Mkapa leaves a socialist state more liberalised

After two consecutive five-year terms, Tanzanian President Benjamin Mkapa will retire after elections on 14 December. Known as a brilliant and largely socialist politician, he nonetheless adopted a pragmatic approach in his efforts to improve the country's economy. The youngest of four children, Benjamin William Mkapa was born on 12 November 1938 at Ndanda, a village in the southern region of Mtwara, which borders Mozambique. After elementary and secondary education in his native Tanganyika, as the country was then called, Mkapa pursued a degree course in English at the University of Makerere in Uganda, graduating in 1962. In the mid-1960s he began his career as a journalist, editing the Tanganyika African National Union (TANU)-owned Nationalist (now Uhuru/Mzalendo) in May 1966 and then the Standard (now Daily News) in 1972. In July 1974, he was appointed to serve as press secretary to President Julius Nyerere. Shortly after setting up the now-defunct Tanzania news agency SHIHATA in 1976, Mkapa switched careers again. That same year he was appointed high commissioner to Nigeria, a key posting at the time, coming seven years after that country’s civil war. He then held several ministerial posts until 1995. In 1995, Mkapa succeeded President Ali Hassan Mwinyi - a Zanzibari who served two terms after Nyerere (1985-1995). Mkapa's detractors initially dubbed him Nyerere's "errand boy" and accused him of being unable to shake off the chains of socialism. While not completely abandoning socialist tenets, Mkapa aggressively pursued some capitalist policies. This won him accolades from international lending institutes such as the World Bank and the International Monetary Fund (IMF). Economic strides Mkapa's two terms in office have brought to Tanzania significant economic progress, although much more needs to be achieved if the nation is to be placed on the same economic footing as some other developing countries. At the start of his administration, Mkapa vigorously pursued economic recovery programmes, robust macroeconomic policies and structural reforms, including the privatisation policy initiated by his predecessor. The results were striking: In 2004, inflation stood at around 4 percent, down from 27.1 percent in 1995; while the annual economic growth rate reached 6.7 percent in 2004, up from 3.6 percent when Mkapa took office. By 2005, foreign reserves had increased to an equivalent of eight months of imports, and revenue collections stood at about US $140 million a month, more than triple the amount for 1995-1996. On 14 July 2005, Mkapa told parliament that his administration had achieved macroeconomic fundamentals, which in turn had boosted investor confidence in the country and in the government, a far cry from the situation when he was elected president. The Bretton Woods bodies salute achievements In addition, Mkapa's policies led the World Bank and the IMF in November 2001 to cancel over $2 billion in debt - representing about half the amount the country owes - a goal he set on coming to power. He also privatised several state-run institutions such as the floundering National Bank of Commerce. Mkapa’s critics, however, say the country's so-called economic success is nothing more than a mirage, since a huge proportion of Tanzania's 36 million people earn less than $1 day. "The persistence of poverty in Tanzania, especially in the rural areas, is cause for concern," said presidential candidate Ibrahim Lipumba, an economist and chairman of the opposition Civic United Front, who has lost twice to Mkapa. Another presidential hopeful, Freeman Mbowe of Chama Cha Demokrasia na Maendeleo (Chadema - Party for Democracy and Progress), told reporters on Friday that given the poverty of its people Tanzania had little to be proud of after 44 years of independence. "Look, there are many villages that cannot be accessed throughout the year due to lack of good roads. Many don't have access to good health care, and farmers can't easily reach markets with their produce," he said. "With poverty all around we are witnessing politicians and top government officials parading very expensive cars," he said. Mkapa satisfied Notwithstanding criticism, Mkapa said he was leaving office a happy man, having built all-weather roads in many parts of the country. If his policies in this domain are maintained after his departure, chances are good that the country's regional centres and districts will be linked with first-class roads by 2009. Mkapa has also been successful in liberalising the telecommunications sector. The cellular phone sector has grown exponentially, far outstripping the few existing landline phone connections. Tanzania is now one of Africa's fastest growing cellular phone markets. In June, at least 2.5 million Tanzanian subscribers had signed up for mobile telephones. More cellular phone companies are expected to enter the marketplace, despite cutthroat competition. Tanzania also liberalised the financial sector in 1991. Today there are at least 30 commercial banks, dozens of community banks, scores of bureaux de change and about a 100 nonbank financial institutions, microfinancing NGOs and community-based organisations. Efforts are underway to enhance delivery of financial services to as many people as possible because most of the commercial banks are based in Dar es Salaam and other urban centres. The banks also cater to urban-based industrialists, traders and the elite, ignoring millions of farmers, craftsmen, artisanal miners and fishermen in the rural areas. At one of the financial conferences during the early days of his administration, Mkapa said, "It is a great paradox that the bankers are ignoring the farmers, the country's true breadwinners in their loans and advance portfolios." Finance Minister Basil Mramba has been repeatedly quoted as saying that the banks are awash with cash at a time when thousands of petty traders, small and medium enterprises are desperate for working capital. Bankers claim it is too risky to extend loans to clients who lack tangible assets. A few NGOs and Savings and Credit Co-operative Societie have attempted to reach rural clientele but the challenge has largely not been met. To tackle the problem, the government is now implementing a programme to formalise assets, including homes and other properties built in so-called squatter areas or on land that has not been surveyed. This initiative will bring about legal recognition of such properties that economists call "dead assets". Education Although there are some shortcomings in education, the Primary Education Development Programme has brought more school-aged children into the classroom. Despite the shortage of classrooms, desks and teachers, primary education is almost universally accessible in Tanzania, especially after the abolition of school fees in government-owned facilities. The government also allows individuals, NGOs and religious institutions to establish schools at the primary, secondary and tertiary levels. Such schools are mushrooming, and the trend suggests that within two decades Tanzanians could have one or two universities in each of its 26 mainland regions. International relations Regionally and internationally, Mkapa's administration has been vocal in its advocacy on matters relating to international justice and equity, particularly on the adverse effects of globalisation and unfair terms of trade. During his tenure, Mkapa was co-chair of the International Commission on Social Impacts of Globalisation, formed by the UN International Labour Organization. He was also a member of the Commission for Africa formed by British Prime Minister Tony Blair. Closer to home, Mpaka's Tanzania vigorously pursued peace initiatives in neighbouring Burundi, Democratic Republic of Congo and Rwanda where, in addition to hosting hundreds of thousands of refugees, it contributed significantly to the restoration of peace through mediation. Tanzania was key in bringing to the negotiating table the former main Hutu rebel group, the Conseil national pour la défense de la democratie-Forces pour la défense de la democratie, with the then transition government under Pierre Buyoya and later Domitien Ndayizeye. Burundi now looks to be on a steady path to peace following recent elections, and there are some encouraging developments in the war-torn Congo, where polls are due in 2006. Mkapa has also been instrumental in cementing regional economic integration through the East African Community and Southern African Development Community (SADC). East Africa set its course towards a common market after the region started implementing Customs Union Protocol in January 2005, and Tanzania has continued to play a key role in the economic integration among SADC member countries.