Tanzania’s skills sector is characterised by significant mistrust between public and private stakeholders. Despite a strong joint interest in developing skills, outcomes are undermined by conflicting objectives, as well as by allegations of resource misallocation in the public sector and tax avoidance in the private sector. This impasse results in skills deficiency and a low productivity trap.
This briefing paper summarises research by the Anti- Corruption Evidence (ACE) consortium regarding corruption and rule-breaking in the sector, which arises as stakeholders pursue conflicting objectives (Andreoni, 2018; Andreoni et al., 2020). The research identifies clusters of capabilities among Tanzanian firms that correlate with distinct interests and preferences over skills provision. By designing for these differences, we put forward a feasible anti-corruption strategy that realigns incentives between public stakeholders and different clusters of capabilities among firms.