The Political Economy of Tanzania
The Political Economy of Tanzania
Decline and Recovery
Michael F. Lofchie
UNIVERSITY OF PENNSYLVANIA PRESS
PHILADELPHIA
Copyright © 2014 University of Pennsylvania Press
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Published by
University of Pennsylvania Press
Philadelphia, Pennsylvania 19104-4112
Printed in the United States of America on acid-free paper
10 9 8 7 6 5 4 3 2 1
Library of Congress Cataloging-in-Publication Data
Lofchie, Michael F.
The political economy of Tanzania : decline and recovery / Michael F. Lofchie. — 1st ed.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-8122-4590-5 (hardcover : alk. paper)
1. Economic development—Political aspects—Tanzania. 2. Tanzania—Economic policy. 3. Tanzania—Economic conditions—1964– 4. Tanzania—Politics and government—1964– I. Title.
HC885.L6374 2014
| 338.9678—dc23 | 2013031254 |
Between what matters and what seems to matter, how should the world we know judge wisely?
—E. C. Bentley, Trent’s Last Case, Chapter 1
For Kelly and Hudson
Contents
1. Introduction: A Tanzanian Overview
2. Economic Decline and Authoritarian Rule
3. The Failure of Central Planning
4. The Path to Economic Reform I: The Aid Debate
5. The Path to Economic Reform II: Internal Alignments
7. Conclusion: Contemporary Tanzania
Abbreviations
| ANC | African National Congress |
| BAE | British Aerospace Engineering |
| CCM | Chama Cha Mapinduzi |
| Chadema | Party of Freedom and Democracy |
| COSATA | Cooperative Society of Tanzania |
| CPP | Convention People’s Party |
| CUF | Civic Union Front |
| DP | Democratic Party |
| DRC | Democratic Republic of Congo |
| EAC | East African Community |
| EPA | External Payments Account |
| ESRF | Economic and Social Research Foundation |
| FACEIT | Front Against Corrupt Elements in Tanzania |
| GDP | Gross Domestic Product |
| GNI | Gross National Income |
| HDI | Human Development Index |
| ILI | International Lending Institutions |
| IMF | International Monetary Fund |
| IMoLIN | International Money Laundering Information Network |
| ISI | Import-Substituting Industrialization |
| JUWATA | Union of Tanzanian Workers |
| LART | Loans and Assets Realization Trust |
| NBC | National Bank of Commerce |
| NESP | National Economic Survival Programme |
| NGO | Nongovernmental Organization |
| NMC | National Milling Corporation |
| NPART | Non-Performing Assets Realization Trust |
| NSGRP | National Strategy for Growth and Reduction of Poverty |
| NUTA | National Union of Tanganyika Workers |
| OGL | Open General License |
| OTTU | Organization of Tanzania Trade Unions |
| PCCB | Prevention and Combating of Corruption Bureau |
| POLiS | Parliamentary On-Line Legal Information System |
| PPG | Public and Publicly Guaranteed |
| PSRC | Parastatal Sector Reform Commission |