By Jonathan Power in Dar es Salaam

In an article last week, published in The Citizen of Tanzania, Christine Lagarde, managing director of the International Monetary Fund, observed that “in the last decade after emerging Asia Africa recorded the world’s strongest growth rates. “In some cases”, she wrote, “the African lions outpaced the Asian tigers in their first two decades.”
The American and European economic crisis has had only a modest impact on those African economies doing well. “Resilience is home grown”, she says. African countries have been able to take advantage of the strong foundations they have built in the years leading up to the crisis. Since 2000 debt levels fell from over 100% to under 40% of GDP, foreign exchange reserves more than doubled and inflation was halved.
Two thirds of them, including Tanzania, have been able to pursue expansionary policies during the crisis – Keynesian policies of not slamming on the brakes as in Europe and the US – increasing spending on health and education and drawing a circle of protection around the most vulnerable people.
Judging from the substantial spending of the US’s Millennium Challenge Corporation Tanzania is the most successful lion of them all. This aid program is contingent not just on economic and social policies but also on the degree of political freedom and the pursuit of justice.
The US ambassador heaps accolades on Tanzania. The World Bank says Tanzania is “a top performer” and in economic terms has been “a rock of stability”.Read More »