Economic Policy and Household Welfare During

Tanzania is now the fourth poorest country in the world. Its economic development, since independence in 1961, has been characterized by a series of internal and external shocks that have tested the resilience of the economy, the stability of its institutions, and the tolerance and inventiveness of its people. This book presents information that will have profound implications for economic policy in Tanzania. Questioning earlier reports and conclusions, the authors reject official economic statistics as failing to give even a moderately accurate picture of economic developments. This study outlines the structure of the Tanzanian economy and considers the impact of previous policies and current stabilization and adjustment measures on the poorer segments of the Tanzanian population.

List of Tables
List of Figures
Foreword
Abbreviations
Introduction	p. 1
Background	p. 5
Population, Natural Resources, and Agroclimatic Zones	p. 5
Postindependence Economic Developments	p. 10
General Structure of the Macroeconomy	p. 17
Macroeconomic Policy and Performance	p. 27
Interpretation of the Crisis and the Adjustment Debate	p. 28
Macroeconomic Performance under Adjustment	p. 32
The Devaluation Debate in the Context of Adjustment	p. 41
Financing of Public and External Deficits and Monetary Adjustments	p. 43
The Hidden Economy in Tanzania	p. 48
Profile of Incomes and Poverty in Tanzania	p. 58
Population and Some Household Characteristics	p. 59
Structure of Income	p. 64
Distribution of Income	p. 76
Income Differentiation	p. 87
Consumption Patterns	p. 88
Poverty Line and Extent of Poverty	p. 103
Performance of Agriculture	p. 116
The Institutional Setting	p. 117
Official Sources of Agricultural Data	p. 120
A First Assessment Based on Official Statistics	p. 122
An Alternative Scenario	p. 124
Prices	p. 125
Survey Data	p. 130
Imports	p. 131
Parallel Exports	p. 133
Malnutrition	p. 136
Agricultural Structure and Technology	p. 137
Trends in Incomes and Welfare of Various Income Groups	p. 146
How Real is the Decline in Rural and Urban Incomes during the "Nyerere Experiment?"	p. 147
A Method for Analyzing Household Incomes	p. 159
Classification of Households	p. 164
Composition of Agricultural Income	p. 166
Consumption Patterns	p. 171
Prices	p. 172
Evaluation and Conclusions	p. 186
Appendix A - Computation of the Real Exchange Rate for Tanzania	p. 193
Appendix B - Variable Shares in the Index of Real Household Incomes	p. 196
References	p. 203
Index	p. 211
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Economic Policy and Household Welfare During Crisis and Adjustment in Tanzania

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