MERITS AND DEMERITS OF A MARKET ORIENTED ECONOMIC SYSTEM IN TANZANIA

1.0 Introduction
Market orientated economic system (also called a Free enterprise economy or a capitalist economy) is an economic system which resolves the basic economic problem mainly through the market mechanism. Alain Anderton (1991) and Mutasa Felician (2003) in their books wrote the following characteristics of market oriented economic system:-

Main actors are consumers, producers, owners of private property (land and capital) and government. And there are many buyers and sellers of product, each too small to affect the price of the product.Consumers, producers, owners of private property are motivated by pure self-interest. Their decisions are based upon private gains.
Nearly all factors of production within the economy are owned mainly by private individuals and organization. Owners of factors of production as well as producers of goods and services have the right to buy and sell what they own through the market. And product being traded is standard. Each seller’s product is identical to its competitor’s. Competition will exist if economic unit are free to allocate their resources as they wish. There is free of entry and exist in the market. Thus there ids no significant obstacles preventing firms from entering or leaving the industry.
Economic agents (i.e firms and consumers) have perfect knowledge of market conditions.
Individual firms must accept the market price

Referring to the above characteristics it seems that market oriented economic system is powerful force. It is a dominant part in the world; shape the quality of our social relationship. All countries of the world are, today, part of the global market economic system. Even the poorest countries like Tanzania more and more individuals are being drawn into the national as well international market economic system (Desmond McNeill, 2001). Mutasa Felician (2003) in his book explain that market orientated economic system is efficient as it allocate economic resources efficiently through the price mechanism. Firms produce at the minimum cost available and they just earn normal profits. However, it does not mean that the market economy is perfect and hence firms should strive to work close to perfect competition.

2.0 Merits of market oriented economic system in Tanzania
This section provides a list of merits obtained in Tanzania for shifting to the market oriented economy system. The following are some of these merits:-

There is availability of items in market

The government receive tax form private business to run the government

The is an increase of employees efficient, because their performance is measured in term of result oriented

There is fast response to clients needs and wants

There is a standard of products due to competition, therefore producers have forced to produce quality good and services to meet clients needs

Due to competition of good and services in the market, has forced price of some of good and services to fall for example coffee

There is an increase in investments

Choice of varieties is high

There is an increase of entrepreneurs

Goods and services are drawn more and more into the market

Consumers determine supply in the market due to demand

There is a perfect information in the market

There is an advancement of technology

There is a freedom of entry and exit in the market

The system allow many buyers and sellers, none of whom is large enough to influence price

The system allow high degree of market penetration

The system is profit oriented, therefore aim to produce, distribute and consume at optimal limited goods and services.

Resources are mobilized and allocated in most efficient and cost effective manner

3.0 Demerits of market oriented economic system in Tanzania
Although, market oriented economic system in Tanzania is doing good, there are some demerit in the system. The following are listing of some these demerits:-

During privatization of a state enterprise often is not open to competitive bidding and instead the industry is handed over to the friend of a bureaucrat, who will then use the monopoly to raise price

Market failure is often criticized as the market economy’s biggest drawbacks. On the internal front, it arises from incompleteness in the market, such as business cycle, monopoly and unfairness of distribution. On the external front, it generates from various sources such as security, environment and imbalanced allocation of resources, technology, capital and information

Due to freedom of supply of goods and services in the market, the country has experienced poor standard of goods and services

There and decrease of social services

Fail in production some of investments

Investments have been dominated by foreign

There is outflow of capital for example mines industry

In some of activities human capital replaced by machinery and computer technology

Those with economic power have purchasing power in the market

Decline of moral responsibility due to free entry of western culture and traditions

Abolish subsidies to farmers so has caused the crops production cost to be high and therefore caused intense economic hardship for many people

There is high inflation


4.0 The government mitigation of demerit in market oriented economic system
In order for the government to mitigate the demerits in market oriented economic system, it should:-

Intervene to support the enterprise through tax revenue or by printing money, so that people could not face economic hardship

Ensure transparency in business management and fairness in market transaction in order to enhance corporate value and efficiency in resource allocation, and expand growth potential in the market. There should be good corporate governance aiming with effective checks and balance system in order to improve transparency in business management, lower capital costs, and strengthen business competitiveness

Build trust in the market over business activities by increasing interests in ethical management and corporate social responsibility in order to enhance development in market economy

Full guarantee property rights and the complete freedom for contract through legal system

Ensure favorite environment by intervene in areas including public goods and service, policy formulation and regulation, maintain a sound currency and provide a legal framework within which markets can operate and prevent the creation of monopolies in market

Establish free and fair market rules, price signal mechanism and check and balance of market disciplines

5.0 Conclusion
This paper discussed an overview of market oriented economic system. Also the paper discussed merits and demerits of market oriented economic system as well as the way the government can mitigate discussed demerits. It is clear that, market economy system is known to be the most efficient resource allocation system ever made by human. Among various economic systems, which have been made to produce, distribute and consume limited goods and services, the market economy has proved to be the best. This is mainly because it enables resources and energy to be mobilized in the most efficient and cost-effective manner.

The market oriented economic system is perhaps the dominant institution of modern-day life. Development, it seems, necessarily entails entering into the market - and thereby accepting its premises and associated norms. The dominance of the market economic system leaves the weak with an unattractive choice: to remain outside the market system and therefore marginal; or be within the market system at a serious disadvantage. For the poorest countries, and for the poorest people in all countries, the major threat from the market is marginalization.

For market to fulfill its role, price signal mechanism as well as checks and balances of market disciplines should be well established. Moreover, transparency and fairness in market competition should be ensured. In this regard, corporate social responsibility and corporate governance are currently discussed, stressing their importance further.

For government innovation to be successful, free and fair market economic rules should be rightly established. That is because the basic direction of government innovation is market oriented. In addition, only when market fulfills its role, sound role division between the government and market and establishment of right governance will become possible. More decentralized government, pro-competitive government, performance-oriented government, customer and market driven government are thought to be the one required in these days. As a consequence, localization, privatization, deregulation, introducing competition in government services and performance oriented budget are pursued as a specific direction of government innovation.

However, it does not mean that the market economy is perfect. According to Hayek. F, a market economy takes place in certain period in human history, being under progress. In the primitive economy, when there was no market in a modern sense, resource allocation by tradition had been efficient. In the medieval era, the economy had been controlled by command and feudalism. As recently as in the 20th century, there was planned economy. The market is not in all circumstances either good or bad. There is a large variety of ‘really existing’ market societies. But the process of commoditization, and the spread of the market ethic, is an enormously powerful and important tendency of which we must always be aware, and where necessary take steps to control or resist.

Research on the role of food security in poverty reduction: A case study of Tanzania

1.0 Introduction
1.1Background
Millions of people worldwide suffer from hunger and under nutrition. A major factor contributing to this international problem is food insecurity. This condition exists when people lack sustainable physical or economic access to enough safe, nutritious, and socially acceptable food for a healthy and productive life. In developing countries, the root causes of food insecurity include: poverty, war and civil conflict, corruption, national policies that do not promote equal access to food for all, environmental degradation, barriers to trade, insufficient agricultural development, population growth, low levels of education, social and gender inequality, poor health status, cultural insensitivity, and natural disasters. Therefore, the connection between poverty and food insecurity is important. Food production is significant because, for the majority of the poor, agriculture is the main source of livelihood. However, it is only when poverty can be alleviated or diminished that the level of food insecurity is reduced. Consequently, the long-term solution to food insecurity lies beyond the production of additional food and includes the need to address rural livelihoods in general. Social safety nets of various sorts are also part of the solution to absolute poverty and food insecurity, not only in exceptional circumstances such as drought, but also over the long periods required to arrive at socially inclusive sustainable solutions.

