The impact of financial crisis and government reaction: Lessons from the experience of china and Tanzania

Abstract

This paper shows the impacts of the Global Financial Crisis by using Tanzania and China. It provides the causes of the current crisis and  the measures made to soften it. We learn that the market failure is the government failures as well. The world financial systems are  interwoven and impacts spread from a single point to the entire world. Unlike China, Tanzania has inadequate sustainable means to  recover from the crisis and there are no long lasting solutions to disentangle Tanzania from the vicious circle of poverty.