Transitional Economic Policy and Policy Options in Tanzania

Published for the Economic and Social Research Foundation, this study updates information on the state of Tanzania's economy, and establishes a benchmark against which the performance of the present (third phase) government is likely to be measured. Following President Nyerere's first phase from 1961-1985, the second phase government lasted from 1985-1995. The economic recovery programme introduced in 1986 initiated a shift from an administratively controlled and public sector dominated economy, to a more market-oriented and public sector dominated economy. This study examines the status of the reforms in various sectors, and identifies the major challenges facing President Mkapa during the third phase of 1995-2000 and the policy options his government should consider.