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IMF Executive Board Approved 'TZ' A Three Year Policy Support Instrument Under PRGF

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by Zinjathropus, Oct 10, 2010.

  1. Z

    Zinjathropus JF-Expert Member

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    Oct 10, 2010
    Joined: Oct 5, 2010
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    The Executive Board of the International Monetary Fund (IMF) had completed the sixth and last review of Tanzania's economic performance in February, under a three-year Poverty Reduction and Growth Facility (PRGF) arrangement (see Press Release No. 03/128). The completion of the review enables a further release of SDR 2.8 million (about US$4.2 million) and will bring the total disbursements under the arrangement to SDR 19.6 million (about US$29.4 million).

    The Executive Board also approved a three-year Policy Support Instrument (PSI) for Tanzania to support the country's economic efforts. The PSI seeks high and sustainable growth and more rapid poverty reduction based on enhancing public resource mobilization and efficiency of spending, increasing the financial sector's contribution to growth and the effectiveness of the monetary policy, and improving the business climate. Approval of a PSI for Tanzania signifies IMF endorsement of the policies outlined in the program (ni programme gani hizo ambazo watanzania wakaida tusiozielewa wala eleweshwa na uongozi wetu).

    The IMF's framework for PSIs is designed for low-income countries that may not need, or want, IMF financial assistance, but still seek IMF advice, monitoring and endorsement of their policies. PSIs are voluntary and demand driven. PSI-supported programs are based on country-owned poverty reduction strategies adopted in a participatory process involving civil society and development partners and articulated in a Poverty Reduction Strategy Paper (PRSP). This is intended to ensure that PSI-supported programs are consistent with a comprehensive framework for macroeconomic, structural and social policies to foster growth and reduce poverty. Members' performance under a PSI is normally reviewed semi-annually, irrespective of the status of the program.

    The 'devil expert' opinion and outlook of our economy:

    Following the Board's discussion on Tanzania, Mr. Murilo Portugal, Deputy Managing Director and Acting Chairman, stated:

    "Tanzania has achieved sustained strong economic performance through market-oriented policies within an appropriate macroeconomic framework. To consolidate recent successes, Tanzania will need to maintain sound policies and steadily pursue key structural reforms, including in the critical energy sector, and capacity building to remove key impediments to growth and achieve lasting inroads against poverty (in other words they trust in JK to deliver, the man who publicly poclaimed he hasnt got the answers).

    "The Tanzanian authorities are undertaking actions and commitments to address the allegations of an impropriety in the management of the government external payment arrears account managed by the Bank of Tanzania. The authorities remain committed to transparency and to consult with the Fund in adopting and implementing appropriate remedial measures.

    "The Policy Support Instrument is viewed as the appropriate next step in the Fund's relations with Tanzania. Tanzania's macroeconomic framework and structural reform agenda are consistent with the government's objectives of high and sustained broad-based economic growth and poverty reduction within a stable macroeconomic environment.

    "Tanzania is undertaking structural reforms in three key areas. First, tax, customs, and capacity-building reforms are expected to further mobilize public resources, improve the efficiency of government spending, and support economic and social objectives. Second, financial sector reforms, including improvements in credit information, pension investment guidelines, and liquidity management, will help enhance this sector's contribution to growth and the effectiveness of monetary policy. Third, improvements in the business environment, including anti-corruption efforts, are expected to facilitate productive private sector activity and investment.

    "Fiscal policy should remain focused on economic and social objectives while limiting net domestic financing to avoid crowding out private sector credit. The monetary framework remains appropriate, with the envisaged deceleration of broad money growth consistent with inflation objectives while still facilitating adequate credit to the private sector.

    "Recent energy production shortfalls have been damaging. Resolving energy supply issues on a timely basis, including through appropriate increases in generation capacity and tariffs as envisioned under the PSI, will be critical to maintaining strong economic performance and putting the finances of the energy parastatal, TANESCO (they know about Tanesco but not the Richmond scandal), on a sound and sustainable basis," Mr. Portugal said.
     
  2. Njowepo

    Njowepo JF-Expert Member

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    Oct 10, 2010
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    Wasije wakawa wanatupaka mafuta kwa mgongo wa chupa.
    Masiha yako tight alafu wao wanasema tuko na strong eco-perf,sio bure wana namna hawa.
    Mbaya zaidi wanadmit shortfalls za TANESCO interms of quality and consistence ya umeme wao sasa uchumi unaokuwa kwa mgao wa umeme,umeme unaokatika kila leo,very expensive.
     
  3. Mziba

    Mziba JF-Expert Member

    #3
    Oct 10, 2010
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    Wakuu, ninapotazama haya mambo hua nafanya tofauti kati ya serikali na chama. CCM sio serikali, na CHADEMA au CUF na wengineo atayefanikiwa kumbandua sisiem hatokua serikali. Serikali ina katiba yake na vyama vina katiba zao. kwa maana hiyo, malengo ya serikali ya sasa hivi ambayo wengi ni ccm, wanatakiwa waendeleze MBINU ZA KUONDOA UMASIKINI, nadhani mpaka tuko pamojo. Sasa hata kama Dr. Slaa atakua raisi, ni lazima afuate frame work anayoitumia Dr. Kikwete sasa hivi. Ni mandate ya IMF kwa REPUBLIK YA TANZANIA. I and i mean bothe mainland and islands. Shaykh Saif mwenyewe anawafahamu visuri Who are the IMF. Having said that, going back to the topic. I do not know what kind of "Strong economic growth in development he referers to, but may be he is right. There so many way one could put a nice spin on the results. To be specific, in 2007 I performed a Feasibility Study for a non Profit Org. WABUNIFU USA, with a Problem Idenfification in Business Management. What we found out that, there a what we call in my language a wigo or uga, is a word that describe space. In other words, there is a huge room for improvement in the area of poverty elliviation. So, there is a room for private enterprises, there is a room for enterprenurials, a room for villegreers ,co operatives, non for profits etc. The quation now is what have done individually to take these opportunities? Jammii forum mbembers are not includded in the equation since we are doing it already, maybe our friends help find out about these mysteries that keep us on the so called poverty".
     
  4. Masikini_Jeuri

    Masikini_Jeuri JF-Expert Member

    #4
    Oct 12, 2010
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    Mkuu Mziba nitarudi baadaye kwa mashauriano zaidi.....................kuna hazina katika uliyoyazungumza! Asante
     
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