Economic Reforms in Tanzania

October 13, 2010Economic Reformby EconomyWatch


Economic Reforms in Tanzania had been adopted in 1986 to combat the ongoing financial crisis of the country. Through this reform Tanzania was able to achieve macroeconomic stability which helped to drive the economic growth.

Reasons Behind the reform:
  1. The average growth in Gross domestic product per annum had been very poor during the crisis period.
  2. The amount of per capita income was decreasing which increased the poverty level.
  3. Inefficient state enterprises, less productivity, inflated bureaucracies and shortage in foreign exchange increased the government's financial burden.
  4. The Government of Tanzania failed to ensure a sustained development and economic growth.
Reform Phases:

The economic reform in Tanzania had undergone through several phases. These are:

  1. Tax Reform.
  2. Public Sector Reform.
  3. Financial Sector Reform.
  4. Innovation in Rural Finance.
  5. Telecommunications Sector Reform.
  6. Cotton Sector Reform.
Effects of reform:

Through economic reform, Tanzania was able to solve the problem of poverty. A steady improvement in financial and economic performances had been achieved. Moreover, the application of structural reforms the government payed more attention to deliver the public services.

GDP growth increased significantly which drove the rise in per capita income in the rural and as well as urban areas. Another important effect of Tanzania's economic reform was it's transformation to a free market economy from a socialist one. In this scenario the main challenge of the government was to find the ways to implement economic reform on the provision of social services with a negligible opposite effect.

Economic Reforms in Tanzania
  • Tax Reform in Tanzania
  • Public Sector Reform in Tanzania
  • Financial Sector Reform in Tanzania
  • Innovation in Rural Finance in Tanzania
  • Telecommunications Sector Reform in Tanzania
  • Cotton Sector Reform in Tanzania
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