Tanzania's Growth Process and Success in Reducing Poverty

Abstract

Since 1995, Tanzania has made major progress in economic reform and macroeconomic stabilization, resulting in strong growth and low inflation. This paper reviews Tanzania''s growth performance and prospects and assesses the impact of growth on poverty. It finds that growth has been increasingly driven by higher factor productivity and that a continuation of recent policies should allow Tanzania to grow above 5 percent a year over the medium term. Furthermore, it finds that growth since 1995 has resulted in a significant decline of poverty and that prospects are favorable for Tanzania to attain its objectives for reducing income poverty by 2015.Poverty;Economic growth;Poverty reduction;per capita income, growth rate, growth rates, total factor productivity, gdp growth, growth accounting, terms of trade, skilled labor, per capita income growth, real gdp, trade regime, export growth, gdp growth rate, regional integration, pro-poor growth, import duties, factor shares, aggregate demand, domestic market, trade shock, export crops, gdp per capita, intermediate goods, income distribution, value-added tax, gdp growth rates, external tariff, international standards, sectoral growth rates, agricultural exports, exchange rate risk, export performance, external shocks, neighboring countries, liberalization of trade