The research and policy dialogue of Tanzania's National Capacity Assessment Team, a World Bank initiated body, forms the basis of this analysis. The assessment team's remit was to identify strategic capacity needs, when capacity is understood as the human and institutional resources necessary for development. The study identifies that capacity needs are interlinked and require an integrated approach: strengthening government agencies is impossible in the long term without improvement in professional training; private sector growth requires access to business information, communication and regulatory and judicial institutions. Accordingly, the analysis provides an overview, and formulates strategies for public and private sector institutions and infrastructures, civil society and education. Particular regard is given to: finance and economic management of the public sector; the civil service; the role of donors and the need for corrective action in local and regional administration and across the education system.