Likwelile, Servacius B.; Rutasitara, Longinus; Haule, Joseph O.
Description:
The development challenge facing Sub-Sahara Africa (SSA), Tanzania in particular,
relates to the highest levels of poverty. A number of strategies have been put in
place to address this challenge the main focus being how to sustainably enhance
growth which is necessary for poverty reduction. Among constraints to growth are
lack of supportive infrastructure and weak institutional capacity (including minimal
state effectiveness and weak societal engagement). Studies show that growth is
positively affected by the stock of infrastructure assets and that income inequality
declines with higher infrastructure quantity and quality (Ndulu et al., 2007), but for
most SSA countries, growth is constrained by lack of supportive infrastructure and
weak institutional capacity, including minimal state effectiveness and weak societal
engagement. Key institutions, both public and private, are necessary for private
sector growth, which is an engine of growth. How institutions are harnessed and
proper linkages between actors developed is a matter developing countries have been
and are still grappling with.