Aid, industrialisation and economic development in Tanzania: some new ideas and old debates

Aid, industrialisation and economic development in Tanzania: some new ideas and old debates

Recommendations for Tanzanian development: what policies are efficacious in the context of stable aid assistance?

This article suggests that Tanzania, like most developing countries cannot count on any significant change in the international economic environment in so far as aid is concerned. Policy recommendations within this context:

  • Determine and put in place a policy and incentives regime, which would attract investments and promote mobilisation of domestic resources (human and capital)
  • Instil a spirit of self-reliance in all social and economic activities
  • Accept and utilise only aid and capital flows which complement domestic efforts and resources
  • Speed up the process of privatising state-owned enterprises
  • Allocate more resources and award better incentives to the revenue collection function
  • Allocate aid to identified priority areas
  • Provide attractive incentives to investors in the sector of financial infrastructure
  • Put in place mechanisms for the co-ordination of aid activities
  • Improve the sustainability of aid supported projects
  • Improve the management of government budget
  • Improve the Central Bank's regulatory and supervisory responsibilities of banks

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