Halving poverty until 2015 is something that all member states of United Nation have agreed
up on by adopting the Millennium Development Goals MDG in 1991. The question asked in
this paper is how much aid is needed in Tanzania, to reduce poverty by half. The method we
use links estimated annual economic growth rates to the required amount of aid needed to
halve poverty.
This study finds that during 2002-2015 Tanzania should receive between $37 to $43
(2002 US) dollars per year and capita depending on the underlying assumptions. Between
1994 and 2002 Tanzania received 36 dollar per year and capita so the amount of aid must at
least be kept on the same level as preceding years and perhaps be increased to reach the goal
of halving poverty until 2015.
Moreover, this study only calculates the cost of reaching the first MDG and not the cost
of reaching the remaining goals stated in the United Nations Millennium Declaration.