Friday, January 23, 2009
Tanzania has weak real estate firms
Tanzania has apple land and people are building their properties without streact monitoring in terms of the quality of the buildings and arrangement hence we end up having poor building as well as unplanned cities and villages.
The plans by the newly established real estate firm known as Parasol Real Estate Agent and Developer (Tz) ltd can help to compliment government efforts on the same.
Keep it up the good work; consumers on the same are happy with the charity work they are going.
Sunday, January 18, 2009
REGULATION NECESSARY TO ENHANCE BENEFITS FROM LIBERALISATION, SAYS RANGARAJAN
“In the reformed Indian economy where the stress is on efficiency maximisation, competition law and market correcting regulation have assumed great importance, particularly in the infrastructure sectors which constitute the backbone of the economy. The new CUTS Centre dealing with training and research in these issues will therefore play a major role in this modern setup.”
These were the words of C. Rangarajan, Member of Parliament and President, Governing Council of the newly minted CUTS Institute for Regulation and Competition (CIRC), while presiding over the Roundtable on Developing Infrastructure through an Ideal Regulatory Framework organised by CIRC at the Russian Culture Centre, New Delhi .
Rangarajan laid stress on the need to achieve the right balance between overregulation and under regulation.
In his opening address Pradeep S. Mehta, Founder Secretary General of CUTS and Secretary, CIRC traced the evolution of CUTS from a consumer protection organisation at its initiation in 1983-84 to a Southern NGO working on a wide gamut of issues from the empowerment of women to international trade.
According to Mehta, it was only natural then that this involvement in international trade issues would result in a corresponding interest in competition and regulation, culminating in the establishment of CIRC in 2005.
Mehta informed the audience that this centre would engage in training and research in three fields: infrastructure regulation, competition law and policy and commercial and economic diplomacy. He expressed great happiness over the former Commerce Secretary, Dipak Chatterjee assuming office as the Director General of CIRC .
Moderating the discussion, Vinayak Chatterjee, Chairman, CII National Council of Infrastructure cited various steps taken by the UPA government in developing general and then sector-specific regulatory norms.
N. K. Singh, Member of Parliament who was the first panellist raised several important issues in his speech: political mindset in the country lagging far behind the literature on regulatory issues; delineation of regulatory functions among the executive, legislature and judiciary; cultivation of an arm’s length relationship between the line ministry and the regulators; human capital formation for regulatory purposes, etc.
Nandan Nilekani, Co-chairperson, Infosys Technologies stressed that regulatory design in each sector should be determined by the specifics of both market structure and the network structure of supply. He also said that regulatory systems all over the country had to evolve from being providers of indirect subsidies to that of direct benefits. According to Nilekani, this would result in profitability of investment and yet serve redistributive goals.
Nripendra Mishra, Chairman, TRAI stressed that regulatory powers allocated to regulators by the government are a key determinant of economic outcomes. He pointed out how many technologically progressive steps such as ‘number portability’ and ‘3G reforms’ recommended by TRAI had been stalled because of the influence exerted by powerful vested interest groups.
Vikram S. Mehta, Chairman, Shell focussed on the issue of regulatory mandate and opined that the regulator was a law keeper rather than a policy maker. He also called for greater specialisation among regulators.
Arvind Mayaram, Additional Secretary, Government of India highlighted the very different problem of how rural/urban infrastructure such as water/sewerage/ roads has to be regulated so that it becomes a sustainable driver of development – the most essential regulatory function here is how competitive outcomes can be attained without open competition.
Pramod Deo, Chairman CERC drew attention to the limitations faced by regulators, particularly those in the electricity sector, in preventing the flouting of regulatory laws.
The initial speeches by the panellists were followed by a lively interaction session and a succinct summary by Dipak Chatterjee in the concluding address.
In summary, the deliberations of the afternoon were very fruitful and quite successful in highlighting the intricacies of competition and regulation of infrastructure, a much misunderstood subject in this country.
For more information, please contact: Pradeep S Mehta: +91.9829013131, psm@cuts.orgBipul Chaterjee: +91.9871995921, bc@circ.in
Sunday, December 28, 2008
Why do Countries Adopt Competition Laws-Tanzania as a case study
In view of the above mentioned domestic policies adopted in three regimes one can be able to come up with what transpired and what is the main reasons as to why Tanzania had been motivated to all kind of shifts from one regime to another on competition laws aiming on stimulating domestic production, promote exports, safeguarding domestic industries against dumping, national politics, security and consumer protection.
The Rationale of maintaining competition regimes from Tanzania perspective can be viewed onto three economic and political regimes;
1) Early years post colonial era (1961-1967);
This was liberal economy inherited from colonial era whereby private sector played a big role as engine of growth, export was basically unprocessed and in form of semi-processed agricultural commodities (Traditional exports) and other raw materials
a) There was free market economy though too much protectionism on the economy
b) Trade and consumer protection based on colonial laws (British)
c) Business conducts was not open, its was in favour of colonial master-British
2) During and Post Arusha declaration 1967-1985
a) Tanzania adopted socialism policy
b) There was government intervention and control over major economic resources
c) Confinement policy” adopted in 1972 to control all major economic activities including trade
d) Trade policy was based on tariffs and quantitative restrictions
e) Policy instruments used were price controls, import quotas, rationing, administrative resource allocation and the use of permit to control movement of goods and services.
f) Protectionism was imposed with import duty used as control tool
g) The was too much of state monopoly
3) During Liberalization and free market economy (1985- to date)
a). There was privatization of public investments to the private sector,
b). Tanzania adopted open door policy and structural adjustment programs
c). There was emerge of market forces; demand and supply instead of price control
d). Private sector tends to be an engine of economic growth
e). There is free market economy with less protection on the economy
III) The motivations in which Tanzania adopted its current competition laws
Due to failure of the socialism in Tanzania and its restrictive policies to achieve the desired objectives; infant Tanzania industries failed to meet even local demand caused by limited internal capacity, series of oil price increments, inadequate resource mobilization, and inefficient allocation of resources, decline private sector activity and foreign direct investment (FDI) due to nationalization of major economic sectors carried after Arusha Declaration 1967.