2.0 Theoretical Literature Review
2.1 Definition of food security
According to the FAO definition, food security exists when all people, at all times, have physical and economic access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life (FAO, 1998). Hamm and Bellows, (2002) define food security as a condition in which all community residents obtain a safe, culturally acceptable, nutritionally adequate diet through a sustainable food system that maximizes community self-reliance, social justice, and democratic decision-making

2.2 Short history of food security
After World War II, the atrocities that grew both from historical and escalating trade conflicts, and from genocide together with a disavowal of basic human rights, received a heightened level of attention at the international scale. Part of the argument to establish the World Bank and the International Monetary Fund (IMF) was to enhance trade and development as a strategy to secure peace through economic improvement. Concurrently, the newly incorporated United Nations (UN) attempted to charter universally recognized basic human rights. As one integral component of human rights, the right to food was contextualized as an economic right in the nonbinding 1948 UN Universal Declaration on Human Rights. Article 25 (1) reads that “Everyone has the right to a standard of living adequate for the health and well-being of himself and his family, including food, clothing, housing and medical care and necessary social services . . .”( Bellows and Hamm, 2002)

Both the number and the percentage of rural households headed by women have been increasing worldwide. But the feminization of agricultural work has become particularly prominent in sub-Saharan Africa, caused mainly by sickness, war, and the out-migration of men to urban areas, and all these causes have led to the breakdown of traditional gender-based divisions of labor. An estimated 31 percent of sub-Saharan households are now led by women. The loss of male labor and the inability of female heads of households to hire replacement labor have led to adjustments in women’s cropping patterns and farming systems, resulting in a decrease in production and, in some cases, to production shifts toward less-nutritious crops. For instance in Darfur, thousands of African villagers who have been driven off their land but who are still out of reach of UN food aid now rely on a type of toxic pea known as mukheitt which does little more than fill the stomach, however; it does not provide real nourishment. Even in other parts of sub-Saharan Africa, many women have stopped planting traditional food crops such as beans (which are high in protein and nutrients), replacing them with root crops that are easier to produce but are less nutritious (USAID, 2004)

2.3 Magnitude and nature of food insecurity and vulnerability
The United Nations estimates there are 840 million undernourished people in the world. The majority of undernourished people (799 million) reside in developing countries, most of which are on the continents of Africa and Asia. This figure also includes 11 million people located in developed countries and 30 million people located in countries in transition (e.g., the former Soviet Union). The U.S. Department of Agriculture estimates that nearly 11 percent of U.S. households are food insecure, with approximately one-third of these households experiencing moderate to severe hunger (USAID, 2004)

2.4 The underlying causes of food insecurity
According to FAO, (1998), globally, certain groups of people are more vulnerable to food insecurity than others. Vulnerable groups include: victims of conflict (e.g., refugees and internally displaced people); migrant workers; marginal populations (e.g., school dropouts, unemployed people, homeless people, and orphans); dependent populations (e.g., elderly people, children under five, and disabled and ill people); women of reproductive age; ethnic minorities; and low literacy households. In developing countries, the root causes of food insecurity include: poverty, war and civil conflict, corruption, national policies that do not promote equal access to food for all, environmental degradation, barriers to trade, insufficient agricultural development, population growth, low levels of education, social and gender inequality, poor health status, cultural insensitivity, and natural disasters. In the United States, the primary cause of food insecurity is poverty. Low levels of education, poor health status, and certain disabilities also increase the risk of food insecurity for individuals and households in the United States.
Food insecurity affects millions of people around the world, including these children in Thailand, source is World Food Programme

2.4.1Natural hazards
Drought and other climatic extremes are major factors contributing to vulnerability to food insecurity. For instance in the Horn of Africa there is no year or season in which the whole region receives normal rainfall and is free from climatic anomalies such as flood or drought. Drought is the most catastrophic natural event that causes widespread periodic famine in the region. Periodically, floods afflict localized parts of even the driest areas (as was the case at the outset of the current crisis), and the threat of locust swarms is often present. For example, during 1997/98 severe floods were observed over many parts of the region, and were followed by the drought that has persisted over parts of the Horn since late 1998.The overall degradation of the natural resource base, in particular land and vegetation, has led to increasing rainwater losses through runoff (and associated soil erosion), which in turn has exacerbated the impact of drought. This downward spiral of environmental degradation has resulted in further land productivity decline, loss of biodiversity and continuing desertification (FAO,1998)

2.4.2 Conflicts
For instance, the Horn of Africa has been plagued by conflict since time immemorial. Conflicts in the region undoubtedly exacerbate the famine and food insecurity triggered by drought. It has noted that conflict removes able-bodied men from agricultural production and, incidentally, places an extra work burden on women. It also diverts resources, directly and indirectly, from more productive and socially beneficial uses, and tests the willingness of the international community to provide assistance. It reveled that poor countries, which have few resources to allocate to minorities, to the regions and to remote areas, are particularly vulnerable to internal conflict. Consequently, any measures that promote growth and reduce food insecurity are also likely to help conflict prevention. Conflict also has a much more insidious impact on long-term development efforts, diverting scarce resources, both national and external, away from development activities and into war (FAO,1998)

2.4.3 Population growth
The population of the many of Africa countries has more than doubled since the first of the major droughts of recent times hit the region in 1974, and it is projected to increase by a further 40 percent by 2015. Population growth rates have historically been high, at 2.5 to 3.5 percent, and are still at least 2 percent everywhere. The momentum for future increases in population remains strong because of the age structure and youthfulness of the population.
Population increase has led to a dramatic increase in energy demand and this has been met mainly by wood (from range and forest) and organic matter such as animal manure. The natural resource base has, declined as a result of land degradation and urban encroachment on arable land. To the extent that there has been any increase in the area of land being farmed, this has taken place largely in marginal areas, using systems that may not be sustainable. Shrinking land resources have not been compensated for by increases in land productivity. The result is that, throughout the region, farmers have to cope with reduced productivity and less land from which to feed themselves and to supply food to the ever-expanding cities (FAO,1998)

2.4.4 Poor Economic Policy Environment
Agricultural intensification and the development of product markets and processing industries have not occurred partly because of a poor policy framework that has led to inadequate research, a lack of appropriate technologies and weak dissemination of existing technologies. Many policies persist that neglect the critical role of women in agriculture and restrict their full involvement in that and other sectors. Weak market integration due to both poor infrastructure and domestic and international trade restrictions affect the ability of food surplus countries and regions to export to food deficit countries and regions. Public infrastructure, an important condition for both food availability and access, remains limited in all countries (FAO,1998)

2.5 Women are crucial to Food security
According to FAO, 1998, women and children are not alone in suffering from severe food insecurity. Over 800 million people in the developing world are chronically hungry, including an estimated 185 million children under age 5.But in times of crises—such as periods of prolonged conflict or disease—malnutrition becomes even more acute, especially among women and children. Cultural practices in many societies mean that women and girls eat last and least.
Ironically, however, women in developing countries are indispensable to achieving food security, defined by the Food and Agriculture Organization as "access for all people at all times to enough food for an active, healthy life." Women produce more than half of the food grown worldwide. In sub-Saharan Africa, they contribute as much as 80 percent of the labor in agricultural production. And not only do rural women in developing countries work in the fields—hoeing, planting, weeding, watering, harvesting, processing—but they also undertake the everyday household management tasks of gathering fuel wood, collecting water, preparing and cooking food, cleaning, caring for children and livestock, and engaging in marketing and business activities.In the best conditions, poor women in developing countries struggle to keep their families safe, fed, and healthy. When a crisis such as Darfur hits, the burden to provide food can become overwhelming

2.6 HIV/AIDS and Food Insecurity
According to World Food Programme, the HIV/AIDS pandemic also hampers food security for the African rural poor. An estimated one-third of Africa’s working-age population is infected with HIV, and AIDS-related deaths among the continent’s farm workers threaten agricultural production, most notable in eastern and southern Africa. The epidemic has also curtailed women’s contributions to household food security and children’s nutritional status—primarily because chronic illness compromises the ability to produce and access sufficient food. Massive deaths from AIDS in Africa have also intensified hardships for family members left behind. In some African communities, for instance, a woman may lose her access to land and other assets when her husband dies.

In general, HIV/AIDS deaths in Africa have led to a loss of technical and local agricultural knowledge in many areas. Parents often die before they can pass on generations of knowledge about farming, crop varieties, and tools to their children. As a result, young people are unable to produce their own food or the income to buy it from others, continuing the cycle of poverty, food insecurity, and malnutrition. The epidemic has orphaned 11 million children in sub-Saharan Africa alone.

