THE ROLE OF THE WORLD BANK IN THE DEVELOPMENT OF TANZANIA

Neoclassical theorists have portrayed developed countries and international organizations as agents of development in the Third World. This study takes a political economy approach in investigating the role of the World Bank (a "capitalist" institution) in the development of Tanzania (a "socialist" country). The study argues that World Bank policies and practices in the context of the colonial legacy have contributed in part to the perpetuation of Tanzania's underdevelopment. Because of her dependence on foreign aid and Bank loans in particular, Tanzania has failed to build a socialist society. Consequently, she continues to pursue policies not differing substantially from colonial and Bank policies and that continue to constrain her development. The uniqueness of this dissertation lies in its analysis of a country trying to build a socialist society while relying on foreign aid from capitalist countries and Bank loans in particular and the uninvestigated role of international organizations in the development of Third World countries. Tanzania's development is divided into three periods: the precolonial (pre-1884); the colonial (1884-1961), which compares development (i.e., in agriculture, industry, infrastructure, education, and health) in that period with development during the independence period (1961-1967, pre-Arusha; and 1967-1981, post-Arusha). The research centers on the role of the World Bank in the development (i.e., its financing of development in the above sectors) of Tanzania between 1963 and 1981. Confidential Bank materials on Tanzania were used as well as secondary data. The evidence from the study shows that the Bank, like the colonial administrations in Tanzania, supports commercial agriculture, export-oriented industries, and infrastructure. The evidence also shows that the post-Arusha ruling establishment continues to work with the Bank in pursuing development in these sectors. While these sectors are important for development, they tend to benefit the Bank, its major creditors, and the ruling Tanzanian establishment. Tanzania's overall development is thus uneven; and despite the fact that she ranks eleventh in the world league of aid recipients and is the sixth largest recipient of IDA credits in black Africa, Tanzania remains one of the poorest countries in the world.