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Needed: Rekindled Board of Internal Trade
2008-02-28 09:48:19
By Editor
For the past quarter century since liberalization was adopted as part of the national economic policy, the thinking and actually the practice by various private and public players are passionately inclined to free import-export business.
This has come to be so probably because when this economy was reeling under acute shortage of basic goods and services during early 1980s, the quickest solution was seen in lifting restrictions on imports for those who had foreign exchange to do so.
By then, the logic of over-protecting so called infant domestic industries had lost any meaningful steam, because most of them had run down.
Unfortunately, over the past short period of time, we seem to have forgotten that even internal trade was not that much free within the territory.
Undeniably, the trade enabling environment was very bad, as all basic surface, marine, energy and communication infrastructure had seriously deteriorated to pitiable levels so much so that some areas were tactically not reachable.
Yet, we had even one more serious internal trade policy hurdle, as districts for instance were not allowed to freely trade surplus cereals to other districts that were experiencing shortages of the food crop.
If needs had seriously arisen, one would have to acquire official permits to do so! In fact, police road blocks were there to enforce restrictions on internal trade.
Under such circumstances, one wonders what could have been the role of the Board of Internal Trade (BIT) if internal trade was placed under such restrictions.
Of late, we have witnessed the Board of External Trade (BET) doing all within its ambits to promote international trade in Tanzania.
For sure, it has actively been conducting home-based trade fairs, as well as participating in foreign fairs.
But, it seems the BIT died a natural death due to the onset of liberalisation policy, much so when former state owned enterprises became open to divestment.
Several think tanks have for sometime now suggested the possibility of recreating a newly restructured BIT that will constitute a strong trade information bureau with networks going all the way to the districts to guarantee inclusiveness.
This time the call is to have an agency whose role is to facilitate internal trade rather than restricting it.
By good luck, the government has apparently taken up the idea, though belatedly.
The rekindled BIT should become a dynamic centre with updated information on availability of domestic commodities, services as well as their price tags.
The strategy is in line with the country`s National Development Vision (Vision 2025) and the National Strategy on Growth and Poverty Reduction (NSGPR), for without trading, division of labour and specialisation will become of no consequences.
Even more important is its direct link with Tanzania Property and Business Formalisation Programme (TPBFP), better known in Kiswahili as Mkurabita.
It is still more befitting to note that trade chambers and industry lobby groups are supportive of this move, mostly because it will also make this economy more attractive to investors.
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