Transcript THE ROLE AND INFLUENCE OF MAIN INTEREST GROUPS IN …

THE ROLE AND INFLUENCE OF
MAIN INTEREST GROUPS IN THE
NATIONAL TRADE POLICY
PROCESS IN TANZANIA
By
Robert Mabele*
*Associate Research Professor, Economic Research Bureau,
University of Dar es Salaam
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Introduction
Economists point out that the gains from trade
may not be equitable for two countries engaged
in a trade transaction. For the country gaining
this gain may not be shared by all segments of
society in that country. Similarly in the losing
country the loss may affect some segments of
society more adversely than others. This is
clearly demonstrated in all basic texts of trade
theory and policy.
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Except for the government, the other
stakeholders in the trade process are not very
homogenous groups. There are for example
agricultural producers and manufacturing firms
which are not expected to have common
interests all the time.
Even the category of manufacturers may have
conflicting interests since one group may be
producing inputs for further manufacturing by
some other manufacturer and therefore their
interests may differ.
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The most heterogeneous group is perhaps the
consumers. In the final analysis we are all
consumers. Workers probably make up the
most important sub-category of consumers.
Furthermore employees support their employers
since they get their means of livelihoods from
the salaries they get from their employers. Thus
apart from conflict of interests there are
opportunities for coordination and cooperation
among stakeholders.
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1. The key stakeholders in the
trade policy making process
It is clear that there are numerous groups
that can claim to have a stake in the trade
policy process. It is not possible for all of
these groups to participate in common at
the same time. While trade policy is
mainly a government activity with the
active participation of stakeholders, the
government should take the lead in the
mobilization and coordination of all the
stakeholders in the trade sector.
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The idea should be to have
representatives from the following
organizations that have a stake in
Tanzanian’s trade. In summary the group
would consist of the following
organizations.
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(a) GOVERNMENT (EXECUTIVE, LEGISLATIVE,
JUDICIARY and PARASTATALS
(b) FARMERS AND COOPERATIVES
(c) WORKERS UNIONS
(d) INDUSTRIALISTS (eg CIT)
(e) TRADERS (e.g. TCCIA
(d) ACADEMICS RESEARCHERS AND
PROFESSIONALS
(e) NGOs and CBOs
(f) POLITICAL PARTIES
(g) OTHER SPECIAL INTEREST GROUPS eg. Women
entrepreneurs
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It is seen from above that for such a wide
and varied range of interests it is difficult to
smoothly participation manage. The
formation of apex or umbrella organization
will help the creation of a more
manageable representation.
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When it comes to actual practice in
Tanzania, progress has been made to
ensure the participation of as many
stakeholders as possible in the trade
policy process. However participation by
workers and cooperatives seems to be
clearly weak.
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2. Representation and Influence
in the Policy Process
Apart from the Government Ministries, the
influential stakeholders are the
representatives of the industrial
organizations like CIT the Chamber of
Mines and TCIA. The Farmers’
Organization is also beginning to be
active. The cooperatives and trade unions
seem to be the least influential.
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3. Means to Wield Influence
The main factors determining influence and
participation appear to be homogeneity of
interest and availability of resources in terms of
personnel and finance to undertake or
commission studies to study issues of interest
and come up with recommendations which
contribute to policy formulation. Sometimes
these efforts do not succeed. For example some
stakeholders tried their best to reverse Tanzania
decision to quit COMESA. To-date Tanzania’s
has not yet rejoined COMESA.
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We can take any trade issue. If the Minister of
Finance raises the import duty on a commodity
some people will gain some will lose. The
government gains through increased revenue
but consumers lose because they have to pay
higher prices. When the East African countries
eliminate tarrifs among member countries,
consumers gain because prices fall but
government loses revenue. Manufactures may
fail to compete in the Customs Union and close.
This means that employment in some members
countries may decline.
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4. The Roles Played by the
Various Stakeholders
The important activities the private sector
participants are engaged in include
participating in the national dialogue on
the economy as a whole as well as on
specialized issues such as those relating
to trade. They support their contribution to
the dialogue through undertaking studies.
The dialogue is an of the strategy to
strengthen public-private partnership. This
strategy is carried further when
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representatives of the private sector join
government on negotiating delegations for
regional cooperation e.g. in ECA and SADC, for
negotiations with the EU as part of the ACP
block and for negotiations at the global level e.g.
in the WTO, at UNCTAD, other UN Economic
Agencies etc-- The participation of
representatives from the private sector in the
negotiations help the country to increase the
number of knowledgeable people in the country
on trade issues.
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This knowledge also flows further down the
grassroots. Some of the important activities
concerning public-private consultation and
dialoging are undertaken jointly by the
government and the private sector through the
Tanzania Business Council. These include the
SMART Partnership programme which is
intended to run from the district to the National
Level. Regions are now forming Regional
Business Councils (which will forward
recommendations to the National Business
Council) or directly to government.
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5. Challenges and Way Forward for
Strengthening the Role and Influence
of Main Influence Groups
There is need for the capacity of the
private sector and especially the nongovernmental organizations (NGOs) and
civil based societies (CBOs) to be
strengthened it they are to benefit from the
participation in the trade policy process.
This must be done by tackling the
obstacles they face as participants in the
process.
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The most important obstacle facing them is lack
of knowledge of the issues. For those who join
the country’s negotiating teams they normally
receive intensive training seminars and
workshops which include learning some of the
technical terms and techniques involved. The
aim however is to raise the general awareness
of as many people as possible on the issues.
Good economic governance requires that
people understand the main economic issues.
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The other obstacle hindering the weaker
groups in their participation is lack of
resources. These resources may be
needed in providing training facilities in
terms of teachers and teaching materials.
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While some of the resources can be provided
through the government, donors and local
organizations e.g. Universities, NGOs (both local
and locally based international NGOs and UN
and other international organizations the
organizations can also raise their own
resources. The training of trainers to train
participants at the grassroots is needed if the
improvement of the knowledge of the people on
trade and other economic issues is to reach the
general public.
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In order to appreciate the need for training
their members, there is need to strengthen
Private Sector Institutions so as they can
design better training programmes of their
own or make use of training by others.
Some of these training may be free but
they must be sought out and well
programmed.
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Finally the Platform on National Dialogue
on economic issues including those on
trade must continue to be developed with
opportunities given to all to contribute
ideas being open to all participants for it to
be a real dialogue and not degenerate into
a monologue.
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It is only then that government’s efforts to
ensure that governance arrangements for
growth-enhancing interventions are
successful when market failures for
example, cause problems. Recent good
efforts in this regard include targeted
agricultural subsidies and targeted
guaranteed credit schemes.
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References
GoT (
) National Trade Policy.
Robert J. Utz (Edit) (2007) Sustaining and Sharing
Economic Growth in Tanzania, World Bank, Washington
DC.
SIDA (2005) Tanzania Diagnostic Trade Integration
Study.
Thomas A. Engel, Peter H. Linder (2000) International
Economics, McGraw-Hill.
USAID (2004) Assessment of Tanzania’s Producer
Organization.
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