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The Second Economy in Tanzania by T. L. Maliyamkono and M. S. D. Bagachwa London, James Currey; Athens, Ohio University Press; Nairobi, Heinemann Kenya; and Dar es Salaam, ESAURP; 1990. Pp. xix + 197. £25.00. £9.95 paperback.Capitalism, Socialism and the Development Crisis in Tanzania edited by Norman O'Neill and Kemal Mustafa Aldershot, Avebury; Brookfield, Vermont, Gower; 1990. Pp. xiv + 281. £30.00.Ideology as a Determinant of Economic Systems: Nyerere and Ujamaa in Tanzania by Stefan Hedlund

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The Second Economy in Tanzania by T. L. Maliyamkono; M. S. D. Bagachwa; Capitalism,
Socialism and the Development Crisis in Tanzania by Norman O'Neill; Kemal Mustafa; Ideology
as a Determinant of Economic Systems: Nyerere and Ujamaa in Tanzania by Stefan Hedlund;
Mats Lundahl; Did Colonialism Capture the Peasantry? A Case Study of the Kagera District,
Tanzania by Charles David Smith
Review by: Tony Waters
The Journal of Modern African Studies,
Vol. 28, No. 4 (Dec., 1990), pp. 700-703
Published by: Cambridge University Press
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naturally, hardly talk of quitting the market. The causes of Africa's declining
production are man-made (including war, poor pricing policies, and
insufficient investment in agriculture), and natural (like drought). Effective
policies must, therefore, address domestic and international causes equally.
This also applies to structural adjustment policies. To blame the I.M.F. for
hunger, and for shortages of basic consumer goods, flies in the face of reality.
Long before the I.M.F. came into Ghana, Tanzania, and Zambia, inflation
soared, fuelled by profligate deficit spending and lax monetary policies.
Whatever one thinks of the I.M.F., over-valued currencies do hurt agricultural
producers and encourage imports, as anyone familiar with the Nigerian oil-
boom knows. Structural adjustment policies may not provide adequate
answers to African problems, but countries are worse off without them - not
because I.M.F. 'fixes' them - but because the continuation of defective
policies actually aggravates already-perilous economic conditions. To struc-
turally adjust or not to is really Hobson's choice in the end, and each country,
rich or poor, must choose the lesser of two (or several) evils.
The call for a peasant-divided commonwealth unhinged from world market
forces, as advocated by this book, is an easy but unreal choice. That is why
there is not a single concrete example of a successful 'silent revolution', in or
outside Africa. There is no development without costs. In the circumstances,
the realistic role of policy-oriented social science is to highlight the least
imperfect development alternative from a set of possibilities, each of which
unavoidably carries definite social costs, not least to the peasants. Amidst the
intellectual fireworks in this book, readers will look for such enlightenment in
vain.
MICHAEL CHEGE
The Ford Foundation,
Office
for Eastern and Southern
Africa, Harare
The Second Economy in Tanzania by T. L. MALIYAMKO N O and M. S.
D. BAGACHWA
London, James Currey; Athens, Ohio University Press; Nairobi, Heinemann
Kenya; and Dar es Salaam, ESAURP; I990. Pp. xix+ 197. ?25.00. ?9.95
paperback.
Capitalism, Socialism and the Development Crisis in Tanzania edited
by NORMAN O'NEILL and KEMAL MUSTAFA
Aldershot, Avebury; Brookfield, Vermont, Gower; I990. Pp. xiv+28i.
?30.00.
Ideology as a Determinant of Economic Systems: Nyerere and
Ujamaa in Tanzania by STEFAN HEDLUND and MATS LUNDAHL
Uppsala, Scandinavian Institute of African Studies, I989. Pp. 54. SEK50.oo.
Did Colonialism Capture the Peasantry? A Case Study of the Kagera
District, Tanzania by CHARLES DAVID SMITH
Uppsala, Scandinavian Institute of African Studies, 1989. Pp. 34. SEK40.00.
Tanzania's experiments in economics, ideology, and political development
have long attracted the interests of scholars, policy-makers, and writers.
naturally, hardly talk of quitting the market. The causes of Africa's declining
production are man-made (including war, poor pricing policies, and
insufficient investment in agriculture), and natural (like drought). Effective
policies must, therefore, address domestic and international causes equally.
This also applies to structural adjustment policies. To blame the I.M.F. for
hunger, and for shortages of basic consumer goods, flies in the face of reality.
Long before the I.M.F. came into Ghana, Tanzania, and Zambia, inflation
soared, fuelled by profligate deficit spending and lax monetary policies.
Whatever one thinks of the I.M.F., over-valued currencies do hurt agricultural
producers and encourage imports, as anyone familiar with the Nigerian oil-
boom knows. Structural adjustment policies may not provide adequate
answers to African problems, but countries are worse off without them - not
because I.M.F. 'fixes' them - but because the continuation of defective
policies actually aggravates already-perilous economic conditions. To struc-
turally adjust or not to is really Hobson's choice in the end, and each country,
rich or poor, must choose the lesser of two (or several) evils.
