Development in the second phase, 1967 -1985

1. Tanzania adopted the policy of Socialism and Self-Reliance through the Arusha Declaration on 5th February 1967.
2. The policy aimed to ensure that major means of economic development were owned by all citizens for their benefit.
3. It was implemented under a one-party system led by the Tanganyika African National Union (TANU), which later became Chama Cha Mapinduzi (CCM).
4. This policy promoted national unity, solidarity, and peace.

1. Tanzania, in collaboration with Kenya and Uganda, established the East African Community (EAC) in 1967 to strengthen regional cooperation.
2. However, the EAC collapsed in 1977 due to disagreements, including Tanzania and Kenya's refusal to accept the dictatorship of Uganda's President Idi Amin (1971–1979).

Achievements of the East African Community Before Its Collapse

1. Strengthened the spirit of brotherhood and unity among member states.
2. Established East African Corporations to improve regional infrastructure, including:
   • East African Airlines
   • East African Railways
   • East African Harbours
   • East African Post Offices
3. Aimed at stimulating economic growth, national income, and regional security.

1. In 1977, TANU (from mainland Tanzania) and the Afro-Shirazi Party (ASP) from Zanzibar merged to form Chama Cha Mapinduzi (CCM).
2. This move aligned with the "Chama Kushika Hatamu" (Party Supremacy) policy, emphasizing the dominant role of the ruling party.

1. In November 1985, Mwalimu Julius Kambarage Nyerere voluntarily retired as President of the United Republic of Tanzania.
2. This decision set the foundation for peaceful and democratic leadership transitions in Tanzania.

The Arusha Declaration of 1967 established Socialism and Self-Reliance as the guiding principles for economic development in Tanzania. The main objectives were:

1. Eliminate economic dependence on foreign countries.
2. Promote national development through self-reliance and local resources.
3. Government ownership of all major means of production.
4. Collaboration between the government and citizens to foster economic growth.

Support for Peasants and Livestock Keepers

1. The government provided modern methods of farming and animal husbandry to enhance productivity.
2. Encouraged the establishment of cooperative unions to streamline agricultural efforts.

Industrial Development

The government took steps to establish and develop various industries, including:

1. Textile industries such as MWATEX (Mwanza), MUTEX (Musoma), KILITEX (Arusha), and Urafiki Textile (Dar es Salaam).
2. Leather processing and matchbox production industries.
3. Car spare parts and Mang'ula machinery industries.
4. Arusha General Tyre factory (1971) and other factories, including for building materials, cigarettes (TCC), and Scania truck assembly (TAMCO at Kibaha).

Establishment of Public Corporations and Banks

1. The government created several public corporations and banks to stimulate economic growth:
   • National Bank of Commerce (NBC)
   • Cooperative and Rural Development Bank (CRDB)
   • Tanzania Postal Bank (TPB)

Value Addition to Local Products

• Industries were set up to add value to local products, improving their quality and marketability.

Infrastructure and Transportation

1. The government focused on improving transportation networks, which were essential for economic activity.
2. Wholesale shops known as Regional Trading Companies (RTC) and village cooperative shops were established to facilitate the distribution of goods.

Provision of Essential Social Services

1. Public services were provided for food and meat production, transportation, and the sale of essential commodities like sugar, cereals, and cooking oil.
2. Key public institutions involved:
   • National Food and Agriculture Corporation (NAFCO)
   • National Milling Corporation (NMC)
   • Regional Transport Company (RETCO)

These economic activities were anchored in the following key policies:

1. Nationalization of major means of production.
2. Rural development, which involved the establishment of:
   • Ujamaa villages
   • Development villages, fostering community-centered growth.

Following the Arusha Declaration of 1967, the Tanzanian government nationalized various social services that were previously owned by individuals or religious institutions. This included:

1. Schools
2. Colleges
3. Hospitals

Objective

The nationalization aimed to:

1. Improve access to education and health services for all Tanzanians.
2. Expand educational opportunities from primary school to university, with government sponsorship covering all levels.

1. Primary education was made compulsory for every school-age child.
2. The government implemented the Education for Self-Reliance Policy, which focused on preparing young Tanzanians to be self-reliant after school.
3. In 1974, the Musoma Resolution promoted Universal Primary Education (UPE), making primary education free and accessible to all.
4. Adult education programs were introduced to provide literacy for adults who were illiterate, fostering personal and national economic development by enabling citizens to better understand health, agriculture, and animal husbandry messages.

From 1968 to 1976, Tanzania undertook a significant initiative to create Ujamaa villages (1968–1973) and development villages (1973–1976). These were part of the broader implementation of the Arusha Declaration.

Key Objectives

1. Social services such as health, education, and water became more accessible to people living in rural areas.
2. Every village was required to have:
   • A primary school
   • A dispensary
   • Health centers for every three villages
3. This initiative led to increased employment opportunities due to a rise in industrial and agricultural activities.
4. As a result, living conditions improved across rural areas.

Developmental changes in Tanzania fostered a collective embrace of the Tanzanian culture, promoting unity and inclusivity among the country's diverse ethnic groups. The government encouraged cultural practices that connected the people, and cultural development played a significant role in strengthening national identity.

1. Kiswahili was recognized and promoted as the national language that united over 120 ethnic groups in Tanzania.
2. It was adopted as the primary language of teaching and learning in primary schools across the country.
3. To further promote Kiswahili, the government established the National Kiswahili Council (BAKITA), whose purpose was to develop and promote the language.

1. The government established the National Arts Council of Tanzania (BASATA), with the goal of promoting and developing Tanzanian art.
2. This led to a flourishing of various art forms and a greater emphasis on showcasing the nation's cultural heritage.

1. The promotion of Tanzanian dressing styles that reflect the morals and dignity of the community was emphasized.
2. Citizens were encouraged to wear traditional clothing such as khanga and kitenge, which are integral parts of Tanzanian culture.
3. Additionally, traditional foodstuffs were highlighted to strengthen local culinary practices and food security.

1. During this period, sports activities such as athletics, football, and volleyball were highly developed, contributing to national pride and unity.
2. The growth of these sports helped in cultivating a sense of community and national identity among Tanzanians.

Despite some development achievements during this phase, Tanzania faced significant challenges that hindered progress. These challenges primarily stemmed from global economic issues, internal conflicts, and the breakdown of international support.

1. Global Economic Crises: Tanzania faced numerous economic problems due to global economic downturns, particularly the high oil prices in the Middle East between 1973 and 1979.
2. Severe Droughts (1974-1975): The country experienced severe droughts, which led to food shortages. The government was forced to spend substantial amounts of money on importing food to meet the needs of the population.
3. Collapse of the East African Community (EAC) (1977): The collapse of the EAC in 1977 forced Tanzania to establish its own corporations in an effort to achieve economic liberation. This loss of regional cooperation posed a significant economic challenge.

• Kagera War (1978-1979): The Kagera War between Tanzania and Uganda, which lasted from 1978 to 1979, drained the nation's resources. The war, initiated by the aggression of Ugandan President Idi Amin, forced Tanzania to allocate large sums of money to fight the conflict.

1. Between 1979 and 1985, both the International Monetary Fund (IMF) and the World Bank (WB) terminated financial support to Tanzania.
2. The WB also prohibited other countries from providing support to Tanzania due to the country's opposition to the structural adjustment policies proposed by these institutions.

• These combined challenges led to economic collapse, leaving the country without sufficient capital to continue developing and strengthening economic and social activities. This period marked a critical economic downturn for the nation.