Tanzania: The Story of an African Transition
International Monetary Fund, 2009 - Business & Economics - 74 pages
In 1985, Tanzania was in severe economic distress, plagued by widespread shortages and high inflation. Agricultural production, the mainstay of the economy, had been declining steadily since the 1970s. Exports of cash crops, which traditionally accounted for the bulk of foreign exchange earnings, had fallen by half between 1970 and 1985. A foreign exchange shortage led to a precipitous drop in imports, which in turn caused a crisis in the manufacturing sector, which lacked raw materials and spare parts. Twenty years later, Tanzania looks radically different. Inflation has declined to single digits. Economic growth is buoyant, averaging 7 percent a year since 2000. Real per capita income has risen by 50 percent. Poverty, while still widespread, is heading downward. Exports are booming, public finances are sound, debt ratios are low, and foreign exchange reserves are ample. This paper is about the remarkable turnaround, the economic policies that contributed to it, and the road ahead because, while much has been achieved, much remains to be done.
What people are saying - Write a review
Opening Up the Economy
Putting Public Finances on a Durably Sound Footing
2 other sections not shown
acceleration access to financial achieved agricultural aid inflows allocation Bank of Tanzania capital central bank challenges commercial banks countries debt relief declined deficit development partners domestic revenue donor economic growth effective eliminated expenditure export external Figure financial institutions financial sector reform financial services fiscal space foreign exchange market foreign exchange sales Fund GDP growth gradually HIPC IMF staff estimates impact implemented imports improve incentives increased inflation targeting infrastructure initiated interest rates international reserves Kenya LART LGAs liberalization licensing liquidity liquidity paper loans macroeconomic macroeconomic stability MKUKUTA monetary policy operations parastatals percent of GDP poverty reduction priorities private sector production Program public finances public financial management recent reducing regime regulation restructuring revenue collections significant Sources spending state-owned structural reforms Sub-Saharan Africa Tanzania's economic Tanzanian authorities tax system total factor productivity trade treasury bill Uganda World Bank Zambia