The story of the remarkable recent developments in "aid relationships" and the initiation of aiddonor
as well as aid-recipient performance monitoring in Tanzania begins early in 1994, during
the administration of President Mwinyi, the immediate successor to Tanzania's first President,
Julius Nyerere. Perceptions of poor administration, corruption, inadequacy of democratic
processes, and budget mismanagement in Tanzania, together, it seems, with the somewhat
prickly personality of the then Finance Minister (Kighoma Malima) led to an unprecedented
degree of annoyance with and mistrust of the Tanzania Government on the part of the aid donor
community.
At the same time the Government of Tanzania saw aid donors as inappropriately intrusive and
demanding, and unable or unwilling to deliver on promises. Finance Minister Malima had
publicly blamed Tanzania's poor macro-economic performance (including an inflation rate of
over 30% in 1993-94) upon the failure of donors to deliver on their promises, infuriating the
donors who perceived it, rather, as the product of his own mismanagement. Despite the
Tanzanians' return to relative IMF/World Bank respectability via fairly orthodox stabilization
and structural adjustment policies from 1986 onwards, the "aid relationship" was at that time in a
perilous state.