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 Periodical article |
 Leiden University catalogue |
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| Title: | Import Support Aid: Experiences from Tanzania and Zambia |
| Author: | White, Howard |
| Year: | 1995 |
| Periodical: | Development Policy Review |
| Volume: | 13 |
| Issue: | 1 |
| Period: | March |
| Pages: | 41-63 |
| Language: | English |
| Geographic terms: | Tanzania Zambia |
| Subjects: | economic aid imports Economics and Trade international relations |
| External link: | https://doi.org/10.1111/j.1467-7679.1995.tb00080.x |
| Abstract: | Import support is an important form of aid in both Tanzania and Zambia. This paper discusses the scope and purpose of import support aid, and identifies two different modes of import support: administrative systems (commodity import support (CIS)), and market-based systems, which can be subdivided into Open General Licence systems (OGL) and foreign-exchange auctions. Next, the paper deals with criticisms of import support aid, which have focused on the following points: market-based systems favour the importation of unnecessary luxury consumer items, whilst essential goods are in short supply; corruption pervades the systems as much as it does administrative ones, so that the rich and powerful get preferential access to the funds, and these powerful individuals do not pay the counterpart funds which are due. Also discussed are the impact of import support on capacity utilization, the role of incentive goods and the use of counterpart funds by the government. Finally, guidelines for the management of import support schemes are disussed. The overall assessment of import support is positive. However, it is argued that the form of import support should be changed: donors should concern themselves with the use of the counterpart funds, not the foreign exchange. Bibliogr. |
