The World Bank and the IMF are among the international financial institutions influencing economic activity in Tanzania. They have facilitated development programs with unintended adverse effects on the environment. The ERPs implemented in Tanzania and several developing countries have aimed at stimulating economic growth through the use of various economic instruments, monetary and fiscal alike. The ERPs aimed to stimulate use of the resources at the disposal of the country. What the policy did not consider was the need for a mechanism to ensure that the natural resource base, upon which this economic growth depends, was conserved to ensure sustainability. The inevitable is happening due to this omission. SAPs caused and are still causing social hardships and environmental destruction. ERP II tried to soften the harsh effects of ERP I by supporting the basic social services but did not address the environment.