Finance & Development, June 1985: 22
Furthermore, with external funding, the government plans to make the port of Zanzibar a free port. Rehabilitation of current port facilities and plans to extend these facilities will be the precursor to the free port. The island's manufacturing sector is limited mainly to import substitution industries , such as cigarettes , shoes , and process agricultural products.
In , the government designated two export-producing zones and encouraged the development of offshore financial services. Zanzibar still imports much of its staple requirements, petroleum products, and manufactured articles.
From Wikipedia, the free encyclopedia. Economy of Tanzania Dar es Salaam , the financial centre of Tanzania. Inflation CPI. Base borrowing rate.
Population below poverty line. Gini coefficient. Ease-of-doing-business rank. FDI stock. Current account. Gross external debt. Public debt. Credit rating. Main article: Agriculture in Tanzania. Main article: Mining industry of Tanzania. International Monetary Fund. Retrieved 9 October June Retrieved June Dar es Salaam. National Bureau of Statistics Tanzania.
IIFL Derivatives Market Update
February Retrieved 12 February Bank of Tanzania. Retrieved 9 December Retrieved 19 May World Bank. Human Development Reports. Retrieved 23 January November Retrieved 1 January CIA World Factbook. Retrieved 26 July The Guardian. Retrieved 19 December A History of the Global Economy. From to the Present.
Cambridge University Press. Retrieved 17 October The World Factbook. Retrieved 12 July Poverty Report" PDF. East African Community. Retrieved 21 October Archived from the original on 28 August Retrieved 10 December Archived from the original on 26 October Archived from the original PDF on 24 March Retrieved 10 May Archived from the original on 20 October Retrieved 18 February Retrieved 16 July Investment Adventures in Emerging Markets. Archived from the original on 5 December This section is empty. The Conference may wish to consider and discuss measures and policies that can improve the investment climate in African countries in order to stem the flow of resources out of the continent, focussing on policies for creating and sustaining a consistent and stable macroeconomic environment and promoting capital markets.
It may further wish to discuss experiences with respect to the impact of simpler classification and administrative procedures in key areas — such as taxation, export and import licensing — on corruption by officials, and the impact of eliminating market distortions on discretionary powers of government officials and corruption. Some changes in the banking regulations of developed countries, where corruptly obtained flight funds are invested, could also facilitate repatriation of capital and forestall capital flight. The Conference may also wish to consider modalities for engaging developed countries on reforming aspects of their banking regulations that create a "safe heaven" for corruptly obtained and exported funds.
The challenges of mobilizing domestic resources: In the medium-to-long run, sustainable development will require higher levels of domestic resource mobilization. Section VI considers key issues in raising the savings effort — from its present level of about 18 per cent to about 24 per cent of GDP the average for all developing countries as a group , which was assumed in the scenario that generates the resource gap in Section II.
Policies to raise the savings rate need to focus on macroeconomic stability, financial and capital market reforms, financial deepening through institutional reforms and innovative savings instruments, and interest rate policy management. For public savings, the potential for further implementation of tax reforms, cost-sharing in the provision of public goods and services, the management of the terms of trade-related booms and the enhancement of public expenditure productivity are important policy areas on which to focus.
The Conference may wish to discuss ways of raising private savings, including strengthening and improving reliability of thrift institutions and incentives to save, as well as the need for broadening the range of flexible financial savings instruments. Ministers at the Conference may also wish to review and share experiences with tax reforms in their countries and associated problems, and discuss burden-sharing arrangements in the provision of public goods and services, as well as measures they have implemented to raise the effectiveness of government expenditure.
The development of capital markets has emerged as important in raising the level of domestic savings, and as critical to attracting foreign private investment, stemming and reversing capital flight. Its functions are to serve as a clearing-house for the exchange of views and to provide training and other services needed to build and strengthen the capacity of capital markets in Africa. Because of the limitations of small nation-states — from economic and financial points of view — and the advantages to be gained from operations in the context of larger financial markets, a subregional approach to capital market development, including the provision of support services, is very appealing.
Ministers may wish to discuss practical steps for a subregional approach to capital market development. How can the African Capital Markets Forum be further supported and rendered more effective in its functions?
Section VII analyses issues of external debt and their resource implications. It concludes that what African countries need is the release of more resources from debt servicing for financing development and for creating conditions that encourage inflows of private foreign investment.
The current HIPC Initiative, while an important instrument for delivering debt relief, is rather restrictive in its eligibility criteria and its technical basis for determining such eligibility — including the length of the "track record". But many creditors, particularly multilateral institutions, are extremely sensitive about the idea of debt cancellation, which is a political, rather than a technical, issue. That said, one has to note that the political will to cancel debts does exist — the UK, for example, has already unilaterally cancelled portions of debts owed it by the poorest countries, mostly African countries.
Research shows that relieving the debt overhang could be the most effective way to stem and reverse capital flight and to attract private foreign investment, as the sustainability of a stable macroeconomic framework would look more credible in the eyes of investors. Five variants of enhanced debt relief proposals have been put forward for consideration at the forthcoming G-7 meeting in June , in Cologne, Germany.
The proposals are aimed first and foremost at strengthening and accelerating the implementation of the HIPC Initiative with a view to enabling as many countries as possible to make the necessary adjustments and receive debt relief quickly and comprehensively, but with certain important quid pro quo caveats. In a way, the proposals represent a shift in the official position of the industrialized creditor countries, which hitherto rallied behind the existing mechanisms and terms of the HIPC, without entertaining pleas for their revision.
