The Link Between Labour-based Technology and Poverty Reduction: The Case of Rural Tanzania

Abstract

This paper attempts to show the link between Labour-based methods and poverty reduction using a long-term, economy-wide view.  It is premises on the recognized critical role that economic infrastructure plays in the process of economic growth and poverty reduction.  Some of the main issues used to demonstrate the existence of the linkage are economic performance, the prevalence of poverty mainly in rural areas, the critical role played by rural roads in growth and rural development, key for poverty reduction, presence of huge reserve of unskilled Labour, especially during off-season periods, potential for employment creation and income generation, provision of opportunity for petty, community and smallholder contractors to learn and work on civil construction works, and the poor state of the rural economy.  The paper points out that to realize the potential benefits of Labour-Based Technology (LBT) one needs to make a careful and serious consideration of the following government commitment to Labour-based technology at National and Road Agency level, ensure there is regular flow of funds within the sub-national  government framework, need to reinforce the capacity of rural roads local contracting capacity, and the need to be clear with regard to responsibilities so that the responsible community/agency know exactly which roads fall under their jurisdiction to avoid attrition.