tag:blogger.com,1999:blog-1964830726550749649.post8952177238725896341..comments2023-04-10T15:04:05.370+03:00Comments on Politics, Society & Things: Foreign Direct Investment (FDI) Helps too Little to Boost Tanzania Economic DevelopmentJanuary Makambahttp://www.blogger.com/profile/03283092901955096056noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-1964830726550749649.post-26452960916498475292009-02-22T09:31:00.000+03:002009-02-22T09:31:00.000+03:00Well said anonymous and Salama. I total support FD...Well said anonymous and Salama. I total support FDI, and I believe if foreign investors and donors will execute properly the strategy behind FDI then we will be able to boost Tanzania economic development. However, at this time the chance of Tanzania economic development to integrate under the umbrella of FDI is so slim. <BR/><BR/>Anonymous above mentioned the integration of banking sector was motivated highly by foreign direct investment. I total agree that, most of our banks increase the deposits because of transparency and trust that provided by foreign firms which acquired our banks. Even though deposits are so high compared to early 1990s, however the amount of loans provided for Small and Medium Enterprises (SMEs) or farmers are still small compared to the deposits. So, this undermined the whole notion that FDI will boost the creation or upgrading domestic economy. Also, the foreign banks are saturated in less than six region (Mikoa) and that rise the suspicious of the real reasons of investing in Tanzania. <BR/><BR/>Another example that FDI orthodoxy use is TBL, I strong agree that the company is very successful compared to early 1990s. However, the main suppliers for TBL are companies that located in South Africa. One of the purposes of FDI is to improve domestic economy, so how a supplier located in South Africa will boost the local economic development? I strong believe on FDI which boost the local economic development. <BR/><BR/>The last example that I want to share is majority of supermarkets in Tanzania are good example of FDI; however most of the products which they’re selling are coming from their countries. This not only undermines the whole scenario of FDI, but also it increases our deficit in Current Account. <BR/><BR/>Last, we should remember that IMF monitored our balance of payment in very close eye. So, if we’re not balancing our current and capital account, then IMF will always intervene and continuing to tell us what to do. <BR/><BR/>Again, the case for ASIA is total different. Western nations couldn't allow FDI to fail in Asia because of Geopolitical issues between capitalism and communism. On the other hand USA is example of successful FDI. For instance look at Toyota Corporation; they’re manufacturing cars in San Antonio and Indiana, in addition they’re using American suppliers, also they’re selling cars (finished products) in USA and that creates jobs and wealth across the board. Hence it assists the local economic development. Other examples include Nestlé, UBS bank and etc.Iddyhttps://www.blogger.com/profile/17287706680889901040noreply@blogger.comtag:blogger.com,1999:blog-1964830726550749649.post-11335594987959632812009-02-21T22:38:00.000+03:002009-02-21T22:38:00.000+03:00Iddy,I will agree with you about the agriculture s...Iddy,<BR/>I will agree with you about the agriculture sector, which is the most important, I guess, especially in our country. That might even low our need for foreign aid. It's just unbelievable that up to this day we don't have better tools for that particular sector which is the backbone of our economy. <BR/>Technology improvement should be another goal to reach if the(FDI) is going to be or(is) the direct contribution to our economic growth. This shouldn't even be a matter of 'IF' but, 'WHEN' should the foreign investiments start/help us in that area.<BR/><BR/>However, I will disagree with you on patriotism. I think many will be more attracted to their country if, it will offer better choices. I understand that we have to overlook that notion of what my country will do for me and think about what I'll do for my country but, guess, there has to be some sort of attraction in our country for all those Tanzanian brilliant brains outside the country to go back and work to improve our economy.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1964830726550749649.post-9369947631224618632009-02-21T14:53:00.000+03:002009-02-21T14:53:00.000+03:00Well said, however the article could have a look a...Well said, however the article could have a look at a boarder range of companies that have enjoy FDI before coming to this conclusion probably the writer could have a look at companies such as TBL, NBC, CRDB and so on and so fourth.<BR/>There is a strong evidence that FDI has stimulated economic growth all around the world (India,Malaysia,China,Kenya,SA,UK USA etc) and one fails to understand why this is not the case for Tanzania .<BR/>All our countries need good policies and governance platforms to enjoy these economic prosperities.Anonymousnoreply@blogger.com