There is a lot of common ground between the proposals—the significant exception being the proposed additional sale of IMF gold. If adopted, the proposals could significantly reduce the waiting period before effective debt relief is granted the German proposal would reduce it from six to three years and result in significantly more countries becoming eligible for debt relief, in contrast with the current HIPC process.
The Conference may wish to revisit the ministerial statement issued at the conclusion of the Sixth Session of the Conference of Ministers of Finance, which addressed these issues. The Conference may then wish to deliberate on the various proposals laid before the forthcoming Cologne G-7 summit meeting, as well as those of other stakeholders that are geared to finding a "lasting solution to the problem".
These include the UNCTAD proposal of applying established national insolvency procedures, with independent assessment to determine a country's debt sustainability, and calling for immediate write-off of all non-collectable debts. The Conference may further wish to discuss and share experiences of the application of non-HIPC debt relief instruments, such as debt conversion, intended to benefit middle-income countries, mainly in North Africa. Impact, lessons and policy implications of the East Asian crisis: Section VIII discusses the impact, lessons and policy implications for Africa of the East Asian crisis and issues related to the possible reform of the international financial system.
It concludes that the crisis has had a differing impact on different national economies. While oil-exporting countries are bearing the brunt of the crisis, others have experienced offsetting effects from lower oil prices and lower commodity prices. Because most African economies are relatively unintegrated in the world economy, the impact has been minimal from the point of view of financial flows.
Nevertheless the banking and currency crisis in Asia is a wake-up call for Africa and has profound policy lessons. Transparency in financial transactions must be enforced and bank supervision and regulation by central monetary authorities in Africa must be strengthened and they must remain vigilant at all times. The devaluation of currencies of some Asian countries that produce commodities in competition with Africa — e. So, Africa must take the necessary steps to remain competitive. The Conference may wish to discuss and share experiences of the direct and indirect impact of the recent East Asian crisis on the economies of Africa, and more specifically, on trade and investment flows.
The Conference may further wish to consider strategies for forestalling an East Asian-type crisis in Africa's financial markets in light of the likely increase in private capital flows to the continent in future. Additionally, the Conference may wish to discuss measures to prevent possible loss of markets due to more competitive agricultural products from East Asia, following recent currency devaluation.
At the international level, proposals are being debated on how to strengthen or reform the present international financial system to prevent a re-occurrence of further crises; to respond and resolve them quickly — should they occur, and to strengthen institutional mechanisms to best support stable global financial markets.
Central to the crisis prevention debate is the question of fostering better policies and more effective institutions at the national level, including sound macroeconomic policies, robust financial systems and sound infrastructure — economic, social, governance, judicial, accounting, auditing and reporting. The issue here is how to develop and agree on international standards, principles and practices on all aspects of national policy and institutions that are judged to be of central importance for successful integration in the international financial system.
A key element in the crisis response and resolution debate is the contentious issue of how to strengthen the international lender-of-last-resort function, while addressing moral hazard and ensuring that the private sector is sharing appropriately in the risks. Coping and transition issues for countries in crisis are also under active debate — provision of emergency financing, financial restructuring and mitigation of the social and human costs of financial crises.
Institutional strengthening or reform has elicited hot and sometimes emotional debates, including calls — mostly by non-G-7 countries — to scrap the IMF and possibly start regional financial institutions to parallel the IMF. However no proposals have been comprehensively and openly debated; nor have alternative architectural forms of a possible new system been unveiled to the public by G-7 countries, which hold the trump card.
- Economy of Tanzania.
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The G-7 meeting in Cologne is expected to look at these issues. An additional concern for Africa, in the debate on the possible new international financial architecture, is how to accommodate the legitimate need of poor developing countries for development financing in a situation of volatile trade, finance and capital markets. In this connection, the timing of the liberalization of the capital account is an issue of interest to Africa, as premature liberalization could prove disastrous to the development effort.
Another concern should be the new stringent and streamlined reporting requirements under consideration by the IMF. Currently, only South Africa is a participant in the systems, which are likely to become important disclosure mechanisms that private investors are likely to follow keenly in their decisions on where to invest. Already thin in statistical capacity, Africa will be hard pressed to comply with these requirements. The Conference may wish to share views on the options — currently being debated in the international community — on how best to reform or strengthen the international financial architecture.
Ministers may further wish to discuss and adopt a follow-up plan to make the voice of Africa heard in the deliberations.
They may also wish to adopt a pro-active strategy for accessing bilateral or multilateral technical cooperation facilities to strengthen national and regional capacities for reporting international trade and financial flows in compliance with the new requirements to be applied by the IMF. This section reviews the recent performance of African economies in relation to the objective of poverty reduction. It also derives macroeconomic policy targets for the medium-to-long term with respect to growth and investment requirements that are consistent with specific poverty-reduction goals.
The objective is to set the stage for the discussion of the resource and policy challenges African policy makers face in moving forward with the poverty reduction agenda, through enhanced growth. After about four decades of independence and numerous development assistance programmes, poverty in Africa continues to be widespread, deep and severe. It is estimated to affect the lives of 60 per cent of the population in sub-Saharan Africa, and 27 per cent in the North African subregion. While there are many important factors in the African poverty profile, poor economic performance is at the root of the problem.
Since the mids however, the continent has experienced a rise in many economic indicators. Real GDP growth accelerated to 4.