This is not the document you are looking for? Use the search form below to find more!

Report home > World & Business

INTEGRITY ENVIRONMENT AND INVESTMENT PROMOTION "The Case of Tanzania"

0.00 (0 votes)
Document Description
An environment of integrity is essential for private sector development, promotion of foreign investments and economic growth. Its requirements include building an anticorruption environment, provision of high quality government services, predictability and consistency of government procedures and regulations, and overall transparency of the system. Increasingly, many African countries are now realising that capable and responsible governments are a prerequisite for development. All over, initiatives are underway to reduce bureaucratic delays and uncertainties in servicing the business sector and in ensuring integrity, rule of law, transparency and regulatory consistency to all.
File Details
  • Added: April, 29th 2010
  • Reads: 281
  • Downloads: 3
  • File size: 123.70kb
  • Pages: 24
  • Tags: integrity environment, investment promotion, tanzania
  • content preview
Submitter
  • Username: samanta
  • Name: samanta
  • Documents: 1258
Embed Code:

Add New Comment




Related Documents

Does Financial Leverage Influence Investment Decisions? The Case Of Mauritian Firms

by: shinta, 12 pages

This paper primarily focuses on the impact of financial leverage on investment decisions of firms and it is an attempt to explore the impact of financial leverage on investment levels using ...

Economic Transition and Management Skills: The Case of China

by: samanta, 31 pages

A secondary effect of China's economic transition will be increased demand for management personnel, particularly those with a strong appreciation of managing in a market-based economy. Traditional ...

Effects of Financial Autarky and Integration: The Case of the South Africa Embargo

by: samanta, 33 pages

The economic embargo imposed on South Africa between 1985 and 1993 brought the country closer to financial isolation. This paper interprets the imposition and removal of the embargo as financial ...

How To Awaken the Kundalini Energy and What are the Dangers of Awakening Kundalini

by: anssi, 2 pages

How To Awaken the Kundalini Energy and What are the Dangers of Awakening Kundalini

The Impact of Debt and Leverage on the Valuation of a Business How ...

by: przemek, 1 pages

This white paper will help you better understand that a firm's cost of capital plays a critical role in assessing the value of a business. Capital is simply the means by which business assets are ...

Presentació "Enabling Knowledge Creation in Judicial Environments: the Case of Catalonia‘s Public Administration"

by: jelle, 10 pages

Enabling Knowledge Creation in Judicial Environments: the Case of Catalonia‘s Public Administration Dr. Mario Pérez-Montoro1, Jesús Martínez2 1 Department of Library and Information ...

Translating Taboo Words for the Italian Screen: The case of “The Departed”

by: eliogold, 35 pages

Translating Taboo Words for the Italian Screen: The case of “The Departed” La Traduzione delle parole tabù per il grande schermo: Il caso di “The Departed”

Effects of Oxidized Glutathione, Bovine Serum Albumin, Cysteine and Lycopene on the Quality of Frozen-Thawed Ram Semen

by: shinta, 8 pages

Free radicals are known to be involved in lipid peroxidation as well as DNA and sperm membrane damages that may lead to decreased sperm motility or cell death. The balance between free ...

How Copyright, Contract, and Technology Shape the Business of ...

by: ermenegilda, 100 pages

In this Green Paper, the Berkman Center's Digital Media Project has conducted an exploratory case study on Apple's Online Music Store iTunes from a legal and business perspective. The objective of ...

Effects of pectolytic enzymes and antioxidants on the quality of dry wines made from pineapple (Ananas comosus L. Merr) peel

by: shinta, 8 pages

A study was conducted to investigate the effects of pectolytic enzymes and antioxidants on the quality of wines made from the pineapple peel. The wines produced had alcohol contents ranging ...

Content Preview

INTEGRITY ENVIRONMENT AND
INVESTMENT PROMOTION
“The Case of Tanzania”








Paper Presented to the Conference “Alliance for Integrity –
Government & Business Roles in Enhancing African
Standards of Living.

Co-organised by the OECD, NEPAD, UN Global Compact and
Transparency International, in Addis Ababa on 7-8 March 2005














By: Mr. S. J. Sitta
Executive
Director

Tanzania Investment Centre

P. O. Box 938
DAR ES SALAAM, TANZANIA

TABLE OF CONTENTS


Contents








1.0 Introduction

2.0
Recent International Developments

3.0
Integrity and Good Governance – The Current Situation
3.1 Background
3.2 Integrity and the Fight Against Corruption
3.3 Integrity Environment and Investment Promotion
3.4 Recent Reforms and FDI Inflows
3.5 Obstacles to Integrity Environment and Good Governance

