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==History== Significant measures have been taken to [[Economic liberalization|liberalize]] the [[Tanzania]]n [[Economics|economy]] along market lines and encourage both foreign and domestic private [[investment (macroeconomics)|investment]]. Beginning in 1986, the [[Government]] of Tanzania embarked on an adjustment program to dismantle the [[socialist]] ([[Ujamaa]]) economic controls and encourage more active participation of the [[private sector]] in the economy. The program included a comprehensive package of policies which reduced the [[budget deficit]] and improved monetary control, substantially depreciated the overvalued [[exchange rate]], liberalized the trade regime, removed most price controls, eased restrictions on the marketing of food crops, freed [[interest rate]]s, and initiated a restructuring of the financial sector. Tanzania accepted [[austerity]] measures required by the [[International Monetary Fund]] (IMF) and [[World Bank]]-imposed structural adjustment policies.<ref name=":2323">{{Cite book |last=Lal |first=Priya |title=Mao's Little Red Book: A Global History |date=2013 |publisher=[[Cambridge University Press]] |isbn=978-1-107-05722-7 |editor-last=Cook |editor-first=Alexander C. |location=Cambridge |pages= |chapter=Maoism in Tanzania: Material Connections and Shared Imaginiaries}}</ref>{{Rp|page=114}} Current GDP per capita of Tanzania grew more than 40 percent between 1998 and 2007.<ref>{{Cite web |url=http://earthtrends.wri.org/text/economics-business/variable-638.html |title=GDP: GDP per capita, current US dollars |access-date=28 May 2006 |archive-date=4 May 2012 |archive-url=https://web.archive.org/web/20120504135206/http://earthtrends.wri.org/text/economics-business/variable-638.html |url-status=dead }}</ref> In May 2009, the IMF approved an Exogenous Shock Facility for Tanzania to help the country cope with the [[Late 2000s recession|global economic crisis]]<ref>{{Cite web|url=https://www.imf.org/en/News/Articles/2015/09/14/01/49/pr09428|title=Press Release: IMF Executive Board Completes Sixth Review Under the Policy Support Instrument, First Review Under the Exogenous Shock Facility for Tanzania|website=IMF}}</ref> Tanzania is also engaged in a Policy Support Instrument (PSI) with the IMF, which commenced in February 2007 after Tanzania completed its second three-year [[Poverty Reduction and Growth Facility]] (PRGF), the first having been completed in August 2003. The PRGF was the successor program to the [[Enhanced Structural Adjustment Facility]], which Tanzania also participated in from 1996 to 1999. The IMF's PSI program provides policy support and signaling to participating low-income countries and is intended for countries that have usually achieved a reasonable growth performance, low underlying inflation, an adequate level of official international reserves, and have begun to establish external and net domestic debt sustainability. Tanzania also embarked on a major restructuring of state-owned enterprises. The program has so far divested 335 out of some 425 parastatal entities. Overall, real economic growth has averaged about 4 percent a year, much better than the previous 20 years, but not enough to improve the lives of average Tanzanians. Also, the economy remains overwhelmingly [[Aid|donor-dependent]]. Moreover, Tanzania has an external [[debt]] of $7.9 billion. The servicing of this debt absorbs about 40 percent of total government expenditures. Tanzania has qualified for debt relief under the enhanced [[Heavily Indebted Poor Countries]] (HIPC) initiative. Debts worth over $6 billion were canceled following implementation of the Paris Club 7 Agreement.
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