Tanzania structural adjustment program

Unknown May 14, at AM. Unknown May 18, at AM. Unknown May 31, at PM. Unknown June 20, at AM. Unknown February 7, at PM. Unknown August 3, at AM.

Unknown January 22, at AM. Unknown April 22, at PM. Unknown August 16, at AM. Unknown December 9, at PM. Also the government ended up in importing manufactured goods in higher prices resulting to low profits. The introduction of cost sharing in education and health. Before the introduction of these reforms the government used to provide these services freely, but now the people were forces to contribute. Due to this, many people could not access these services because they were not able to contribute.

There was a policy of trade liberalization. This policy aimed that the government should allow free trade where the price of commodities was controlled by donor countries. There were frequent price changes which aimed at benefiting the foreigners and not the producers.

Creation for conducive environment for foreign investments. The government had to put easy, friendly and flexible conditions that were more beneficial to the investors than the country.

Introduction of democratization which is understood as multipartism. The government was under one party rule but it was forced to adopt multiparty system as a condition to receive loans and grants. Although the aim of Structural Adjustment Programme was said as to improve the socio-economic problems of the country, it proved failure. Failure of Structural Adjustment Program in Tanzania can be seen in; Since Tanzania has been implementing social and economic reforms prescribed by SAP, social services are still a problem both in quantity and quality.

The urban areas cities and towns has witnessed the problems multiplying rather than decreasing. People have difficulties in accessing clean water, adequate shelter, better health care etc. SAP emphasized on reducing government expenditure on the unproductive sectors social development in urban areas in Tanzania. Lack of sufficient budget has made it difficult to finance a variety of urban development projects including the provision of adequate housing.

As a result seventy percent of the urban populations live in poor houses without necessities such as sanitation and adequate garbage collection. For example areas like Vingunguti and Hananasif in Dar es Salaam are composed of slum settlement without proper sewage systems. SAP has reduced the health budget significantly. Information from the ministry of finance shows that, every Tanzanian is currently spending five US Dollar a year to service foreign debts but spends only two US Dollars for his or her own health.

SAP has exacerbated gender issue in, for example work places, wage differences between men and women are growing. For example in Tanzania and Nigeria, poor and middle class women are giving up formal employment for informal sector work because it pays more.

SAP also due to its export promotion policy, has increased extractive activities such as logging and mining leading to deforestation and mining pollution and the reduction of ordinary people.

Nyerere the first president of Tanzania who tried to resist this program saying it was just for the Washington consensus. Another critic was made by the United Nations economic commission for Africa that SAPs are too narrow, rely mainly on fiscal and monetary instruments and have little relevance to long-term development goals. Another failure is seen in agricultural sector following the devaluation of Tanzanian shilling.

For example in , the rate was shillings per dollar; this situation raised the price of imported inputs. This has resulted to poverty implication to the livelihood of farmers in the country. The removal of fertilizer subsidies had the effect of raising the price of fertilizers and therefore reducing profit. The removal of subsidies on maize meal is likely to have negatively affected urban consumers.

However, under Structural Adjustment Programmes there was sound macroeconomic substantial growth in economy. Problems existed in this area. Legislation was geared toward control, rather than proper incentive structures. Enforcement was also poor because staffing was limited and fines were continually eroded by inflation. During the 's, Tanzania tried its own structural adjustment programs. The details of these programs were not discussed as Tanzania could not muster enough external resources to implement them successfully.

The aim was to achieve sustainable growth in real income and output. Better pricing of crop production, improved product and input marketing, an increase in government outlays for agriculture, an increase in industrial capacity utilization by liberalizing raw material imports, a decrease in the balance of payments deficit through devaluation, export incentive schemes, and foreign exchange liberalization, and better control of the budget deficit and money supply were thought to be the key ingredients necessary to achieve this goal.

Although agricultural prices increased, producers' benefits were reduced by inflation. Also, the marketing reform failed to improve producer margins. The goal of the new program was to restore the physical infrastructure and ease social impacts. While, industrial capacity and nontraditional exports other than agriculture increased, farmers did not benefit as prices for their crops did not improve and prices for inputs such as fertilizer rose.

Simultaneously, job creation declined and minimum wages actually decreased. Specifically, structural adjustment greatly impacted Tanzania's already large problems: deforestation and soil erosion. Each will be discussed in turn. Clearing continues today because of poorly designed land laws that do not address encroachment and structural adjustment's impact on input pricing.

Therefore, government consists…. Revolution can be described or defined in so many ways, but basically it is a rudimentary alteration in power that happens during a short period of time….

These policy changes are conditions for getting new loans from the International Monetary Fund IMF or World Bank, or for obtaining lower interest rates on existing loans. Conditionalities are implemented to ensure that the money lent will be spent in accordance with the overall goals of the loan.