Tanzania’s adjustment program, which began in the mid-1980s, was accompanied by a sharp increase in the levels of foreign assistance. Previous studies, using published data, have not reflected much improvement in economic performance during the reform period. This paper attempts to shed new light on the relationship between adjustment and aid dependency in Tanzania, by adjusting the macroeconomic database to correct for data deficiencies in several important respects. A subsequent comparison with other sub-Saharan African countries shows that, contrary to traditional interpretation, Tanzania’s increased dependence on foreign assistance did not lead to a deterioration in domestic savings performance. Efficiency of investment, however, has been substantially lower in Tanzania.

Tanzania`s adjustment program, which began in the mid-1980s, was accompanied by a sharp increase in the levels of foreign assistance. Previous studies, using published data, have not reflected much improvement in economic performance during the reform period. This paper attempts to shed new light on the relationship between adjustment and aid dependency in Tanzania, by adjusting the macroeconomic database to correct for data deficiencies in several important respects. A subsequent comparison with other sub-Saharan African countries shows that, contrary to traditional interpretation, Tanzania`s increased dependence on foreign assistance did not lead to a deterioration in domestic savings performance. Efficiency of investment, however, has been substantially lower in Tanzania.

Contrary to traditional interpretation, Tanzania's increased dependence on foreign assistance during its period of adjustment did not lead to a deterioration in domestic savings performance. But the efficiency of investment has been substantially lower in Tanzania than in other reforming Sub-Saharan African countries.

This book deals with the success, failures and future prospects of the Structural Adjustment Programmes (SAPs) in Tanzania. It assesses the performance of the economic reform programme in the main sectors of the economy, i.e. agriculture, industry and trade, public and private sector, transport, finance, social sectors and the environment. The book is an outcome of a workshop held in Dar es Salaam/Tanzania in August 1995. (DÜI-Hff).

Examines structural adjustment and stabilization policies in Tanzania from the mid-1980s to the late 1990s. Formulates a model to analyse the effects of these policies on overall economic growth, sectoral performance, welfare and income distribution. Highlights the policy bias against agriculture, exchange rate devaluation and the behaviour of commodity markets. Includes a review of the transition to a free market economy since independence in 1961.