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Tanzania
>> Regional Overview >> Tanzania Overview
Previous Years' Activities
2002, 2001, 2000, 1999, 1998, 1997
Last updated: 22
THE DEVELOPMENT CHALLENGE: Tanzania has moved from three decades of one-party socialism to a multi-party democracy. Fundamental and largely successful economic liberalization and structural reforms have accompanied this political transformation.
However, Tanzania's political and economic development is seriously impeded by a number of factors. These include high population growth rates coupled with high rates of infectious diseases, unsustainable use of natural resources, widespread corruption, and limited foreign and domestic investment. Human and institutional capacities are also extremely limited. Tanzania's social indicators reflect this low level of development. Over 50% of an estimated 36 million people live in extreme poverty, surviving on less than US $1 per day. Dependency ratios are 50% and rising. Life expectancy is under 50 years and falling; infant mortality is 90 deaths per 1000 and rising -- largely as a result of the rapid spread of HIV/AIDS. Conservative estimates are that 8% of the population is infected with HIV/AIDS. Tanzania's economy is also burdened with supporting one of the largest refugee populations in the world, the result of civil wars in neighboring countries.
Life expectancy is under 50 years; infant mortality is 90 per 1,000; and 8% of the adult population is infected with HIV/AIDS. Tanzania's per capita Gross Domestic Product for 2001 was estimated at $260. External debt in December 2001 was $7.03 billion, with potential debt servicing absorbing about 30% of the Government of Tanzania's domestic revenue. The debt is owed primarily to multilateral institutions. In November 2001, Tanzania was approved for $3 billion in debt relief under the enhanced Heavily Indebted Poor Country Initiative. Resulting savings of approximately $118 million per year will be mainly allocated to priority sectors including education, health, and agriculture. The economy is growing at about 5% per year, which is reasonable but insufficient to have major impact on poverty. That would require a minimum of 8% growth annually. To increase economic growth, Tanzania must increase agricultural productivity and export earnings over the next decade, increase internal revenue, and reduce corruption.
U.S. national interests in Tanzania are twofold: Tanzania has the potential to serve as a political and economic model in an unstable region; and its leaders have played an active role in resolving the multiple crises in the Great Lakes region. Moreover, it is a stalwart U.S. ally in the war on terrorism.
THE USAID PROGRAM:
FY 2002 Estimate: $26.414 million FY 2003 Request: $32.936 million The Program Data Sheets provided below cover the four objectives for which USAID is requesting funds. These four objectives concentrate on improving the health of women and children and preventing the spread of HIV/AIDS; improving conservation of natural resources; fostering continued democratic progress through expanded public-private partnerships; and expanding market linkages to increase rural incomes. FY 2002 funds will be used to implement ongoing programs as well as undertake certain new activities in response to changing circumstances. USAID will use the FY 2003 request to fund activities within current strategic objectives. The FY 2003 request includes an increase in HIV/AIDS funding, which will scale up efforts against HIV/AIDS and sexually transmitted diseases.
ONGOING PROGRAMS FOR WHICH NO FY 2002 OR FY 2003 FUNDING IS REQUESTED: USAID's program in Tanzania includes the following objectives for which USAID is not requesting new funds. The programs will continue to expend funds already appropriated.
Number: Title: Last Notified: Planned Completion: 621-002 Foundation Established for Adoption of Sustainable NRM practices FY02 CBJ, p. 623 FY 2003 621-004 Increased Micro & Small Enterprise in the Economy FY02 CBJ, p. 632 FY 2002 621-005 Rural Roads Improved in Sustainable Manner FY02 CBJ, p. 636 FY 2003 621-006 Suffering of Bomb Victims Reduced and Disaster Response Enhanced FY02 CBJ, p 639 FY 2003 OTHER PROGRAM ELEMENTS: In addition to the bilateral program, USAID/Washington supports activities in Tanzania through the Education for Democracy and Development Initiative, the Matching Grant Program, the Child Survival Grants program, and the Women in Development small grants program. The Famine Early Warning System also provides support to the Government of Tanzania on food availability.
Overall development assistance to Tanzania totals about $1 billion per year, excluding debt relief. OTHER DONORS: Coordination is a high priority for donors in Tanzania. Japan and the United Kingdom are Tanzania's first and second largest bilateral partners, together providing more than one-third of bilateral assistance. Japan supports the agriculture and transport sectors; the UK assists public financial management and is the largest proponent of direct assistance to the Government of Tanzania. Other major bilateral donors with their principal areas of focus include: Denmark (health); Sweden (natural resources); Norway (energy); the Netherlands (rural development), and Germany (environment activities, some of which are jointly managed with USAID). Multilateral donors include the United Nations agencies, the European Union, the World Bank and the Africa Development Bank. The World Bank and IMF provide over 50% of all multilateral financing. The African Development Bank supports rural micro enterprises and the European Union finances rural roads and basic education.
Program Data Sheets
- 621-001 Increased Use of Family Planning, Maternal Child Health, and HIV/AIDS Preventive Measures
- 621-003 Civil Society and Government are More Effective Partners in Governance
- 621-008 Improved Conservation of Coastal Resources and Wildlife in Targeted Areas
- 621-009 Increased Participation of Micro and Small Enterprises in the Economy II
621-009
Country Background Information Resources
CIA Factbook
National Geographic Country Maps
State Dept. Country Information
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Last Updated on: May 29, 2002 |
