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Full Length Research Paper
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The current
global economic crisis and its impacts in Tanzania
Honest Prosper Ngowi
Dar Es Salaam Business School, Mzumbe University, Box 20266,
Dar Es salaam, Tanzania. E-mail:
pngowi2002@yahoo.com.
Tel: +255 754653740.
Accepted 21 April, 2010 |
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Abstract |
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This paper is on the current global financial crisis and its
impacts in Tanzania. The author gives an overview of the
meaning, nature, causes, general impacts and possible solutions
for the crisis in Tanzania. Informed mainly by a review of
literature and analysis of the same, it is found by the author
that the crisis officially started to manifest itself in
September 2008 in the financial markets in the United States of
America (USA). Since then it has spread not only to financial
but also to the real economy of many parts of the world
especially in Europe and Asia where the first round effects are
rapidly being experienced. In Africa in general and Tanzania in
particular, the second round effects (bounce-on effects) are
increasingly being experienced. The many direct and indirect,
long term and short term impacts are emanating from the
recession that is unfolding as a result of the crisis. There
have been several strategies to deal with the crisis at macro
and micro-level in various countries. These include but are not
limited to various bailout plans and stimulus packages for
various economies in general and specific sectors and industries
in particular. Tanzania, as is the case with many other
developing countries is suffering from the second round effects
of the crisis. The impacts on the country so far include but are
not limited to potential and actual reduced economic growth,
reduced foreign currency earning as a result of reduced exports,
reduced tourism and its earnings, reduced remittances and
reduced Official Development Assistance (ODA). These impacts are
likely to have many far-reaching and profound negative
implications on many other aspects in the country. Among the
policy implications based on the discussions in the paper
include the need to be proactive instead of being reactive in
addressing the crisis in general and its impacts. Among other
things, there is a need to be vigilant as the crisis keeps on
unfolding and to take measures to reduce the negative impacts of
the crisis.
Key words: Global financial crises, economic, employment,
Tanzania. |
