Failure of Structural Adjustment Programme
INTRODUCTION
According to Collin dictionary government is the group of people who are responsible to govern country.
Christian council of Tanzania and Tanzania Episcopal conference define government as the chief agency for organizing and in the end of controlling both development and order in the society. Also it is an organized body of persons and institutions that form an agency or machinery of the state which formulates, expresses and realizes the will of state. Therefore, government consists of the activities, methods and principles involved in the governing a country or other political unit.
Government failure is the public sector analogy to market failure and occurs when a government intervention causes a more inefficient allocation of goods and resources than would occur without that intervention. Likewise, the government’s failure to intervene in a market failure that would result in socially preferable mix of output is referred to as passive government failure (Weimer and Vining, 2004). The failure is an outcome of policies enacted to regulate trade which create systemic inefficiencies and economic cost that adversely affect a product‘s manufacture and sales. This arises when government has created some inefficiency because it would not have solved a given problem or a set of problems more efficiently. The government supply side failures largely result from principal/agent problems.
Market failure - occurs when the supply of a good or service insufficient to meet a demand. A market failure result when prices cannot achieve equilibrium because of some distortions for example, the limits on specific goods and services. In other words, government regulations implemented to promote social wellbeing inevitably result in a degree of market failure.
Structural Adjustment Programme are economic policies which countries must follow in order to qualify for new World Bank (WB) and International Monetary Fund (IMF) loans and help them make debts repayments on the
According to Collin dictionary government is the group of people who are responsible to govern country.
Christian council of Tanzania and Tanzania Episcopal conference define government as the chief agency for organizing and in the end of controlling both development and order in the society. Also it is an organized body of persons and institutions that form an agency or machinery of the state which formulates, expresses and realizes the will of state. Therefore, government consists of the activities, methods and principles involved in the governing a country or other political unit.
Government failure is the public sector analogy to market failure and occurs when a government intervention causes a more inefficient allocation of goods and resources than would occur without that intervention. Likewise, the government’s failure to intervene in a market failure that would result in socially preferable mix of output is referred to as passive government failure (Weimer and Vining, 2004). The failure is an outcome of policies enacted to regulate trade which create systemic inefficiencies and economic cost that adversely affect a product‘s manufacture and sales. This arises when government has created some inefficiency because it would not have solved a given problem or a set of problems more efficiently. The government supply side failures largely result from principal/agent problems.
Market failure - occurs when the supply of a good or service insufficient to meet a demand. A market failure result when prices cannot achieve equilibrium because of some distortions for example, the limits on specific goods and services. In other words, government regulations implemented to promote social wellbeing inevitably result in a degree of market failure.
Structural Adjustment Programme are economic policies which countries must follow in order to qualify for new World Bank (WB) and International Monetary Fund (IMF) loans and help them make debts repayments on the
Bibliography: Bidyut Chakrabary and Mohit Battacharya(2003); Public Administration: A Reader; Oxford University Press. David Reed (1992); Structural adjustment and the environment. Economist Intelligence Unit (1995). Tanzania and the Comoros Gibbon, Peter and P J.K.Nyerere (1973); Freedom and Development; Dar Es Salaam; Tanzania Printers. L.A. Msambichaka and A. Naho (1995). "Agricultural Sector Performance Under SAP in Tanzania: Promising or Frustrating Situation?" in Beyond Structural Adjustment Programmes in Tanzania: Successes, Failures and New Perspectives. M Moshi, H.P.B. (1995). "Reforms and Economic Performance". Paper presented at the World Bank Conference "Socio-Economic Growth and Poverty Alleviation in Tanzania", Arusha May 14-20 1995. Mshana, Rogate (1996). "Structural Adjustment and Food Security in Tanzania". Paper presented at the Danida Food Security Workshop, Arusha, 18-19 November 1996. Tom Young (2003); In-African Politics; Indiana University Press. United Republic Of Tanzania (2002); Country Overview; Available at www.novelguide.com; Sited on 15/12/2011. Whirled Bank Group (2003); Structural Adjustment Programme; Available at www.whirledbank.org/development/sap.html; Sited on 16/12/2011.