ABSTRACT
This chapter begins with a discussion of the early interaction between the International Monetary Fund (IMF) and Tanzania leading up to the historical disaccord of 1980/1981 and goes on to explore the interim period up to the 1986 agreement. It argues that the interim period, particularly after 1982, was largely used to prepare for the accord. The chapter explores the impact of the measures and the dynamics of the state and the IMF. The history of the Tanzanian-IMF negotiations closely parallels the economic conditions of the country. Tanzania at independence inherited an agricultural-based economy with reliance on a few cash crops for the bulk of its export income. Dramatic improvements are unlikely to be seen due to the self-defeating nature of aspects of structural adjustment and conditionality. The major conflict in Tanzania is not one of the state versus markets or the state versus the IMF but of the state versus direct producers.
