Topic > Structural Adjustment Programs (SAP) in Tanzania

Tanzania is one of the poorest countries in the world in terms of per capita income, whose economy depends heavily on agriculture. Both the World Bank and the International Monetary Fund, as well as other donors, have contributed funds to rehabilitate Tanzania's sluggish economic infrastructure and alleviate poverty through Structural Adjustment Programs (SAPs). Agriculture is still the most important part of Tanzania's economy, so improving agriculture was the only way to assist Tanzanians because most of Tanzania's population lives in the countryside where agriculture takes place, so many Tanzanians could benefit greatly from the SAPs program through improved agriculture (UKEssays, 2017). Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay One of the main plans of the SAPs in 1985 was to increase food production and export crops, which was possible by improving the market system for these crops and also providing greater incentives for production. However, the state government failed to administer the SAP measures, following this, the IMF and World Bank withdrew from supporting the government and other donor countries refused to provide grants and loans, again the country's results show a decline in the following years in economic performance was because of the bad weather conditions which led to the destruction of people's properties and crops since agriculture is one of the most important sectors of the national economy, they led to poor performance and thus low gross domestic product, not only agriculture was affected but other economic sectors activities were also terribly affected. In addition to the improvement of agriculture imposed by the IMF and the World Bank, it was to transform the country's economy, that is, the transition to free market economy along with the privatization of the public sector in Tanzania, privatization led to many benefits including, recovery of dead industry, increase in national production Tanzania experienced many economic problems as the country was coming out of the war with Uganda. In general, the world economy was collapsing, trade liberalization was more likely an incentive to attract many internal and external investors to consider and invest in Tanzania, in fact the number of investors increased and domestic production also increased increased, just as trade liberalization has led to the shifting of many trade barriers such as price and market reforms, tariffs, embargoes and customs duties. Trade liberalization in SAPs was driving Tanzania and other developing countries towards open market system where forces of supply and demand are the only antecedent of price in the market, so government should not interfere in any problem. Last but not least, through the SAP economic recovery program that the IMF and the World Bank have initiated, among other measures, to renovate and rebuild Tanzania's infrastructure through the rehabilitation of the remaining infrastructure where it was placed by the colonial government because it was necessary to improve these infrastructures as they were in poor condition, including roads, railways, airports and ports. The main importance of infrastructure is to promote the economic performance of the country and make it more accessible in all regions. The aim of the SAPs was to make Tanzania change its economies from a planned economy to.