Consequently to that; Tanzania experienced severe macroeconomic hardship like; rising inflation rate, severe scarcity of essential goods and services, falling real GDP growth rate, widening fiscal and trade deficits, for this matter therefore Tanzania had not other best option than to adopt rescuer pills (IMF) on structural adjustment programs (SAP) including introduction of cost sharing on all social services, staff retrenchment, liberalization of imports, interest rates and exchange controls, devaluation of shilling; price decontrol, privatization and restructuring of state owned firms – to improve efficiency in domestic production
Therefore; following the mid 1980’s economic reform in Tanzania which led to state withdraw as a direct economic player (manufacturer and distributor), price controller, service provider and the like; consumers and producers have experience the shift of roles from the state monopoly to open market policies.
For instance; National distributional agencies such as National Milling Corporation (NMC), Regional Trading Company (RTC) were replaced by private companies, the former price commission during controlled economy was abolished and replaced by market forces; demand and supply; generally the government was advised not to involve itself in production as a result majority of profitable government business ventures/industries were privatized.
Rapid trade liberalization has made Tanzanians more vulnerable to shocks and removal of policies and state owned distribution and service companies. In other words; the shift caught Tanzanians unaware and unprepared with very little knowledge on how they can respond to current opportunities and threats associated with globalized economy. For instance Consumers lacked reliable and timely information; they were unaware of existing institutional mechanisms for their rights protection and at the same time; there were so many constraints which inhibited growth and competitiveness of the private sector. Therefore this is one of the factors forced Tanzania to adopt new competition law.
Moreover, human-beings are by nature very greed and when it comes to business; they exist to create a super profit with such vacuum (absence of competition law) the impact is always negative; without a well structured competition laws, unscrupulous traders will always take advantage of the situation, therefore Tanzania knowing the fact of human nature and consumer healthy and safety issues must come above corporate profit; the competition laws are vital to control and arrest the situation; for this matter. Tanzania had tried to its level best to the establishment of several sectoral regulatory authorities include ‘’Tanzania Fair Competition Commission’’, the ‘’Tanzania Bureau of Standards’’ (TBS), ‘’Tanzania Food, Drug and Cosmetics Authority’’ (TFDA), ‘’Electricity, Water and Gas Utility Regulatory Authority’’ (EWURA), ‘’Surface and Marine Transport Regulatory Authority’’ (SUMATRA), ‘’Tanzania Communication Commission’’ ‘’Bank of Tanzania’’ Tanzania Civil Aviation Commission just to mention some few
Apart from all the above; efforts by United Nations bodies such as UNCTAD, WTO, ILO, UNIDO, UNESCO, UNDP, and other international Non Governmental Organizations such as Consumers International, CUTS International, OXFAM, ISO, COPOLCO, CODEX, individual country, their grouping (EU, EAC, SADC etc), global business approach such as regional business strategy and forums such as DOHA round table, United Nations Guidelines for Consumer Protection (as expanded in 1999), and the like has catalyzed countries to adopt more fair business practices and competition laws.
In connection with the above; challenges of globalization including unfair business terms amongst nations do catalyses countries to adopt competition laws for business fairness within and in support of broader UN goals, such as the Millennium Development Goals (MDGs)-2000 aim on improvement of the quality of life and social well-being, with particular focus on the poorest and most vulnerable groups improved (e.g. education, survival, health) across geographic, income, age, gender and other groups are reduced, competition laws are there to strike the balance
Cognizant of above challenges and reforms through the world economic order-the open market economy, the government of Tanzania sought appropriate skills acquisition, and adaptation that would respond better to the new realities and needs of the emerging open market economy and at the same time promote environmentally friendly consumption, production and distribution practices to protect consumers, business and other stakeholders in Tanzania market.
IV)How do these motivations and contexts define the timing of introduction and content of the newly-adopted law
First and foremost to understand motivations on this matter we have to understand the object of Tanzania Competition law 2003, as per Part I Preliminary Provisions, subsection 3, Object of the Act, is to enhance the welfare of the people of Tanzania as a whole by promoting and protecting effective competition in markets and preventing unfair and misleading market conduct throughout Tanzania in order to:
a) Increase efficiency in the production, distribution and supply of goods and services;
b) Promote innovation;
c) Maximise the efficient allocation of resources; and
d) Protect consumers.
The contents of Tanzania Competition Law of 2003 appear to be comprehensive and well structured as shown below. It properly focuses on weakness areas such as enhancement of consumer welfare and regulates trading conducts to be fair amongst traders to promote and protect effective competition in trade and commerce to attract more foreign direct investment (FDI).
Contents of the New Tanzania competition law, Competition Act 2003
Part I; Preliminary Provisions
Part II; Restrictive Trade Practices
Part III; Misleading and Deceptive Conduct
Part IV; Unfair Business Practice's
Part V; Unconscionable Conduct
Part VI; Implied Conditions In Consumer Contracts
Part VII; Manufacturer's Obligations
Part VIII; Product Safety and Product Information
Part IX; Product Recall
Part X; Offences, Penalties and Remedies
Part XI; Appeals to the Fair Competition Tribunal
Part XII; Fair Competition Commission
Part XIII; Fair Competition Tribunal
Part XIV; National Consumer Advocacy Council
Part XV; Inconsistency with Other Laws
Part XVI; Miscellaneous Provisions
Part XVII; Consequential Amendments
The new laws contents specify three types of anticompetitive agreements, abuse of a dominant position, and anticompetitive mergers. The legal standards that apply to these three types of abuses under this document are consistent with good practice in competition law enforcement worldwide aiming to protect business and consumers from unfair, misleading market conduct to prevent the existence of cartels, monopolies and oligopolies, which hurt consumers and producers through monopolistic pricing policies.
