Countries around the world are setting up what are known as "bailout plans" among them and probably the most famous ones are known as "stimulus packages". From China to Germany, from Australia to the US governments are setting up these battle plans packages to "stimulate" their economies so as to restore productive economic activities, restore consumer confidence and consequentially avoid the eventual accepted reality of the ongoing world economic meltdown.
Given what we know and bearing in mind recent call by President Kikwete at the Economic forum that has just ended in Dar that the IMF &World Bank should prepare a stimulus package for Africa and by extension for Tanzania I'm tempted to ask a number of unavoidable questions:
a. Does Tanzania need its own economic stimulus package?
b. What is it that need to be stimulating? employment, industrial production, agriculture activity, technology, etc? What really that didn't need stimulating 15 years ago?
c. Who should finance such a package (the government, donors, word financial institutions, our own financial institutions or a combo of these)?
d. Wouldn't we consider that the foreign aids we have been receiving through the years and especially near a billion dollar last year to be forms of economic stimulus packages? or only after being labeled and wrapped as such? Hence, we really don't need a new economic package!?
Mimi Mwanakijiji
i dont think we need any of the stimulus or so called bail out. for centuries we have been geting that but we have failed to use them effectively, and so will be today. never the less, nothing as you mentioned ,is in the need of the stimulus since non of the sectors are failing.but let use the economic meltdown to stand on our own, this is the only time our leader should need to respond to citizen needs and not to doners need. so thank God for the time.
ReplyDeleteHatustimulitiki, habari ndio hiyo.
ReplyDeletemi nilifikiri mwanakijiji utaandika kiswahili. hivi mpaka lini tutaacha kuwa watumwa wa lugha? mnakera kupita maelezo yani.. aaaggghhhhhh
ReplyDeleteStimulus package is defined as a sum of financial aid paid by the government or a financial institution (IMF, World Bank)to an economic sector in a country (Banks, corporations) or to another Government with an aim of boosting economy. It may also entail tax rebates and incentives to the people and the business entreprises. The word might pose a challenge to some due its ponderous sounding nature especially when it elicit the image of recession and malaise currently afflicting the Western economies (U.S., Britain, etc). But in reality it simply connotes 'Financial aasistance.' Don't try to compare with Subprime mortgage crises or collapse of financial institutions like AIG or the overall business climate in the U.S. today. In Tanzania, we don't have that level/culture of "house foreclosures" and "banks-must-lend." If you compare, then the need of stimulus package is insignificant and a joke. So the answer is simply "Yes we need it." We need it because our government revenues have fallen sharply in recent months-tourism sector is down, Foreign trade is down, Multi National Corporations are closing thus creating unemployment to some and reducing govt taxes and most important, the remittances from Tanzanians living abroad are also down. The economies of today are highly entwined in the so-called globalised world operating under the aegis of socio-capitalism. The quick recovery of Western economies will depend to a certain extent in how good other developing economies (like Tanzania)operate. In order for Tanzania's economy to stay good, we need this financial assistances from the institutions like IMF. It's a cycle, not necessary vicious, but bittersweetly needed.
ReplyDelete........Thanks.
You consider a stimulus plan after exhausting all other means and fail. You can't just jump to it or be a band wagon.
ReplyDeleteWe should be the last ones to think about this kind of economic ideology. It is suitable for big economies like China , US,Euro zone, and Japan. Why are you bringing this up? What is your proposal?
SISI HATUHITAJI STIMULUS PACKAGIES, MAANA SISI TUNATEGEMEA KILIMO NI UTI WA MGONGO. SASA KINACHOTAKIWA NI MVUA TU HAWA WENZETU WANATEGEMEA VIWANDA NDIYO MAANA NILIWAMBIA SISI KWENYE WORLD MARKET DEMAND NA SUPPLY ZINAKUWA SPONTANEOUS YAANI SUPPLY HAIWEZI KUKUTANA NA DEMAND. ZINAKUWA KWENYE COMPETITION. UCHUMI WETU NI MZURI KAMA TUTAPATA MVUA ZA KUTOSHA MAANA CHAKULA KITAKUWA KINGI NA WENGINE KAMA SISI UMEME NI WA MUGAO KUMBE HAKUNA HAJA YA KUHANGAIKA. NAFIKIRI KWA WENGI WENU MLIOPITIA AMA KUMALIZA MUZUMBE NA MIMI MTAKUBALIANA NA DATA ZANGU ZA KISAYANSI MAANA MUZUMBE WATU TULIKUWA TUNA PIGA "A" TU. BASI MWANAKIJIJI NILIKUWA NACHANGIA MADA MUHIMU YA UCHUMI WETU WA KILIMO NI UTI WA MUGONGO. EX MUZUMBE CHUO KIKUU!
