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Tanzania’s Growth Process and Success in Reducing Poverty

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  • Mr. Volker Treichel

Abstract

Since 1995, Tanzania has made major progress in economic reform and macroeconomic stabilization, resulting in strong growth and low inflation. This paper reviews Tanzania's growth performance and prospects and assesses the impact of growth on poverty. It finds that growth has been increasingly driven by higher factor productivity and that a continuation of recent policies should allow Tanzania to grow above 5 percent a year over the medium term. Furthermore, it finds that growth since 1995 has resulted in a significant decline of poverty and that prospects are favorable for Tanzania to attain its objectives for reducing income poverty by 2015.

Suggested Citation

  • Mr. Volker Treichel, 2005. "Tanzania’s Growth Process and Success in Reducing Poverty," IMF Working Papers 2005/035, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2005/035
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    References listed on IDEAS

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    1. International Monetary Fund, 2003. "Tanzania: Selected Issues and Statistical Appendix," IMF Staff Country Reports 2003/002, International Monetary Fund.
    2. Mr. Brou E Aka & Mr. Bernardin Akitoby & Mr. Amor Tahari & Mr. Dhaneshwar Ghura, 2004. "Sources of Growth in Sub-Saharan Africa," IMF Working Papers 2004/176, International Monetary Fund.
    3. Ravallion, Martin & Datt, Gaurav, 2002. "Why has economic growth been more pro-poor in some states of India than others?," Journal of Development Economics, Elsevier, vol. 68(2), pages 381-400, August.
    4. Ravallion, Martin & Datt, Gaurav, 1999. "When is growth pro-poor? Evidence from the diverse experiences of India's states," Policy Research Working Paper Series 2263, The World Bank.
    5. International Monetary Fund, 2004. "Tanzania: Selected Issues and Statistical Appendix," IMF Staff Country Reports 2004/284, International Monetary Fund.
    6. Abdelhak Senhadji, 2000. "Sources of Economic Growth: An Extensive Growth Accounting Exercise," IMF Staff Papers, Palgrave Macmillan, vol. 47(1), pages 1-6.
    7. Susan M. Collins & Barry P. Bosworth, 1996. "Economic Growth in East Asia: Accumulation versus Assimilation," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 27(2), pages 135-204.
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    Cited by:

    1. Hazel Gray, 2013. "Industrial policy and the political settlement in Tanzania: aspects of continuity and change since independence," Review of African Political Economy, Taylor & Francis Journals, vol. 40(136), pages 185-201, June.
    2. Miss Nkunde Mwase, 2006. "An Empirical Investigation of the Exchange Rate Pass-Through to Inflation in Tanzania," IMF Working Papers 2006/150, International Monetary Fund.
    3. Jonathan D. Ostry & Andrew Berg & Siddharth Kothari, 2021. "Growth‐equity trade‐offs in structural reforms," Scottish Journal of Political Economy, Scottish Economic Society, vol. 68(2), pages 209-237, May.
    4. Mintewab Bezabih & Muyeye Chambwera & Jesper Stage, 2011. "Climate change and total factor productivity in the Tanzanian economy," Climate Policy, Taylor & Francis Journals, vol. 11(6), pages 1289-1302, November.
    5. Li, Ying & Rowe, Francis, 2007. "Aid inflows and the real effective exchange rate in Tanzania," Policy Research Working Paper Series 4456, The World Bank.
    6. Sebastian Edwards, 2014. "Is Tanzania a Success Story? A Long-Term Analysis," NBER Chapters, in: African Successes, Volume I: Government and Institutions, pages 357-432, National Bureau of Economic Research, Inc.
    7. repec:nbr:nberch:13442 is not listed on IDEAS

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