The call for a peasant-divided commonwealth unhinged from world market
forces, as advocated by this book, is an easy but unreal choice. That is why
there is not a single concrete example of a successful 'silent revolution', in or
outside Africa. There is no development without costs. In the circumstances,
the realistic role of policy-oriented social science is to highlight the least
imperfect development alternative from a set of possibilities, each of which
unavoidably carries definite social costs, not least to the peasants. Amidst the
intellectual fireworks in this book, readers will look for such enlightenment in
vain.
MICHAEL CHEGE
The Ford Foundation,
Office
for Eastern and Southern
Africa, Harare
The Second Economy in Tanzania by T. L. MALIYAMKO N O and M. S.
D. BAGACHWA
London, James Currey; Athens, Ohio University Press; Nairobi, Heinemann
Kenya; and Dar es Salaam, ESAURP; I990. Pp. xix+ 197. ?25.00. ?9.95
paperback.
Capitalism, Socialism and the Development Crisis in Tanzania edited
by NORMAN O'NEILL and KEMAL MUSTAFA
Aldershot, Avebury; Brookfield, Vermont, Gower; I990. Pp. xiv+28i.
?30.00.
Ideology as a Determinant of Economic Systems: Nyerere and
Ujamaa in Tanzania by STEFAN HEDLUND and MATS LUNDAHL
Uppsala, Scandinavian Institute of African Studies, I989. Pp. 54. SEK50.oo.
Did Colonialism Capture the Peasantry? A Case Study of the Kagera
District, Tanzania by CHARLES DAVID SMITH
Uppsala, Scandinavian Institute of African Studies, 1989. Pp. 34. SEK40.00.
Tanzania's experiments in economics, ideology, and political development
have long attracted the interests of scholars, policy-makers, and writers.
7oo 7oo REVIEWS REVIEWS
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Couple this with a relatively open approach towards social research, and the
result has been a steadily expanding debate about what does (and does not)
work in the development of this East African country. To a large extent, the
four new books reviewed here bring this debate into the I990S by commenting
on the successes and failures of policies implemented during previous 'crises'.
The Second Economy in Tanzania is a strikingly original description of an
economy which operates independently of the state-monitored sectors. The
authors describe the legal and illegal economic activities which take place
beyond the realm of government taxation and regulation. Thus, this 'second
economy' includes on-farm consumption of subsistence goods, street stalls,
rural to urban food transfers, and small-scale carpentry enterprises, in
addition to illegal ivory sales, and smuggling.
As T. L. Maliyamkono and M. S. D. Bagachwa point out, the existence of a
substantial second economy has been an obvious fact for many years. Official
'first economy' Tanzanian salary scales are insufficient for basic subsistence
needs, even at upper levels. This, if nothing else, points to the importance of
the second economy since workers continue to subsist despite such
inadequacies. For obvious reasons, though, attempts at describing significant
secondary economic activities have been under-emphasised - a deficiency that
the authors go to great lengths in their book to eliminate.
In the excellent set of tables and figures (41-pages worth), the available data
is presented in an effective manner, up to and sometimes including 1989.
Maliyamkono and Bagachwa also present the preliminary results of their own
6oo-household national survey which was designed to show how Tanzanians
continue to subsist in a country where official economic indicators present a
gloomy picture. They show that while the setbacks described by the depressing
statistics are very real, the second economy has picked up at least enough of
the slack for most subsistence to continue.
The authors conclude that parts of the second economy - for example,
vehicle-repair workshops, street stalls, and local co-operatives - are worth
legitimising, and even encouraging, while the more destructive illegal
practices, such as under/over invoicing, poaching, corruption, and smuggling,
merit continued enforcement measures. They manage to make these
recommendations without dogmatically aligning themselves with either of the
two ideological camps, socialist or capitalist, around which debate in
Tanzania has often focused.
It is a pity that this book does not contain more qualitative theoretical
analysis. Maliyamkono and Bagachwa have accumulated an impressive
wealth of information and developed several original indicators of secondary
economic activity in Tanzania, but they have offered little diagnosis
despite hints (pp. 57-8) that they have the technical capacity to test and
develop sophisticated regression models. It is to be hoped that the data
collected by the authors will be further analysed, not least because it is rare to
find such comprehensive surveys being undertaken/published in contem-
porary Africa.
Capitalism, Socialism and the Development
Crisis in Tanzania adopts a more
theoretical approach by continuing the ideological debate about the role that
capitalist and socialist policies have played in the country's development.
70I
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Norman O'Neill and Kemal Mustafa have edited 12 essays that deal with
diverse topics, albeit with a common focus on class emergence, dynamics, and
conflict in Tanzanian society.