3.0 Empirical literature review
3.1 The situation of food security in Tanzania
In Tanzania, food security is defined predominantly by the developmental issues that face most Sub-Saharan countries. Issues of infrastructure, economic and agricultural policy, governance, education and provision of health care play pivotal roles in household food security. Tanzania is a politically stable country and the biggest and constant threat to food security is the generalized poverty that exists throughout the country. Reoccurring droughts (and flooding in certain locations) also add to the vulnerability. Although a substantial amount of data is available in Tanzania, some gaps have been identified in terms of understanding household food security and vulnerability. Existing reports focus predominantly on poverty, poverty alleviation and nutrition, and the data available doesn’t adequately identify the nature and degree of vulnerability that the households are exposed to. According to World Food Programme, (2007), in Tanzania, 15% of the rural households are food insecure, 15% are vulnerable to becoming food insecure, 5.6% of children under 5 are wasted or too thin for their height, a sign of acute malnutrition, 34.3% of children under 5 are stunted or too short for their age, a sign of chronic malnutrition and 21.1% of children under 5 are underweight. In general food insecurity and vulnerability is present in rural Tanzania but varies regionally. For instance, the central band of the country shows the highest proportion of households that are food insecure. In region such as Dodoma, Singida and Tabora, 45-55% of the households are food insecure. In Mwanza, Manyara and Kagera region food insecurity affect between 20 to 30% of the households. There is a high rate (between 24 to 27%) of households vulnerable to food insecurity in the regions of Singida, Tabora and Dodoma. In Lindi, 21.4% of households are vulnerable.

World Food Programe found that purchase of food is a predominant feature of all consumption groups, livelihoods and regions. For instance in Lindi, Kigoma, Kagera and Iringa the reliance on the purchase of food (55%) is less than the national average and is off set by own production with the notable exception of Lindi where reliance on gifts and food aid is an important source of food. In Tabora and Mtwara, households rely for 10% on other sources of food in addition to their own production and purchase, such as fishing, hunting and gathering. Nationally only 10.4% of the rural households have “very weak” food access. Kigoma, Singida, Manyara, Tabora and Kagera all have between 20-25% of households with weak food access. Dodoma has the highest proportion of households with very weak food access (38%). The poor income group has the highest proportion of households with “very weak” access to food (26%). Handicraft, small farmers, Poor Income, wage laborers, natural resource dependents and remittance dependents have less than 20 % of the households with “good” access to food.

Food consumption is the poorest in the central regions of Tabora (64%), Singida (62%) and Dodoma (48%). Regions in the central belt and most of the coast have high frequency of borderline consumption patterns with Mtwara (42%), Dar es Salaam (39%), Iringa (37%) and Mwanza (36%) with higher levels. Wage laborers, poor income, small farmers and remittance dependents have the highest frequency of households that have poor food consumption patterns. 50-60% of the households in the livelihoods remittances dependents, wage laborers, agro-brewers, small farmers, poor income and natural resource dependents fall into the categories of “poor” or “borderline”.

4.0 Policy review
The international society has acknowledge the importance of nations to have food security whereby, according to World Food Summit which held at Rome from 13 up to 17 NOV 1996, the Heads of States and Governments, or representatives, gathered at the World Food Summit at the invitation of the Food and Agriculture Organization of the United Nations, reaffirmed the right of everyone to have access to safe and nutritious food, consistent with the right to adequate food and the fundamental right of everyone to be free from hunger. They pledged political will and common and national commitment to achieving food security for all and to an ongoing effort to eradicate hunger in all countries, with an immediate view to reducing the number of undernourished people to half their present level no later than 2015. Also, they reaffirmed that a peaceful, stable and enabling political, social and economic environment is the essential foundation which will enable States to give adequate priority to food security and poverty eradication. Democracy, promotion and protection of all human rights and fundamental freedoms, including the right to development, and the full and equal participation of men and women are essential for achieving sustainable food security for all.

They agreed that, poverty is a major cause of food insecurity and sustainable progress in poverty eradication is critical to improve access to food. Conflict, terrorism, corruption and environmental degradation also contribute significantly to food insecurity. Increased food production, including staple food, must be undertaken. This should happen within the framework of sustainable management of natural resources, elimination of unsustainable patterns of consumption and production, particularly in industrialized countries, and early stabilization of the world population. They acknowledged the fundamental contribution to food security by women, particularly in rural areas of developing countries, and the need to ensure equality between men and women. Revitalization of rural areas must also be a priority to enhance social stability and help redress the excessive rate of rural-urban migration confronting many countries.

For that reasons, they determined to make efforts to mobilize, and optimize the allocation and utilization of, technical and financial resources from all sources, including external debt relief for developing countries, to reinforce national actions to implement sustainable food security policies. Also they convinced that the multifaceted character of food security necessitates concerted national action, and effective international efforts to supplement and reinforce national action, we make the following commitments:-
· They will ensure an enabling political, social, and economic environment designed to create the best conditions for the eradication of poverty and for durable peace, based on full and equal participation of women and men, which is most conducive to achieving sustainable food security for all
· They will implement policies aimed at eradicating poverty and inequality and improving physical and economic access by all, at all times, to sufficient, nutritionally adequate and safe food and its effective utilization
· They will pursue participatory and sustainable food, agriculture, fisheries, forestry and rural development policies and practices in high and low potential areas, which are essential to adequate and reliable food supplies at the household, national, regional and global levels, and combat pests, drought and desertification, considering the multifunctional character of agriculture
· They will strive to ensure that food, agricultural trade and overall trade policies are conducive to fostering food security for all through a fair and market-oriented world trade system
· They will endeavour to prevent and be prepared for natural disasters and man-made emergencies and to meet transitory and emergency food requirements in ways that encourage recovery, rehabilitation, development and a capacity to satisfy future needs
· They will promote optimal allocation and use of public and private investments to foster human resources, sustainable food, agriculture, fisheries and forestry systems, and rural development, in high and low potential areas
At nation level, Tanzania efforts to enhance the quality of food and nutrition by considering important aspects such as availability of food, and proper food preparation and preservation began immediately after independence in 1961and were reinforced after the Arusha declaration of 1967. Also there was an effort to develop and endorse a food and nutrition policy for Tanzania in 1996, aiming:-
· To integrate food and nutrition activities undertaken by various sectors
· To enable each sector to play its part in the elimination of the malnutrition problem
· To improve the nutritional situation of the Tanzanian community, especially children and women
· To strengthening the procedures of obtaining and supplying food within the household, villages, and towns by utilizing locally produced foods
· To enable Tanzania to produce and use food which can adequately meet their nutritional needs
· To establish a viable research programme which will facilitate the implementation of food and nutrition in the country
It is clear that Tanzania has adhered the world food declarations, through the ministry of Health to make sure that food is available to all Tanzanian community, this is a good commitment which focus on poverty reduction.

5.0 Conclusion
In general, food security is essential from family level to national level in order to achieve development goals, it has said that for any community which is not secure with food is likely to suffer from peace instability and poverty. This research paper suggests that, for food security to exist at the national, regional, and local levels, food must be available, accessible, and properly utilized. So in order to tackle food insecurity in Tanzania, the following areas need to be considered when planning national food programmes:-
v Impact assessment of programming: Further investigate on how programming has impacted food security in specific contexts/regions/districts and provide lessons learned.
v Integrated approach to food security and education: The lack of education plays a vital role in food insecurity. Nutrition and hygiene should be incorporated into the basic curriculum in schools, providing basic life skills and agricultural knowledge through farmers groups and extension services.
v Integrate specific food security indicators and health data into an Early Warning System (EWS): There is currently enough information available in Tanzania to provide the basis for an effective EWS. A platform for analysis and effective dissemination of the data collected (climatic, cereal prices, livestock body condition, etc) is required.
v Improving access at household level: in particular through better market access and market functioning.
v Diet and crop diversification: Although large scale production and large numbers of small farms producing crops such as maize contribute to food security, mono cropping or poor diversification is problematic.
v Policies for national crop production should also consider household needs and food security issues.
v Drought response system: As droughts have limited food access by reducing the duration of harvest, it is important to consider appropriate rapid responses to drought situations.
v Nutrition: Child and women’s nutrition should be addressed. Although national interventions are targeting the prevention of diseases such as malaria, the importance of health issues should not be forgotten.

JOURNAL REVIEW: (What is Community Economic Development?)

1.0 Introduction
1.1 Backgrounds
The concept of economic development started between 20th century. There are terms that are related to economic development such as modernization, westernization and industrialization. In this sense development is very much associated with western style of development no evidence on where exactly the concept originated, but most people agrees that evolution of development started with the capitalist mode of production which created big disparity between developed and non developed countries. The need for economic development arises when the economists and some governments started to think on how to reduce the disparity between these countries.

1.2 Understanding terminologies used in CED
Community is defined as people of the same origin living in the same area or people with similar occupation, people who are joined by some or all of these elements. For instance, in Tanzania, communities may be categorized in the following criteria:-

A community based on similar occupation such as farmers, pastoralists, fishermen, employee, and self employed, small and big business people.

