformation because through industrialisation, the country can add value on raw materials, use them to produce various goods and also provide employment to many people.
He said that according to the Household Budget Surveys, basic needs poverty level in the country has slightly fallen from 33.3 per cent in 2007 to 28.2 per cent in 2012.
“This drop is not enough... we want to see the percentage going down further and this can be possible through industrialization because it will provide employment, produce goods within the country and add value to the raw materials,” he said.
For her part, REPOA senior researcher Blandina Kilama said the country’s economy was divided in three parts which are agriculture, industry and services.
She said the industrial sector still employed fewer people compared to agriculture sector thus posing challenge in the country’s economic growth.
Kilama said that through the workshop Tanzania would also learn how it can use its own resources for stimulating rapid industrialization.
REPOA director of Commissioned Works Lucas Katera said that although Tanzania was moving towards industrialization it was crucial to know how the industries would benefit ordinary citizens.
He said unemployment was one of the challenges facing the country but through industrialisation people could be employed because the industries would produce goods as well as add value to the raw materials.
The research workshop will bring together local and foreign delegates representing broad spectrum of stakeholders- researchers, academicians, private sector, policy makers, government leaders, civil society and development partners.
The main objective is to address issues concerning economic development in Tanzania at present, the nature of structural change and progress on industrialization in relation to aspirations of National Development Vision 2025.

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