The World Bank

In 2012 Tanzania had a very high inflation rate of 16% according The World Bank, which means that the economy is changing very much however it is not very positive as it makes it difficult for the international market. The government lacking control of the economy often causes high inflation. In only one year Tanzania has changed it economy drastically and the inflation rate has dropped down to 9.8%. This is mainly due to three factors. The first factor being that the gross domestic product (GDP) has increased 60% since 2008, mainly within the communication sector. Secondly the domestic demand has increased firmly over the last years because of huge population growth. The population is increasing by almost 3% every year and it is estimated that the population will double within 25 years. The third factor is that Tanzania has a rather independent economy because it is quite isolated from international markets.

The World Bank aids Tanzania in its growth by helping with improving the private sector and infrastructure through policy analysis, grants and credits. In the last years Tanzania’s economy has been steadily growing, mostly because of aid and help. In 2012 the economy expanded by a whole of 6.9%. Nevertheless as previously mentioned the inflation rate is still pretty high but has decreased in the last year. This has caused the prices of products in Tanzania to be significantly higher than in the neighboring countries such as Kenya, Rwanda and Uganda. This mostly effects the poorest population of Tanzania the most. The World Bank has estimated that the forecast for Tanzania’s population is rather positive.  However there are still issues that have to be managed before the economy can improve, one of them being corruption.

Tanzania is one of the largest recipients of aid in the geographical area south of the Sahara. It is estimated that approximately 33% of the government spending’s were funded by international or foreign aid. In Tanzania almost half of the population does not have access to clean drinking water therefore organizations such as Water Aid have tried to help. Water Aid have been in Tanzania for three decades and in that time they have been able to improve drinking water for 64 000 people as well as sanitation levels for the same amount of people.

Norway is a very wealthy country and therefore it tries to give aid and help to several developing countries. As of 2012 Norway used 0.9 % of the total income of the country for aid, which is more than most of the other countries. After the disaster that struck in the Philippines, Norway sent 20 million NOK in immediate humanitarian aid. The money was channeled through the UN and the Red Cross in order to make sure that the money went out to where it was needed the most. In 2012 Norway sent a whole of 540 millions NOK to Tanzania in aid and to help development. Half of the money went directly into helping the country develop economically. 

Norad Statiscis on how Norway's money is distributed