A community based on ethnic origin, such as Europeans, Asians and our African ethnic groups composed of more than 120 tribes

A community based on geographical location such as rural and urban communities
Community development is a broad term applied to the practices and academic disciplines of civic leaders, activists, involved citizens and professionals to improve various aspects of local communities. Community development seeks to empower individuals and groups of people by providing these groups with the skills they need to effect change in their own communities.
Economic development is the development of economic wealth of countries or regions for the well-being of their inhabitants. Thus to say economic development is a sustainable increase in living standards that implies increased per capita income, better education and health as well as environmental protection.

Community Economic Development (CED) is action taken locally by a community to provide economic opportunities and improve social conditions in a sustainable way. Often CED initiatives aim to improve the lot of those who are disadvantaged. CED is a community-centred process that blends social and economic development to foster the economic, social, ecological and cultural well-being of communities. Its central tenet is that, problems facing communities such as unemployment, poverty, job loss, environmental degradation and loss of community control need to be addressed in a holistic and participatory way.

2.0 The Theoretical Literature
2.1 What is Community Economic Development?
McRobie and Ross, (1987) define Community Economic Development as a process by which communities can initiate and generate their own solutions to their common economic problems and thereby build long-term community capacity and foster the integration of economic, social and environmental objectives. It focuses on improvement through economic activity – generally, by expanding the number of locally owned and social venture economic enterprises, and by demanding that economic bottom-lines take into account environmental sustainability and social justice. According to McRobie and Ross, (1987), key issues for the success of CED are:-

Process

Own solutions

Long term capacity

Integration of economic, social justice and environmental sustainability

Chaland N. and Doning R, (2003) view Community Economic Development as an action by people locally to create economic opportunities and enhance social conditions, particularly for those who are most disadvantaged, on an inclusive and sustainable basis. It is a comprehensive, multi-faceted strategy, conceived and directed locally, for the revitalization and renewal of community economies. Its abiding interest is the local development, management, and strengthening of community resources for community benefit. It is a way of creating economic development which is responsive to locally defined priorities. It strives to increase the self-reliance of local communities. It focuses on local control and local ownership of resources, and aims to locate assets in the hands of low-income residents. It seeks to ensure that the benefits of economic development flow equitably to those who are frequently left out. It is an approach to development which integrates the social, cultural, economic and ecological goals of the local community. Therefore, according by Chaland N. and Doning R, (2003), key issues for the success of CED are:-

Action

Local people, control and ownership

Most disadvantaged

Sustainability

Integrates the social, cultural, economic and ecological goals responsive

Create economic opportunities and enhance social conditions

Increase self-reliance

From the source of http://www.sfu.ca/cscd, Community Economic Development (CED) is defined as a dynamic and responsive to new learning and the broader social, economic, cultural, ecological and political context. CED is therefore evolving. The CED approach will have a significant and growing impact on our personal lives and communities in the years ahead. The movement toward community life based upon CED principles is influenced by some key forces. CED is also exerting its own influence on these forces. According to this source, key issues for the success of CED are:-

Dynamic and responsive

Broader social, economic, cultural, ecological and political context

Participation

http://www.ccednet-rcde.ca, has defined Community Economic Development as an alternative to conventional economic development. Its central tenet is that: “... problems facing communities—unemployment, poverty, job loss, environmental degradation and loss of community control—need to be addressed in a holistic and participatory way.” The source pinpoint key issues for the success of CED as:-

Problem solving

Holistic

Participatory

2.2 Principles of Community Economic Development
v CED is development of the community, by the community, for the community. "Experts" from outside don't take charge. The community takes the lead right from the beginning.
v CED is a process. If a community is to do CED, the people have to get together, organize themselves and develop a plan. Often they do this by identifying their strengths and assets and deciding how these can be used to help the community become stronger, socially and economically. Communities may turn to a CED practitioner, a person who helps the community figure out what it wants to do. But the goals that are set and the things that need to be done are decided upon and carried out by the people who live in the community.
v CED is long-term. CED doesn't happen overnight. Successful CED means that people stay involved, that they get organized and that they keep reaching for their goals.
v CED is a holistic approach to development. CED includes both social and economic development. It's sensitive to the local culture and the natural environment.
v CED is inclusive. Every community is made up of people with different interests and needs. Having a CED plan that meets the needs of the whole community, means consulting and involving all members of the community. If you want people to be involved, ask them first what their goals are."
v CED is the development of people. Key to the success of CED are committed leaders and participation by a broad range of community members. Sometimes in order to participate and to be effective, people need to learn how to organize themselves, how to work together and how to co-operate. "People development" helps the community take control of its future.
v CED is founded upon sustainability: When a community is deciding what they want to do, they have to ask questions about sustainability. For example, does our future well-being depend on conserving our natural resources? Does our project build on the strengths of our community? Do many people in our community support the same vision for the community? Are the people likely to support the work over a long period of time? Can the initiative be sustained economically?
v CED is innovative. The CED process requires participants to ask not only "what is . .?" and "why?", but also "what if. . ?" and "why not?" This means finding new ways to use both our human, natural and material resources to create new opportunities.
v CED aims for diversification. Diversification means creating economic opportunities in a variety of different, smaller sectors, rather than relying on one single industry. This allows communities to ride out the boom and bust cycles so common when a town or region has only one major industry or employer.
v CED is collaborative. In order to accomplish their goals, communities often build partnerships with other communities, with educational organizations, government, and regional development agencies. Partnerships like these give people access to knowledge and resources that might not be available in their own community. From the source of http://www.ccednet-rcde.ca

2.3 Strategies and tactics of Community Economic Development
v Addressing the primary needs of all members through sustainable supply of nourishing food and safe drinking water, security and safety of persons ad property, adequate and affordable housing, opportunity for health of persons and property of community life through mutual support and opportunities for meaningful work
v Developing a strong and sustainable local market economy through local economic planning process, keeping money circulating in the community and stopping leakage, encourage enterprise in the community , building local capacity to sustain CED and developing means to access local capital to finance CED initiatives
v Strengthening civil society and increasing civic participation through citizenship, cultural development, responsible government, community infrastructure, participatory democracy and public involvement
v Creating supporting opportunities for community learning through education and skills development, sharing knowledge of locality, opportunities to learn through doing, participatory action research, engaging elders in sharing wisdom and experience and creating computer network
v Strengthening natural ecosystems by increasing awareness of bio-regionalism and ecology, planning for a sustainable environment, reducing exploitation of resource , engaging in environment restoration, developing and supporting appropriate technology, creating land trust for nature and natural resources and establishing a community forest
v Strengthening the social/cultural economy through recognition, validation and structural support by valuing, encouraging and supporting volunteerism, setting up a skill exchange program, creating supports for housework, creating support for home health care and supporting cultural diversity and development

3.0 Empirical literature and policy review
With reference to principles, strategies and tactic of CED, in reviewing different literature, it shows that many authors discuss Community Economics Development as a process of bringing people together in order to solve problem which face their communities in a participatory manner. Major key points they discuss is that CED must integrate social, economic, cultural, ecological and political context, therefore its approach is holistic. In defining CED, some of authors put more emphasis on CED as process, meaning that people have to get together, organize themselves and develop a plan, in doing so, community members own the development process through building long term capacity in a sustainable way. In order to attain sustainable development, actions in CED as to be taken by most disadvantaged, who are the center of development, and in doing so, local people will increase self-reliance. Therefore, CED has to be taken in broad context, CED has to be flexible, allow poor people to participate in development process and learn new experience, as well as to integrate it in broader social, economic, cultural, ecological and political context.

National community development policy of Tanzania stipulates clearly its aims which adhere with principles, strategies and tactics of Community Economic Development, to mention few of them, here are some of them:-
v “To enable Tanzanians to bring about own development by working to improve production…..”
v “To enable Tanzanian to use wealth to improve their wealth…..”
v “To enable the majority of Tanzanian to enter into an economic system…”
v To enable Tanzanian to join together in groups and increase their commitment to self development (Government of Tanzania, Ministry of Community development, gender and children, 1996)

4.0 Conclusions
In order Community Economic Development initiatives to realize it goal, apart from reviewed literatures say, the approach of CED should target pro-poor and CED practitioners have to build the capacity of community by empowering them to realize their potentiality through building sense of ownership. To ensure sustainability of CED initiatives, pro-poor should be involved form activity planning stage to Evaluation stage in holistic manner (i.e social, health, environment, economic etc) through multidisciplinary approach. It is true communication is essential in order to achieve CED goal, therefore there is a nee to link communities and networking them, to share experience and new technology. In my view, for effective and efficient CED interventions, CED practitioners have to encourage transparency, accountability and gender sensitive to communities for achieving development goals. In general CED has to take into account all key elements which discussed by each author, taking in mind there is no single approach in CED.