By so doing all Sectoral Regulatory Authorities present in Tanzania are required by new competition law to support and act within their sphere of influence, sets of core values in the areas of business development, consumer and producer welfare, human rights, standards, the environment, and good business best practices.
V) What are the major developments of the new legislations or the distinguishingly different approach as compared to the old legislations?
In comparison between early years of post colonial era (1961-1967) and free market economy 1985 onwards; appears to be one and the same as both adopted capitalist ethics and principles whereby private sector is an engine of economic growth and monopolistic tendencies were somehow discouraged however the greatest distinction are; the new system adopt what is called open door policy whereby all nations, investor/s from any where in the world with comparative advantage items of capital, right skills, strategies and resources can take advantage of investing in Tanzania instead of colonial master and its allies.
Another distinction is, during post colonial era, there was what was called economic embargos including restrictive terms and conditions aiming on import control to protect domestic industries, however not in favour of domestic consumers to enable them to have a wide range of choice of goods and services from a wide variety of sources with different quality and price but only to the advantage of investors; to have ready market due to purposeful set monopolistic tendencies.
On the other hand by comparing between post Arusha declaration 1967-1985 and free market economy; both legislations were influenced by political doctrine adopted, for instance during Arusha declaration Tanzania decided to build a socialist state, whereby all major means of economy will be controlled by the state, the state tend to be the only provider of goods and services, with maximum protection of internal market and consumers at larger. All laws and policies were designed in favour of building socialism-development of the betterment of the general public and not individuals.
But due to weaknesses encountered during implementation of socialism (kindly refer section III of this document para 1, 2, and 3) Tanzania failed; instead open market economy is prevailing; to improve internal supply of goods and services restriction on imports were removed, private sector has to flourish to reduce state red-tapism,
However dealing with open market policy is a very trick phenomenon especially when it comes to consumer’s right of choice, fairness on competition, quality, standard and safety. The delicate part of the story is need of more products in the market to give consumers a wide range of choice at reasonable prices but in the process unscrupulous traders take the advantage of flooding the market with unsafe products, counterfeits, unethical trading and by using dirty tricks always are the signaling factors for a current competition law.
VI) Has the new legislative and enforcement developments successfully addressed those problems leading to the scrapping of old laws and adopting new laws?
This is the best part of all to me, as I’m Executive Director of an independent NGO consumer association known as Tanzania Consumer Advocacy Society; I had been actively and closely watching the play, despite the fact that; Tanzania has a good number of legislatures and government owned Sectoral Regulatory Authorities (SRAs) which aim at protecting consumers and business such as the ‘’Tanzania Fair Competition Commission’’, the ‘’Tanzania Bureau of Standards’’ (TBS), ‘’Tanzania Food, Drug and Cosmetics Authority’’ (TFDA), ‘’Electricity, Water and Gas Utility Regulatory Authority’’ (EWURA), ‘’Surface and Marine Transport Regulatory Authority’’ (SUMATRA), ‘’Tanzania Communication Commission’’ ‘’Bank of Tanzania’’ etc. However the problem of consumers’ abuse and violation on their rights is still on the rise and it is affecting lives of many innocent consumers and businesses.
There are severe consumer’s rights violation and unfair business conducts in Tanzania Market one can not imagine, for instance some few media evidence on the same;
a) Mwananchi, 23rd.April.2007, Swahili newspaper had a title; Fake malaria drugs; kill many Tanzanians.
b) Sunday Citizen 10th.Dec.2006, had the article with the title; Many Tanzanians not fully aware of their rights.
c) The Guardian dated 11th July2007, for example, reported that banned HIV/AIDS life prolonging drug –EMTRI 30 - 40 from India that was disqualified by the WHO and its importation banned by the Ministry of Health and Social Welfare, was still circulating in Kisarawe district, Coast region despite an outcry by anti-AIDS activists.
d) The Citizen of 28th,July.2007, had a title; ‘’In for an injection, out with a limp’’ some people come out of the injection room with a abscess only shows up several weeks later; others come out with disabilities for life.
e) The Guardian of 19.August.2007; had the title ‘’Fake goods impedes producers - Producers are deeply alarmed by the flood of counterfeit products in the local market harming quality and undercut their efforts to thrive.
f) The Guardian of 12.Sept.2007; reported that; Bulk of Kariakoo imported goods fake - about 50 per cent of all imported goods from China and sold in Kariakoo shops in Dar es Salaam are counterfeit
g) The Guardian of 04.Nov.2007; Fake Medicines Pose Big Threat-Counterfeit Medicines In Tanzania; the story continued
i. In August 1999, fake Metakelfin labeled as a genuine product from the original manufacturer, Pharmacia and Upjohn, was found in circulation in some pharmacies in the country.
ii. Laboratory analysis confirmed that the counterfeit Metakelfin actually contained paracetamol. In May 2000, counterfeit Ampicillin capsules (250mg) were found circulating in some retail pharmacies.
iii. Laboratory analysis confirmed the capsules contained potato starch. In June 2001, expired Chloroquine Injection (from an unregistered Indian company) was relabeled as Quinine Dihydrochloride Injection 600mg/2ml from a company in Cyprus.
iv. In January 2005, fake Gentrisone Cream (a product of Shin Poong, South Korea) was reported. In this case, the active ingredient was replaced with hand and body lotion.
h) The Guardian of 08.Nov.2007; had the title; Consumer awareness is no laughing matter.
i) The Business Times of 06.01.2008; had the title; Stakeholders urge for more awareness education.
j) Nipashe of 14th.March.2008; had the title; Importation of counterfeit goods is a threat to consumers. More than 80% of Tanzania consumers are not aware of their rights…
k) Uhuru, a Swahili newspaper of 4th.April.2008, had front page story with the title, ‘’Expired toothpaste chemicals were found for Tanga Sabuni Detergent’’-The chemicals were meant for making a famous toothpaste in the country – Aha
l) Guardian of 27th.March.2008; had the title; Vision 2025: Shall we achieve `Green Revolution`? The prices of fertilizers and farming implements remain higher due to cheating by the distributors of fertilizers.
