Aid Effectiveness and General Budget Support in Tanzania:The Potential,The Problem and The Promise

Although the search for development effectiveness has been going on for many years, the Paris Declaration (PD) put it on higher gears. The Declaration recognizes that increasing aid effectiveness requires a global commitment to increase aid on the part of donor countries. It urges a common search for more efficient ways of transmitting aid to achieve desired development results and goals. These goals are expressed in the Millennium Development Goals (MDGs) and aim to address the various dimensions of poverty.

In keeping with the PD and in advancing further the aid effectiveness agenda, Tanzania has often been commended for its progress on improving aid management and partnership2. Nonetheless, she has many features of a typically aid dependent country and receives aid under three typical modalities: General Budget Support (GBS), basket funds and project funds. In light of the criticisms that have been levelled at the latter two aid modalities, GBS has emerged as the preferred modality by Tanzania.

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