THE EXAMINATION ON THE AVAILABILITY OF FINANCIAL SERVICES IN COMMUNITIES AROUND SOUTH NGURU MOUNTAINS & PROPOSAL ON WHAT SHOULD BE DONE TO ENSURE THAT

1.0 Introduction
Finance services refers to the broad range of services, such as: savings, credit, payment transfers, leasing, insurance, etc provided by formal and informal financial services providers operating in urban and rural financial markets. Finance services address the financial needs specifically of the rural population, which form the majority of the Tanzanians. Financial services are a facilitator rather than a creator of economic opportunities. Where economic opportunities already exist, access to credit facilities can contribute to faster and more extensive adoption of improved technology which is consistent with raising the level of productivity and therefore the level of incomes. Therefore, financial services are considered important for business and investment growth in the economy because for any community in order to develop need money for business and investment development.

Economic reforms have been implemented in Tanzania since the mid-1980s which essentially entailed the shift from an administratively managed and public sector led economy to a market oriented and private sector led economy. Financial sector reforms were part of these broader economic reforms. Financial sector reforms took the form of decontrolling interest rates, restructuring existing public sector banks and allowing entry of private banks.

A successful financial sector reform was expected to generate a dynamic process involving substantial changes in the country’s real activities of production, exchange (trade) and finance. Sustainability of the reforms was expected to result in financial deepening, increase in the range of financial products in order to better serve the needs of the economy and enhance transformation of the economy (urban as well as rural) so that production, exchange and other economic activities take place in different ways and in the context of new or reformed institutions.

Growth with economic transformation has at least two implications for the financial system: First, new methods of production and trade require improved technology and infrastructure which exert new demands which may stimulate new changes in finance. Second, changes in the institutional structure may call for changes in the financial operations to match it. For instance, changes from public sector-led development to private sector-led development in a market economy would imply fundamental changes in the operations of financial intermediaries.

The design of the financial sector reforms was initiated with the establishment of the Presidential Commission of Enquiry into the Monetary and Banking System in 1988. The Commission was tasked to examine the banking sector and make recommendations on how to improve its overall performance to support economic growth. The commission recommended broad based financial sector reforms. The main aspects of the proposed reforms were enacted in the Banking and Financial Institutions Act (1991). The Act provided the legal framework which permitted major changes in the financial sector, notably, the entry of private banks into the market and vested Bank of Tanzania with its supervisory and regulatory role. The Government took the initiative to restructure major banks and financial institutions, which included the restructuring and down sizing of the National Bank of Commerce and the recapitalization of the Co-operative and Rural Development Bank through selling of shares to the general public. With introduction of new banks competition has been enhanced, resulting into improvement of quality and quantity of financial services and products offered, at least in urban centres.

Despite this progress in financial services, the rural population has been slow to develop. In some respects there has been a retreat of financial services to the rural areas as indicated by closures of several rural based bank branches during the restructuring program. The composition of financial services was changed as windows for rural finance in those banks were closed or considerably reduced even by those banks which were formerly devoted to rural financing (e.g CRDB). The financial sector reforms are still in progress but there is increasing concern that the majority of the rural population which constitutes 70-80% of the population and comprise 90% of all the poor in Tanzania have not benefited from the financial reforms. They have largely been bypassed by these reforms. The need to enhance accessibility of financial services to the rural poor in Tanzania deserves high priority on the agenda of the on-going financial sector reforms. In recognition of the need for improving access to financial services by the rural population this paper focus on “Examining Rural Finance Services” available in communities around South Nguru Mountains in Mvomero District, Tanzania and propose on what should be done in order to access the reliable financial services.

2.0 Literature Review
2.1 Background information on Rural Financial Services
Samwel Wangwe(2004) in his paper on an “Innovation in Rural Finance in Tanzania” argues that, most of the period since the late 1960s and 1970s the Tanzanian financial sector was mainly government-owned with pervasive government interference in the financial system.

Credit was directed on the basis of government priorities with little regard to credit-worthiness, and banks were convenient agents of fiscal policy. Two institutions, the National Bank of Commerce (NBC) and the Cooperative and Rural Development Bank (CRDB) were dominant in providing rural financial services.

NBC provided working capital and other short term finance to agriculture and other rural activities while CRDB provided development finance to rural development activities. These two institutions had virtual monopoly in their functional areas: Each institution was governed by its own stature and the Bank of Tanzania’s (BOT) supervisory role had been limited. Finally, the environment in which the formal financial institutions operated was also regulated by the state.

Credit was allocated administratively by the BOT which established legal ceiling in bank lending and deposits in addition to regulating interest rules. In the prevailing environment, the financial sector’s performance was very poor and savings mobilisation was neglected. Loans to cooperatives increased, and no pressure was applied on borrowers to repay their loans.

The Government of Tanzania’s(GOT) policies resulted in over-staffed and inefficient banks. These loan policies led in 1988 to 70% of NBC’s loan portfolio to be in arrears and 95% of this was accounted for by parastatals and a substantial share by cooperatives. The Cooperative Rural Development Bank’s (CRDB) rural sector loan portfolio was no better, with 66% of its loan portfolio in arrears as of end 1988. With a non-performing loan portfolio and unable to attract deposits, the formal financial sector was bankrupt, and dependent on financing from the GOT. In response to the difficult financial position, LART was established in 1991 as an institution which would specialize in the recovery of non-performing assets of banks and financial institutions in Tanzania with a view to rescuing public banks and financial institutions burdened with non-performing assets (NPAs).

Most of the loans to the rural sector had been channelled through the cooperatives. In the recovery process, the experience of LART suggests that loan recovery from cooperative unions, where only 44% of the face value was recovered, has been most challenging followed by that from parastatals where 71% of the face value had been recovered by June 2002. The remaining work of loan recovery was hindered by the poor quality of collateral attached to the loans (mainly depicted by the absence of title deeds on land) and to litigations following appeals made by some NPA owners (LART. Annual Report, June 2002).

GOT reformed the financial sector in 1991 and established the Banking and Financial Institutions Act. Banks were restructured and some of them were privatized. Interest rates were liberalized, and financial operations were to be conducted on a more commercial basis. Along with banking de-regulation, the Cooperative’s Act of 1991 was passed which authorized the re-structuring of the Cooperative movement and permitted the establishment of the Savings and Credit Cooperatives (SACCOs). Non-Governmental Organizations (NGOs) also started micro-credit operations in Tanzania.

2.2 Financial services policy frame work
The policy framework has been evolving at various levels. With the Tanzania Development Vision 2025 emphasizing on the need to transform the economy from a predominantly agricultural one with low productivity to a semi industrial economy with modern rural sector, great emphasis is placed on the role of the private sector in stimulating economic growth and developing the rural areas. Thus, the promotion of income generating activities, development of a diverse and strong micro and small scale enterprise sector, and diversifying the skill base through vocational training is an integral part of the strategy for achieving the vision.

Since development of rural finance is dependent on a variety of factors that cut across different sectors, the formulation of the Rural Development Policy and Strategy and the Agricultural Sector Development Strategy are an integral part of the overall policy framework for rural finance. The rural development strategy sees the need to diversify the structure of the economy with a view to reducing dependence on agriculture.

The National Micro-finance Policy covers all policy aspects related to the financial instruments and institutions relevant to rural finance. The policy is a framework that lays out the principles guiding the operations of the microfinance systems, as it covers the provision of financial services to households, small scale farmer and micro enterprises in urban and rural areas.

Cooperatives are a critical institution for facilitating rural finance. Therefore reference to the Cooperative Development Policy (2002) is in order. The new Cooperative Development Policy (2002) has repositioned government commitment to support cooperatives which are owned and managed by their members by creating a conducive environment for their development into competitive entities in the context of a market economy. The policy recognizes economic groups as important initiatives towards membership based cooperatives and emphasizes business minded leadership in running the cooperatives.

In the context of rural finance, the Cooperative Development Policy (2002) supports the establishment of viable cooperative financial institutions. The policy aims to increase participation of marginalized groups in cooperatives and recognizes business groups and commits to assist these groups towards attainment of fully registered cooperatives. According to the policy, the government will encourage the formation of cooperative financial institutions in order to reactivate thrift and saving habits among members. In particular, the policy states that the government will encourage formation of SACCOs within the area of operation of primary societies and will provide technical assistance to the SACCOs. The policy continues to state that the government is committed to encourage and assist the establishment of cooperative banks.


