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The Future of the Company in Tanzanian Development
Published online by Cambridge University Press: 11 November 2008
Extract
The company as a form of economic organisation is an essentially capitalist invention, and the privilege of limited liability which it confers is specifically designed to protect private investment and to ensure that such investment is kept at a reasonable level despite the vagaries of the capitalist environment. It is therefore topical and relevant to study the future of the company in an African context in which a more socialist approach to development is being increasingly advocated. This article attempts to examine the position in Tanzania—politically the most avant-garde of the new anglophone states of Africa—several months after government action which severely down-graded the significance of her private sector.1
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References
Page 47 note 1 The nationalisatious which followed President Nyerere's policy statement on socialist aims, of February 1967, published as The Arusha Declaration. An earlier statement of some of these policies is contained in Nyerere, Julius K., Ujamaa—the basis of African Socialism (Dar as Salaam, 1962).Google Scholar
Page 48 note 1 The estates accounted for only 15 per cent of total crop output in 1966 as compared with about 25 per cent in 1964.
Page 48 note 2 In 1966 the f.o.b. price of sisal stood at 60 shillings per ton, as against 105 shillings in 1963, and tea at 3.2 shillings per lb., as against 3.5 shillings in 1963.
Page 49 note 1 The Government has so far taken over 39 estates. Six of these were registered outside Tanzania and have been wholly taken over. A 40th estate—Ralli Estates—was already partially owned by the Government. There are 170 estates registered in Tanzania. For further details, see The Standard (Dar es Salaam), 28 10 1967.Google Scholar
Page 49 note 2 The Tanganyika Sisal Growers' Association (representing the estate producers) has farsightedly encouraged and promoted this development.
Page 50 note 1 Most recently, Lewis, W. Arthur; the highly generalised account which follows is based on the more detailed scheme in ch. 2 of his book, Development Planning: the essentials of economic policy (London, 1965).Google Scholar
Page 51 note 1 Peacock, Alan T. and Dosser, Douglas G. M., The National Income of Tanganyika, 1952–1954 (London, 1958).Google Scholar
Page 51 note 2 Similar estimates appear in Clark, Paul G., Development Planning in East Africa (Nairobi, 1965),Google Scholar and Yaffey, M. J. H., ‘Tanzania's Balance of Payments, 1966–1971,” (Economic Research Bureau Paper, Dar es Salaam, 1966).Google Scholar
Page 51 note 23 Yaffey, op. cit.
Page 53 note 1 Smith, Hadley, Industrial Development in Tanzania (Dar es Salaam, I.P.A., 1966)Google Scholar comments: ‘For a number of reasons, administrative and political, public support of the private sector is not very enthusiastic, and might be characterised as somewhat grudging and half-hearted’; and: ‘It must be stressed that while the Government's position, in some cases, has been neutral, inactive and lukewarm it has not been openly antagonistic. No directly discouraging public statements have been made by government officials and many strongly encouraging, if slightly ambiguous, statements have been made.’ He gives examples of such statements by the Second Vice-President, Rashidi Kawawa, and the Minister of Economic Affairs, Paul Bomani.
Page 54 note 1 Evidence of this is supplied in a survey for the Overseas Development Institute (O.D.I.) by Morgan, D. T., British Private Investment in East Africa (London, 1965).Google Scholar
Page 55 note 1 Let it be stressed that the reference here is to industrial concerns. The statement is far from true of the nationalisation of banks, insurance, and trading firms.
Page 56 note 1 Morgan, op. cit. p. 24.
Page 62 note 1 The Economist Intelligence Unit, A Survey of Wholesale and Retail Trade in Tanganyika (London, 1962),Google Scholar indicated that more than two-thirds of all wholesalers were situated outside Dar es Salaam.
Page 63 note 1 The major inadequacies in 1961 seemed to be under-stocking, inadequate book-keeping, general slowness to introduce new distributive techniques, and so on, rather than unfair pricing; ibid.
Page 63 note 2 34,581 Africans to 10,090 non-Africans; ibid.
Page 65 note 1 Cliffe, Lionel, ‘Challenge to Tanzania,’ in East Africa Journal (Nairobi), 03 1967.Google Scholar
Page 65 note 2 Since these attitudes were demonstrated perhaps more blatantly than ever before in the student demonstration of October 1966, it is quite reasonable to see this demonstration, and the subsequent rustication of the students, as the beginning of the chain of events which culminated in the Arusha Declaration.
Page 65 note 3 Nyerere, Julius K., ‘Public Ownership in Tanzania,’ in The Sunday News (Dares Salaam), 1202 1967.Google Scholar
Page 66 note 1 Indicates a company affected by February 1967 nationalisation measures.
Page 67 note 1 Commitment only.