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Structural Adjustment, Economic Performance, and Aid Dependency in Tanzania
Author:
Isha Agrawal null

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,
Zafar U. Ahmed null

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,
Mr. Michael Mered
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Mr. Roger Nord
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Series:
IMF Working Papers
Volume/Issue:
Volume 1993: Issue 066
Language:
English
Publication Date:
01 Aug 1993
DOI:
https://doi.org/10.5089/9781451848748.001
ISBN:
9781451848748
ISSN:
1018-5941
Pages:
44
Keywords:
WP; Tanzania; GDP; structural adjustment; policy stance; current account; economic reform program; Tanzania's economy; saving-investment gap; inflation rate; economic growth rate; structural adjustment program; Tanzanian shilling; Domestic savings; Current account deficits; Exports; Sub-Saharan Africa
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund