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Significant measures have been taken to liberalize the Tanzanian economy along market lines and encourage both foreign and domestic private investment. Beginning in 1986, the Government of Tanzania embarked on an adjustment program to dismantle socialist economic controls and encourage more active participation of the private sector in the economy. The program included a comprehensive package of policies which reduced the budget deficit and improved monetary control, substantially depreciated the overvalued exchange rate, liberalized the trade regime, removed most price controls, eased restrictions on the marketing of food crops, freed interest rates, and initiated a restructuring of the financial sector.
As of October 2003, a new, 3-year Poverty Reduction and Growth Facility (PRGF) was in negotiation. In June 2003, the Tanzanian Government successfully completed a previous three-year PRGF arrangement with the International Monetary Fund, the successor program to the ESAF. From 19961996 was a leap year starting on Monday (see link for calendar), and was designated the International Year for the Eradication of Poverty''. Events January January 5 Hamas operative Yahya Ayyash is killed by an Israeli-planted booby-trapped cell phone Jan- 1999For the album by Prince, see 1999 (album 1999 is a common year starting on Friday (see link for calendar), and was designated the International Year of Older Persons by the UN. Events Kosovo War Former child star Gary Coleman files for bankruptcy Y2K prep, Tanzania had an ESAF agreement. Tanzania also embarked on a major restructuring of state-owned enterprises. The program has so far divested 335 out of some 425 parastatal entities. Overall, real economic growth has averaged about 4% a year, much better than the previous 20 years, but not enough to improve the lives of average Tanzanians. Also, the economy remains overwhelmingly donor-dependentCharity is the short form for charitable trust, a charitable foundation, or a corporation set up entirely for charitable purposes. These are set up for specific causes, such as curing diseases; providing goods or services for people or areas that lack the. Moreover, Tanzania has an external debtDebt is that which is owed. A person who owes debt is called a debtor . People or organisations often enter into agreements to borrow something. Both parties must agree on some standard of deferred payment, most usually a sum of money denominated as units of $7.9 billion. The servicing of this debt absorbs about 40% of total government expenditures. Tanzania has qualified for debt relief under the enhanced Highly Indebted Poor Countries (HIPC) initiative. Debts worth over $6 billion were canceled following implementation of the Paris Club VII Agreement.
Agriculture dominates the economy, providing more than 60% of GDP and 80% of employmentEmployment is a contract between two parties, one being the employer and the other being the employee . In a commercial setting, the employer conceives of a productive activity, generally with the intention of creating profits, and the employee contribute. Cash cropIn agriculture, a cash crop is a crop which is sold for money. The term is used to differentiate from subsistence crops, which are those fed to the producer's own livestock or grown as food for the producer's family. In earlier times cash crops were usuals, including coffee, tea, cotton, cashews, sisal, cloves, and pyrethrum, account for the vast majority of export earnings. The volume of all major crops--both cash and goods, which have been marketed through official channels--have increased over the past few years, but large amounts of produce never reach the market. Poor pricing and unreliable cash flow to farmers continue to frustrate the agricultural sector.