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Essay / Structural Adjustment Programs (SAPs) in Tanzania
Tanzania is one of the poorest countries in the world in terms of per capita income, with an economy heavily dependent on agriculture. The World Bank, IMF and other donors have contributed financially to rehabilitating Tanzania's sluggish economic infrastructure and reducing poverty through structural adjustment programs (SAPs). Agriculture remains the most important part of Tanzania's economy, so improving agriculture was the only way to help Tanzanians, as most of Tanzania's population lives in the countryside where agriculture is practiced. Many Tanzanians could therefore benefit greatly from the PAS program through improved agriculture (UKEssays, 2017). Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay One of the main plans of the SAPs in 1985 was to increase the production of food and export crops, which was possible by improving the market system for these crops and also providing more incentives to production. Nevertheless, the state government failed to administer the SAP measures, following this, the IMF and the World Bank withdrew their support to the government and either other donor countries refused to grant grants and loans, again the country's achievements show a decline in economic performance in the following years. The poor weather conditions led to the destruction of people's properties and crops, as agriculture is one of the most important sectors of the national economy, this led to poor performance and therefore gross domestic product low, not only agriculture was affected but also other economic sectors. business was terribly affected. In addition to the agricultural improvement imposed by the IMF and the World Bank, it was to transform the country's economy, which involved a shift to a market economy and the privatization of the public sector in Tanzania. Privatization brought many benefits, including revival of a dead industry, increased domestic production. Tanzania experienced many economic problems as the country was emerging from the war with Uganda. Generally speaking, the global economy was collapsing, trade liberalization was more likely an incentive to attract many external and internal investors to consider and invest in Tanzania. Indeed, the number of investors has increased and national production has also increased, as has trade liberalization. to the removal of many trade barriers such as price and market reforms, tariffs, embargoes and customs duties. Trade liberalization under the SAPs guided Tanzania and other developing countries towards the open market system where the forces of supply and demand are the only antecedent of prices in the market, the government so is not supposed to interfere in any issue. Last but not least, throughout the SAP economic recovery program that the IMF and the World Bank launched, among other measures to renovate and rebuild Tanzanian infrastructure through the rehabilitation of the remaining infrastructure in which the colonial government placed because it was necessary to improve these infrastructures as they fell into disrepair, particularly on roads, railways, airports and ports. The main importance of infrastructure is to promote the economic performance of the country and make the country more accessible in all regions. The objective.