Published for the prestigious Economic and Social Research Foundation, this review comes at a significant time in Tanzania's history. The death of Mwalimu Julius Nyerere (founding father of Tanzania and dominant political figure for four decades) marks the end of an era, just as the new century begins; the Third Phase Government completes its first term (1995-2000), and President Mkapa has been re-elected for his final term. An interpretative review of the existing literature and research on the Tanzanian economy, this book places the economic performance of President Benjamin Mkapa's Third Phase Government in the context sectors of the economy social sector provision and of past crises and current constraints. Examining Tanzania's Aid relationships, it gives a thorough and well informed overview of what has been achieved. It also makes recommendations for future policy: logical continuation of the thrust of current policies for the next Mkapa government.