For Tanzania to make headway into the 21st century, it has to commit itself into educating its mass population, improve healthcare of its citizens, improve its infrastructure, water and sewage system, electric systems, highway and road system, and by the way all these is a work of the government. In developed nations, most of this work is financed by tax revenue and public finance. The larger the private sector, the larger the government revenue pool from tax collection. However, to increase tax base all businesses need to be registered, and all vendors should be required to pay fixed amount of tax per year in form of business licenses. Public finance through bonds and loans can only be achieved if there is improvement and discipline in fiscal management at all levels of the government, increase in transparency and elimination of corruption. Of course this government could continue to talk about all its achievements, such as roads construction here and there, while so much more can be done with available limited resources. Certainly, you need good, qualified people, with good ideas and give them freedom to run those organizations as they see fit, set deadline and demand results. No serious investors will commit their serious capital to a country that has poor governance, poor work ethics, lack of basic needs such as clean water, electricity, housing, roads, environment laws and highly bureaucratized government.

Also, there are sectors that cannot, by their nature be reduced to a mere game of supply and demand. These sectors such as education, health care, science, culture, social service, and infrastructure such as roads, railway, water supply and energy sector cannot be left to a mere interplay of market supply and demand.   These sectors belong to the sphere of governance, and it would be an extreme simplification to think that privatization and the autonomous forces of the market are the only salvation. It is necessary to look into the functional ways of financing these sectors, utilizing cost and budget analysis and quantification of supply and demand, since the market does not provide sufficient funds. It is not by chance even in countries, where philosophy of deregulation and privatization was applied first hesitated for a long time before including these sectors into the privatization programmes. And when they did so – after a delay- the results are often highly ambiguous.  So to attempt a blanket privatization in a country, which faces an unprecedented denationalization to an extent, which none of western countries could even imagine, is a strategic mistake.  Public finance of these sectors would depend on climate of confidence by domestic and foreign banks, which cannot ensue when the financial discipline is completely broken down.

On Education:

Education is the only factor that can make a smaller or a poorer nation able to compete with a larger or more powerful country in this information age. Take an example of Japan, a tiny country geographically, yet its the second highest producer in the world after USA, a result of good education. USA the richest nation in the world, has more than 80% of its college students attending public institutions.  While, almost more than 90% of the education system of richest European countries is public. This numbers tell us something, first; People are the number one asset; the more people are educated the better the country. Two; it says, ignorance is way more expensive than education, and so ignorance has to be eliminated at all costs. Third, it says, for any country that seeks progress and growth in economical, technological, political, and scientific sphere the key basis for its survival is education. The need to invest in our greatest resource, the people, to create a relatively well-educated and skilled workforce should be a number one priority for any government. If we have to bridge the gap in social progress and economic development, education is much more crucial to the third world countries than to the first world country. Information age requires that the majority of a country’s population be educated so as provide the country with the resources it needs to become an efficient producer of goods and services. In advanced societies people’s skills and talents are the main source of wealth; hence, the term information society or knowledge society come into use. An effective utilization of citizen’s education, talents and skills is a fundamental attribute of a developed society, not political affiliations.

The challenges of globalization are such that the nature of work itself is changing. The highly educated person regardless of their country of origin should be able to find job and work anywhere in the world. The effects of brain drain will undoubtedly continue to force the few educated minority of third world to migrate North. The USA attracts mo