Tanzania. In November, the EU pledged € 114 million in budget support over the next two years in recognition of the economic reforms implemented in Tanzania. According to Countryaah.com, Tanzania Independence Day is December 9. The money will mainly be used to finance basic education, primary health care, HIV/AIDS prevention, agriculture, rural road construction, water supply and a strengthening of the justice system.
In May’s election election on the island of Pemba, the regional party Citizens United Front (CUF) took most of the mandates of both the national parliament and the Zanzibar Autonomous Assembly.
Ujamaa in crisis
Military spending rose dramatically – especially to fund the intervention force in Uganda – and it strained Tanzania’s economy very hard. The crisis was further compounded by the fall in prices for the country’s export goods: coffee, spices, cotton and cashew nuts, and at the same time prices of imported goods rose. The country suffered a severe budget deficit and the resources for the expansion of the municipal villages had to be drastically reduced.
The intention of the ujamaa villages was, among other things, that they should be self-sufficient, but initially they were dependent on government grants. Despite Julius Nyerere’s government’s efforts to develop this agricultural structure, they only grew slowly, which was largely due to natural conditions. But the villages were unable to remove the country’s dependence on imported food for a shorter number of years, and as state subsidies were drastically reduced, many villages came into crisis.
From CCM’s 2nd Congress in 1982, a new generation of leaders took over the key posts within the government and the party. They were predominantly oriented towards strengthening the trend towards socialism. In 1983, Edward Sokoine was appointed prime minister and under him the government launched a campaign against corruption while taking a more flexible stance on foreign capital. At the same time, he initiated a process of rapprochement with Kenya. Relations between the two countries had been discontinued since 1977, when the East African Common Market of Tanzania, Kenya and Uganda had been dissolved. When Sokoine died, his successor, Salim Ahmed Salim continued the same political line.
At the political level, these years began a national discussion on the implementation of a constitutional reform aimed at reorganizing the executive power, expanding women’s participation in politics, increasing democracy in the CCM’s base and banning more than two consecutive elections by the same person for president.
After serving as head of state for 24 years, on November 25, 1985, Julius Nyerere handed the presidential post to Ali Hassan Mwinyi, who had been elected a month earlier with 92.2% of the vote. Instead, Nyerere became chairman of the South-South Commission, which, with its seat in Geneva, aimed to strengthen the unity of the Third World and its negotiating power vis-à-vis the developed capitalist countries of the north.
In 86, the implementation of an economic recovery plan, which was drawn up by IMF and World Bank guidelines, began. The plan included emphasis on the reduction of customs duties on imported goods and support for private investment.
Productivity in private agriculture increased and so did parts of the industry, but at the same time the ujamaa model came into ever deeper crisis. Both because the production was inadequate and because of increasing resistance from the population against the often forced resettlement of entire villages. The financial recovery was increasingly dependent on credits from the international financial institutions that would be disbursed once the planned structural adjustment programs had been implemented.
But opening up to private capital did not solve the country’s problems. Acc. UNICEF children’s studies study half of the country’s children suffer from malnutrition and the country continues to be among the world’s 30 poorest countries, despite not being starved like other countries in East Africa.
The work in agriculture is done predominantly by women. Women account for almost half of the labor market, but in agriculture 85% of the work is done by women. At the same time, the female population in urban slums is predominantly employed in informal work. Statistics from 89 indicated that agriculture accounted for 51% of the country’s GDP, industry 10.2%, trade 13.3% and service 25%. The latter was the most competitive, accounting for only 10% of the workforce, while agriculture was the least capital-intensive and labor-intensive, accounting for 85.6% of the workforce.