Inclusive Green Growth and Inter-Generation Welfare in Tanzania: Economic Policy Implications

Abstract

This paper has examined inclusive green growth and inter-generation welfare by looking into theoretical analysis and case studies. It has been underscored that economic growth in general is not enough in promoting inter-generation welfare but should incorporate significantly ‘inclusive green growth’ which is acknowledges by (i) environmental protection, climate resilience, clean and safe technology; (ii) all forms of capital including natural resources and (iii) distribution welfare gains in the short and long-run. All the evaluation results in all three cases studies (large-scale, SMEs, and human capital investments) indicate that current investments especially large scale investment in Tanzania do not contribute greatly to ‘‘inclusive green growth.’’ Furthermore, the current short, medium and long term plans do not explicitly underscore inclusive green growth issues. This leads to policy implications and recommendations which calls for the government to increase especially momentum of industrialization, and human development taking into account the need to increase investment and economic growth which incorporate significantly ‘‘ inclusive green growth’’ for improved intergeneration welfare.