Economic Policy and Household Welfare During Crisis and Adjustment in Tanzania
Publication Year: 1993
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.
Published by: NYU Press
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List of Tables
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List of Figures
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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...
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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...
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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...
3. Macroeconomic Policy and Performance
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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...
4. Profile of Incomes and Poverty in Tanzania
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The most recent World Bank World 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...
5. Performance of Agriculture
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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...
6. Trends in Incomes and Welfare of Various Income Groups
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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...
7. Evaluation and Conclusions
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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...
Appendix A: Computation of the Real Exchange Rate for Tanzania
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The method used for computing the real exchange rate is a simplified version of the IMF methodology (Maciejewski 1983), as follows. First, we choose the major hard-currency countries that are the main import and export trade partners...
Appendix B: Variable Shares in the Index of Real Household Incomes
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Expression (6.2) in Chapter 6 could be considered to hold quite accurately for predicting real income changes from one period t to the next t 1. However, in period t 1 price changes will induce shifts in the shares, and hence the expression...
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Page Count: 224
Publication Year: 1993