2.

ECONOMIC AND SOCIAL

DEVELOPMENT
What is dev elopment ?
This is the improvement of life quality from a low stage to a high stage.
OR
This is the stage where by the man’s life improves from a poor condition to a
better one.

THE LEVEL OF DEVELOPMENT

There are two levels of development namely;
i) Individual development
ii) National development

I . INDIVIDUAL LEVEL
This is the level of development attained by a single person. Example it shows
what an individual has achieved.

II. NATIONAL LEVEL

This is the level of development attained by the whole country. Example it shows
what the nation has achieved.

TYPES OF DEVELOPMENT
There are two types of development which are;
i) Social development
ii) Economic development

I. SOCIAL DEVELOPMENT
This is the type of development showing the increase of production e.g.
agriculture, industries and trade.

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THE INDICATORS/CRITERIA FOR DEVELOPMENT
What is an indicator or Criteria?
This is something which stands to show the availability of anything, example in
order to realize that a country has a development or not, there are some criteria
or indicators to consider.

There are two indicators of development namely as,

a) Indicator of social development
b) Indicators of economic development

A) THE INDICATORS OF SOCIAL DEVELOPMENT

In order to know whether a country has social development the following are
very crucial (important) the indicators of social development are;
i) Daily food supply
In order to show if a country has social development there must be availability
of enough food supply to the community and if a country has no social
development, there will be no enough food supply to the country.

ii) Literacy rate

If the number of educated people in a country is high then the social
development is reached but if the number of educated people is low then no
development.

iii) Security against disasters and diseases

This is another indicator of social development where by the mortality rate shows
the decrease of mortality in the society.

iv) Manageable population rate

This is the situation where by a country has a certain number of people who can
be managed or maintained through the provision of different social services like
health, education, water supply and means of transport and communication.

B) INDICATORS OF ECONOMIC DEVELOPMENT.

i) Per capital income
Per capital income refers to the amount of money or any other goods gained
by people of a certain country through work per year, where as it is high in a
country with social development.

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ii) Efficiency of tools
The availability of efficiency tools and equipment within a particular country
show the improvement of nation’s economy tools and equipment like Tanzania
tractors etc.

iii) Availability of employment

The availability of enough also can determine the economy of the nation,
whereby if, there is high availability of employment means the economy of the
nation is improving.

iv) Energy consumption

Energy consumption means the use of natural energy resources well; in order to
develop the country economically energy resources such as natural gas and
coal.

THE FACTORE WHICH PROMOMTE ECONOMIC

DEVELOPMENT
There are factors helped to promote economic development and these are;
i) Land
ii) Entrepreneur
iii) Capital
iv) Good-governance
v) Raw material
vi) Tools or equipment

i) LAND
It is very important factor which help to promote economic development,
because through land various economic activities can be formed. Hence land
can help to promote economic development.

ii) ENTREPRENEUR
Entrepreneurs are the people who volunteer to conduct business in a country
regardless the loss or profit. Example they promote they economic development
through paying taxes and other tributes to the government.

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iii) CAPITAL
Capital appears in form of money, so in order to the economic development to
be attained a country should have enough capital (money)

iv) GOOD GOVERNANCE

The good governance can promote the economic development whereby it
can maintain the peace and order in a country ensuring the use of natural
resources of a nation such as natural gas well.

v) RAW MATERIALS
The appears in form of oils minerals and agriculture products like cotton, palms
sisal and coffee, so the availability of raw materials can help to boost the
economic development.

vi) EFFECIENCY TOOLS/EQUIPMENT

Another factor which can promote the economic development in a country is
efficiency tools or equipment for example tractors that can be used in
agricultural activities.

THE ROLE OF FINANCIAL INSTITUTIONS IN PROMOTING

ECONOMIC DEVELOPMENT
There are various financial institutions in Tanzania which helped to promote
economic development for example, SACCOS, Banks, N.S.S.F, BUREAU DE
CHANGE, and FINCA AND PRIDE

I. SACCOS
These are example of financial institution which provide soft loan to the people.
Example SACCOS which is like VIKOBA.