Fair competition commission has been working so hard to reduce the problem of counterfeit products in the market by destroying them and giving severe punishment in accordance to the law yet still the problem is on the rise.
Despite on the rise in numbers on the acts of unethical business conducts, violation of consumer’s rights; partnership with independent Civil societies to curb the situation is almost zero and had been seen as a very new phenomenon; however this is not a new phenomenon in our country; there are a lot of government programs on child and maternal healthy, HIV/AIDs through its ministries, hospitals, commissions, agencies like TACAIDS but yet still there are NGOs such as AMREF, UMATI, Marie Stopes, SHIDEPHA, Pathfinder, Engender-Healthy, Family Healthy International (FHI) just to mention some few whom are working day and night to supplement government efforts on reducing the effect of HIV/AIDs, and unsafe motherhood that affect majority of Tanzanians.
I) The way forward.
Having Competition law in Tanzania have been seen as the end in itself, the cure of it all; but the way forward to it is to forge a strong Consumer, Private, Public Partnership with a shared commitment and efforts to achieve the intended object of the new law, all key stakeholders including government itself (in this case sectoral regulatory authorities), consumers, producers, distributors, service providers, professionals, civil societies, NGOs, consumers’ associations and others should work toward supplementing government goals of seen business act responsively to consumer’s needs and interests and at the same time there is fairness on business conducts in the end strengthening business environment for Tanzania for the betterment all key stakeholders.
Bernard Elia Kihiyo
Executive Director
Tanzania Consumer Advocacy Society
Office +255 732 991 409
Cell +255 757 170 555
+255 715 170 555
Email; consumeradvocacytz@yahoo.co.uk
Website; http://www.tcas.or.tz/
Friday, December 19, 2008
Kellogg's and Lego 'win' bad company award for toy-like candy
In bestowing this dubious honor, Luke Upchurch, spokesman for Consumers International said, “Sometimes, even the biggest multi-million dollar companies with the most creative minds, need to just stop, take a deep breath, and ask themselves ‘Is this really a good idea?’ Fun Snacks was definitely one of those moments."
We agree, and as Don Mays wrote in July, "It’s not illegal to sell candy that looks like toys or vice versa, but it’s a really bad idea. ... Each year, about 15 children under the age of three choke to death on non-edibles."
Consumers International is a federation of consumer groups including Consumers Union. Also singled out for "ridiculous and irresponsible behaviour" this year were:
Tesco—Sledgehammer Award for silencing criticism"For its $34 million lawsuit against three Thai journalists critical of the British retailer’s expansion plans."
Eli Lilly—The Marketing Overdose Award for rampant promotion"For repeatedly breaching marketing regulations with its blockbuster drug for erectile dysfunction."
Samsung—Nice Little Sideline Award for selling tanks, not just TVs"For the little-publicized fact that this consumer electronics company also builds artillery systems."
Toyota—Green-scrubbing Award for environmental impact"They may make the Prius, but Toyota picks up an award for audacious greenwashing and some rather contradictory marketing exercises."
Friday, December 5, 2008
EVIDENCE FIRST DEFENSE AGAINST UNFAIR FIRMS: CONSUMER GROUP
Local buyers need to collect evidence and officially report their complaints if they want to challenge businesses that rip people off, said consumer advocates.
General Secretary of the Vietnam Standards and Consumers Association Do Gia Phan said local consumers have rights; they are just unaware of them.
The group’s deputy chairman Ho Tat Thang said his association can file lawsuits against companies that employ unfair practices but greedy and irresponsible traders are rarely brought to court because consumers who complain about getting cheated fail to provide even the simplest of evidence, such as a receipt. He added that Vietnam had laws that could force firms to compensate consumers they swindle by overcharging, mislabelling or selling counterfeit goods but the association couldn’t spend time chasing lawsuits without evidence.
Thang said unfair trade practices were rife throughout nearly all sectors in Vietnam. The association estimated the average consumer lost between 8 to 10 percent of the value of their purchases so far this year due to unfair practices.
“No group of consumers has ever been hurt by unfair trade practices as much as Vietnamese customers have been recently,” said former general director of Competition Administration Department Dinh Thi My Loan.
George Cheriyan, director of the India-based non-profit organization Consumer Unity & Trust Society, International, said Vietnam should learn from India, which effectively enforces its Consumer Protection Act and National Consumer Disputes Redress Commission through special forums akin to special courts.
For more information, kindly follow this link:
http://www.thanhniennews.com/features/?catid=10&newsid=43994
Monday, October 27, 2008
US-Consumer's News; COOL new food labels display country of origin
Mandatory COOL for meats, fish, produce, and peanuts became law in the U.S. in 2002, but industry pressured Congress to delay implementation for everything but seafood until now.
As reported on our Health blog, COOL's full implementation is a big step forward for food safety-conscious people. A Consumer Reports poll released last year found that 92 percent of Americans agree that imported foods should be labeled by their country of origin.
"This is a long-awaited change and we think it will be a great benefit for consumers," said Jean Halloran, Director of Food Policy Initiatives for Consumers Union, nonprofit publisher of Consumer Reports. "If a food safety problem is identified in a particular imported product, as happened with jalapeño and serrano peppers from Mexico earlier this year, then consumers will be able to avoid that product."