ReplyDeleteHahahahah,what a r u talking about ,bongo hadly know how many citizens they have let alone wakulima wasiofanya kazi ,,wazee wetu vijijini hadly get any help of cents from the goverment today ur talking about stimulus package.heheheh stop dreaming bro au sis.c,mon man wabongo we hadly get tax return .where a r u dreaming at bro, hook me up with them dreams,for sure i dont c it coming.lots of stuff in tz need to be fixed,but giving money away i dont c it coming.
ReplyDeleteHahahahah,what a r u talking about ,bongo hadly know how many citizens they have let alone wakulima wasiofanya kazi ,,wazee wetu vijijini hadly get any help of cents from the goverment today ur talking about stimulus package.heheheh stop dreaming bro au sis.c,mon man wabongo we hadly get tax return .where a r u dreaming at bro, hook me up with them dreams,for sure i dont c it coming.lots of stuff in tz need to be fixed,but giving money away i dont c it coming.
ReplyDeleteu need a stimulus package when ur economic is stil alive, our is dead why would we need to stumulus parkage!?
ReplyDeleteMwanakijiji,
ReplyDeleteDid you know that President Obama signed his stimulus package at the same desk where President Clinton got his package stimulated ??
Sorry the answer is NO (spelled "N"-"O") ... we don't need a stimulus package. QED.
NITAKUBALI KUWA TANZANIA INAHITAJI STIMULUS PACKAGE KAMA VIONGOZI WETU WANAULEWA WA HALI YA SASA NA JINSI INAVYOATHIRI NCHI KUIJUMLA. INA MAANA KAMA KUNA UELEWA, VIONGOZI HAWA WATAKUWA WALISHAANZA VIKAO VYA KUJADILI HII HALI NA NAMNA YA KUIKABILI. LAKINI KWA MTIZAMO WANGU, HASA KAMA MTU ALIFUATILIA KIKAO CHA IMF TANZANIA SIKU YA MWISHO, AMBAPO KUNA MAJIBU YALITOLEWA AMBAYO NI YA KUSIKITISHA YA KUTOKA KWA KIONGOZI WETU..SIDHANI KAMA VIONGOZI WAMEJIANDAA KUIPOKEA HIYO PACKAGE KWA KUWA NA MIPANGO DHABITI YA NAMNA YA KUITUMIA....IONEKANE NEED NA TATHMINI IFANYIKE KABLA YA KUSEMA TUNAIHITAJI..
ReplyDeleteI need a strong stimulus drink...like Konyagi right now.
ReplyDeleteSTIMULUS PACKAGE MBONA TULISHAPEWA SIKU NYINGI
ReplyDeleteWadau sio mpaka kitu kisemwe hiki ulichopewa sasa ndio "STIMULUS". Tuwe na kumbukumbu nzuri za mambo.Ziara ya George Bush Tanzania alitoa dola milioni 700 kupitia Millenium Challenge Corparation (MCC).....Kweni ile na STIMULUS Package nini tofauti yake??
Kitendo cha kusahau kama ile hela ya Bush sio stimulus, ni sawa na una mtoto then siku ya sherehe yake ya kuzaliwa una mpatia shilingi laki moja zawadi ya siku hiyo.Na kwa kuwa mtoto huyo anasoma shule ya bweni, kila mwezi huwa anapewa hela ya matumizi kiasi cha shilingi elfu 40, sasa kijana huyo anataka hela zaidi ya matumizi, hahahaha kwanini asitumie hizo alizopewa ktk birthday yake?Au kwa haikusemwa ni hela ya matumizi basi?
Mi nadhani kwa bongo misaada tuliyopewa ni STIMULUS inatosha.Maana ikiletwa hapa mi-fola ya kufa mtu utashangaa inafisadiwa ile mbaya, sana sana itatuongeza hasira tu na viongozi, bora isiwepo.
Hela ya EPA, RICHMOND, Twin Towers, IPTL, Buzwagi, Mashangingi ya viongozi nk hiyo ni STIMULUS tosha, hatuhitaji toka huyo IMF wala WB.Tuache ufisadi mambo yatakwenda sawa sawia.
MAKULILO Jr,
www.makulilo.blogspot.com
My friend, I have read most of ur articles u still don't the real Tanzanian situation.
ReplyDeleteJust like someone said above, the whole system is dead, completely dead. Talking about stimulus, ohhh yes if you wanna give billions to ur leaders to build their own mansions and continue to stimulate inflation sure go ahead.
Ask JK what stimulus means, and how does it work? Then u tell me if he will give u a definitive answer.
Ur concern is appreciated though
peter nalitolela hivi kweli ni wewe tunayekukumbuka enzi zile za st. antony kisha ukaenda mzumbe? hee maana hizi comments zako haziendani na wewe kabisa. Kwa kweli inasikitisha na kutia aibu kama ni wewe Peter tunayekujua.
