The study makes an assessment of the effects of structural adjustment programmes introduced in Tanzania in living standard of the people. The author utilized a regression analysis model to regress several measures of living standard i.e. life expectancy at birth, infant mortality, accessibility to safe water, primary school enrolment and electric consumption per household 1 The study observed that during the period of 1975 to 1995 when the structural adjustment programmes were introduced, the GNP grew up and to some significant level improved the living standard of the general public. However, the introduction of structural adjustment programmes which have brought in the market economy system may lead to deterioration of social achievements. As it can be observed currently, there is hiking of prices for health services, high education fees, mass unemployment through the retrenchment exercise. The government should not delegate all economic and social activities that affect directly the quality of life of its citizen to the private sector whose operations are governed by profit motives. The author also suggested some amendments to the current adjustment packages.