This document provides an analysis of Tanzania's economic development. It includes: 1) Demographic and economic data on Tanzania, including population growth, GDP, infrastructure, health, education, etc. 2) A discussion of Tanzania's history from pre-colonial times through independence under Julius Nyerere and implementation of socialism. 3) An analysis of Tanzania's economic struggles in the 1970s under Nyerere's policies and the country's turn toward economic reforms in the 1980s.

1. AN ANALYSIS OF TANZANIA ECONOMIC
DEVELOPMENT
By
Leo Charnel Fotsing

2. TANZANIA

3. TANZANIA, DATA PROJECTION
• Geography: East African coastal country – nearly 1.5 times the size
of Texas
• Population: 49.6 million
- population growth rate: 2.8%
- Fertility rate: 4.95 children born/woman
- Urban population:30.9% of total population
Age structure and population distribution

4. TANZANIA, DATA PROJECTION
• Geographic condition
Climate: varies from tropical to temperate
Land use: arable land 16.37% , permanent crops 2.43% ,
other 81.2%
Main natural resources: Hydropower, tin, phosphate, iron
core, coal, diamonds, gemstone, gold, natural gas, nickel…
• Economic performance
- Current GDP: $36.62 billion
- GDP per capita: $1,900
- GDP growth: 7.2 %

5. TANZANIA, DATA PROJECTION
• State economic Infrastructure
- Roads paved: 6.67%
- Rail lines: 1,860 km
- Quality of port infrastructure: 3.3/10
- Motor vehicles per 1000: 7.37
• Trade
Main trading partners: China, Germany, Japan, the
EU, UAE, UK, India, Kenya and South Africa

6. TANZANIA, DATA PROJECTION
• Social and Human capital development
Education
- Government expenditure on education (% of GDP ): 6.2 %
- Literacy rate, adult total (% of people ages 15 and above ): 68%
Languages: Swahili and English (official), Arabic (spoken mostly in
Zanzibar), and about 125 other local languages.
Religion: Christian 30%, Muslim 35%, indigenous beliefs 35%;
Zanzibar /islands over 99% Muslim
Life expectancy: 61 years
Infant Mortality ( at birth and under 5 years of age per 1000) : 36

7. TANZANIA, DATA PROJECTION
Morbidity (common illnesses, prevalence of HIV/AIDS)
- Communicable diseases: HIV/AIDS, Tuberculosis and malaria
- Non communicable diseases: diabetes, cancer and chronic
respiratory track and cardiovascular conditions.
The state of health infrastructure
- Health Expenditure (% of GDP): 7.3
- Physicians (per 1000 people): 0.01
• Water and Sanitation
- Improved water source (% of pop with access): 53
- Improved sanitation facilities (% of the pop with access): 12

8. TANZANIA, DATA PROJECTION
• POLITICAL INSTITUTIONS
- Independence : December 9th 1961 from the UK and Zanzibar
December 10th, 1963 (from the UK) . On April 26th, 1964, Tanganyika
united with Zanzibar to form the United Republic of Tanganyika and
Zanzibar and was renamed United Republic of Tanzania on October 29th,
1964.
- Presidents: Julius Nyerere (1964-1985); Ali Hassan Mwinyi (1985-
1995); Benjamin Mkapa (1995 – 2005); Jakaya Kikwete (2005 – to date)
The president is elected by popular vote for a five year term
renewable only once.
- Corruption perception Index (rank): 119/175
- Political stability:
Tanzania has enjoyed stability since independence in 1964.

9. TANZANIA BEFORE COLONIZATION
• Earliest known human: The Cushites, the Bantu, the
Nilotes, Tatoga, Massai, Iraqw, and various others.
• Economy: centralized on agricultural and pastoral activities
• Governing power: livestock possession, defense ability,
weather forecasting and healing power.
Innovation: Through Internal competition ( Irrigation system
at Engaruka near Arusha – more than 250 years old)

10. TANZANIA BEFORE COLONIZATION
After the 1800s
Influence of foreigners
from India and the Arab
world
Increase in commercial trade
(Ivory, firearms,
ammunitions…)
Ethnic centralization (Small
tribes got absorbed by big ones)
Increase in conflicts between
tribes and the hunting of African
peasants (slaves)

11. TANZANIA BEFORE COLONIZATION
• Ethnic centralization
- Increase in Administrative power
- Development of agricultural activity (maize, cotton,
cassava, and rice)
- Specialization in industrial skills such as iron
transformation and craft
- Promotion of writing ( from Arab and Swahili clerks)

12. TANZANIA AND COLONIALISM
• The German conquest
1890s, German attack
- More than 100,000 Tanzanian lost their lives
“ We have not gone to East Africa to found plantations for 300-400
people, but to make a vast country bloom, to find raw materials and
create markets for German trade and German Industry” Colonel
secretary Dernberg, 1903
What was the nature of colonialism in this case?
After the First World War with German defeat, the British
took over.