ReplyDeleteYES TANZANIA NEED A STIMULUS.
ReplyDeleteAS NALITOLELA SAID TZ DEPENDS ON AGRICULTURE, AND THE WESTERN FACTORIES ARE CLOSING.
WHERE IS TANZANIA GONNA TAKE ITS COTTON, TOBACCO, COFFEE...???
SMOKE IT ALL!!!
THE STIMULUS PACKAGE IS NEEDED TO FARMERS WHO CANNOT SELL THEIR CROP ABROAD AS MOST OF THEM DONT HAVE STORAGE FACILITIES NOR SAVINGS TO FEED THEM DURING THIS DIFFICULT PERIOD.
I HOPE THE STIMULUS IF GIVEN WILL NOT BE USED TO FUND 2010 ELECTION.
HE HE HE HE....
IF YOU ARE SHY OF SAYING AID YOU CAN CALL IT STIMULUS
PETER NALITOLELA, WEWE NDO BASI KABISA ZERO, NIMEKUWA NASOMA COMMENTS ZAKO NAONA HIYO ELIMU YA MZUMBE INATIA AIBU, HIVI UNAJUWA DEMAND NA SUPPLY MAANA YAKE NINI? ETI UNASEMA HAZIKUTANI ZIKIKUTANA NI COMPETITION! VIPI? DEMAND NA SUPPLY ZINAPOKUTANA INAITWA POINT OF EQUILIBRIUM YAANI DEMAND IS EQUAL TO SUPPLY, YAANI WATU WANACHOKIHITAJI KINAWATOSHELEZA KAMA KINAVYOZALIZWA HAWAHITAJI ZAIDI YA AMOUNT HIYO NA IKIFIKIA HALI HIYO MUUZAJI HAWEZI KUPANDISHA AU KUSHUSHA BEI NI HALI NZURI KWA MLAJI NA MBAYA KWA SUPPLIER LAKINI NI BIDHAA CHACHE ZENYE KUTOKEWA NA HALI HII, MFANO NI CHUMVI, DEAND YA CHUVI ALWAYS IS THE SAME AND SO WILL BE THE SUPPLY, KWANI KIASI CHA CHUMVI KWENYE MBOGA YA KILO MOJA/NYAMA ALWAYS THE SAME HUWEZI KUTIA CHUMVI ZAIDI SIMPLY BECAUSE CHUMVI IMEUWA SUPPLIED MORE NA BEI IMESHUKA. NALITOLELA EBU KASOME VIZURI, USITUTIE AIBU HUMU. KUHUSU KILIMO HIZO NCHI ZILIZOENDELEA ZINATOWA OUTPUT KUBWA KATIKA KILIO KULIKO HATA TANZANIA KAMA HUNA HABARI. NA PIA HATUWEZI KUWA NA STIMULUS PACKAGE KA VILE HATA UWEZO HUO HATUNA, PENGINE KAMA TUTAPATA MSAADA TOKA INTERNATIONAL CUMMUNITY KAMA IMF, WORLD BANK, NCHI TAJIRI, BUT ON OUR OWN HATUWEZI TUTATOWA WAPI PESA ZA KUSTIMULATE OUR ECONOMY UNLESS TUPANDISHE KODI/TAX
ReplyDeleteTanzania doesn't need stimulus package in form of cash.
ReplyDeleteWhat we need is to promote our international trade and become more self reliant in economic all sectors.
Why we need foreign aid when we can do it ourselves?
We have this thing, ""thinking Wazungu CAN do it better""?
The wakoloni did a great job of making sure we depend on them.
We must take our time and grow with our own resources.
Agriculture- We need to generate industries to process and develop final products for all the crops we have in the country.
We need to sale coffee, Konyagi and final products of many products in international market.
Trade - Tanzania has a huge tax problem that doesn't support businesses and encourage investments.
The Goverment need to come up with special programs for businesses and any other company that create jobs in Tanzania.
Economic development in Tanzania is not the new mobile companies.
ALL THESE COMPANIES ARE THERE TO TAKE THE HARD EARNED MONEY IN EXCHANGE FOR USELESS PRODUCTS AND SERVICE.
WHERE'S THE TAX BENEFITS FOR NEW BUSINESSES?
WHERE'S THE SUPPORT TRANSPORTATION SYSYEM TO ENCOURAGE TRADE WITHIN TANZANIA??
WE CAN TALK ALL DAY AND HAVE MEETINGS ALL DAY WITH FOREIGN LEADERS..
NOTHING WILL COME OUT OF IT..
TANZANIANS NEED TO WORK HARD AND BUILD TANZANIA.
You need to understand what is the definition of stimulus package then one can reply to that answer. Kila mtu ana definition yake, some use based on US definition and Gordon Brown's some use as variety of steps taken to stimulate etc, sio lazima kuwa na hard currency for example, etc.
