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Economic Policy and Household Welfare During Crisis and Adjustment in Tanzania

Alexander H. Sarris
Rogier van den Brink
Copyright Date: 1993
Published by: NYU Press
Pages: 232
https://www.jstor.org/stable/j.ctt9qfx7v
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  • Book Info
    Economic Policy and Household Welfare During Crisis and Adjustment in Tanzania
    Book Description:

    Tanzania is now the fourth poorest country in the world. Its economic development, since independence in 1961, has been characterized by a series of internal and external shocks that have tested the resilience of the economy, the stability of its institutions, and the tolerance and inventiveness of its people. This book presents information that will have profound implications for economic policy in Tanzania. Questioning earlier reports and conclusions, the authors reject official economic statistics as failing to give even a moderately accurate picture of economic developments. This study outlines the structure of the Tanzanian economy and considers the impact of previous policies and current stabilization and adjustment measures on the poorer segments of the Tanzanian population.

    eISBN: 978-0-8147-8869-1
    Subjects: Business

Table of Contents

  1. Front Matter
    (pp. i-iv)
  2. Table of Contents
    (pp. v-vii)
  3. List of Tables
    (pp. viii-xi)
  4. List of Figures
    (pp. xii-xiii)
  5. Abbreviations
    (pp. xiv-xiv)
  6. FOREWORD
    (pp. xv-xvi)
    ALEXANDER H. SARRIS and ROGIER VAN DEN BRINK

    Work on this book started in early 1990 with the initiation of the collaborative research program concerning the impact of adjustment policies in households in Tanzania between Cornell University Food and Nutrition Policy Program (cfnpp) and the Economic Research Bureau (erp) of the University of Dar es Salaam, and supported by the Africa Bureau of the U.S. Agency for International Development (usaid). The originally envisioned output was to include mostly descriptive and background information on the Tanzanian economy as a prerequisite to subsequent survey and model building work. Given, however, the massive early literature on Tanzania, the lack of recent...

  7. 1 INTRODUCTION
    (pp. 1-4)

    The economic development of Tanzania, from independence in 1961 until now, has been characterized by a series of internal and external shocks that have tested the resilience of the economy, the stability of its institutions, and the tolerance and inventiveness of its people. Despite the fact that Tanzania is one of the world’s poorest countries (the fourth-poorest, according to the 1990 World Bank Development Report), it has managed to weather all storms with a remarkable degree of political stability, and without extreme hardships such as the famines that hit other, more-developed countries.

    The beginning of the decade of the eighties...

  8. 2 BACKGROUND
    (pp. 5-26)

    The purpose of this chapter is to describe the background against which recent developments must be examined. The first section gives a brief description of the resource characteristics of Tanzania. The next section reviews briefly the postindependence economic developments culminating in the recent adjustment efforts. The third section outlines the macroeconomic structure, while the fourth section briefly reviews the agricultural and industrial sectors.

    A low population density and a varied agricultural resource base give Tanzania a particularly robust agricultural sector. Its mineral resources include coal, iron ore deposits, phosphates, and smaller deposits of copper, lead, tin, nickel, and sulphur. Soda...

  9. 3 MACROECONOMIC POLICY AND PERFORMANCE
    (pp. 27-57)

    To understand the nature of current adjustment efforts in Tanzania, it is necessary to review analytically the evolution of macroeconomic and other key policies and government responses over the last two decades. There are four periods that seem to characterize economic developments and policies in Tanzania. The first covers the period from independence in 1961 to the Arusha declaration in 1967. The second extends from 1967 to 1973. The third covers the period from 1974 to 1982, and the final one concerns the recent years, from 1982 to now. The last period could be further subdivided into 1982–1985, when...

  10. 4 PROFILE OF INCOMES AND POVERTY IN TANZANIA
    (pp. 58-115)

    The most recent World BankWorld Development Report(1990) ranks Tanzania as the fourth-poorest country of the world, with a 1988 per capita income of only US$ 160. Yet in 1980, at the end of a decade of shocks and economic decline, the International Labour Office (ilo 1982) estimated that in the urban areas only about 15 percent of households might be considered as falling below a poverty line. In the rural areas, the estimate was about 25–30 percent, for a countrywide total of about 25 percent. This is not a very high estimate, compared to other developing country...

  11. 5 PERFORMANCE OF AGRICULTURE
    (pp. 116-145)

    In order to evaluate the performance of the Tanzanian economy before and after adjustment, a correct assessment of agricultural growth is crucial given the large share of agriculture in gdp. Ever since the mid-1970s, Tanzania’s agricultural sector has—according to official estimates—grown at rates above those of the nonagricultural sector and has increased its share in the GDP at the expense of the nonagricultural sectors (see Tables 2 and 9). Such a pattern runs counter to what is usually considered a “normal” pattern of economic growth. This atypical growth of the agricultural sector is attributed to increases in the...

  12. 6 TRENDS IN INCOMES AND WELFARE OF VARIOUS INCOME GROUPS
    (pp. 146-185)

    In this chapter we will integrate much of the structural analysis of the previous chapters to assess the impact of the recent stabilization and structural adjustment measures on the poor, as well as on other segments of the population. To the extent possible, we shall try to differentiate impacts by functional income groups.

    The intertemporal analyses of incomes that have been done up to now are very few. Bevan et al. (1988; reproduced in Bevan et al. 1990) used information from household surveys conducted in 1969, 1976/77, 1979/80, 1982/83, and 1984 to assess trends in rural and urban incomes in...

  13. 7 EVALUATION AND CONCLUSIONS
    (pp. 186-192)

    Our analysis in the previous chapters offers several conclusions, generalizations, and hypotheses for further research that we wish to summarize in this chapter.

    Perhaps the first general conclusion that can be drawn from the Tanzanian experience is that in an economy that is poor and does not have a well-developed infrastructure and bureaucracy, it is next-to-impossible to impose a complete, top-down, bureaucratic system of economic control. In an undeveloped system such as prevailed in Tanzania after independence, economic institutions such as product markets, the system of agricultural production, manufacturing production, and others, were organized along dual lines, with a small,...

  14. APPENDIX A COMPUTATION OF THE REAL EXCHANGE RATE FOR TANZANIA
    (pp. 193-195)
  15. APPENDIX B VARIABLE SHARES IN THE INDEX OF REAL HOUSEHOLD INCOMES
    (pp. 196-202)
  16. REFERENCES
    (pp. 203-210)
  17. INDEX
    (pp. 211-216)
  18. Back Matter
    (pp. 217-217)