One UN Joint Programme: Wealth Creation, Employment and Economic Empowerment

National context

The United Republic of Tanzania has achieved increasing economic growth from an average annual rate of 2.5% from 1990 to 1994 to 5.8% from 2000 to 2004. National Gross Domestic Product grew in real terms by 6.7% and 6.8% in 2004 and 2005 respectively (Economic Survey, 2005).  Despite this steady economic growth over the past 15 years, poverty stubbornly remains. An overwhelming 80% of the poor live outside urban settings, making poverty a mainly rural phenomenon.

A growing informal economy with its characteristics of limited access to resources, poor working conditions and low wages and incomes is symptomatic of the growth trend. So far, growth has not succeeded in generating adequate employment to absorb the annual net increase in the labour force or to reduce the proportion of the labour force that is currently under-employed, i.e. not working full-time or holding jobs for which they are over-qualified. Young people, particularly those in rural areas, as well as women are the most affected by this situation. 

To address these challenges, growth strategies need to be integrated into sector-specific job creation strategies for poverty reduction so as to promote job-rich growth as employment is the crucial link between economic growth and poverty reduction. The current, fairly robust, economic growth rate in Tanzania does not seem to have generated an adequate number of jobs nor reduced significantly the high incidence of poverty. The possibilities of enhancing the employment content of growth need to be closely examined and policies reviewed accordingly, with a particular focus on targeting the high youth unemployment.

Objectives and outcomes

1.   This Joint Programme developed by ILO, UNDP, FAO, UNIDO, WFP, UNICEF, IFAD and UN Habitat aims to contribute to the UN Development Assistance Framework (UNDAF) outcomes in line with the first priority selected by the UN Country Team on Wealth Creation, Employment and Economic Empowerment. The programme targets the promotion of rural and private-sector development with a particular focus on youth employment and rural livelihoods.

2.   The shared set of outputs for this Joint Programme includes:
     i.   Strengthened institutional capacity to implement the national employment creation programme and to make employment and incomes central to national policies
     ii.   Strengthened capacity of Ministries, Departments and Government Agencies/ Local Government Authorities and other stakeholders to monitor and manage food and nutrition security
     iii.  Increased and equitable opportunities for decent work and rural livelihoods with improvement in agroproductivity, product quality and market access
3.   The programme contributes mainly to the UNDAF Outcome 1, which is aligned to the outcome of the first cluster of the national Growth and Poverty Reduction Strategy, MKUKUTA, namely:
By 2010, increased access to sustainable income opportunities, productive employment and food and nutrition security in the rural and urban areas.

The priority joint outputs will be those with potential to yield quick-wins towards achieving Wealth Creation, Employment and Economic Empowerment. Emphasis is placed on:

     •    translating related policies into practical action that  leads to Wealth Creation
     •    building national capacity for policy analysis, programme development and implementation, focusing on agriculture and rural development, in order to maximize livelihood options and creation of employment for the majority of the rural population
     •    enhancing community mobilization and promotion of labour-based technologies
     •    encouraging the private sector to create mechanisms that promote dialogue, facilitate improved businesses development and extension services to farmers, small and medium enterprises and producers, and foster effective mobilization of capabilities and resources
     •    working with training and research institutions to equip the labour force, mostly under-employed youth, with the requisite technical, business and life skills.