Economic Strategies

Read the source below (‘Tanzania's President, Joseph Nyerere, on neo-colonialism, 1970’) and
answer the following questions:

1. How does Nyerere analyse the poor countries’ situation?

He says that it is impossible to initiate a capitalist development without the help of foreign
capitalists, their money and their administrational expertise.

2. What conclusion does his analysis arrive at?

Even if the country refuses to comply to the demands of the foreign capitalists, then it would have
huge consequences on the economy of the people.

3. Discuss his reasoning.

He claims that if the country decides not to comply then the capitalist might threaten them by
stating that these fixtures will force them to move their investments elsewhere.

4. Using the interwebz, find out which economic model Tanzania adhered to at the beginning
of its independence.

Immediately after independence, Tanzania followed an economic programme that depended heavily
on foreign investment to run a capital-intensive industrialization and agricultural development. –
According to researchgate.net

5. Furthermore, find out how Tanzania has developed politically/economically from then till
today.

From independence in 1961 until the mid 1980’s, Tanzania was a one-party state, with a socialist
model of economic development. In January and February 1992, the government decided to adopt
multiparty democracy. Legal and constitutional changes led to the registration of 11 political
parties. On March 19th, 2021, Vice President Samia Sulluhu Hassan became the new president after
the sudden death of President John Maguguli. She is the first female President in Tanzania.

Tanzania's President, Joseph Nyerere, on neo-colonialism,

1970

Tanzania's President, Joseph Nyerere, held this speech in 1970, highlighting the Third World
countries’ dependency on the rich world's capitalist enterprises.
In poor countries like ours, it is impossible to initiate a capitalist development without the help of
foreign capitalists, their money and their administrational expertise. However, these foreign
capitalists will only invest in developing countries if they expect it to be more advantageous than
investing elsewhere.

Development through capitalism means, therefore, that Third World countries need to accept
conditions established by foreign parties; by capitalists from other countries. And if we accept their
terms, we must necessarily be ruled by them or risk companies being closed, the capital and the
know-how withdrawn and other forms of financial sanctions.

In actuality, dependence on capitalist development means that we leave it to others to make the
decisive decisions in our countries. What should be produced, where companies should be located
(…) our tax system - all this will be determined from the outside.

It has been asserted that this situation will only be temporary because foreign investment will
gradually become a catalyst for local capitalist development. This is not entirely wrong. Small-
scale, local businesses might grow in the shade of a larger, foreign-owned company. However, all
these smaller, local businesses will just be subcontractors to the big company or provide services to
the workers from the big company. The small, local businesses will therefore be completely
dependent on the big company: flourish when it blossoms and close when it disappears. (…)

This is very simple. For example, if the government proposes to introduce a fixed minimum wage
or to increase the duties on the import of goods that the foreign business needs… Well, then the
management of this business might say that they are compelled to close the factory. It might point
to the fact that not only will it result in unemployment for the employees of the company, but also
that a number of local businesses will go bankrupt. The government can of course go through with
its proposal, but the consequences will be immeasurable.

But that is not all. The strong dependence on foreign interests will influence [the government’s]
foreign policies. If a poor country ventures too far in its support for liberation movements or similar
anti-imperial issues, it can easily cause foreign capitalists to close their factories in the country and
withdraw their capital.

What I’m trying to say is that with the existing inequalities in the world, it is impossible to reconcile
a capitalist development with full national independence for Third world countries.
Kilde: Torben Kitaj, Den ny økonomiske Verdensorden, 1978, s. 51-52
Oversat af læreren
This is not Joseph Nyerere. This is a completely random man pointing to Tanzania on a map I found
on Google. Carry on.