"The Poverty and Human Development Report (PHDR) is a key output of the Government of Tanzania’s poverty monitoring system. It provides consolidated analysis of progress towards national development goals as well as discussion on important socio-economic issues affecting the country. PHDR 2009 is the fifth report in the series since 2002, and marks the end of the first phase of the National Strategy for Growth and Reduction of Poverty 2005-2010 (commonly known by its Swahili acronym, MKUKUTA). The report highlights the achievements and challenges of the first phase of MKUKUTA and looks ahead to inform the next phase of Tanzania’s development strategy. As for earlier years, PHDR 2009 comprehensively reviews progress towards key development targets based on the national indicator set for MKUKUTA’s three major clusters of desired outcomes: Cluster I – growth and reduction of income poverty; Cluster II – improvement of quality of life and social well-being; and Cluster III – governance and accountability. Two thematic chapters are also included in this year’s report. Expanding on the status of income poverty outlined in Cluster I, Chapter 2 more closely examines households’ economic well-being in Tanzania since 2000/01, while Chapter 3 discusses the role and principal functions of the State in economic management– a topic of central and immediate importance towards realising the vision of socio-economic transformation in Tanzania."