Structural Adjustment, Economic Performance, and Aid Dependency in Tanzania

By Isha Agrawal, Zafar U. Ahmed, Michael Mered, Roger Nord

August 1, 1993

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Isha Agrawal, Zafar U. Ahmed, Michael Mered, and Roger Nord. Structural Adjustment, Economic Performance, and Aid Dependency in Tanzania, (USA: International Monetary Fund, 1993) accessed September 18, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Balance of payments, Current account deficits, Domestic savings, Exports, Foreign aid, Foreign exchange, International trade, National accounts

Keywords: Current account, Current account deficits, Domestic savings, Economic growth rate, Economic reform program, Exports, GDP, Inflation rate, Policy stance, Saving-investment gap, Structural adjustment, Structural adjustment program, Sub-Saharan Africa, Tanzania, Tanzanian shilling, Tanzania's economy, WP

Publication Details

Pages:

44
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1993/066
Stock No:

WPIEA0661993
ISBN:

9781451848748
ISSN:

1018-5941

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