In April 2013, the World Bank set a new goal to end extreme poverty in a generation. Our target is to have no more than 3 percent of the world’s population living on just $1.25 a day by 2030.
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The paper investigates the structure and
dynamics of consumption inequality and inequality of
opportunity in Tanzania. The analysis covers the period 2001
to 2012. ... Show More + It reveals moderate and declining levels of
consumption inequality at the national level, but increasing
inequalities between geographic regions. Spatial
inequalities are mainly driven by the disparities of
households’ characteristics and endowments across geographic
locations. An important part of these endowments results
from intergenerational transmission of parental background.
Father’s education appears as the most important background
variable affecting consumption and income in Tanzania.
Without appropriate policy actions, there are few chances
for the next generations to spring out of the poverty and
inequality lived by their parents, engendering risks of
poverty and inequality traps in the country. Show Less -
DAR ES SALAAM, Tanzania, May 7, 2015 – Sustained rapid economic growth and concerted efforts around national strategies to alleviate poverty have led to a decline of approximately one percentage point... Show More + per year in the rate of poverty in the country between 2007 and 2012, constituting the first significant reduction in 20 years.The latest World Bank ‘Tanzania Mainland Poverty Assessment’ confirms earlier findings by the Government’s 2012 Household Budget Survey (HBS) that the basic needs poverty rate declined from around 34 percent to 28.2 percent during that period.“The reduction in poverty is important news that should be applauded,” says Philippe Dongier, Country Director for Tanzania, Burundi and Uganda. “But what is more important is for the country to accelerate the trend further so as to address the important challenges that still remain. The majority of Tanzanians remain close to the poverty line. In fact, more than 70 percent of the population lives on less than US$2 per day. There is a lot of work ahead to improve the living standards of all Tanzanians.”“There are emerging signs of pro-poor growth,” adds Dongier. “These can be seen in the improved levels of education, access to basic services and ownership of land and other assets among poor households. In addition, the economic returns to the poor’s economic activities have also increased, particularly outside agriculture.”Among other key findings, the Assessment shows a reduction in the level of deprivation of those who remained in poverty as well as a slight decline in inequality at the national level. But despite these positive changes, the number of poor remains high, particularly in rural areas, and the welfare disparity between the geographic regions is widening.Poverty declined more rapidly in Dar es Salaam than in the rest of the country. The capital city has experienced the highest poverty reduction at a rate above 70 percent between 2007 and 2012, while rural areas registered a reduction of only 15 percent.Even though there are emerging signs of increased participation of the poor in the growth process, they continue to suffer from lack of capacities and limited access to better job opportunities. Persistent high population growth will continue to challenge poverty reduction efforts in Tanzania. However, the investments made by the Government and its development partners to better measure and understand the determinants of poverty reduction in Tanzania are important steps towards designing improved development programs. Show Less -
DAR ES SALAAM, May 7, 2015 – In Mainland Tanzania, poverty has declined by approximately one percentage point each year between 2007 and 2012, according to a new World Bank report released today.Based... Show More + on the 2012 Household Budget Survey, the Tanzania Mainland Poverty Assessment highlights the country’s first significant decline in poverty in 20 years. Basic needs poverty, which refers to the minimum resources needed for physical wellbeing, declined from 34.4% in 2006, to 28.2% by 2012. During the same time period, extreme poverty also decreased from 11.7% to 9.7%.“There are emerging signs of increased participation of the poor in the growth process during the last five years,” said Nadia Belhaj Hassine Belghith, World Bank senior economist and lead author of the report. “The government will be able use this information to examine how this happened as they continue to devise policies to further accelerate extreme poverty eradication and promote growth, because in reality around 12 million Tanzanian people still live in poverty, and more than four million citizens continue to be in extreme poverty.”Although there has been recent growth that has helped Tanzania’s poorest, the report emphasizes that approximately 70% of Tanzanians continue to live with less than $2 per day. To build on this growth and reach more people, the assessment recommends promoting faster economic growth in labor intensive sectors, including agriculture where three-quarters of Tanzanians continue to be employed. Reducing population growth and the country’s high fertility rate – on average, five children per woman – by empowering them through education and employment support and with family planning services can stimulate per capita economic growth further, according to the report.The assessment also underscores the need for specific measures to develop the rural economy and agriculture, and to diversify livelihoods to include nonfarm businesses, which can be more helpful than agricultural activities to help households reduce poverty. Additional report findings include:In addition to the decline in the share of the population living in poverty, Tanzania is also witnessing a reduction in the level of deprivation among those still living in povertyAll households saw large improvements in their housing conditions and modern amenities such as television sets and mobile phonesWhile ownership of agricultural land improved, possession of productive assets such as mechanized equipment and big livestock remains limitedHuman development outcomes have improved with the increase of primary education enrollment and the decline of infant mortality and children less than five years old. Unfortunately, improvements in maternal mortality have not been as significantAccording to the Gini coefficient of real per capita consumption, the level of inequality for Tanzania declined from 39 to 36 during the last decade, and is now comparing favorably with Sub-Saharan Africa. This change seems to be driven mainly by an increase of the consumption share for the 20% poorest segment of the population.The number of poor, particularly in rural areas, is still high; about 12 million people, among them 10 million in the rural sector, continue to live in povertyHeads of households with less education and a large number of children and who are engaged in subsistence agriculture and living in communities lacking infrastructure are likely to be the most poor and many of them will pass on their poverty to their offspringThe nature and composition of economic growth induced an uneven increase of welfare at the regional level. Household consumption and poverty improved faster in Dar es Salaam and inequality between the geographic regions is widening.While there are emerging signs of increased participation of the poor in economic growth, outside of Dar es Salaam an important proportion of the population remains unable to fully benefit from the economic prosperity of the country and are vulnerable to poverty Show Less -