3
maintains that the growth of monopoly in the advanced countries, particularly in the USA has been accompanied b y a growth of countervailing power on the opposite side of the market like
trade unions, retail chain store, and cooperatives societies' trade union. The growth of monopoly
increases the gains from building up the countervailing power and induces the growth of theeconomy in the world of monopoly.
The gape approach theory by Leibeinstein
in 1960, argues that there are some limitingfactors which can cause that gape approach as follows:- low productivity, poor soil and tropicalclimate, technological backwardness, un favorable demographic features in the form of large andlow population, low education and cultural level, predominant subsistence agricultural economywith poor credit and marketing facilities.
THE APPLICABILITY OR RELEVANCE OF VICIOUS CIRCLE OF POVERTYTO TANZANIA CONTEXT.
NEARLY 50 years after Independence, Tanzania remains one of the poorest countries inAfrica with 33 percent of the population living below the poverty line of one US dollar per day.
English: Korea Economic Growth Rate from 1997~2007...
English: World GDP growth rate and GDP growth rate...
Components of economic growth (Saari 2006)The population of people with hunger and low nutrition is increasing. This so despite allstrategies adopted after independence to do away with three enemies of the nation which areignorance, poverty and disease. Tanzania is still in the vicious cycle of poverty characterizedwith low incomes, low saving and low investment. It is against this background that Tanzaniahas to improve its investment climate to attract foreign direct investment to fill the gap. It is said that fighting corruption and more investment in physical infrastructure willattract more investors leading to the projected growth rates of 8-10 per cent as stipulated by theWorld Bank which are growth rates needed for poverty reduction. There is a need for a broad- based economic growth and more equitable distribution of income to realize poverty reductiontargets. In the 1990s the FDI flows amounted to US$10m...