Effective rate of protection and industrialization in Tanzania.

The study revealed that there has been an incentive to import raw materials and other inputs this finding immediately creates doubts on whether the objective of reducing import bill is met. Firstly the fact that considerable volume of raw materials and other inputs are to be imported and secondly the fact that there is need to import capital goods initially (and if the strategy concentrates on the production of consumer goods this tendency may be a permanent one). It was further found out that the in this case therefore these industries are not yet in a position to compete with the well established efficient industries of the developed nations because highly protected industries enjoy monopoly profits and are inefficient and highly underutilized. It was revealed further protection has continued to favour consumer goods rather than intermediate and capital goods. Consumer goods industries tend to be receiving higher protection than either intermediate or capital goods industries. This is a continuation of the traditional import substitution strategy which has resulted into the present industrial underdevelopment with its features. From this study it can be concluded that there is a need to diversity our manufacturing sector, to emphasize on both consumer as well as intermediate and capital goods industries. A balanced manufacturing sector with eventually accelerate the rate of growth of national product. Policy formulations (protection policy in our case) should be geared towards fulfilling this basic goal.