13. TANZANIA AND COLONIALISM
• Tanzania under the British
“The first object of the government to induce the native to become a
producer directly or indirectly, that is, to produce or assist in producing
something more than the crop of local foodstuffs that he requires for himself
and his family” Governor Cameron stated, 1926
- Administration of Tanganyika by Britain was under the League
of Nations mandate
- They highlighted the importance moral well-being and
social progress of Tanganyika .
- Despite their intentions, no time scale was laid down for
the population of Tanganyika to take over the system.
- Promotion of Education

14. THE PATH TO INDEPENDENCE
• British Indirect rule
- Chiefs had power over their chiefdoms
- Use of taxes to promote development
- Britain still had power over the country
• Political movement
- Leverage of Knowledge
- Rise of a well educated class
- Seeking freedom and equality

15. THE PATH TO INDEPENDENCE
• Julius Nyerere
- First president of Tanzania and father of African
socialim
Born in April 1922
Education: Obtain a Master in history, art and
economics at the university of Edinburg.
Leader and founder of the Tanganyika National
Union (TANU) IN 1954
Vision: to bring independence and self reliance in
Tanzania.

16. THE PATH TO INDEPENDENCE
• TANU and Nationalism
“…we are opposed to the idea of a small minority in any country appointing itself as the
masters of an unwilling majority. Our position is based on the belief of the equality of human
beings, in their rights and their duties as human beings and in the equality of citizens in their
right and duties as citizens. We Tanganyika believe, sir, that only a wicked man can make
color the criterion for human rights. Here we intend to build a country in which the color of a
person’s skin or the texture of his hair will be as irrelevant to his rights and his duties as a
citizen as it is irrelevant to his value in the eyes of God” Nyerere, December 1959
- 1960, he became the chief minister of Tanganyika
- Tanganyika granted independence in December 9th 1961 with Nyerere as the prime
minister.
- 1962 – elected as first president of the country
- Nyerere philosophy and vision and the international community
- Russia, China, India, the Scandinavia…
- International support through Foreign aid

17. The Arusha Declaration
• Decrease in Foreign Aid
• High foreign debt
• Increasing gap between
the rich and the poor
• The Arusha Declaration
February 5th, 1967

18. The Arusha declaration marked a turning point
in Tanzania politics.
PART ONE
The TANU Creed ( 9 beliefs and 13 objectives)
- That all citizens together possess all the natural resources of the country
in trust for their descendants
- To see that the Government eradicates all types of exploitation,
intimidation, discrimination, bribery and corruption;
- To see that the Government exercises effective control over the principal
means of production and pursues policies which facilitate the way to collective
ownership of the resources of this country;
The Arusha Declaration
February 5th, 1967

19. The Arusha Declaration
PART TWO
The Policy of Socialism
- Absence of Exploitation
- The Major Means of Production and Exchange are under the
Control of the Peasants and Workers
- The Existence of Democracy
- Socialism is a Belief

20. The Arusha Declaration
PART Three
The Policy of Self-Reliance
Focus on war against poverty and oppression in Tanzania; It aims at
moving the people of Tanzania (and the people of Africa as a whole)
from a state of poverty to a State of prosperity.
PART FOUR
TANU Membership
Emphasis on the beliefs of the Party and its policies of socialism
PART FIVE
Arusha resolution

21. The Arusha Declaration
• Commercial Banks and most private industries
were nationalized
• Implementation of a new rural policy to increase
productivity and control rural urban migration ,
Ujamaa vijijini ( socialism in villages)
• By 1970 , all imports and exports were handle by
the state.

