Mzumbe University - 2017 Convocation Newsletter Mzumbe newsletter_final-2e | Page 22

UNPACKING THE FIFTH PHASE GOVERNMENT’S INDUSTRIALIZATION MOVE By Prof. Honest Ngowi D ebates and plans on Tanzania’s fifth phase government economic future revolve around the axis of industrialization. This is the main economic project for the fifth phase government. This new industrialization move is packed in various documents. They range from the ruling party’s 2015 election manifesto to President Magufuli’s maiden speech in the Parliament on 20 th November 2016 and the Second Five Years Development Plan that saw the light of the day in July 2016 after coming to end of its predecessor on the same date. In order to put all the debates on this grand move in the right perspectives, there is a need to unpack the whole industrialization move including what it is all about and why it is important. to labour – intensive economy. It took the form of Industrial Revolution in Western Europe and North America in the 18 th and 19 th centuries. Elsewhere in the economic and business literature industrialization is described as the process in which a country transforms itself from a basically agricultural society into one based on manufacturing of goods and services. Whereas manual labor is more often than not replaced by mechanized and automated high tech-mass production, craftsmen are replaced by assembly lines. Industrialization is associated with the growth and development of large urban centers and suburbs. Tanzania may need to adopt its own definition of industrialization but it should not miss out the key components of a true industrialized economy. Unpacking industrialization Desired industrialization At the core of succeeding in Tanzania’s industrialization move lies understanding of what industrialization means and entails by all key stakeholders. This is because a problem known is a problem half solved. Pass et al (2000) describe the term industrialization to imply the extensive development of organized economic activity for the purpose of manufacture. It is characterized by inter alia transformation of a primarily agrarian economy into a more specialized, capital – as opposed Drawing from President Magufuli’s speech in the Parliament on 20 th November 2015, there are three main typologies of industries that the fifth phase government desires to attain. These are mass employment-creating industries; industries for domestic mass consumption goods and industries for export goods. On its part, the ruling party’s 2015 election manifesto aims to accomplish and implement the third phase of Sustainable Industrial Development Plan (SIDP) 2010–2020. It also Convocation Newsletter | 2017 aims at attaining industrial sector contribution in Vision 2015. It desires for construction of agro- processing, middle, large and basic industries and industries that use domestic raw materials. It also desires to strengthen existing industries and increase industrial sector GDP contribution from 9.9% in 2013 to 15% in 2020 and have 40% of Tanzania’s employment coming from the industrial sector by 2020. It also desires to mobilize the private sector to invest in middle and large industries and protect them against competition from foreign industries. It also desires to increase sub-regional, regional and global preferential markets access. Good as these desires are, there are needs for for critical and construcive interogations on what it takes to attain the desired industrialization above. Selected thoughts are shared in what follows. Employment creating industries The desire is to have 40% of employment in Tanzania coming from the industrial sector by the year 2020 although the current percent is not given in the said manifesto or President’s speech. For Tanzania to attain the mass employment- creating industrialization, then it has to opt for labour intensive industrialization if it means jobs coming direct from industries. labour intensive production techniques employ more labour 22