"On the other hand," Halloran adds. "Some people like to buy certain imported products, like New Zealand lamb or Holland tomatoes. Still others just want to buy local produce. Either way, the new labels will give consumers important new information."
There are exemptions, however, which concern Consumers Union. Meat, poultry, and fish sold in small markets don’t have to be labeled, nor do processed foods such as imported ham or roasted peanuts, or mixtures, such as frozen vegetables or trail mix. Here's a guide to the new rules that you can print out and take to the supermarket.
Source; http://blogs.consumerreports.org/safety/2008/09/cool-food-label.html?EXTKEY=I5B0A18
Friday, October 10, 2008
Education for Sustainable Consumption
Tanzania Consumer Advocacy Society in collaboration with Consumer International will have what is called Consumer Action Day 2008 takes place on 15 October.2008. It will serve as the culmination of member lobbying and advocacy work for the adoption of Education for Sustainable Consumption Guidelines such as:
1. Ensure that education institutions reflect in their daily management the priorities given to sustainable development
2. Include themes, topics, modules, courses and degrees about education for sustainable consumption in established curriculum.
3. Encourage research in education for sustainable consumption related areas.
4. Strengthen connections between researchers, lecturers, teacher trainers, socioeconomic actors and stakeholders.
5. Enhance cooperation between professionals from diverse disciplines in order to develop integrated approaches to education for sustainable consumption.
6. Facilitate teaching and teacher training, which strengthens global, future oriented, constructive perspectives within education for sustainable consumption.
7. Reward creative, critical, innovative thinking related to education for sustainable consumption.
8. Ensure that education for sustainable consumption respects the importance of indigenous knowledge and recognizes alternative lifestyles.
9. Foster intergenerational learning as an integrated aspect of education for sustainable consumption.
10. Provide opportunities for practical application of theoretical study through social involvement and community service.
The aim of this day (15th.Oct.2008) is to draw attention to the importance of Education for Sustainable Consumption and the Guidelines. Moreover, it gives ministers the opportunity to publicly voice their support for the adoption of the Guidelines on national level as part of formal education in the national curricula and on international level as part of 10YFP.
What are Consumers International (CI) members doing?
CI members are involved in different activities and programmes concerning education on sustainable consumption and consumer education. Links to active members’ websites will be made available from CI website once they have taken tangible action towards ensuring the adoption of the Guidelines.
http://www.consumersinternational.org/Templates/Internal.asp?NodeID=97688&int1stParentNodeID=89651
Why I'm setting this message to this blog?
I'm setting this to your attention to share some ideas on Consumer Action Day and if possible you are encouraged to send emails asking for support to the ministers of education and environment and also to UNEP and the UN Department of Economic and Social Affairs (UN/DESA) in support of the guidelines.
Contacts:
Minister for Higher Education, Science and Technology,
Jamhuri Street, Plot No. 1168/19,
P.O Box 2645
Dar es Salaam –
Tanzania
Tel: +255 22 2111254, Fax: +255 22 2112533
E-mail: http://uk.mc234.mail.yahoo.com/mc/compose?to=msthe@msthe.go.tz
Mrs. Sylvie Lemmet
Director
Division of Technology, Industry and Economics
UNEP
15, rue de Milan
75009 Paris
Email: http://uk.mc234.mail.yahoo.com/mc/compose?to=sylvie.lemmet@unep.fr
Mr. Sha Zukang
Under-Secretary-General
UN Department of Social and Economic Affairs
2 UN Plaza, Room
DC2-1670, New York ,
NY 10017 , USA
Email: http://uk.mc234.mail.yahoo.com/mc/compose?to=sha@un.org
Thank you in advance
Bernard Kihiyo
Executive Director
Tanzania Consumer Advocacy Society
Friday, September 26, 2008
Is codification has any economic importance to Tanzania consumers.
Codification can help people living in well developed areas with well arranged infrastructure to get their postal and other goods and services immediately and without problem for instance.
E-commerce and e-business
Through the use of postcode/zipcode one can shop online, buy online and his or her items can be delivered on his/her door steps in few hours or days no matter the distance; anywhere in the world people can trade, can enjoy shopping, order and buy online by the use of Internationally recognised postcode, or ZIP code, so to say e-commerce, e-business can stimuale business in many ways.
With the codification; each and every house or apartment, street, road has been recorded in the databank; planners and other interested parts had made it possible to plan routes electronically. By knowing the postcode of where you start your journey and where you want to go one can calculate the distance between the two; the system can suggest for the shorter route map no matter how far is the route.
Due to good codification, the government can easily collect tax; the government can easily plan for society development, the government can receive people’s opinions electronically, even people can register for voting, get other government services electronically, as the system can easily identify who is who, and who is living where.
There are a lot of positive gains for Tanzania, to introduce codification system and luckily Tanzania can easily adopt codification system especially from the Global Postal Code initiatives.
The system is self-motivated; since the system can start to work immediately parallel to the current domestic postal address systems, it does not need any international agreements to initiate the system.
Any country can start to use the system directly when it is ready itself and will receive all the benefits of the system immediately but it should not be the duplicate of other country’s system.
Having obtained the Global Postal Code, people can start to include it on a letter or any other transaction as extra information to our domestic postal address systems and gradually the system can be replaced by codification in the cause of time.
30% percent system failure is a very big risk margin which requires multi-sectoral attention in a joint force to make this project successful; instead of jumping onto the the issue unprepared.
Difficulties on access to some areas; if the system might be introduced by excluding other inaccessible areas; will be like building the seeds of our own destruction- the gap between haves and haves not will be widen and the hatred within society will immense.