3.0 Financial services available in communities around South Nguru Mountains in Mvomero District
Although finance services is becoming a mature industry in many parts of the world, it has proven largely unable to penetrate remote rural areas because the costs of doing so are high and the demand for credit is quite restricted. Most of the people who live in rural areas (and particularly women and the very poor) receive no services. Thus there is still a large gap between the needs of the poor for financial services and the ability of banks and micro-finance institutions (MFIs) to provide these services. Moreover, the gap cannot be filled by these types of institutions because in most cases they will never be able to cover their costs. In addition to the gap in service delivery, there is also a gap between the products that MFIs can offer and those that are needed by the poor. MFIs tend to emphasize credit. Most are unable to offer savings services, because they are not licensed to take deposits. The conventional view is that credit is the most important service that an MFI can offer, because it provides the means by which the poor can invest their way out of poverty. But this view is increasingly being challenged by practitioners, who observe that many poor people prefer to build their assets through savings rather than increase their risk exposure by taking out loans.

It has found that finance services which are available in communities around the South Nguru Mountains are in four categories of institutions:- banks (i.e CRDB and NMB Bank), member based organizations and associations such as cooperatives (i.e MTIBWA OUTGROWER ASSOCIATION (MOA)- SACCOS) and NGOs (i.e CARE in Tanzania). It has found that, CRDB and NMB Bank within the communities provide financial services to a majority of the low-income population either directly or indirectly through linkages with NGOs or savings and credit institutions as a viable poverty reduction tool. But community members have experienced the following lessons with CRDB and NMB financial services:
· Security in rural areas is problematic in the absence of formal registration of assets that could function as collateral titles and even when they are registered their market value is low.
· Short term lending is not appropriate for most of production activities in the rural areas.
· Linking with intermediate institutions which are closer to the farmer clients reduces the cost of collecting and processing information about potential borrowers. Linkage to SACCOs and Community Banks has proved useful in cutting down administrative costs, enhancing loan recovery and improving reach without having to physically locate branches in all areas of operation.CARE Tanzania is one of development organization among many things it promotes financial services to rural people in Tanzania. As part of a nation wide initiative for poverty reduction CARE Tanzania has been pursuing its objective of assisting micro entrepreneurs by promoting savings and loans service.

Currently, CARE TANZANIA is assisting self help groups commonly called Village Savings and Loan Groups in communities around South Nguru mountains in Mvomero District. The VS&L group is a self-selected group of people, (usually unregistered) who pool their money into a fund from which members can borrow. The money is paid back with interest, causing the fund to grow. The regular savings contributions to the group are deposited with an end date in mind (usually between 8-12 months) for distribution of all or part of the total funds (including interest earnings) to the individual members, usually on the basis of a formula that links payout to the amount saved. This lump sum distribution provides a large amount of money that each member can then apply to his/her own needs. From this perspective a VS&L groups is primarily savings clubs, which have proven popular worldwide.

VS&L groups are usually more attractive to participants, because they offer interest on savings and provide loans in useful amounts, usually in excess of the borrower’s savings, at times that are convenient to the borrower. In this way the funds are constantly working, earning interest and not just sitting idle in a bank, or being directed towards consumption. The loans allow the members to meet their small, short-term financial needs for income generating activities, social obligations and emergencies without having to borrow from a money lender, take an expensive supplier advance, or rely on their relatives. This offers a tremendous boost to social security. The reason that they are not so widespread is that they are more complex to administer and require a system of record-keeping.

The Mtibwa sugarcane out-growers’ scheme demonstrates a good example of institutional and organizational development that is desirable for effective production and marketing improvement. These include the out-growers associations; vertical linkages between growers and buyer, and interlinkages between output markets and credit markets that are beneficial to both parties.

Following the increase of capacity and commercialization of sugarcane production in Mtibwa, the out-growers saw the need of forming an association. In 1996 the association was formed with 25 founder members. It is known as the Mtibwa Out-growers Association (MOA). The aim is advocacy in cane production and business, fair play in price regulations, contractual agreement, payment, and sustainable development of cane production, credits, input supply, extension services and training. Currently MOA has 3,500 members. MOA has managed to motivate its members to start a Savings and Credit Cooperative Society (MOA SACCOS), which is operating under the consultation of CRDB Bank Ltd.

The Minister of Agriculture and Food Security (Hon. Charles Keenja) launched the organization on 28th June at Madizini village in Mtibwa, where the head office is situated. The organization has plans to become a leader on credit facilities in Morogoro region. The organization will have 65,000 shares worth TAS 10,000 each. MOA SACCOS is visioning to offer all bank services, like other commercial banks in the future. It expects to accumulate a capital worth TAS 1,761 million from the members’ shares, financial institutions, grants and customers’ savings. Mtibwa Outgrowers Association has facilitated acquisition of grants and loans from various organizations. For example, African Development Foundation provided a grant amounting to TAS 192 million to MOA in 2001/02. This loan was partly used in the establishment of the MOA-SACCOS. A total of TAS 83 million had already been loaned to members at 18% interest rate per year. Similarly, CRDB Bank has provided TAS 300 million to be loaned to farmers through MOA-SACCOS.

The Government and non-governmental organizations have volunteered in promoting the development projects in the area. The government extension officers in Mtibwa work in partnership with MOA, to ensure sustainable sugarcane production. In November 2001, the Sugar Act was established to ensure fair play in sugarcane business. In July 2002, the Sugar Board was launched. MOA participated in this process to ensure that farmers are represented in such forums.

Apart from all these efforts, the war against poverty is still ongoing. It is estimated that 40-60% of people who are engaged on the scheme live under the poverty line, although they are not among the poorest of the poor nationally. In addition, for out growers there are several risks associated with participation. These risks include the following:-
Over-dependence on a monophony buyer without legal mechanisms for back-up. Late payments to out growers for sugar cane delivered are a good example of this threat. Out growers indicated late payments limiting their opportunities, and sometimes resulting into reduced investments in agriculture.

Some small-scale farmers, who are in most cases also low-resource, have experienced special problems such as loss of produce as they are denied harvesting services. This problem may be associated with high per unit cost of harvesting due to bad plot conditions (e.g. when flooded), long distances, small farm size and poor crop. This is a significant source of risk to poor farmers.
Most of the production area is prone to natural disasters (such as drought, floods, and accidental burning). Families that grow sugarcane on marginal lands have, from time to time, experienced crop losses due to these problems.
Farm sizes and availability of credit are important factors that determine the profitability of the farm and its sustainability. Small-scale low resources farmers have continued living under undesirable conditions. For some they have worsened due to their inability to re-invest in their sugarcane plots. For such farmers, the sugarcane crop remains on the farm for too long leading to a 60% decrease in yield and decline in sugar content to as low as 3%.

4.0 Proposal on what should be done in order these rural communities to access reliable financial services
The Agricultural Inputs Credit Fund should be strengthened by government to extend credit for the purchase of agricultural inputs since the majority of rural people depend on agriculture. The allocations of financial resources to this Fund should be unstable and meet requirements. The Fund is supposed to be revolving and growing in order to reach large number of people.

Strengthening SACCOs and improving marketing (making sure that farmers have a market and at reasonable prices) are supportive attributes for the development of rural finance.The capacity of SACCOs should be built to operate like business and must be staffed by entrepreneurial and knowledgeable leaders. Building competence in SACCOs through capacity building initiatives deserves priority to enable these institutions operate more efficiently and competitively. SACCOs and community banks will need assistance in acquiring technical and managerial competence and institutional capacity building.

Since security in rural areas is problematic in the absence of formal registration of assets that could function as collateral titles and even when they are registered their market value is low. There is need to innovatively search for alternative ways of managing to provide financial services without necessarily demanding physical collateral. Longer term credit is needed.

There is a need to Link Banks to SACCOs and Community Banks in order to cutting down administrative costs, enhancing loan recovery and improving reach without having to physically locate branches in all areas of operation. In addition to this, banks should provide longer term credit to these SACCOs and community banks.

Emphasis should be put on Village Savings and Loan groups (VS&L) scheme since the experience shows that, working through groups has helped to introduce peer pressure in loan recovery and in providing information about borrowers at low cost. Therefore there is a need to encourage rural people to employ new and appropriate methods of saving and lending like VS&L, which provided very small loans without collateral at full cost interest rates that are repayable in frequent installments and that the vast majority repaid on time.