ReplyDeleteWhat JK is talking here I believe is that he making a case kuwa all committments made by these trading countries on Africa, zisitupwe baada ya hii turmoil. Kuna valid points kuwa how far or how best have we managed what we have been given as aid?
La maana to me, walobby such that trade and flow of capital kwa watu wa kawaida iwe smoother and easier - to me that is the stimulus package that we need, and have it commented.
Soma Interview ya Kikwete na Financial Times - http://www.ft.com/cms/s/0/c3c103da-0f3a-11de-ba10-0000779fd2ac.html
Oya kijana Julius Temu taratibu bwana?
ReplyDeleteWewe unasema makampuni ya mobile telephones yanauza useless products and services ina maana hiyo Konyagi unayowauzia Wamarekani ndio useful product?
Bora uweke wazi bifu yako na mobile companies iko wapi hasa badala ya kugenerelize kwamba wanauza useless products.
Na usidhani hatujui ufisadi aliofanya mzee wako pale NIC.
Wape hi Mamtoni.
Mlokole
Hapa itabidi nichanganye na Kiswahili kidogo 'for the benefit of both readers!".Economic Stimulus Package IS NOT THE SAME AS Foreign Aid!Or does not necessarilly have to be Foreign Aid.In fact,to be more precise,an effective economic stimulus package has to originate from resources within!It requires A Complete Reappraisal of the Functioning of the Domestic Economy in order to identify hardest hit ailing sectors,programmes and projects within the Domestic Economy in order to restore "Economic Equilibrium" and Balanced Economic Growth!Tupo Jamani?.Kwa hiyo ni makosa kufikiria Economic Stimulus kama Msaada utakao tolewa na nchi za nje au nchi wahisani.Tanzania has been virtually dependent on Foreign Aid from DAY ONE at an average of almost 50% to 65% of the Annual Government Budgetary Requirements!This may sound as a Joke,but its real!Everybody knows how ineffective such aid has been over the years when you look at "the intended Beneficiaries in the rural areas where Poverty is still rampant and extreme by all standards!".Tatizo kubwa hapa ni kwamba hata Viongozi wetu bado walikuwa na Kigugumizi kwa kutotambua mapema kwamba Mparaganyiko wa Uchumi Duniani ungeweza kuiathiri nchi yetu kwa kiasi gani!Wengi wao walikuwa hawajui,this is real!Hivi karibuni tu ndiyo tumeanza kuwasikia baadhi yao wakikiri kwamba Uchumi wetu utaathirika kwa kiasi kikubwa.Kwanza,Uchumi wetu ni kama "PAKACHA AMBALO HATA ULIJAZE MAJI KIASI GANI,HALITOJAA".Ni kwamba litavuja!Sijui kama tutaweza kuliziba Pakacha hilo kwa utendaji huu wa serikali iliyopo madarakani hivi sasa.Imekuwa hivyo miaka yote chini ya utawala wa chama kimoja cha siasa.Na sasa limegeuka kuw donda ndugu.Ukiwaeleza Viongozi Uchumi wetu "Unavuja kama Pakacha",hakuna ataakaye kuelewa wala kukusikiliza.Pili,Uchumi wetu NI TEGEMEZI MNO,kiasi ambacho ni vigumu kutofautisha kati Ya MISAADA YA NJE na huo MPANGO WA KUCHOCHEA AU KUSTUA UCHUMI ILI UENDELEE KUKUA "economic stimulus package".If the whatever proposed economic stimulus package will have to make any significant impact to the domestic economy,then,(1)THAT ECONOMIC STIMULUS PACKAGE HAS TO BE DOMESTIC,ie,FROM WITHIN,(2)ONE HAS TO THINK OF THIS ECONOMY AS 'a closed economy'and assume a zero foreign assistance inflow,(3)THE GOVERVMENT SHOULD first and as a matter of priority GET RID OF WASTEFULL AND USELESS EXPENDITURE,which is enormous to say the least!,(4)THE GOVERNMENT SHOULD CUT DOWN THE HUGE SIZE OF THE CABINET,ineffective to say the least and very costly to run!,before she can think of any economic stimulus financing!(5)the Private Sector should be given its rightfull place in the economic agenda by being given adequate access to Bank Capital Financing,(6)THE GOVERNMENT SHOULD DESIST FROM THE TEMPTATIONS OF MULTIPLE TAXATION OF INCOMES AND COMMODITIES,should stop the crippling habit of HOARDING ALL REVENUES FROM INDIVIDUALS accruing from repressive taxation laws and procedures and give people the chance to stay with the CASH in order to "re-invest"wherever necessary.This is just part of what I would otherwise advise you to do,if space here was not so much limited as such!....wengine wachangie mzee..........tonnie.....
ReplyDelete