A group representing 14 donor nations and 11 international organisations have indicated that they will provide US$1.3 billion to Tanzania to support the country’s economic adjustment and development programme in 1990.

The Consultative Group for Tanzania meeting at the World Bank’s Paris Office from December 18th to 20th 1989 said a large portion of the aid would be targeted at balance-of-payments support and the country’s social sectors.

The Group praised Tanzania’s progress in implementing its Economic Recovery Programme launched in 1986, noting that policy changes had helped raise agricultural productivity and increased the economic growth rate to about 4% per year.

At the meeting, the Government announced its plans to move ahead with the second phase of its Economic Recovery Programme. Endorsing the plan, the Group said it was pleased that the Government had incorporated a ‘priority social-action programme’ into the overall recovery programme.

The Group emphasised that further action is still needed in improving public-sector management and reforming parastatals. Attention should also be given to additional reforms in the agricultural marketing and cooperative systems and in the financial sector. The Group also supported a stronger role for the private sector in the economy.

The World Bank has published detailed tables indicating how different groups of countries have performed during the decade 1977 to 1988. Tanzania’s Gross National Income Per Capita was (in 1980 US dollars) $300 in 1977 but had fallen to $240 in 1988. Figures for Kenya were $440 in 1977 and $390 in 1988. Tanzania shares with Burkino Faso, Burundi Malawi, Mali, Ethiopia, and Somalia the lowest income amongst 40 Sub-Saharan countries whose estimated incomes are published in the latest World bank tables. Tanzania comes fifth from the bottom. By comparison the 1988 figure for the United States is $14,080 and for the countries of the European Community $11,640 – World Bank News.

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