22. THE UNPLANNED DESTINY
• Production of wealth??
-3500
-3000
-2500
-2000
-1500
-1000
-500
0
500
1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976* 1977*
Trade balance
Trade balance
Graph showing the trade balance of Tanzania between 1965 to 1977

23. THE UNPLANNED DESTINY
• Production of wealth??
-15
-10
-5
0
5
10
15
Subsistence
agriculture
Monetary GMP Agriculture total Mining and
quarrying
Manufacturing
and Handicrafts
Total GMP Monetary GMP
1965-1971
1971-1977
Graph showing a comparison of Tanzanian Gross material product between 1965-1971 and
1971-1977

24. THE UNPLANNED DESTINY
• Production of wealth??
1969 1975 Average growth rate
per annum %
Total urban labor force 219 600 375 400 9.2
Regular wage
employment
153200 210500 5.4
Casual employment 17200 27700 8.4
Low-income self-
employment
26900 78000 19.4
Unemployed 22400 59 200 17.6
Unemployed as a
percentage of the
labor force
10.2 15.8 n/a
Table4: Urban employment and Unemployment 1969 and 1975

25. THE UNPLANNED DESTINY
• Production of wealth??
- Standard of leaving had deteriorated
- Income level had decreased
- Government spending had decreased
- High dependency on foreign aid
IMF and World Bank attempted to intervene
- Devaluation of the Tanzanian currency
Nyerere’s response:
- Infringement to Tanzanian national sovereignty
- Political suicide

26. THE UNPLANNED DESTINY
• Received various support from like-minded donor countries
( socialist)
• Saw the Structural Adjustment policy as a political game.
• International economic system falling behind capitalism as
inherently unfair to low income countries
• However, Tanzania economy worsen off – standard leaving
decline to 65%
• Foreign donor started backing off in the 1983s
• Opposition emerged and in November 5th, 1985 Nyerere
resigned.

27. TANZANIA DEVELOPMENT
• Economic recovery program in 1986 – president
Hassan
- In partnership with the IMF
- The economy started recovering at a steady
space.
• The Economic and social Adjustment Program in
1989 with the World Bank
- Focus on Institutional reform
- Validation of a market-led strategy approach
within the country.

28. TANZANIA DEVELOPMENT
1967-1973 1974-1978 1979-1981 1982-1984 1985-1987
GDP per Capita 2.5 -0.9 -1.1 -2.9 0.7
Inflation (CPI) 8.5 15.1 23.2 30.6 33.1
Exports 3.6 -6.8 7.1 -16.7 6.0
Imports 3.6 2.8 14.3 -8.4 13.8
Ration of net
exports to GDP*
-2.6 -9.6 -11.4 -7.1 -12.4
Ration of debt to
export+
120.6 187.1 261.1 513.1 902.4
Table:5 – Selected economic Indicators (Percentage annual change)

29. TANZANIA DEVELOPMENT
-200
0
200
400
600
800
1000
GDP per Capita Inflation (CPI) Exports Imports Ration of net
exports to GDP*
Ration of debt to
export+
1967-1973
1974-1978
1979-1981
1982-1984
1985-1987
Graph showing the country performance at a specific period of time according to a
particular economic indicator.

30. TANZANIA DEVELOPMENT
Years Value of FDI (In US$ million)
1995 150.86
1996 148.64
1997 157.8
1998 172.2
1999 516.7
2000 463.4
2001 467.2
2002 387.6
2003 308.2
2004 330.6
2005 447.6
2006 616.6
2007 653.4
2008 744
2009 558.4
2010 433.9
2011 854.2
FDI to Tanzania 1995-2011, bank of Tanzania

31. UNDERSTANDING THE DEVELOPMENT
FAILURE
- Pre-colonial experience
- The effect of colonization
“We have been oppressed a great deal, we have been exploited a
great deal and we have been disregard a great deal. “ Julius
Nyerere during the Arusha declaration
- Creation of an hostile attitude toward foreign ideologies
- Arusha Declaration, and the nationalization of entities of
production.
- High dependence on agricultural products ( Ujamaa villages)

32. Policies prescription
A glance at Tanzania problems:
Poverty, debt crisis, the bureaucratic corruption, rapid
urbanization, balance of payment deficits and budget deficits.
- policy framework that recognizes both the limitations of the
states in social and economic affairs, as well as the capability
of the private sector to bring about a positive impact in the
economy
- Invest in human capital and providing a comfortable
economic environment to the private sector and civil entities
- Implementation of a mechanism of sanction and
control especially by neutral and independent institution.

33. Personal view of Tanzanian economy
during Nyerere
• Nyerere involuntarily enjoyed by virtue of the
loyalty of Tanzanian and the exercise of power.
- His conviction and strong belief on ‘African
socialism’ led the state to force socialism upon
the people from the top down.
• Could this be the reason why the economy
had underperformed during his reign?

