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Abstract

Vol. 52, No. 1, pp. 61-71 (2001)

“The Change in the Living Standard and in Inequality in Dar Es Salaam”
Satoru Kanoh (The Institute of Economic Research, Hitotsubashi University), Nobuyuki Yasui (Embassy of Japan in Tanzania)

In this article, the change in the living standard and inequality in a developing country is investigated by taking Dar Es Salaam, the de facto capital of Tanzania, as an example. Available data sets are very limited on developing countries. In this article, by using two publicly available micro data sets, the household expenditures in 1991 and 96 are estimated. Based on the estimated expenditures, living standards and inequality in are quantitatively assessed by city ward, as well as for the city as a whole. These analyses show that the living standard of the city stayed more or less same over these five years, whereas the inequality had increased. The increase in inequality among the wards is indicated as a cause. In 1992, Japan made an untied grant to Musasani, a wealthy district. As a result of the aid, the living standard of Musasani was further raised, which contributed the increase of inequality among the wards. This fact suggests reconsideration of Japanese policy regarding aid to developing countries.