Decent Work for Sustainable Development in Tanzania

“Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all”

6 September 2017

In September 2015 the United Nations General Assembly adopted the 2030 Agenda for Sustainable Development Goals. It resolved that “between now and 2030, to end poverty and hunger everywhere and to create conditions for sustainable, inclusive and sustained economic growth, shared prosperity and decent work for all, among others, taking into account different levels of national development and capacities.” In practice this meant to achieve 17 SDGS of which Goal 8 states that countries should “ Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all”. Along these lines, Tanzania has already adopted the Second National Strategy for Growth and Reduction in Poverty (MKUKUTA II and MKUZA for Zanzibar), the National Five Year Development Plan II (FYDP 2016/17 – 2021/12) and has set the national target to reach the status of a Lower Middle Income country with average per capita income of $1,026 USD. Indeed Tanzania has the prerequisites to achieve Goal 8 relatively to its developmental level. It has high rates of economic growth and low inflation rates. It has ratified many international conventions on human rights including those on women (CEDAW: The Convention on the Elimination of All Forms of Discrimination against Women), children (The Convention on the Rights of the Child) and the labor market (ILO’s International Fundamental Conventions on Freedom of Association, Right to Organise, Forced Labour, Discrimination and, for children, the Minimum Age Convention and Worst Forms of Child Labour). So how can Tanzania benefit from this international framework in order to accelerate the positive national policy process and achieve Goal 8 which would contribute to higher and more inclusive economic growth and faster poverty reduction? To do so a number of targets will also need to be reached as outlined below. Place job generation and Decent Work as an outcome of economic growth. Target 8.1 Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 per cent gross domestic product growth per annum in the least developed countries. Target 8.2 Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high value assed and labour intensive sectors. Economic growth and employment creation, especially descent one, do not always go together even among countries that are considered to be successful “globalizers”. For example, South Korea finally, launched the “National Employment Strategy 2020 for the Balance of Growth, Employment and Welfare” that was motivated by the mismatch between macroeconomic indicators that pointed to a recovering economy and the inability of individuals to find adequate employment. In Tanzania one can think of the share of agriculture in employment and national output. Agriculture employs two-thirds of all workers but creates barely more than one-quarter of output (and therefore, incomes). It is obvious that the current updating of the 2008 National Employment Policy would need to be supported by broader economic and sectoral policies such as investments in roads, energy, communications etc. that would raise productivity in agriculture, where most of Tanzanians are employed, as well as other sectors where new and increasingly more educated workers will start moving into. Expand the private sector through supporting MSMEs and upgrading informal sector operatives Target 8.3 Promote development oriented policies that support productive activities decent job creation, entrepreneurship, creativity and innovation and encourage the formalization and growth of micro small and medium sized enterprises, including through access to financial services. It is an undeniable fact that the private sector is the main engine for economic growth and job creation. Yet, the formal private sector remains small in Tanzania and while it is growing, the rate of growth is slower in comparison to the growth of the labour force. On some estimates, there are around 800,000 new entrants to the labor force each year, yet almost 90 percent of them end up in the informal sector. Opportunities for entrepreneurship including the formalisation of informal enterprises would need to expand by improving a supportive environment including IT and technological improvements, leaner and cleaner regulatory framework and soon. Focus on young women and men Target 8.6 By 2020, sustainably reduce the proportion of youth not in employment, education or training Target 4.4 by 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills for employment, decent jobs and entrepreneurship With half of its population less than 18 years old, the importance of expanding education and making employers an active agent for training cannot be overrated. As many as 1 in 5 children do not complete primary education, only 1 in 3 are in lower secondary and as few as 4 percent of youth are in university. One ILO report survey reveals that nearly 60 percent of employed youth are under-qualified for the job they do. Given the high share of people in rural areas (more than 90 percent) there should be special effort to reach out to them. Vulnerability among the youth is endemic in low income countries and more so for women and Tanzania. It is undeniable that the Government of Tanzania has been exerting efforts at integrating young people into decent jobs. This has been in vocational education and entrepreneurship development among others. Yet, the SDG implementation provides an opportunity to address this issue from a comprehensive and coherent approach focusing on the labour supply and demand and addressing the rural-urban divide in access of young people to decent jobs. Increase the value of women’s work Target 5.4 recognize the value of unpaid care and domestic work through the provision of public services, infrastructure and social protection policies and the promotion of shared responsibility within the household and the family as nationally appropriate. The vast majority of Tanzanian women as in the labor force with employment rates almost as high as those for men. This places Tanzania among the countries with the highest work. The challenge is to make this vast amount of effort worth more for the workers themselves and for the country. Raising women’s productivity and earnings are key in this respect. To do so would also require effects to reduce the other side of the dual burden of women, that is, housework. With a fertility rate of 5.2 children per woman, Tanzania is among the top 15th countries in the today while in 1970 it was only 48th. Women in Tanzania have less than two hours of leisure a day – half of what the average is developing countries. This has implications both for the health of women (and children) and also productivity. In this respect, there are two complementary SDGs Goal 8 and Goal 5 on gender equality that provide the pathway which the Government of Tanzania can take to ensure that women’s child care burdens are decreased, there is equality of opportunity and that women are enabled to become productive workers – a factor which will greatly improve the status of their families. Eliminate Child Labour Target 8.7 By immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking and secure prohibition and elimination of worst forms of child labour, including recruitment and use of child soldiers, and by 2025 end child labour in all forms.One third of children in the country are child labourers. This translates into about 42 million children aged 5 and 17.Nearly 92% of working children are engaged agriculture where they often face hazardous conditions. Tanzania has ratified ILO Convention 138 on the minimum age for admission to employment and work as well as ILO Convention 182 on the worst forms of child labour. The country has equally translated these Conventions into national laws, policies and regulations which provide a comprehensive framework to eliminate child labour. Unfortunately the enforcement of these laws and regulations remains weak and awareness on the harmful effects of child labour remains low. In order to reach Target 8.7, the Government will have to step up its efforts to significantly reduce the number of child labourers. Mechanisms should be strengthened to ensure availability, and access to, improved quality basic education. Clear institutional arrangements should be put into place to identify, withdraw, rehabilitate children engaged in the worst forms of child labour and prevent others from becoming involved. Expand social protection coverage The most important asset for people living in poverty is the potential of their own labour; their capacity to work productively. Decent work for all including social protection, is therefore the main route out poverty for individuals, communities and countries. The combined social security schemes in Tanzania Mainland and Zanzibar cover less than one-in ten workers, and very few who are not in the formal private or public sectors – such as works in agricultural, fisheries, small businesses and so on. This combined with limited access to certain health services leave many workers (and their families) unprotected and therefore vulnerable. According to the World Bank, 4 out of every 5 people in developing countries are annually at risk of bankruptcy if they need a medical surgery. It is important to note that the government has embarked on a number of reforms on the social protection system. These are geared towards provision of adequate social protection as well as improving safety nets for the poor and vulnerable. If the current efforts persist in the same intensity Tanzania will certainly be able to succeed SDG gaol 1 indicator 3 on social protection. In short, SDG Goals provide an opportunity to accelerate the positive national policy process and address the “unfinished business.” In fact, Tanzania is in a good place to take advantage of the current window of opportunity that has been created from high economic growth. The United Nations agencies, including the ILO, are ready to work with the authorities so that no one is left behind.

Prepared by Dr. Mary KawarDirector, Country Office for Tanzania, Burundi, Kenya, Rwanda and Uganda International Labour Organisation

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