Economic liberalization and empowerment of local entrepreneurs: the case of the national investment policy/act

This study examines the economic liberalization and empowerment of local people in the economy in Tanzania. Specifically, the study assesses the extent to which the National Investment Policy and Act of 1996 and 1997 respectively, enable local people to participate in the economy during and after the liberalization of the economy in the country, following the fact that, public policy that reflect the needs and realities plays significant roles at enabling participation of people in the economy. The study was guided by the theory of empowerment. The findings suggest that, to a great extent, the National Investment Policy and Act, have led to the disempowerment of local people. Evidence from the findings show that the policy and its Act, appear to have not reflected the realities and needs of the local people who were denied the opportunity to participate in the economy since colonial time. For example, the study found some areas of disempowerment of the local people such as increase in poverty and unemployment, deterioration of social services like education, health and water and lack of access to and control over resources. Others include increase in the gap between the rich and poor which did not exist before liberalization and poor quality of life of majority of the local people. The study also uncovers the systematic and structural problems that hinder participation of the local people in the economy after liberalization of the economy. In a nutshell, the study reveals that life hardships facing majority of local people in the country is the product of economic disempowerment caused by the National Investment Policy and Act.