There should be proper insuarance schemes in place as there will be some interruption of valuable mails such as credit/debit cards, and other valuable items with intention of identity theft/fraud.
Fuel traders are tempering with scales and measurements equipment in Tanzania, what is to be done?
The practise of unscrupulous fuel traders on tempering with scales and measurements equipment is a usual market practice all over this country.
On several occasions’ consumer isn’t noticing s/he is robbed, or even if s/he knows there is no where they can go for assistance.
To react to the situation, some fuel consumers have opted to purchase fuel into containers with right measurements say ‘’five’’ litres and refill to their cars, due to absence of trust within the industry.
Not only measurement tempering; but also there is a problem of adulteration by mixing fuel with kerosene. The quality of fuel used to our vehicles is purely uncertain and lead to very high costs of repair and maintenance of our cars.
Worse still, there are about four government sectoral regulatory authorities and agencies in controlling and coordination of fuel and fuel business these include; Tanzania Bureau of Standards, Energy Water and Utility Regulatory Authority, weight and measurement agency and Fair Competition Commission.
Despite the presence of the above, however the problem of consumers’ abuse and violation on their rights is still on the rise and it is affecting dearly; economic welfare of many innocent consumers in the country.
TCAS do understand that most of these regulatory bodies lack the capacity to investigate, litigate and monitor the increasing consumer abuses among fuel suppliers and service providers in the market.
All are understaffed and lack resources to perform their duties such as consumer protection all over this country. To be more specific to these; TBS-among other things deals with quality control and monitoring, EWURA-fuel business regulation, Weight and measurement agency-monitoring of calibration in support of EWURA, FCC-amongst other things oversee there is no unfair conducts such as these to either amongst dealers or consumers in the market.
What is to be done?
It’s a matter of fact that, it is beyond reasonable doubt that; no matter how strict the inspection on quality, regulation, and measurement could be; it is impossible to inspect all the dispensing outlets of fuel in a country all the time.
The only best backup solution to this is to build a society of well-informed and knowledgeable consumers who can report for any problem to the respective authority for action.
All the above authorise are not well known to the majority of consumers, and consumer doesn’t know what are their roles and the like.
These authorities should give relevant consumer education to the general public; educate the public on complaint procedures and give to the public how best they can be contacted just in case consumer needs their assistance.
I would suggest that, telephone numbers of these authorities’ consumer complaints departments; must be placed at each dispensing station just in case there is any complaint from consumer.
Through this way consumers will supplement the gaps of most of these authorities by reporting any discrepancy found in the market.
Moreover; TCAS is in support of the idea that it should be a must; a pipe from a dispensing machine to the customer’s fuel tank; should be changed from black pipe to transparent one. This will allow for monitoring of fuel colour and some how amount dispensed by a customer himself.
Apart from the above; there must be a deliberate effort by the government to strengthen regulatory institutions and build their capacity to deliver the intended goals.
If these authorities work on their full capacities, will contribute enormously to the reduction of acts which lead to the marginalization of the poor to acquire their economic potentials and hence help to alleviate poverty in the society by boosting equal opportunity for growth at the grassroots level at a balanced and equal development of Tanzanian society.
How does TCAS combat this?
TCAS is working toward supplementing government efforts by giving consumer education on changing consumer behaviour and altitude toward their feeling of powerlessness through advocating for economic justice and their consumer rights.
Moreover TCAS works on promoting access of citizens to information on product safety, and where consumer can go for his/her rights protection, as well as promoting wide public discussion on challenges facing consumers in Tanzania.
TCAS works on supplementing government efforts of working toward emergence of knowledgeable consumers in the market.
Only when consumers are educated, treated equally and fairly into all economic forums and there will be equitable growth, and maintains human security in areas where advances in human development are being threatened through consumer’s rights violation.
Sunday, August 17, 2008
2008/9 Tanzania national Budget On the eyes of consumers
The National budget is the most important economic policy instrument for our government; it reflects government income and expenditure based on government's social and economic policy priorities.
The national budget does translate policies, political commitments, distribution of wealth, and goals into decisions on where funds should be spent and how funds should be collected.
In this budget analysis I will try to touch on anti-poverty focus, the expenditure side and revenue side of this year budget 2008/9.
Anti-poverty focus
Government budget is directly or indirectly affects the life of all its citizens especially people with modest means are influenced the most. They tend to be affected by weak economic growth, unequal distribution or high inflation.
Even when funds have been allocated to anti-poverty programs, weak expenditure and program management — and lack of political power among the poor — can mean that the money never reaches the intended beneficiaries.
By making budget systems more transparent and participatory from grassroots level; to have a particular concern with policies affecting the marginalized poor is inevitable.
Citizen participation on budget preparation is inevitable;
TCAS have realized that citizen’s ability to advance their goals — whether these are to combat poverty or to strengthen democratic practices — will be enhanced if we develop a capacity to undertake National budget analysis from grassroots to national level to see if it is in favour of common citizens.
Expenditure focus
On expenditure side, this year national budget was built on sectoral incremental amounts using the last year budget as a baseline though altered considerably in response to changes in the economic situation or in government priorities for instance;
(In TZS)
SECTOR Budget 2007/8 Budget 2008/9 % Increment
Education 1.086 trillion 1.43 trillion 32%
infrastructure 777.2 billion 973.3 billion 25%
Health 589.9 billion 803.8 billion 36%
Agriculture 379.0 billion 460.0 billion 21%
Water 230.6 billion 309.1 billion 34%
Energy 354.0 billion 383.4 billion 8%
I do have the feeling that; the budget increment for 2008/9 is purely superficial as food and oil crisis is striking Tanzania to the roots of its economy, for instance July.2007 one litre of petrol was TZS 1200 to date July.2008 is TZS 1800 this is 67%
With the assumption that; the above situation is not controlled for the coming six months the ability of the government to spend is going to be affected tremendously by the increase on fuel price as inflationary impact on government’s marginal propensity to consumer will be high.
