Policy reform and rural development assistance in Tanzania

Abstract Tanzania for a long time refused to reform its economic policies along the lines recommended by the World Bank and IMF. Eventually the foreign exchange crisis forced the government to make the changes advocated by its own pragmatic economists and the Western donor community. The reforms were necessary, but not a panacea for all the problems which had plagued rural development programmes over the past decade. Three big problems still face basic‐needs programmes: the government administration has very little capacity to manage or back up programmes; neither the national nor district governments can afford them; and rural residents have not compensated for either of these deficiencies through their own participation and contributions. This article looks at two basic‐needs programmes in the rural water supply sector to illustrate how these long‐standing problems continue to affect implementation. Both programmes are funded and implemented by donors. The conclusion is that donors have not been sufficiently self‐conscious and innovative in grappling with the more intractable problems facing rural programme assistance in Tanzania.