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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:The Business Environment in Tanzania after Socialism: Challenges of Reforming Banks, Parastatals, Taxation and the Civil Service
Authors:Temu, Andrew E.
Due, Jean M.ISNI
Year:2000
Periodical:Journal of Modern African Studies
Volume:38
Issue:4
Period:December
Pages:683-712
Language:English
Geographic term:Tanzania
Subjects:private sector
economic policy
Politics and Government
Economics and Trade
Development and Technology
External link:https://www.jstor.org/stable/161514
Abstract:This article examines the reforms taking place in Tanzania's banking system, parastatal sector, taxation system, and civil service, and assesses the response to these changes by the private sector. The constraints and challenges of the reform process are outlined and comparisons are made, where relevant, with the experiences of transition economies in Eastern Europe. The article shows that there is a significant increase in the participation of the private sector in the economy. Private banks have increased from zero in 1994 to thirteen in 1998. Over 40 percent of former State-owned enterprises have been divested; some of these are performing well, contributing to government income. The taxation system has improved, the tax base has broadened, and new mechanisms have been introduced to collect taxes. Private sector investment has increased and major developments are notable in mining and tourism. Reforms in the public service have succeeded in reducing the government workforce, but not much has been achieved in changing work habits and efficiency. Although the overall impact of liberalization in the areas examined has been positive, significant weaknesses remain, especially in the regulatory framework required to prevent abuse of their position by private enterprises. Moreover, the 'trickle down' of welfare to poorer sections of society has been inadequate. Bibliogr., sum.
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