Unpacking middle income economy concept for Tanzania

What you need to know:

It is very important, therefore, to first understand the concept of middle income to be able to align industrialisation efforts accordingly. This article is an attempt to highlight some of the basic issues for a Tanzanian type economy to migrate to middle income status.

The talk about moving to the middle income status as a country necessarily raises the question on which income status is Tanzania now? According to the World Bank, the country is in the low income status group of countries. This is a group of countries, whose annual Gross National Income (GNI) per capita by 2015 was $1,025 (about Sh2,194,000 by July 2016 exchange rate) or below. There are about 31 countries in this group of countries. They include Tanzania, Afghanistan, Burundi, Congo, Ethiopia, Liberia, Malawi, Mozambique, Nepal, Somalia, Zimbabwe, Uganda etc. Needless to say the annual GNI per capita is an average. Statistically, there are outliers by way of incomes that are very much higher and lower than this average. This is true in Tanzania as is the case in other 30 low income countries.

In a bid to become a middle income economy, Tanzanians should understand that there are at least two major sub-groups in this income group. The middle income economy group of countries, as is the case for all other incomes groups, is not a homogeneous, but a heterogeneous category. The countries falling into this set are diverse in many aspects, including in income. One of such sub-groups is low middle income group of countries. The other one is high middle income sub-group. Documents and talks mainly by Tanzanian leaders have tended to be general on attaining the middle income status without specifying in which of the two sub-groups the country is aiming at. Logically, it has to be the low middle income status because that is the next level after the low income status that Tanzania currently belongs to.

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Unpacking middle income economy concept for Tanzania

What you need to know:

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