The thesis has considered an asset-based alternative to the conventional use of consumption or expenditure in defining well-being and poverty. The motivation for the study was to derive a measure of economic status by households in the absence of income or consumption data. This is particularly important for a country like Tanzania where consumption, expenditure and price data are either limited or unavailable. The thesis uses data from The Tanzania 2002 Population and Housing Census information on housing conditions and ownership of certain durable goods to construct an asset index. This index is a proxy for long-run household wealth. When tested for reliability the asset index was found to be robust, coherent and a good predictor for economic status among the "poor" and "non-poor". The study has revealed that with further research, poverty analysts in Tanzania may also use the household asset index as an explanatory or as a means of mapping welfare in the country. / Thesis (M.Sc.)-University of KwaZulu-Natal, 2006.

Tanzania achieved full self-government on May 1st, 1961 and adopted its constitution on December 9th, 1962. It is a member of the British Commonwealth, the Organization of African Unity and the United Nations. Tanzania is a developing country predominantly dependent upon agriculture. Tanzania's rate of economic development, relative to other African countries, is mid-way between the wealthiest and the poorest. The economic development of Tanzania is analyzed in detail between the years from 1961 to 197. The dual policy of development adopted by the Tanzanian government called for unbalanced growth in both agriculture and industry. To a certain extent that policy was proven successful.

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