In contrast to the bulk of the literature on foreign aid, which deals with it as an instrument of foreign policy or focuses on problems of implementation, this book examines the role of the aid agencies themselves, from a recipient's perspective, and provides longitudinal as well as comparative analysis. The principal aid agencies of China, Sweden and the United States began their operations in Tanzania simultaneously in the early 1960s but from very different ideological premises. Nonetheless, they all fell into operational traps that have limited the effectiveness of their contributions to Tanzanian development. The editors draw lessons about how foreign aid, if it is going to continue, needs to be reformed at the agency level.

Context and outlook. Economic growth is recovering from the impact of the unfavorable global economic environment and domestic factors. Growth is expected to continue strengthening, supported by improvements in the business environment and subsiding global commodity prices. Inflation is projected to remain within the central bank’s target range. Growth-friendly fiscal consolidation is underway, anchored by the ECF arrangement, and the current account deficit is narrowing reflecting fiscal consolidation, easing commodity prices, and tight external financing conditions. The medium-term outlook is positive contingent on implementation of the authorities’ reform agenda, anchored by the ECF arrangement. Climate change poses a major threat, as Tanzania is highly vulnerable but not well-prepared to address the effects of climate change.

United Republic of Tanzania: Selected Issues