The Tanzanian Economy and Periphery Development

Tanzania is a country located in East Africa with a population of over 60 million people. Over the years, the Tanzanian economy has exhibited several features of periphery development. Periphery development refers to the economic conditions and patterns of development commonly found in peripheral or less developed countries. These features include:

1. Dependence on primary commodities:
The Tanzanian economy heavily relies on the export of primary commodities such as minerals, agricultural products, and raw materials. This dependence on primary commodities exposes the country to fluctuations in global commodity prices, making it vulnerable to economic shocks. Additionally, the lack of diversification in the economy limits its ability to generate sustainable growth and development.

2. Limited industrialization:
Tanzania has a relatively low level of industrialization. The majority of its economy is based on agriculture, with small-scale subsistence farming being the predominant activity. Industrial sectors such as manufacturing and processing are underdeveloped, resulting in a limited capacity for value addition. This lack of industrialization hampers economic growth and job creation.

3. Low levels of technology and innovation:
The Tanzanian economy lags behind in terms of technological advancements and innovation. The country has limited access to modern technologies and lacks adequate investment in research and development. This hinders its ability to improve productivity, efficiency, and competitiveness in both domestic and international markets.

4. Unequal distribution of income:
The distribution of income in Tanzania is highly skewed, with a large portion of the population living in poverty. The majority of wealth is concentrated in the hands of a small elite, exacerbating social and economic inequalities. This inequality further perpetuates the cycle of poverty and hampers inclusive growth and development.

5. Limited infrastructure:
Tanzania faces significant infrastructure challenges, particularly in terms of transportation, energy, and telecommunications. The lack of adequate infrastructure hampers trade and investment, making it difficult for the country to fully participate in the global economy. Furthermore, inadequate infrastructure limits access to basic services such as education and healthcare, hindering human development.

In conclusion, the Tanzanian economy exhibits several features of periphery development, including a dependence on primary commodities, limited industrialization, low levels of technology and innovation, unequal distribution of income, and limited infrastructure. Addressing these challenges is crucial for the country to achieve sustainable and inclusive economic development. Development strategies should focus on diversifying the economy, promoting industrialization, investing in technology and innovation, reducing income inequality, and improving infrastructure.