Structural Adjustment, Economic Performance, and Aid Dependency in Tanzania

Isha Agrawal, Zafar Ahmed, Michael Mered and Roger Nord

No 1993/066, IMF Working Papers from International Monetary Fund

Abstract: 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.

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 (search for similar items in EconPapers)
Pages: 44
Date: 1993-08-01
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Citations: View citations in EconPapers (7)

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