By: Hassan Saudin
Despite the incredible resilience of the US economy, the economy is facing a huge challenge and key economic indicators only suggest that things will only get worse before the economy will hit rock bottom and then bounce back to pre 2008 level.
We are now witnessing an almost 2 digit rate of official unemployment, record breaking foreclosures and national debt that is going through the roof that has forced law makers to increase the ceiling in order for the Government and the nation as a whole to function.
The current state of affairs is in spite of massive multi trillion dollar monetary and fiscal measures designed by some of the best economic minds in the world. While the Government’s ability to honor debt has been rightfully questioned by many, the Chinese have continuously expressed confidence in the US economy and now the Chinese own about $1Trillion of US debt.
On the other side of the Atlantic, Europe is in the midst of serious economic mess. In Greece for example, the long-term sovereign credit rating has been downgraded to ‘C’ by Standard & Poor. China has again emerged as a savior of the European economy by continuing to buy Europe’s sovereign debt thus financing the continent’s shaky economy.
At bilateral level, China recently signed massive deals with Spain amounting to over $7 billion across a wide spectrum of industries to include and not limited to oil, energy and banking.
Today, China has the world’s largest foreign reserves amounting to approximately $3Trillion of which about a third is owed to the United States. The Chinese foreign reserve is equivalent to over 333 times the Tanzanian national budget.
One might wonder why the Chinese would play the role of global economic savior when they are facing their own domestic challenges. It would be naïve and short-sightedness to downplay the role of China in global economy or their potential as a meaningful economic partner for Tanzania by coming up with rhetoric questions of whether this is driven out of love. China is thinking strategically, economies work in cycles and the Chinese are banking on that reality, by helping nations get out of recessions the Chinese are consolidating markets for their manufacturers. A simple analogy is a situation where a wealthy industrialist is lending cash starved peasants some financing to acquire farming implements and seeds, when these peasants come out of economic hardships their lives are improved and the industrialist has strengthened his customer base. In the end it becomes a win-win proposition.
The economic hardships facing Tanzania are absolutely not caused by Chinese hawkers in Kariakoo, neither are they caused by South African vagabonds in Tanzania. Tanzania has a population of 40 million plus and millions or citizens are unemployed despite a vast number of natural resources and the country’s strategic location, majority of the population are struggling with necessities of life such as food despite 80% of the population being engaged in agriculture.
As long as there is global economic integration there will always be instances of differences and some disappointments. Billions of global players cannot be expected to all play by the established rules and expectations. Yes, some Chinese manufacturers are engaged in the manufacture of sub standard products that are dangerous. My questions to staunch critics of China is does that justify bad mouthing the Chinese as if that is their national policy? Or do we work with their Government to address this trend and benefit from many opportunities that even the industrialized nations are benefitting from as a result of economic ties with the Chinese?
Pointing fingers at the Chinese as though they are a significant part of the problem is completely unfounded and takes the focus away from the real cause of our problems.
It is the elected political elite that are constitutionally empowered and authorized to be custodians of national assets and key players in the transformation of national resources into prosperity for all citizens.
When citizens are only getting poorer everyday and there does not seem to be any sign of light in the dark tunnel, we need to turn to the administration and ask them
‘Why are you failing us so miserably?’ That is the starting point to solving our chronic poverty and not propagandas aimed at dehumanizing the hard working Chinese.
Hassan Saudin
hsaudin@gmail.com
Excellent
ReplyDeleteWadau naomna mnisaidie kujibu maswali yangu mawili tu.
ReplyDelete1. Economically, what is Tanzania national interest?
2. Economically, what are objectives of current government, short, mid and long-term objectives?
Thanks in advance
That is the reality.