Even at this particular time, it appears to me there is no any budget increase on 2008/9 budget as compared to the last year budget rather there is budget decrement of more than 10% compared with the 2007/8 budget. Just give yourself a little homework on how much/many goods you can get for say TZS 1000 a year ago and what you can get today.
Based on what you got in the above homework; is the same going to affect the government spending, the government as the main spender of goods and services in the market; if commodity price are affected by the fuel prices increment and the like, definitely the government is going to get few goods and services for this year budget no matter the increment per each sector.
For instance Education (32%), Roads and infrastructure (25%) Health (36%) Agriculture (21%) Water and sewage (34%) and Electricity (8%) this is just to mention a few depending on the volume of activities in place.
Inflation should be the number one government enemy; according to BoT statistics Food inflation has reached double digits to 11% in May.2008 from 7.7% in January; it appears on the side of individual consumer, is going to be badly affected as his/her marginal propensity to consumer will be very much affected
If this situation is not careful taken care off, there will be public disorder such as increase in robberies, public and street protests, employees’ boycotts and possibly the government might call for supplementary budget anytime between this budget year.
I support the ideal of fuel bulk purchase through Tanzania Petroleum Development Corporation (TPDC) as one of the immediate solution to frequent price change and curbing of cartels in this business locally and internationally to stabilize consumer prices in the country and hence stabilize the whole economy.
Another issue I would like to discuss on expenditure side is the biggest problem with our government on ethical use of government funds in accordance with Govt procurement Act; do we have enough expatriate on this line, if not what are the plans in place to curb the problem, from LGAs, ministries, government institutions and the like.
Revenue focus
According to my observation, the budget ceiling and sources of taxes are lowly set and reliable sources for taxes are skipped for either political motivation or civil servants’ self gain reasons.
I should say there is low compliance in terms of taxes as all the taxes from tourism, mining, natural resources, industry and service sector are not very well tapped to the fullest to fund the budget gaps and it is possible for Tanzania to have budget surplus as it appeared once in 1974.
All sources where the government can get income should be taken into consideration instead of relaying on the traditional method of taxing consumer’s goods such as beers, soft drinks, cigarettes, cooking oil, gas oil and the like
Sunday, July 20, 2008
Warning issued on faulty tire valve stems following rollover death-US
I belive serious similar situation is facing Tanzania consumers
More story on US incident follow the below link;
http://blogs.consumerreports.org/safety/2008/06/tire-valve-stem.html?EXTKEY=I5B0A18
Wednesday, July 9, 2008
Happy Birthday!!! Tanzania Consumer Advocacy Society
Tanzania Consumer Advocacy Society today 11th.July.2008 is turning one year, what are TCAS's achievements all along this year?
Tanzania Consumer Advocacy Society (TCAS) was founded in 11th.July.2007 as a non profit, non governmental, independent consumers’ association which had been established with interest to promote, protect, disseminate, and advocate for consumers’ rights in Tanzania.
TCAS had been established after a substantial accumulation of knowledge and skills from the grand consultancy work carried out by its founders on the fields of consumer development, empowerment and consumers’ rights promotion and protection in Tanzania.
http://www.tcas.or.tz/TCAS%20Survey%20Report.pdf
Above survey findings (your can link the report) challenged the members to come up with a body of seven Tanzania citizens who have a wide range of accumulated experiences and expertise which can be translated into practical consumers’ development interventions.
Since 11th.July.2007; days have passed making twelve months of Tanzania Consumer Advocacy Society existance; today 11th.July.2008 TCAS is one year old, Today I would like to share with you what had been achieved since day one to date.
During TCAS’s campaigns we would like to address a number of barriers including:
-Limited knowledge of consumers on the their rights and obligations;
-Poor citizens’ involvement in policy making and policy implementation
-Lack of capacity among individual consumers in developing and evaluating public policies;
-Lack of organizational capacities among key consumer related stakeholders
-Lack of reliable and sustainable markets information for consumers on goods and services.
-Inequalities caused by globalization economy
To eliminate the above, TCAS has four main strategic objectives
Objective 1; Raising Awareness
Working toward raising Tanzania consumers’ awareness on their rights and obligations.
Objective 2; Right to be heard
Working on providing a platform to Tanzania consumers to make their voices to be heard.
Objective 3; Capacity to claim Rights
Working effectively on building the capacity of Tanzania consumers to claim for their consumers Rights.
Objective 4; Make markets accountable and responsive
Working toward making markets accountable and responsive to consumers’ needs and interests.
Through the following campaigns:
-Consumer Education,
-Food Safety
-Drug Promotion,
-Consumer Protection,
-Corporate Social Responsibility
-Watch dog on Quality of Public Utilities,
-Watch dog on Standards,
-Sustainable Consumption and ethical consumer
TCAS Achievements since its establishment are;-
1-TCAS had successful carried an important step in preparing for consumer advocacy campaign,out of our April.2007 Consumer Survey. TCAS has careful identified the causes and consequences of consumer problems prevailing in Tanzania market and the survey recommended for possible solutions in solving the problems.
2-Able to have wider consumer membership from 56 in July.2007 to 582 members to date to form Voluntary Observers in Interest on Consumers’ Empowerment’’ (VOICE) in Tanzania.
3-TCAS was capable of doing plenty of Advocacy activities through media since July.2007, for instance we have done 17 press conferences.
4-TCAS advocacy campaign had appeared almost thirty five times in Swahili and English newspapers since July.2007 to date.
5-TV or Radio talks; There have been four television programs and five radio talk shows about TCAS advocacy campaigns.
6-TCAS had represented consumers’ opinions in TBS, EWURA, SUMATRA stakeholders’ meetings.
