Managing Tanzania's economy in transition to sustained development

Managing Tanzania's economy in transition to sustained development

What are the challenges faced in creating an environment for economic growth?

The paper put forward the following main observations: The Tanzania economy so far has achieved modest growth recovery, price stability, improved consumer choice and enhanced civil liberties. However, high dependence on aid, deterioration of public services, low investment and institutional decay were noted. Many obstacles were observed on private sector expansion and resulting in high cost of doing business. In addition, recent developments in global trends and regional integration challenge Tanzania to respond by carrying out an appropriate position for itself in the global economy.

The experience with economic reforms to date has revealed that the following challenges need to be addressed:

  • long-term fiscal and external viability of the economy to be established
  • policy measures to strengthen bank competition should be taken
  • greater attention to be paid on the quality of growth, so that it is more effective in reducing poverty
  • initiatives need to be taken to enhance transparency in the operations of the governing institutions, reduce bureaucracy and improve legal framework and supportive infrastructure
  • new attitudes and culture in both the government and business sectors should be cultivated, so that they are consistent with facilitation and promotion of business in a competitive market environment
  • greater effort is needed to build the capacity to monitor the major trends in region and world economy to enable Tanzania to respond and adapt to the new situation by tapping opportunities and averting threats

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