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Dodoma Region presents an excellent opportunity to demonstrate that the establishment of an urban growth centre is a major factor in the development of a rural region. The generation of substantial socio-economic improvements in this region was one of the Government's primary goals, in transferring the National Capital from Dar es Salaam to Dodoma. It was considered that a regional improvement programme would benefit enormously from the stimulus of the development of a new city, with its employment opportunities, the demand it creates for agricultural products and raw materials, and with its institutional and other services.
The growth of the Capital City at Dodoma should, therefore, have the direct effect of creating a better life for people. It must increase their earnings, improve their standard of living and provide better social and community services and facilities throughout the region, in terms of health, education and training.
This chapter first describes some of the major current national and regional economic factors, to provide a framework within which the Capital City must be seen. Tanzania's basic objectives and requirements for future economic development are then dealt with, followed by the socioeconomic impact, which the growth of the Capital will have on the region. Finally, the chapter outlines the potential sources and methods of financing the construction of the Capital City.
The principal purpose of this chapter is to establish the general inter-relationships and implications of the Capital City programme, rather than to provide quantitative and statistical detail. It is at this time not practical to attempt to quantify the issues precisely; however, when Tanzania's Third Five Year Plan and the Capital's economic model have been completed, it will become possible to prepare a more specific impact analysis.