The savings banks should have an instinctive sympathy for improving access; moreover an economy is very unlikely to be approaching full access unless it has strong savings banks. As always the performance of banking systems cannot be understood in isolation from the system of political economy within which they operate. Governments are likely to do more to improve access by improving the foundations of civil society than by trying to mandate access and interfere with product design. For poor to be easy to access products and services, savings banks should be able to capture an important part of the savings, bringing in this way considerable parts of the world population in the formal financial sector. Furthermore, savings banks should recycle more than half of their deposits as credits, which means that they play an essential role in the field of consumer banking, micro financing and financial services to small and medium enterprises.

5.0 Conclusion

Access to finance services is an essential driver for economic growth in developing and transition economies. It is also important in developed economies, where it stimulates markedly the social inclusion of certain groups of the population. Access to finance empowers people, gives them the opportunity to have an account, to save and invest, to insure their homes or to take a loan and in many cases to break the chains of poverty. That is why savings banks and socially committed retail banks have made access to finance one of the underlying principles of their business activities. Savings and socially committed retail banks are well positioned to succeed in enhancing this access on a global level; they are traditionally very close to their customers, thanks to their extensive regional branch networks and the provision of low threshold products and services

A RESEARCH PAPER ON ANALYSIS OF SOCIAL CONSTRUCTION OF GENDER IN COMMUNITY AROUND SOUTH NGURU MOUNTAINS IN MVOMERO DISTRICT, TANZANIA

1.0 Introduction
Gender issues and gender relations are socially determined relations between men and women within and outside their households and communities. These relations are socially constructed through gender biased socialization over time and space and are institutionalised in society. Gender issue vary from community to community, and most of time the family or household, market, community and the state combine their practice and reinforce the ideology of the social construction of gender.

Social construction of gender in the community result to gender differences between men and women to represent socially constructed norms regarding the division of labour, and the distribution of power, responsibilities and rights between men and women, the basis for differentiation continues to be traced back to biological difference. This paper will discuss social construction of gender in community around the Nguru Mountains in Mvomero District, Morogoro.

1.1Background information
The community around the South Nguru landscape (1425 km2), located in the South Nguru Mountains, comprises the Kanga Forest Reserve (67 km2), Nguru South Forest Reserve (184 km2) and Mkindo Forest Reserve (86 km2) in the Mvomero District, Morogoro Region. The community is located 220 km northwest of Dar es Salaam at 500-2,300 m. above sea level. The community consists of 7 wards which include Kanga, Diongoya, Mhonda, Sungaji, Kibati, Maskati and Hembeti. The South Nguru Landscape is inhabited by approximately 108,993 people, of whom 50,000 are estimated to live in villages adjacent to the forest. The South Nguru community is characterized by signs of rural underdevelopment and environmental deterioration which typify many parts of Tanzania. About 26 percent of the population of the community lives below the basic poverty line (Tanzania’s basic needs poverty line is equivalent to US$ 0.79 per capita per day). The dominant ethnic groups are the Nguu and Kaguru, who are native to the area, and the Zigua, Luguru, Chagga, Pare, Bena, Sukuma, Kinga, Hehe, Nguni, Nyakyusa and Maasai, who are in-migrants. Agriculture is the principle source of livelihood and the main crops are maize, beans, yam, sorghum, cassava, sweet potato, banana, rice, coffee and cardamom. The small minority of the population (less than 2%) not dependent upon agriculture is engaged in brewing, livestock keeping, casual labour and operating small retail shops

Although Mvomero district council have explicit gender mainstreaming policies, a lack of practical experience in gender issues at local level means that the integration of gender considerations in development programming is not assured, this has resulted into gender inequalities which are social gender constructed. Therefore, there is a need to improve the real involvement of women in local development institutions.

2.0 Theoretical literature review
The experience shows that the community around the Nguru Mountains in Mvomero District experience gender inequalities and this is gender constructed whereby, male fail to ensure the appropriate inclusion of women in decision-making fora and management structure (LIVING Project, 2006). Stakeholders’ analysis research done around the South Nguru Mountains in Mvomero District, Tanzania (Kim el tal, 2006) showed that women, who head households 30% in Mvomero, bear at least 80% of the labor burden but do not have equal opportunities and rights concerning ownership and inheritance of land and do not generally control the earnings from crop sales. According to source of (http://www.unfpa.org/gender/violence.htm, 2007), this is to show that despite many international agreements affirming their human rights, women are still much more likely than men to be poor, malnourished and illiterate. They usually have less access than men to medical care, property ownership, credit, training and employment. They are far less likely than men to be politically active and far more likely to be victims of domestic violence.

Kabeer Naila, (1995) reports that norms and rules have material consequences for issues of women and men's relative access to and claims over different categories of resources. The normative underpinnings of sex difference lead to differences in the way responsibilities are allocated, resources are distributed, and rights are granted. Asymmetries or inequalities thus grow to represent "conflicts" of interest, so that challenges to the way social rules are constructed represent challenges to the entire organisation of society. How women negotiate these changes will vary depending on the ability or capacity of a woman to risk changes to the way her life has been lived. Social construction of differences between men and women is the basis on which rules/ resources/ responsibilities/power and rights are distributed or allocated between women and men in society resulting in discrimination. Hence discrimination is socially constructed and is based on social rules or norms. What are rules? Simply put, social norms or rules are "ways of doing things" or patterns that become routine over a period of time. These patterns are so socially legitimized that they become reproduced with economy, because of the intricate ways in which identity and roles are intertwined. For example, a social rule or norm is that men are breadwinners and women are home makers or that men are leaders and decision makers and women are followers and implementers of decisions. In accordance with the rules, starting from the household, women are expected to be obedient, submissive and fulfill household responsibilities while remaining in the background. None of the institutions provide resources to them - economic or social, which are seen (from the perspective of the social construction of gender) as irrelevant for them. This has serious consequence for women.

According to the source of http://www.unfpa.org, 2007, in nearly every country, women work longer hours than men, but are usually paid less and are more likely to live in poverty. In subsistence economies, women spend much of the day performing tasks to maintain the household, such as carrying water and collecting fuel wood. In many countries women are also responsible for agricultural production and market work. Often they take on paid work or entrepreneurial enterprises as well. Unpaid domestic work – from food preparation to care giving – directly affects the health and overall well being and quality of life of children and other household members. The need for women’s unpaid labour often increases with economic shocks, such as those associated with the HIV/AIDS pandemic or economic restructuring. Yet women's voices and lived experiences – whether as workers (paid and unpaid), citizens, or consumers – are still largely missing from debates on finance and development. Poor women do more unpaid work, work longer hours and may accept degrading working conditions during times of crisis, just to ensure that their families survive.

The source still argues that, in some developing countries, practices that subjugate and harm women – such as wife-beating, killings in the name of honour, female genital mutilation/cutting and dowry deaths – are condoned as being part of the natural order of things. Throughout much of Asia, a preference for male children results in the neglect and sometimes infanticide of girls, or their elimination by abortion in places where prenatal tests are available to determine the sex of the fetus.Forced early marriage of young girls or adolescents is another practice that can cause lifelong psychological as well as physical problems, especially those resulting from early childbearing. And as conflicts among ethnic groups rage, women and girls have increasingly become pawns of war, and face rape and forced pregnancies. FGM/FGC, coerced sex and early marriage are also factors in the spread of HIV to women.

3.0 Policy review
Due to inequalities between men and women as the result of gender socially constructed in many of the countries in the world, governments, the international community and civil society, including non-governmental organizations and the private sector, are called upon to take strategic action in the following critical areas of concern:
~ The persistent and increasing burden of poverty on women
~ Inequalities and inadequacies in and unequal access to education and training
~ Inequalities and inadequacies in and unequal access to health care and related services
~ Violence against women
~ The effects of armed or other kinds of conflict on women, including those living under foreign occupation
~ Inequality in economic structures and policies, in all forms of productive activities and in access to resources
~ Inequality between men and women in the sharing of power and decision-making at all levels
~ Insufficient mechanisms at all levels to promote the advancement of women
~ Lack of respect for and inadequate promotion and protection of the human rights of women
~ Stereotyping of women and inequality in women's access to and participation in all communication systems, especially in the media
~ Gender inequalities in the management of natural resources and in the safeguarding of the environment
~ Persistent discrimination against and violation of the rights of the girl child(United nation,1995)

At nation level gender inequalities exist because of gender social construction, this situation has been acknowledged by the government. According to (United Republic of Tanzania, 1992), Tanzania accepts and recognizes that important reproductive role played by women in the society. Historically women throughout the world have had the responsibility of nurturing the family. They are the reproducers, the nurturers and guardians of children and family. They are in the fact the nurturers of society. Despite the various steps taken, our country has not been completely successful in ensuring that women have the freedom, opportunity and respect that are enjoyed by men in economic, political, social and cultural development.