4.0
The Need for Corporate Governance

5.0
The Way Forward
ii

ABBREVIATIONS
APRM
– African Peer Review Mechanism
BEST
– Business Environment Strengthening Programme
BOT
– Bank of Tanzania
DSE
– Dar es Salaam Stock Exchange
ECA
– Economic Commission for Africa
FDI
– Foreign Direct Investment
GDP
– Gross Domestic Product
MDGs
– Millennium Development Goals
NACSAP – National Anti-Corruption Strategy and Action Plans

NBS
– National Bureau of Statistics
NEPAD
– New Partnership for Africa’s Development
NFGG
– National Framework on Good Governance
OECD
– Organisation for Economic Co-operation and Development
PCB
– Prevention of Corruption Bureau
PSRC
– Presidential Parastatal Sector Reform Commission
PSRP
– Public Sector Reform Programme
TIC
– Tanzania Investment Centre
TNBC
– Tanzania National Business Council
UNCTAD – United Nations Conference on Trade and Development
URT
– United Republic of Tanzania

iii

Box and Figures

Box 3.1
Summary of the Interlinked Components of the
BEST Programme
Figure 3.1 FDI stocks and Flows Trend in Tanzania (1990 –
2004)

Figure 3.2 Investors’ Perception on Political and Governance
Factors


1

INTEGRITY ENVIRONMENT AND INVESTMENT
PROMOTION
(The Case of Tanzania)
Presented by S.J. Sitta at the OECD Addis Ababa
Conference 7 – 8 March 2005

1.0 INTRODUCTION

An environment of integrity is essential for private sector
development, promotion of foreign investments and economic
growth. Its requirements include building an anticorruption
environment, provision of high quality government services,
predictability and consistency of government procedures and
regulations, and overall transparency of the system.

Increasingly, many African countries are now realising that
capable and responsible governments are a prerequisite for
development.

All over, initiatives are underway to reduce bureaucratic
delays and uncertainties in servicing the business sector and
in ensuring integrity, rule of law, transparency and regulatory
consistency to all.

Maintaining high level of Integrity and transparency correlates
with creating a favourable environment for private sector
growth and Investment. If African countries are to meet the
Millennium Development Goals (MDGs) both; governments
and businesses need to share responsibility in any drive to
create a eliminate corruption free in integrity environment
that will automatically improve investment environment levels
and quality.

The reverse is true. Corruption for instance, can and does
sabotage national development. Corruption leads to a loss of
government legitimacy and of public trust and support. It
inhibits the functioning of the market and distorts the
allocation and use of resources, hence hampering trade and
deterring investment.

2

Corruption is often a collusive arrangement between some
officials in government and individuals in business who have
little or no concern for the social, economic, environmental,
political or human consequences of their actions. Such
decisions are taken not for the public benefit but merely to
serve personal interests.

Many countries in this era of democracy and transparency
have intensified efforts at deepening reforms in service
delivery institutions such as the judiciary, parliament, local
government, public service management, etc. Progress has
been achieved in many African countries though the journey
ahead is long and difficult.

Lack of an integrity environment impedes FDI flows too. Many
African countries are pursuing market oriented economic
policies, including divestiture of public enterprises, and
creating an environment more conducing for business. This
includes improving efficiency in production and service
delivery. Yet the business environment overall is not yet fully
conducive for FDI inflows.

As per Transparent International report 2004 as well as the
findings by the Economic Commission for Africa (ECA) study
on governance, most of African countries performed badly in
efforts to control corruption and creating integrity
environment.

There is a clear need to create and nurture an integrity
environment which will prevent corruption and create a better
environment for private sector development and investment
promotion.


3

2.0 RECENT INTERNATIONAL DEVELOPMENTS

The International community recognising the detrimental
effects of corruption on development, has endorsed the UN
Convention against Corruption. The Convention enhances
cooperation and mutual legal assistance, particularly
regarding return of stolen assets. As more and more
countries ratify the Convention, corrupt practices in a foreign
country are no longer beyond the reach of domestic
jurisdictions.

For Africa the adoption of African Union Convention on
Prevention and Combating Corruption and Related Offences
was a most significant development. However, as reported by
Transparency International, the major weakness of the
Convention is that it permits any signatory to opt out of some
or all provisions!

Under the NEPAD/African Union Programme, 24 African
countries representing about 75% of the continent’s
population have agreed to take part in peer reviews of their
governance performance – African Peer Review Mechanism
(APRM). Countries that endorsed APRM must conform to
agreed values in four areas including, democracy and political
governance, economic governance, corporate governance and
socio-economic development. Tanzania is amongst African
countries that endorsed the APRM.

Nevertheless the success of creating an integrity environment
and fight against corruption depends on commitment and
political will to implement change.


4

3.0 INTEGRITY AND GOOD GOVERNANCE - THE CURRENT
SITUATION (STATUS AND CONSTRAINTS) IN
TANZANIA

“We have persisted in our resolute struggle against
corruption, including through rolling out plans to combat
corruption; the establishment of anti-corruption bureaus at
the district level; and enhanced accountability for resources
transferred from the Central Government to the district level.
Tanzania’s efforts in fighting corruption are starting to win
international recognition.”