II. BANKS
These are places created to preserve people’s accounts or savings. In Tanzania,
there are different kinds of banks like
Bank of Tanzania (BOT)
 Comparative rural development bank (CRDB)
 National microfinance bank ( NMB)
 National bank of commerce (NBC)

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III. NATIONAL SOCIAL SECURITY FUND (NSSF)
This is another financial institution in Tanzania help to promote economic
development.

IV. BUREAU DE CHANGE

This is the financial institution that deals with the exchange of money of different
countries.

V. FINCA AND PRIDE

This is also financial institution which used to provide loans to their clients.

ROLES/IMPORTANCE/STRENGTH OF FINANCIAL INSTITUTION IN

TANZANIA
i) To provide loans
The financial institutions like banks, saccos, nssf and pride are very important in
promoting economic development because they provide loans.

ii) Provide business education

All the financial institutions in a country are important because they help to
provide the business education to people.

iii) Establish projects

Most of financial institutions are important, because they establish projects in the
country like house for renting example NSSF have built houses for renting at
Kijichi, Dar es Salaam.

iv) Provide human assistance

The financial institution in a country like Tanzania is very important because they
provide human assistance.

v) Rise national income

Most of the financial institutions like banks are very important since they help to
raise national income within the country because they pay taxes to the
government.

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vi) Creation of employment
The financial institutions in Tanzania are very important because they help to
provide the employment or jobs to majority of people.

THE WEAKNESS OF FINANCIAL INSTITUTION IN TANZANIA

1. DIFFICULT IN GETTING LOANS

It is shown that not all financial institutions are provide loans to people and not
all people can given loans from financial institution.

2. HIGH INTERESTS
The financial institution like banks in pose charges high interest to the customers,
this is another weakness of financial institution.

3. FEW IN NUMBER
They are very few in number they are not spread all over the country.

4. NETWORK PROBLEM
The financial institutions are still affected by network problems especially when
people need to deposit their money in those financial institutions in the country.

5. LACK OF ENOUGH MONEY

Most of financial institution like saccos, FINCA and PRIDE have no enough
money to run their lives.

THE ROLES OF PRIVATE SECTORS IN PROMOTING ECONOMIC

DEVELOPMENT
Private sectors are the organization which runs various activities in the country
under individuals or companies.

TYPES OF PRIVATE SECTOR

There are two types of private sectors
i) Formal sectors
ii) Informal sectors

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I. FORMAL SECTOR
Is the branch of private sector which runs various activities under government
control? Example formal sector are schools, hospitals etc.

II. INFORMAL SECTORS

This is the branch of private sector which runs the activities without government
control example tuition street vendors etc.

THE PROBLEMS FACING INFORMAL SECTORS IN TANZANIA

1. FINANCIAL PROBLEM
The informal sectors in Tanzania are most affected by financial problems (lack of
capital to conduct such sectors effectively).

2. TRANSPORT PROBLEM
Mostly affected by the lack of reliable transport means, such as roads, railways
and others.

3. LACK OF EQUIPMENTS
Most of informal sectors in Tanzania are much affected by lack of reliable
equipment which could be used to restore the properties.

4. LACK OF AREAS FOR INVESTMENT/MARKETS

Most of informal sectors in Tanzania are mostly affected by the lack of special
areas where business can be conducted.

5. LACK OF BUSINESS EDUCATION

Another problem which face informal sector in Tanzania is that, where by
people has no business education that’s why failed to reach the business.

THE IMPORTANCE OF FORMAL SECTORS INI TANZANIA

I. PROVISION OF GOODS
The formal sectors are very important because they help to provide goods or
services to people like health services

II. PROMOTES TECHNOLOGY

The formal sectors are still important because, they help to promote technology
because they can run their activities. through the use of good technology.

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III. RISE OF FINANCIAL INCOME
The formal sectors are very important, it helps a lot in rise of formal income
because of paying taxes to the government.

IV. IT PROVIDES SUPPORT

Another importance of formal sector is that, it helps to provide the support
victims, orphans, widow etc.

