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Tanzania

Budget Summary

Flag of Tanzania

Please note: All linked documents are in PDF format

Objective SO Number FY 2004 FY 2005 FY 2006
Family Health and HIV Prevention 621-001 23,000 0 0
Democracy and Governance 621-003 3,389 0 0
Natural Resource Management 621-008 2,845 0 0
Economic Growth 621-009 1,889 0 0
Health Status 621-011 0 12,150 11,160
Incomes Increased 621-012 0 1,965 2,951
Environment and Natural Resources 621-013 0 2,233 2,700
Public Accountability 621-014 0 3,689 2,926
Program Support 621-015 0 125 250
Total (in thousands of dollars) 31,123 20,162 19,987

Excludes P.L. 480. See Program Annex.

The Development Challenge: Since independence in 1961, Tanzania has stood out as one of the few stable countries in east and southern Africa. Tanzania plays a constructive role among its neighbors by hosting hundreds of thousands of refugees and leading efforts to resolve regional conflicts peacefully. Following decades of one-party socialism and economic stagnation, Tanzania embarked on a fundamental political and economic transformation in the early 1990s. The nation's first multi-party elections were held in 1995 and subsequent elections occurred in 2000. Since 1999, the Government of Tanzania (GOT) has been undertaking its National Framework on Good Governance in an attempt to enhance public participation and improve governmental accountability. An anti-corruption bill is currently being discussed. Tanzania has made major strides in converting to a market economy, institutionalizing reforms that are controlling inflation and deficit spending, increasing investment, and privatizing public enterprises. Tanzania's annual gross domestic product grew 5.6% in 2003 and sustains annual economic growth rates among the best in sub-Saharan Africa. Tanzania was one of the first countries in the world to qualify for debt relief under Heavily Indebted Poor Country (HIPC). Recently, Tanzania qualified as a Millennium Challenge Account Threshold country.

However, its political and economic development is impeded by several harsh realities: high rates of infectious disease such as HIV/AIDS; unsustainable natural resource exploitation; structural obstacles to higher economic growth; institutional and human capacity limitations; corruption; a fragile democracy with no credible opposition to the ruling party on Tanzania's mainland; and struggling democracy in Zanzibar. The 2004 United Nations Development Program Human Development Index ranked Tanzania 162 out of 175 countries. The World Bank estimates Tanzania's 2004 per capita income at $280. Women's income levels are 50% lower than that of men. Sixty percent of Tanzanian women are estimated to live in poverty. Roughly half the population of 35 million subsists on less than $0.65 per day, with 40% of Tanzanians unable to meet their basic daily needs. Only 76% of adults are literate. Although primary school is free and mandatory, the current enrollment rate is 87.4% and is roughly equal between boys and girls. Of the 5.3% of students enrolled in secondary school, 46% are female. Life expectancy is 44 years and falling, while the infant mortality rate is 99 per 1,000 and rising. These phenomena are largely attributable to a national HIV/AIDS infection rate of 7%. Tanzania is approaching a critical period in its transition to democratic governance. In October 2005, general elections will test the durability of the electoral process and institutions of democratic governance, particularly as it relates to Zanzibar.

U.S. interests in Tanzania are two-fold. First, Tanzania plays a constructive role among its East and Central African neighbors in leading efforts to resolve regional conflicts peacefully and hosting approximately 400,000 documented refugees. Second, Tanzania is a key ally in combating terrorism. In a volatile region, it is a stable country progressing on a path of democratic governance and market-based economic reform and growth and offering avenues for outreach to a large Muslim population.

The USAID Program: USAID assistance helps Tanzania tackle its most compelling development challenges: improving public health and curtailing the spread of HIV/AIDS; increasing income-generating opportunities for small farmers; enabling market reforms; conserving biodiversity; and creating capacity for effective governance and strengthened civil society. In FY 2005, USAID will initiate a new country strategy for Tanzania that builds on the successes achieved under the previous strategy. While funding will continue to be directed to the same sectors, some shifts in program emphasis will occur. Under the new strategy, FY 2005 funds will ensure people-level improvements in Tanzania's economic status through increased private sector-led economic growth and competitiveness in agriculture. In addition, funds will also help to halt the deterioration of the health status and help to contain the HIV/AIDS epidemic. Environmental program funds in FY 2005 will support continuing conservation and sustainable natural resource utilization efforts by the central government and local communities. The governance program will focus on governmental accountability. Increased community participation in the management of and benefits from natural resources will be a funding priority. Expanding rural income opportunities and improving food security through more competitive agriculture-based enterprise and trade will feature prominently. Under the Africa Education Initiative, Tanzania receives funding for in-service teacher training. USAID is ensuring that cross-cutting themes (e.g., gender, public-private partnerships, governance and information and communication technology) are fully integrated in the entire program.

Other Program Elements: Centrally managed USAID funds from The Global Alliance for Vaccines and Immunization help Tanzania develop sustainable immunization programs. Regional Africa programs support the Commonwealth Regional Health Community Secretariat to promote policy reform and dialogue with members of the British Commonwealth countries in Africa. Also, regional Africa programs support a trade expansion activity that focuses on making the region more competitive in world markets. The Global Conservation Program supports Tanzanian biodiversity conservation efforts in Northern Tanzania and along the Rufiji-Kilwa-Songosongo seascape. The Famine Early Warning System, managed by USAID in Washington, furnishes food availability information to the GOT.

Tanzania is a focus country under the President's Emergency Plan for AIDS Relief. FY 2005 funding will be provided from the Global HIV/AIDS Initiative under the policy direction of the U.S. Global AIDS coordinator. The FY 2006 HIV/AIDS request for this country is contained in the Global HIV/AIDS Initiative account justification. For further details please se the Department of State FY 2006 Congressional Budget Justification.

Other Donors: Japan (agriculture, transport) and the United Kingdom (public sector finance, agriculture) are Tanzania's first and second largest bilateral partners, together providing more than one-third of bilateral assistance. Other bilateral donors include Denmark (health); Sweden (information technology, wildlife); Germany (information technology, wildlife, health); Norway (energy); and the Netherlands (rural development, health). USAID has been the lead bilateral donor of HIV/AIDS and for wildlife and coastal resource management. USAID activities in health, governance and civil society attract contributions from several bilateral donors. Multilateral donors include the World Bank and the International Monetary Fund, which provide over 50% of all multilateral financing; the United Nations agencies; the African Development Bank (rural and micro enterprises) and the European Union (rural roads, basic education). The donor-created Independent Monitoring Group in Tanzania periodically assesses coordination and the donor relationship with the GOT, and recommends improvements.

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Tue, 14 Jun 2005 16:04:56 -0500
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