The Economy of Tanzania
Liberalisation and the Return of Markets
From the mid-1980s, Tanzania cut state control, freed prices, privatised firms and opened to foreign investment, restoring growth.
The economy opened up.
Crisis
By the 1980s, shortages and debt forced change.
Reforms
Prices, exchange rates and trade were liberalised, often with IMF and World Bank support.
Growth
Growth of 5 to 7 per cent a year followed from the 2000s.
Limits
Growth was concentrated in mining, telecoms and construction, and poverty fell more slowly.
A new shop
Private traders replaced state shops, and goods returned to shelves.
Assuming growth alone ends poverty
Distribution and jobs matter.
Key takeaways
- Reforms began in the mid-1980s.
- Markets replaced control.
- Growth returned.
- Poverty fell slowly.
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