Globalization is a powerful transmitter of economic conditions and know-how, facilitating convergence of living standards. It can also act as a buffer against specific national shocks. But, amplified by globalization, the danger of the anonymous market overshooting is considerable. National governments can be powerless against consequences of such overshooting.
Greater explicit mechanisms of external discipline and co-insurance at the supranational level can help cope with these risks. For Ireland, the European Union already goes some distance in this direction, but more is needed. Regional initiatives in Africa, including the NEPAD of the African Union and the East African Community are presumably best positioned to perform this function in relation to Tanzania.