But still Tanzania faces two problems that won't go away soon. This payment is more than 4 times what the government spends on education. This has led to poor education system. The IMF and western governments have forced Tanzania to introduce school fees, something that never existed during the period of independent leader, Mwalimu Julius Nyerere. As a result, school enrolment has decreased and many kids now drop out of school.
Schools lack equipment and teachers are underpaid.
The same case applies to hospitals and other important sectors of society. The other problem is that of poor prices for Tanzanian exports and high cost of imports. The value of exports was 762m in 1996, 717m in 1997, 676m in 1998 and 650m in 1999 in American dollars. The value of imports was 1213m in 1996, 1338m in 1997, 1454m in 1998 and 1500m in 1999 in American dollars. In order to encourage investors, the government has promised opportunities of cheap labor and laws to curb labor resistance.