Department of Economics

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Aid Effectiveness to Infrastructure: A Comparative Study of East Asia and Sub-Saharan Africa. Case Study of Tanzania
(2008) Likwelile, Servacius B.; Rutasitara, Longinus; Haule, Joseph O.
The development challenge facing Sub-Sahara Africa (SSA), Tanzania in particular, relates to the highest levels of poverty. A number of strategies have been put in place to address this challenge the main focus being how to sustainably enhance growth which is necessary for poverty reduction. Among constraints to growth are lack of supportive infrastructure and weak institutional capacity (including minimal state effectiveness and weak societal engagement). Studies show that growth is positively affected by the stock of infrastructure assets and that income inequality declines with higher infrastructure quantity and quality (Ndulu et al., 2007), but for most SSA countries, growth is constrained by lack of supportive infrastructure and weak institutional capacity, including minimal state effectiveness and weak societal engagement. Key institutions, both public and private, are necessary for private sector growth, which is an engine of growth. How institutions are harnessed and proper linkages between actors developed is a matter developing countries have been and are still grappling with.