ReplyDeletemzee wa kitoweo. hii atiko ingenoga zaidi ungeandika hassan amjiu mashaka. watu wangechangia sana..........ila bado poa, mlengwa anajulikana kwa maana amechambwa ki diplomasia
ReplyDeleteThats very true.Bongoland imejaa wazembe wa kufanya kazi hata kufikiri.Hata hapa nchi kama uk sasa hivi zinamsalimia mchina.tatizo watu wao pia bado ni macholkolaa tu ila kwa dhana ya mitaji china ina mchango mkubwa sana hawa jamaa huku wameshasoma za nyakati jamani tusipokubali kujichanganya na dunia hatuataweza kuleta maendeleo kwani steji yetu ni ya kudumaa si viranja wala mlala hoi.Sera za kikwete si mbaya zikiwa na watendaji zinaweza kutusogeza ila ujanja ujanja wa sisiemu hautatufikisha popote
ReplyDeleteHassan,
ReplyDeleteAsante. Mashaka ni kasuku tu, na humu ana washabiki wengi kwa sababu ya aina ya watu wenyewe; waungwana mno. Amejaribu kwenye blogu zengine wamemshiti. Muulizeni kapata nini Wanabidii na Wanazuoni. Hakuna hata mtu aliyemjibu. Mashaka ni mlalamishi; anaangalia umaarufu tu. Maelezo yako ni ya mtu aliyekomaa, jambo ambalo Mashaka hana.
Michuzi tena haki, usinitupe, najua unamlinda Mashaka.
Kibwetere.
Good work Hassan. Unfortunately, as long as you are not Mashaka, people will not be interested with the ideas! may be a little with the language!
ReplyDeletenaomba watu waangalie hii youtube kuhusu wachina.CHINESE ARE COMING. Halafu ndiyo mchangie humu ndani.au michuzi wakumbushe watu ile katuni inaonyesha mzee kachoka ikiimanisha africa ikiliwa na kila bara kuanzia ulaya america na sasa ni zamu ya china kula.please uncle.
ReplyDeletehongera mtoa mada,i dont see any problem for our country Tanzania to have good partnership with China,but we all know their is no country in a world especially industrialized nations want partnership with poor/developing country(as they call us)withought benefit from them.As we all know China as a country has the highest population in a world,so for every contract eg.construction, Chinese government make with any country they make sure 80 to 90 percent of loborers(not engineers)come from their country China insted of under developed partner where by unemployement rate is about 50percent or more.So, if this is the kind of partnership you talking about and our blind leaders signed these kind of contract because Chines are our serviour, hard workers an more efficiense than fellow Tanzanian am not suporting that for the following reason, it lead to more unemployment,racism,continue of inferiority complex, tax evesion,and many more reasons.At the same time what Chinese are building are in lower standard beacause of the sheddy contract signed by our blind leader, where by no government inspectors are allowed to inspect their project.am done.
ReplyDeletesas mzee mbona umetupa trade mark yako ya US blogger mkuu? unamchamba mashaka kweli kweli... uzuri una tuintateni sana
ReplyDeletehassan. Naona umepewa ushauri. ila, naomba unisikilize, ukitaka watu wasome makala yako, sehemu yote pale, hasa kichwa cha habari mpinge john mashaka au muunge mkono. makala yako yatasomwa sana na yatachangiwa kwa kiwango kikubwa mno vingineyo utabaki kuwa US Blogger ambaye ndo wewe. by the way, kwa nini umetelekeza jina lako?
ReplyDeleteNyinyi munakaa ulaya na kuandika ma paper. Sasa mbona hamuji nyumbani kufanya kazi kama Dr. Shayo?
ReplyDeleteBTW, atiko nzuri.
Dr. US Blogger)
ReplyDeletenabii feki Nabii Yohana Mashaka hapa kashindwa. Hassan umeshidna tena kwa kura nyingi sana. umwemwaga hoja nzito sana, kila mtu anakukubali kama msomi wa hali ya juu, mashaka aache mambo ya kuwafanya wachina waonekane kama wanyama ambao wanataka tu kupora nchi yetu. Wachina ni watu wazuri sana, wanatusaidia katika kila nyanja. Bila wachina siku hizi tuisngekuwa na chakula cha kutosha. Ni wachina watatuwezesha kuvaa vizuri kwa bei rahisi sana
Mimi kama msomi aliyebobea kutoka chuo kikuu cha OXford cha Lodon, nimemuomba huyu nabii aje kwenye mjadala lakini wapi ananikimbia kama mtoto mdogo, kazi ni kutuma makombora makubwa ktuka uhamishoni.Anatetea mada zake kwamba hawa wageni watamaliza kila kitu, madini na mali asili.
