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... with an implementation date of 1987. The goal of the ERP was to achieve sustainable growth in real income and output (Reed, 1996). The wide-sweeping reform included policies for: better pricing of crop production, improved product and input marketing, an increase in government outlays for agriculture, an increase in industrial capacity utilization by liberalizing raw material imports, a decrease in the balance of payments deficit through devaluation, export incentive schemes, foreign exchange liberalization, and better control of the budget deficit and money supply. To support the success of the ERP, Tanzania obtained an eighteen month standby arrangement with the IMF in 1985 and became ...

... Tanzania elected a new president, Benjamin Mkapa who regained the confidence of the international donor committee. (Wobst, 2001). In 1996, the IMF approved a three-year credit to support new ERP efforts for 1996 to 1999. The new ERP emphasized fiscal performance measures and structural reforms such as:
§ Building administrative capacity for improving development management
§ Maintaining a stable fiscal stance and using public resources more efficiently
§ Promoting the private sector by deregulating investment and divesting parastatals
§ Providing greater support for primary education and basic health care
§ Supporting the development of basic infrastructure, especially rural agricultural development
§ Restructuring the financial sector to respond to the needs ...

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