34. INTERNATIONAL COMMUNITY
Graph showing the different type of aid received by Tanzania and other African countries

35. INTERNATIONAL COMMUNITY
• In recognizing the Burden of slavery and colonization in
Tanzania and most African countries in General, the
international communities should effectively agree as
stipulated Brandt Commission that wealthy nations
should pay 1% of their GDP to poor countries to enable
them to foster their manufacturing sector.
• The WTO should revise his agreements to equally fit
the interest of both poor and rich countries.

36. CONCLUSION
- The economy has been improving steadily
- International debt reduction has tremendously help the country.
Graph showing the Annual average growth rates of Sub-Saharan Africa compared to
Tanzania compared (2005-2012)
Graph showing the GDP growth rate
between Tanzania, Sub-Saharan
Africa and Developing countries

37. - Today, life in Tanzania is still hard; most people are very poor. The minimum
wage amounts for about $20 a month. Only about 10% of the population is
employed full time.
- A vast majority of the youth population is leaving to work in Kenya or the
Arab countries. The functioning of the economy is largely due to foreign
workers
- In the case on Tanzania, would it be right to blame Nyerere’s development
instead of the International community? Who does the actual growing
economy benefit to?
Posted in African Politics, Global Africa, Tanzania by ruben Eberlein on June 12, 2009

38. Consider visiting Tanzania one day,
you will not regret.
THANK YOU FOR YOUR
ATTENTION!

39. REFERENCES
• Griffin, Charles C., and Anil Deolalikar. Tanzania Social Sector Review. Washington, DC: World
Bank, 1999. Print.
• Kimambo, Isaria N., and A. J. Temu. A History of Tanzania . Evanston, IL: Northwestern UP,
1969. Print.
• Coulson, Andrew. Tanzania: A Political Economy. Oxford U.a.: Clarendon, 1985. Print.
• Ake, Claude E., and Henry Bienen. "Tanzania: Party Transformation and Economic
Development." Political Science Quarterly 85.4 (1970): 669. Web.
• Yeager, Rodger. Tanzania, an African Experiment. Boulder, CO: Westview, 1982. Print.
• Hodd, Michael. Tanzania after Nyerere. London: Printer, 1988. Print.
• Roberts, Andrew, and Beverley Brock. Tanzania before 1900. Nairobi: Published for the
Historical Association of Tanzania by the East African Pub. House, 1968. Print.
• Mwansasu, B. U., and Cranford Pratt. Towards Socialism in Tanzania. Toronto: U of Toronto,
1979. Print.
• Pratt, Cranford. The Critical Phase in Tanzania, 1945-1968: Nyerere and the Emergence of a
Socialist Strategy. Cambridge, Eng.: Cambridge UP, 1976. Print.

40. references
• Pratt, Cranford. The Critical Phase in Tanzania, 1945-1968: Nyerere and the Emergence of a
Socialist Strategy. Cambridge, Eng.: Cambridge UP, 1976. Print.
• Austen, Ralph A. Northwest Tanzania under German and British Rule; Colonial Policy and
Tribal Politics, 1889-1939. New Haven: Yale UP, 1968. Print.
• Schwenke, Chloe. Reclaiming Value in International Development: The Moral Dimensions of
Development Policy and Practice in Poor Countries. Westport, CT: Praeger, 2009. Print.
• Ayittey, George B. N. Africa Unchained: The Blueprint for Africa's Future. New York, NY:
Palgrave Macmillan, 2005. Print.
• Rostow, W. W. Rich Countries and Poor Countries: Reflections on the Past, Lessons for the
Future. Boulder: Westview, 1987. Print.
• Bhengu, Mfuniselwa John. African Economic Humanism: The Rise of an African Economic
Philosophy. Farnham, Surrey: Gower Pub., 2011. Print.
• Harrison, Graham. Neoliberal Africa: The Impact of Global Social Engineering. London: Zed,
2010. Print.
• Noman, Akbar, Howard Sten, and, and Joseph E. Sticglitz. Good Growth and Governance in
Africa: Rethinking Development Strategies. Oxford: Oxford UP, 2012. Print.
• Hope, Kempe R. African Political Economy: Contemporary Issues in Development. Armonk,
NY: M.E. Sharpe, 1997. Print.