Strong Tanzania economy still blighted by poverty

DAR ES SALAAM – Tanzania’s economy is well placed to extend a run of strong growth, but the government should do more to ensure the extra wealth reaches its people, most of whom are mired in poverty, the World Bank said.

President Jakaya Kikwete

Given careful budgeting, gross domestic product should rise 6.5-7.0 percent this year as well as in 2013 and 2014, supported by the country’s mining, telecommunications and banking sectors, the World Bank said on Thursday in a report.

The benefits of a rapidly developing natural gas industry should also kick in over the next seven to 10 years.

The growth rate matches a forecast from the International Monetary Fund, which said in March it expects east Africa’s second-biggest economy to expand by 6.5 to 7 percent in 2012-13. It grew 6.4 percent in 2011 and 7 percent in 2010.

The World Bank said Tanzania would hit the target if it avoided major economic shocks and found the right balance between borrowing to finance infrastructure projects and ensuring it can manage its debts.

Tanzania’s public deficit fell in 2011/12 for the first time in four years to 5.0 percent of GDP, Philippe Dongier, the bank’s director for Tanzania, Burundi and Uganda, said at the launch of the report.

But mass poverty remained a major issue despite the improving economic picture.

“Growth in Tanzania has been concentrated in a few capital-intensive sectors such as mining and telecoms, and soon natural gas – failing to produce widespread job creation, failing to raise incomes of the masses, and failing to reduce poverty,” he said.

“In macroeconomic terms, Tanzania is a success story. However, its success has not translated into improved conditions for a large proportion of rural households, who constitute …about 75 percent of the total population.”

Thousands of protesters clash with police in Chicago: Chaos in the Windy City as 45 activists arrested and one cop stabbed after demonstrators target NATO

By DAILY MAIL REPORTER Thousands of demonstrators upset with the war in Afghanistan, climate change and the erosion of union rights have raised the intensity of a march in downtown Chicago on Sunday as world leaders assembled for a NATO summit. The protest, one of the city's largest in years, turned violent at the end of an anti-NATO march, where demonstrators confronted Chicago police, pushing against a line of officers several blocks from the lakefront convention center where President Obama hosted a gathering of world leaders. Authorities were seen making arrests one by one and leading individual demonstrators away in handcuffs. After a clash near McCormick Place, Chicago Police Superintendent Garry McCarthy said at a news conference that the protests resulted in 45 people being arrested and four officers suffering injuries - one from a stab wound in the leg. Scroll down for video Clash: Demonstrators try to flee the police as they are move in on them ...

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