Case study (8) Focus on Social Safety Net
Elderly people to be covered by pension
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This article highlights a scheme in Tanzania where the government provides a social pension for those people aged 60 and above. This section of the population is not provided for financially and, as a consequence, is often condemned to live in extreme poverty.
- Is the provision of a pension scheme, such as that described in the article, an example of a market oriented or an interventionist growth and development strategy? Explain your answer.
- Describe what is meant by market failure.
- To what extent do you think that the provision of a pension scheme is an attempt to resolve a case of market failure? Explain your answer.
- Identify problems the government of Tanzania will face when it extends such a pension scheme throughout the whole of the country.
- Examine the effect of this pension scheme on the informal sector within the country.