Hivi huyu Mashaka kasomea uchumi wapi? Wao ndio walioaribu uchumi wa dunia, mbona hata siku moja sijamsiki amshaka akiwalaumu wamarekani? kazi ni kuponda wachina tu? Bila wachina tusingeweza kungalaia TV, wala tusingekuwa na mafriji za bei Raisi. Mashaka leta oja nyingine la wachina umeshinda
Bado nakusubiri tukutane kwenye televisheni ya taifa TBC ili nionyeshe kwamba wewe ni fraud tena ni mtu ambaye hayupo. Wewe ni ni jini tu Michuzi ametengeneza ili blogu yake izidi kupata umaarufu. Kwa maana ni wewe tu ukiandika watu wanatiririka kama utitiri kuchangia. Wewe kama mwanamke, njoo basi kwenye mjadala. Nitakulipa na wafanya kazi wako wote.... naongeza dau hadi $3million ili ushirki kwenye mjadala.
Mimi ndio mchumi bora zaidi hapa Tanzania, nimeshauri nchi nyingi sana, angalia uchumi wa Zimbabwe unarudi kwa sababu yangu. Mshaara wangu kwa mwaka ni $5million kwa hiyo hela siyo shida kwangu. Usiogope nirtakulipa pamoja na tiketi yako. Najua hauwezi kujinunulia tiketi kwenda Tanzania
Dr. US Blogger
Alumni Oxford University
Economics Department
BTW,atiko nzuri,
ReplyDeletehaijali unafanya kazi ulaya, america au asia.Kuwekeza ndio mambo ,kama kila mtu anakuja kufanya kazi huko ndugu yangu nani ata create job?kutakuwa na wajunzi wengi hamna kazi.
China inawatu wengi, resources hazitoshi kulisha nchi.Karibu kila nchi za dunia ya kwanza ina china town.
Nafikiri unaelewa hilo.Ila ukweli viongozi wetu wana tuangusha.
Huyu Us Blogger anaongelea TV gani, hizo takataka ndio anaita TV, hizo Flat Screen ambazo zimekuwa zikiunguza majumba ya watu kila siku ndio aniita products? Do you know what is called robbery? thats called robbery kwa mtanzania anayefanya kazi kwa jasho alafu uje umuuzie TV 1.2Mil ambayo he/she gets to spend it for 1month and his money goes to the toilet! Huwezi kuona ushenzi kama huo Marekani, au huko kwenu Uingereza, kwa nini? Nafikiri wee shule yako haijakusaidia, and truly you don't strike me as someone that has been to school, all i see is someone that went and do composition II, and he comes out here to flex his muscle. Your IQ is just little than an average person.
ReplyDeleteAcheni mambo ya ajabu. John mashaka, John mashaka, TV mbovu Tv mbovu, ure so naive to know the fact. Nikienda america, bidhaa ni made in China, Uk na kadhalika. what does that mean. Lieni na wafanya biashara wenu ambao wanaenda na mitaji mbuzi china kuchukua bidhaa. Ukienda China hukuti bidhaa kwenye stock, most of them ni sample na zipo kwa grade. Sasa kwa nn wafanyabiashaa wa Tanzania huchagua kutengenezewa za hali ya chini. Ni kwasababu ya waTZ kupenda kwa bei cheap without thinking about tommorrow. Jifunzeni kununua vitu genuine vyenye two years guarantee, kwa kusave na kusubiri ela itoshe mnunue. hata ukiwa China, kila kizuri kina gharama. Mnajidanganya kufikiri kuna cheap from China. Cheap is expensive u should know that. Jifunzeni kutokana na makosa yenu wenyewe. Kinachoudhi Tz ni kwamba hawa wafanyabiashara wakichukua bidhaa feki huuza bei sawa na original. Hawana adabu kabisa. deal with ur people not chinese.
ReplyDelete