Critical analysis of poverty alleviation strategies and the use of natural resources: a case of Tanzania

This paper represents a review of literature about critical analysis of poverty alleviation strategies and the use of natural resources a case of Tanzania. The paper reveals different strategies applied by the government in alleviating poverty so as to achieve desired outcome and development and raise welfare among its citizens. The abundant natural resources in Tanzania is suggested to alleviate poverty if these resources are strategically mapped and its surplus generated can be used to boost up the agriculture sector as prioritized in the MKUKUTA II and help reduce poverty significantly.

These natural resources needs to be evaluated based on the world market and link it to change the country with good and reasonable tax policies in place that favor public interest and growth otherwise the multiplier effect of these natural resources may benefit the foreign economy.

Other natural resources appear to have stable value and demand in the world market and therefore through developing reasonable additional taxes for firms exploiting the resources on commodities like Gold, Diamond, Tanzanite, Gas, Uranium and other related natural resources the country can mobilize tax revenue and funding to finance different programmes particularly the farm sector which is now falling and still employ 80% of the workforce in Tanzania and offset the national deficit. The study suggest that government could use revenue generated from natural resources to mechanize agriculture with technology and capital equipment needs, and finance farmers that could boost up production for food security given water resources and land size. It is finally noted that the current abundance of natural resources deposits do not match with level of poverty and poverty alleviation strategies. There is a weakness in tapping the natural resources(Gas, Gold, Diamond, etc) revenue for national development and prosperity through holding the private sector and multinational accountable for additional and reasonable taxes.