Also (United Republic of Tanzania, 1992), pin point that Tanzanian women are poor than men despite that fact that women are the major actors in productive and reproductive activities. The total population, approximately 51.6 % are women. They comprise about 54% of the economically active population in rural areas are engaged in agriculture, producing about 60% to 80% of all domestic work. Despite their contribution to society, Tanzanian women do not receive adequate remuneration for their work. Traditionally and culturally barriers still block women access to and control of land and other properties. Although women contribute most of the labour in productive activities, they have little access to the income generated as men continue to dominate decision making not only within the household but also at national level. Tanzanian women have limited access to employment opportunities in the formal sector. As a result, many have had to adopt survival strategies through the informal sector where many operate without support to extension service or credit. Many of the activities in the informal sector have increased the burden on women.

In education, the girl child has limited opportunity to pursue education. Despite special focus on girl’s education, enrollment in primary schools is still lower than that of male pupils because of parental preference for boy’s education. Only 27.3% of form V students and 24.3% of form VI students are women. This lower representation of women continues up to university level.

4.0 Empirical review
4.1 Over view of social gender construction in community around the Nguru Mountains
In general, gender issues and relation have been socially constructed. In most of the communities, gender inequalities exist, and consider men are better compared to women, and most of good things believed that are possessed by men. Communities consider men as strong, capable for sport and computer skills, have right for paid work, pursue physical science, right of power, rational and are self-reliance while women are considered to be soft, have the right for unpaid work, cooperation, powerless, emotional and pursue humanities. Taking a case study of the community around the Nguru Mountains, experience gender inequalities socially constructed as the result of their culture and history.

The Nguru Mountain community perceives that:-
Men make good leaders and have power in decision making on family and community benefit.

Women are dependent on men

Men have right to have education rather than women

Men are required to access and control resources at household level and community level in general.

Boy child is more valuable compared t girl child

Women are not good in leadership and business opportunities.

Women are not good in family expenditure decision making

Men are competent in searching market of family products compared to women

Home works (such as washing dish, clothes cooking etc) are the right to be performed by female only.

Women have got no right to inherit home’s properties

Women are not required to attend meeting, seminar and community development activities due to cultural prohibitions.

Women have got ability to fear from expressing themselves in front of audience, this seems to be a result of being neglected historically.

Women are not strong to perform some of the works which are considered to be harder works for instance faming.

Social gender constructed has resulted to differences among men and women, and in turn women lag behind in the development process from household level to national level. According to the gender issues assessment conducted by (Care Tanzania, 2007) in community around the Nguru mountains, the following results were revealed based on:-

4.1.1 Knowledge of Nguru mountains community on difference between sex and gender
Assessment results showed that 51.5% of men and 62.7% of women who participated in exercise said women cannot propose marriage to men, also 60% of men and 64.7% of women said that women are created to take care of children, another thing is that 54.5% of men and 64.7% of women said that it is a sex issue for men to be family leaders while it is gender issue. These percentages show that society assume some of gender issues as sex issues, which is implying that society has low knowledge on differences between gender and sex issues.

Also results shows that 66.7% of women who participated in filling questionnaires pointed out that women can’t be religious leaders, 62.7% of women said that there are more male miners than female miners, 64.7% of women said that it is not the job of father to change nappies, and 58.8% of women said that is a sex (biological) issue for men don’t cry when are in problems. This result shows that women are in a situation not able to differentiate between sex and gender issues. Also it shows that women agree with cultural and historical situation of being undermined by men in the society since they agree some of gender issues as right to be sex (biological) issues

4.1.2 Gender roles in Nguru mountains community
Assessment results showed that 60.6% of men said that taking care of children is both men and women’s responsibility, while 64.7% of women said that it is women’s responsibility. 43.9% of men said that cooking is both men and women’s responsibility, while 68.6% of women said that it is women’s responsibility. 56.1% of men said that buying items in market is both men and women’s responsibility, while 74.5% of women said that it is women’s responsibility. It shows that men were not read to fill in questionnaire that those responsibilities are done by women only shying from researchers. And more than 50% of participants said that the following responsibilities are done by female only and are biological such as bread feeding, giving birth etc). Also more than 50% said the following responsibilities are done by both male and female such as educate children, cultivating farm, weeding, be a leader in society, harvesting etc.

4.1.3 Access and control of resources and benefits in Nguru mountains community
Assessment results showed that more than 50% of men and women, said that both male and female access and control resources together in the society. And less than 10% of men and women said that women access and control resources such as land, farm, house, etc. It implies that even if women are involved in access and control of resources, still women are not empowered to access and control resources their own.

4.2 Social construction of gender at workplace
4.2.1 Rationale
CARE’s vision of a world of “hope, tolerance, and social justice” challenges the organization to work towards the eradication of discrimination in all its forms. CARE recognizes that in our societies and organizational cultures, biased stereotypes and social norms prevent women and men from exercising their free choice and from taking full and equal advantage of opportunities for individual development, contribution and reward. It is increasingly clear that gender disparities and biases undermine the effectiveness of CARE’s operations, in both stable and emergency contexts. CARE recognizes that gender equity is a critical component of the organization’s commitment to diversity. CARE Gender Policy, along with related policies that support diversity, seeks to clarify the organization’s expectations and guidelines to assist staff in their efforts to advance gender equity. The policy is marked by two fundamental principles:

· That all people, by virtue of their shared humanity, carry inherently equal dignity and rights. Therefore, CARE should always affirm and uphold the equal rights, opportunities and status of men and women.
· That each person, by virtue of her or his particular character and context, has a unique identity and combination of aspirations and abilities. Therefore, CARE must strive to understand how the particular conditions of each individual or social group shape its ability to achieve equal fulfillment, and create tailored opportunities for each to thrive.

4.2.2 Gender policy statement
In order to fulfill CARE mission and vision, CARE is dedicated to advancing Gender Equity in organization and in programs. CARE will improve the ability of men and women to work creatively and effectively in the organization and in communities in the developing world by increasing awareness of gender inequities and, by working with women and men to change the conditions that create and maintain them. We will advance gender equity within the institution through our management of human resources and the organizational culture, and within the communities we serve through our programming and our advocacy. Ultimately, by harnessing the full potential of all women and men, this commitment will improve our organizational effectiveness and the quality and impact of our programs.

4.2.3 Implementation of gender policy in workplace
CARE community recognizes that gender equity progress at different rates and by different means around the CARE world. Staff respects the flexibility of this process; at workplace, staff is accountable for achieving measurable progress toward a situation where men and women enjoy equal opportunities, rights and access to power and resources. Due to CARE gender policy, it has required changes in the way staff works. CARE staff and partners must develop innovative approaches that provide responsible support to communities to explore gender dynamics and advance gender equity.


5.0 Conclusion
Gender inequalities in the community are not innate, instead, are socially constructed and has created gap between men and women in all aspect of life. For instance, denial of chances to the woman for education by the family leads to fewer options in the work place or the fact that women are solely responsible for childcare in the family leads to disapproval of working women and women who seek market place substitutes for child care. The women are unprepared to be competitive in the market which exploits them as cheap labour as they are not seen as needing the same wages as men. They are also then denied participation in community decisions, and in turn have limited rights in household decisions as they are seen as not having enough exposure or on the grounds that it is not their role. Because of their lack of decision-making powers and capacity in the public sphere, they are unable to influence the market. Their lack of decision-making in the public sphere also means that they are denied valuable economic and political rights by the state. Because of the disadvantages they face women in turn are unable to influence the state as critical political constituencies. In this manner a cycle of discrimination is established and justified on the basis of the expectations of society with regard to women and men. The denial of equality and rights for women is based on biological difference as well as a notion of equivalent rights: men have a right to education to earn a living, women are economically provided for, or that change is costly.

Men need to be involved if gender equality is to be achieved Some research shows that men also want to be involved, and that many welcome the idea of mutually satisfying relationships built on trust and communication. Women cannot achieve gender equality and sexual and reproductive health without the cooperation and participation of men. Men – as community, political or religious leaders – often control access to reproductive health information and services, finances, transportation and other resources. As heads of state and government ministers, as leaders of religious and faith-based institutions, as judges, as heads of armies and other agencies of force, as village heads, or indeed as husbands and fathers, men often wield enormous power over many aspects of women’s lives.

In general, every individual and institution is expected to play their role in order to attain equity and equality goals. The target should be to mainstream gender issue into every aspect of life within our society. In doing so poverty will be reduced, hence national strategy for growth and reduction of poverty will be attained, as well as millennium development goals.