(His Excellency President Benjamin W. Mkapa addressing the
4th International Investors’ Round Table (IRT) meeting at the
Golden Tulip Hotel, 23rd November 2004)

3.1 Background

Tanzania like many other Sub-Saharan Africa countries
achieved its independence with a severely underdeveloped
economy and extremely limited infrastructure. However,
Tanzania has made concerted efforts to improve its economy,
raise living standard of its people and create a conducive
environment for private sector development & investment.

Since early 1980s, governments of developing countries have
been supporting and implementing strategies of encouraging
competitive free markets, privatisation of state owned
enterprises (parastatals), move from closed (no trade) to
open (trading) economies and opening up the domestic
economy through free trade and attracting foreign direct
investment. This was done as a way of recognising the lead
role that private sector can play in economic development.

The private sector expressed concern that the system of
governance in the region is still tinged with corrupt practices.
According to the Transparency International’s annual
Corruption Perception Index (CPI) for 2003, out of the 133
countries that were surveyed, the East African countries of

5

Kenya, Uganda and Tanzania ranked relatively high in levels
of corruption. The rankings were 122 for Kenya (with a CPI
score of 1.9 out of 10), 113 for Uganda (with a CPI score of
2.2 and 92 for Tanzania (with a CPI score of 2.5).

In all the three countries, efforts are being taken to curb
corruption as systems are made to become more transparent
with better placed to apply the rule of law in government
operations. However, a recent PWC report has suggested
that the war on corruption in East Africa is being lost because
of lack of political will in the high echelons, inadequate
funding and equipment for anti-corruption institutions, an
inappropriate legal framework and lukewarm enforcement as
most bureaucrats who are charged with the responsibility of
fighting corruption are themselves corrupt1.

3.2 Integrity and the Fight Against Corruption

“Tanzania stands at the threshold of a new era: The new era
demands a transformed public service. This will be a service that is
truly transparent and accountable to the public. The service will
have zero tolerance for corrupt behaviour. The service wil guide
the Nation as it crosses irreversibly into a poverty-free zone in the
21st Century.”

H.E. President Benjamin W. Mkapa at the launch of PSRP on June
20th 2000.

In most African countries including Tanzania corruption was at
a relatively low level during’ colonial rule. However, after
independence and the move to single party systems, which
concentrated power into small cliques corruption, began to
rear its ugly head. As time passed, the integrity environment
became dramatically eroded.


1 The East African, November 17-23, 2003.


6

In order to foster integrity environment and create a better
environment for investment and private sector development,
the Tanzania government has taken several steps.

First, in 1991, the government set up the Prevention of
Corruption Bureau (PCB). In 1995, the government formed
the Public Leadership Code of Ethics to curb impropriety at
higher levels of public service and later it established the
Commission for Human Rights and Good Governance (2001).
In reality the government was preparing the legal framework
to curb corruption and bring about integrity in public service.
Later, the government established the Permanent Commission
of Inquiry (Ombudsman) in 1996 to check abuse of power by
government officials and its agencies.

When, President Benjamin William Mkapa came into power in
1995, he declared war on corruption so as to enhance the
integrity environment. As a first step he established the
Presidential Commission Against Corruption in January 1996.
Ten months later, the Commission produced one of the most
respected and commended analyses of corruption by any
Africa state (commonly referred to as the Warioba Report).

The report identified areas/environments where corruption
occurs and also revealed regulations and procedures that
facilitate corruption. It also cited examples of dubious
decisions/contracts in several departments that were
perceived corrupt.

The Warioba report concluded that there was much evidence
of Corruption. The report classified corruption into two
categories. The first type relates to those who receive bribes
to cater for their daily living needs (Petty Corruption) while
the other group involves high level leaders and public officials,
who are motivated by excessive greed for wealth
accumulation and money (Grand Corruption). The Warioba
Report had the further benefit of opening up public discussion
on corruption.


7

Download
INTEGRITY ENVIRONMENT AND INVESTMENT PROMOTION "The Case of Tanzania"

 

 

Your download will begin in a moment.
If it doesn't, click here to try again.

Share INTEGRITY ENVIRONMENT AND INVESTMENT PROMOTION "The Case of Tanzania" to:

Insert your wordpress URL:

example:

http://myblog.wordpress.com/
or
http://myblog.com/

Share INTEGRITY ENVIRONMENT AND INVESTMENT PROMOTION "The Case of Tanzania" as:

From:

To:

Share INTEGRITY ENVIRONMENT AND INVESTMENT PROMOTION "The Case of Tanzania".

Enter two words as shown below. If you cannot read the words, click the refresh icon.

loading

Share INTEGRITY ENVIRONMENT AND INVESTMENT PROMOTION "The Case of Tanzania" as:

Copy html code above and paste to your web page.

loading