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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Why are donors so enthusiastic about current economic performance?
Author:Danielson, AndersISNI
Year:1996
Periodical:Tanzanian Economic Trends
Volume:10
Issue:1-2
Period:December-June 1997
Pages:14-26
Language:English
Notes:biblio. refs.
Geographic terms:Tanzania
East Africa
Subjects:economic policy
Economics, Commerce
Macroeconomics
economic conditions
Development policy
Bilateral aid
Aid institutions
Structural adjustment programmes
international monetary relations
Abstract:Bilateral and multilateral organizations in Tanzania do not necessarily share the same set of objectives. In particular, the IMF focuses on short-term issues relating to fundamental macroeconomic balances and, ultimately, Tanzania's capacity to repay the ESAF (enhanced structural adjustment facility) loans. Donors, by contrast, are interested above all in poverty alleviation. Consequently, the government of Tanzania may find itself in a situation in which it cannot fulfil its obligations to the IMF as well as keep in line with the partnership agreement with bilateral donors agreed in January 1997. The most obvious sources of potential conflict between the various stakeholders are the cash budget, monetary policy, and the savings-investment gap. Analysis of these issues suggests that donors endorse policies and performance which do not necessarily further their own objectives. A possible remedy is for donors to take the opportunity of the newly launched partnership to pool resources in order to be able to assess the situation from a poverty alleviation rather than a stabilization perspective. Bibliogr., notes, ref.
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