Еconomic development of the United Republic of Tanzania
Abstract
Achieving balanced economic growth is one of the priorities of governments in developing countries. This is especially relevant for certain African countries that have such characteristics as a favorable geographical location and considerable demographic resource. The policy of the United Republic of Tanzania is an example of successful strategy, since the country not only demonstrates a dynamic growth of GDP, but also competes for regional leadership with neighboring Kenya. The object is the economic policy of Tanzania, while the subject is represented by national interests, resources, and the tools of management of processes of national economic growth. Because of this the article aims at establishing comparative advantages of Tanzania and the peculiarities of its economic advancement. The system approach is used in the article, since it analyzes the economic policy as the set of elements that interact with each other. It was found that Tanzania is a strategic player in East Africa in terms of logistics that at the same time enjoys an appropriate tourism potential, represented by Mount Kilimanjaro, the national parks of international importance, and the popular islands in the Indian Ocean. The basis of the national economic strategy is the focus on transport and tourist services, which can be considered rather unusual for the African continent. At the same time, Tanzania is trying to effectively use its opportunities in the fields of agriculture and mining industry and is also actively developing transport infrastructure in order to become a logistics hub in the region. Moreover, the country is taking steps to exploit the commercial reserves of oil and natural gas. Tanzania’s foreign economic ties play an important role. This state actor has Chinese orientation since Beijing is its main trading partner and a major investor in infrastructure projects. Tanzanian political elite is also actively diversifying its contacts by deepening the cooperation with Türkiye. The complex of these factors helps to ensure balanced economic development, as well as to gain certain advantages in the competition with Kenya for the leadership in the East African region.
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