V. PROMOTES EMPLOYMENT
The formal sectors in Tanzania are still very important because they help to
provide employment to many Tanzanians.

WAYS OF IMPROVING INFORMAL SECTOR

I. EDUCATION
The government should provide education and still so as to enable the members
of informal sectors to undertake their duties effectively.

II. LOANS
Another way that should be taken to improve informal sectors is by providing
soft loans or credits to be the members in order to uplift them in many ways.

III. EQUIPMENTS
The members of informal sectors must be given better equipments or tools that
can be reliable to their duties and activities this can be another good way.

IV. MARKETS
Sometimes the members of informal sectors must be helped to get markets
where their goods can be sold easily, this can be another way can help to
improve informal sectors.

V. BUILDING ROADS
The government should improve roads and better transport services so as to
make the people of informal sectors to run their activities without interference.

SOCIAL DEVELOPMENT AND SOCIAL SERVICES

Tanzania has a lot of social services such as
i Education services
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 ii Public transport
iii Public water supply
iv Electricity supply
v Health services
1. EDUCATION SERVICES
Education is the provision of skills and knowledge from one person to another.

TYPES OF EDUCATION
i. Formal education
ii. Informal education

I. FORMAL EDUCATION
Is the type of education which is not systematically formed?

THE QUALITY ACCESSIBILITY OF EDDUCATION IN TANZANIA

The education provided ini Tanzania nowadays is much improved through the
primary education development program (PEDP) and secondary education
development program (SEDP).

THE PROBLEMS FACINIG EDUCATION SERVICES IN TANZANIA

The following are the problems facing education services in Tanzania
i Lack of teaching materials
ii Lack of teaching materials
iii Lack of transport for students
iv Lack of tools for teachings
v Lack of class rooms
vi Lack of infrastructure.

II. PUBLIC TRANSPORT

It industries railway lines roads and airports; these are other social services that
we have in Tanzania.

III. PUBLIC WATER SUPPLY

Water is the life sustaining for all living things.

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WHERE WATER CAN BE OBTAINED
Water can be obtained from the following services.
i Rain
ii Seas and oceans
iii Springs
iv Natural wells
v River and lakes

IV. PUBLIC ELECTRICITY

It is another social service which deals with the provision of light and energy.
Example the public electricity in Tanzania is provided by TANESCO.

V. HEALTH SERVICES
This includes hospitals, dispensaries and clinics

TYPES OF HEALTH SERVI CES

There are two types of health services which include
1. Reproductive health
2. Environmental health

1. REPRODUCTIVE HEALTH
It includes ways which helps a person to reproduce safely. It includes maternal
clinics, child vaccination and birth control.

2. ENVIRONMENTAL HEALTH
This is the type of health and hygiene and environment because mans health
depends on environment.

THE WAYS OF MAKING THE ENVIRONMENT HYGIENE

i. Keep water bodies clean
ii. Preserving the purity of the air
iii. Cleaning the surroundings.
iv. Disposing of garbage safely
v. Building latrines
vi. Recycling waste

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THE CHALLENHES OR PROBLEMS FACING TANZANIA IN
PROVISION OF SOCIAL SERVICES
1. FINANCIAL PROBLEM
Example the government of Tanzania has no enough money to maintain and
improves its social services.

2. POOR TRANSPORT
The other problem facing Tanzania in providing social services is due to
remoteness and poor transport that is why, it is difficult to spread social; services
in many areas.

3. DESTRUCTIVE BEHAVIOR
Some of people have habits to steal and destroy the social services system like
taking water pipes

4. LOW TECNOLOGY
The other challenge facing Tanzanian in providing social services is low level of
science and technology for example the government fails to enhance better
social services to people.

5. NATURE OF ENVIRONMENT
Sometimes the provision of social services in Tanzania is not good because of
the nature of the environment for example most of t he areas in Tanzania are
having hills, Mountains, hence affects the provision of social services like
transport to be reached over such places.

6. LACK OF EXPERTS
The other problem which affect Tanzania to provide social service due to the
lack of experts, for example Tanzania has few number of teachers, doctors and
other professional, hence this is still affect provision of social services.

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