7-We are using drama and comedian shows to send the message to the beneficiaries
8-Demonstrations; On 15th.March.2007 we organized a street rally from Uhuru Primary School to Mnazi Mmoja grounds where we held consumer meeting; a greater emphasis was on consumer’s rights and unethical marketing of junk food to children. Tanzania's Consumer Advocacy Society had celebrated World Consumer Rights Day (WCRD) for the first time in Tanzania history (the event was started to be celebrated since 1982).
9-On 13th.April.2008, we protested against substandard goods from China during Olympic torch relay in Tanzania. We acquired National and international media coverage on this advocacy.
10-Letter Writing; we wrote advocacy letter to the president, prime minister, ten different government ministries, the speaker of Tanzania parliament and chairpersons of parliamentarians committees, we wrote to all sectoral regulator authorises, we wrote to seven different embassies, we wrote to 24 news editors of different media houses being radio, TV and newspapers.
11-We have done consultative meetings with DGs of TBS, TFDA, FCC, chairman of NCAC, ED of Confederation of Tanzania Industry and key government officials.
12-So far we have represented 42 consumers in solving their consumer problems amicably with retailers.
13-Website; we have been able to establish our own websites (two) http://www.tcas.or.tz/ and blogspot http://tanzaniaconsumer.blogspot.com/
14-We have printed about 870 brochures, posters and leaflets on consumers’ rights and distributed them to consumers free of charge.
15-TCAS has been working closely with youth in order to build a generation of well informed and aware consumers who can easily solve their common consumer problems. About 785 youth of all carders had been involved into this.
16-TCAS had attended Arusha Sullivan summit from 2nd. To 6th.June.2008; TCAS was fully participated in several forums one being ‘’US Government role in Enhancing Business, trade and Investment in Africa’’
17-These are just some few
All the above happened by the use of very limited resources from members' contributions, TCAS deserves a word of Congratulation!!!! and a HAPPY birthday !!!!.
Bernard Kihiyo
Executive Director
Tanzania Consumer Advocacy Society
Tuesday, July 8, 2008
TACKLING ABUSE OF DOMINANCE BY CHECKING MONOPOLIES
Contestability of markets is the adrenaline of all economies. While countries liberalise their economies, an extremely vital concomitant reform is the enactment and implementation of appropriate competition laws so that consumers and businesses get the benefits of liberalisation.
In India, a new competition law was passed in 2002 to replace the archaic Monopolies and Restrictive Trade Practices Act (MRTPA) of 1969. The new law has been further amended in 2007 and will be in operation soon. One of its active agenda will be to curb abusive monopolistic practices by businesses.
Businesses either collude through cartels or abuse their dominance through exploitative and/or exclusionary behaviour. Every other day, cartels are being hauled up by competition agencies around the world.
But a more difficult area for competition authorities is taking action against dominant players abusing their dominance through monopolistic practices.
Abuse of dominance (AOD) is broadly of two types: Exclusionary and exploitative. Exclusionary abuse involves driving out competitors from the market. Exploitative abuse is when a firm is exploiting customers by ignoring their needs as well as those of its competitors.
Thursday, June 19, 2008
200 students in higher learning institutions team up to protect consumers
More than 200 students from local higher learning institutions have teamed up to protect consumers against substandard products being sold in the country.
Speaking to this paper during the first meeting which discussed consumer rights held in Dar es Salaam last week, Ali Suleiman, a Second Year student at the University of Dar es Salaam (UDSM) said the team was formed to educate the public on the effects of substandard products.
The students are from University of Dar es Salaam, Ardhi University, Institute of Finance Management, College of Business Education (CBE) and Dodoma University. The meeting was organised by the Dar es Salaam based Tanzania Consumer Advocacy Society (TCAS) and attracted more than 150 students.
He said the acts of violation of consumers` rights have been increasing and they intended to educate them on the same. Follow this link;
http://tanzaniaconsumer.blogspot.com/2008/06/some-few-media-coverage-of-consumer.html


Cross section of University of Dar es Salaam (UDSM) students, Teachers, TCAS Chairman and Executive Director who attended mobilization meeting on 31st.May.2008 at UDSM
``We have been witnessing a lot of violation of consumer rights in almost every thing starting from food to clothes. Unfortunately they do not have a place to present their complaints to,`` he noted. Suleiman, said students want to be part of the consumers` lobby in protecting their rights once they are violated.
Speaking at the same meeting, Dr Rose Shayo, from the Institute of Development Studies (UDSM), thanked the students for their decision but insisted about education on fake goods. She said many consumers do not understand fake goods, adding that intensive education is needed to help them.
``Many people do not take trouble to read expiry dates of products or cannot distinguish the fake from genuine ones, so we need to educate them,`` she said. She said even affected people do not know where to complain as they end up lamenting or take the unnecessary costs. Dr Shayo urged academics from all higher learning institutions to join the bandwagon and defend the consumers.
For his part, the TCAS chairman, Daimon Mwakyembe, said the society intends to conduct more campaigns to educate the public on the effects of substandard products through various ways. The lobby group claims that 80 per cent of consumers in Tanzanian do suffer from lack of awareness about what rights they were naturally entitled to enjoy from suppliers of goods and services.
In recent times, he said, investors were apparently becoming more concerned to invest in companies that are seen to be acting in a socially responsible manner. Transparency and a commitment to responsible business could give a company an advantage in securing public contracts.
Mwakyembe, the immediate past Director General of Tanzania Bureau of Standards (TBS) said the goal is to work toward addressing consumers` right for quality products as well as getting best deal for the value of their money. Since 2005, TCAS has been providing an advocacy platform that would make the voices of consumers heard and hence make markets work better both for those in urban and rural areas.
· SOURCE: The Guardian through the following link