Since 2001, Tanzania has experienced a fairly high annual growth rate of round 7 percent. However, this has not translated into major cuts in the poverty rate. According to the Household Budget Survey 2007, One third of Tanzanians live below the basic needs poverty line. weak linkages between growth, jobs, and  its distributional impact on social welfare in Tanzania underline that economic growth is essential but not in itself suffiecient for povery reduction.