'Workers in Struggle' by Issa G. Shivji offers a particularly good review of
the sometimes frustrating attempts to organise labour, and to establish a
workers' consciousness, both during colonial times and after independence.
'Alternative Rural Development Policies' by Salvatore Rugumisa documents
trends between 1978-85. This is a particularly important period because it
includes the end of the foreign-assisted regional development programmes (the
so-called RIDEPs), and the beginning of the market-oriented policies, such as
the structural adjustment programme (S.A.P.), developed in response to the
demands of the International Monetary Fund. 'Co-operatives in Agricultural
Development' by Sam Maghimbi discusses Tanzania's experiences in the
I96os, criticises the Government's banning of independent co-operatives in
1976, and describes their subsequent reinstatement in 1982. Other contributors
include Kemal Mustafa who assesses the proletarianisation of the Maasai in
'The Pastoralist Question'.
As is often the case, such a collection of essays suffers from repetitiveness,
particularly in describing the historical background. This perhaps unavoidable
fact, though, does not harm the basic value of a book that should be of interest
to anyone concerned with either Tanzania's recent experiences with
development or the emergence of class in East Africa.
Ideology
as a Determinant
of Economic
Systems:
Jyerere and Ujamaa
in Tanzania by
Stefan Hedlund and Mats Lundahl updates the 'motivation by individual
incentives' reasoning used by free-market economists. As is normal with such
arguments, the issues of class dynamics take a backseat to discussions of market
economies. Emphasis is placed on the failures of communalised production in
socialist Tanzania, and the authors indicate that an ideology of communalism
without material incentives is insufficient for a national development
programme. In particular, the problems created by forced villagisation in the
I97os are reviewed in the context of 'free rider' difficulties created by the
emphasis on socialised production. In this respect, the criticisms in this
Scandinavian research report are very similar to those offered by the World
Bank and the I.M.F. during the restructuring programmes of the I98os.
Did Colonialism Capture the Peasantry? A Case Study of the Kagera District,
Tanzania is a commentary on recent theories about the strength of a peasantry
'uncaptured' by international capitalist markets - notably, in Goran Hyden,
No Shortcuts to
Progress: African development management
in
perspective
(Berkeley and
Los Angeles, I983). It is Charles David Smith's original contention that, at
least in the case of Kagera, the peasantry was 'captured' during colonial times
by the creation of'socially necessary consumption', such as school uniforms,
galvanised iron sheets, soap, matches, etcetera. As with some of Hyden's
original work, though, Smith's study is limited by its qualitative nature. The
answer to the question posed in the title of his research report is obviously
'Yes'. But it is not clear what this necessarily means for the rest of Tanzania's
peasantry.
Smith himself is careful not to make over-generalisations since, as he points
out, the area studied was responsible for 60 per cent of colonial Tanganyika's
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coffee production. However, because of this, it is not yet clear whether his
work will be of interest to a general audience concerned with the rest of
Tanzania. If mercantile colonialism did, in fact, create 'socially necessary
consumption', an obvious follow-up question is to ask what this means for
development programmes in other geographical areas.
The fact that four recent publications represent different viewpoints about
these socio-economic and political experiments is an indicator that this debate
is maturing, and responding to the complexities to be found in East Africa. It
also provides hope that solutions to Tanzania's very real development
problems can be found.
TONY WATERS
Department of Sociology, University
of California, Davis
Agricultural Crisis in Africa: the Nigerian experience by DAVID A.
IYEGHA
Lanham, New York, and London, University Press of America, 1988.
Pp. xx+246. $24.50. ?i8.95. $15.75 paperback.
This book is considerably narrower than its title implies. As indicated in the
preface, the author feels that we are 'forced to look into the often avoided
repercussions of the management style of many post-independent African
leaders', and that Nigeria provides a classic example 'of how limited
resources have been mismanaged to the detriment of the population at large'
(p. vi). In particular he claims that the Government has neglected, exploited,
and abused the real producers, namely the small-holders.
Agricultural
Crisis
in Africa: the
Nigerian experience
offers a somewhat simplistic
view of a very complex and diverse problem. Although David Iyegha explains
that 'In order to avoid overgeneralization, a single country... has been
selected for investigation', and that 'Since Nigeria is experiencing a severe
agricultural crisis at this time, it is an excellent microcosm of greater Africa
and an excellent basis of study' (p. 6), he fails to provide the necessary
theoretical background against which his empirical evidence can be properly
understood and evaluated. He raises the thesis that 'the agricultural crisis in
Nigeria is much better explained by federal, state, and local mismanagement,
and political corruption and neglect, as well as by displaced priorities in
development strategy' (p. 6).
The key chapter, 'Political Mismanagement and Agricultural Development
in Nigeria', contains summaries of the four national development plans,
1962-8, 1970-4, 1975-80, and I980-5, but several of the author's conclusions
can be challenged. For instance, despite evidence that the Government
increased producer prices of some crops by over 400 per cent between 1972-3
and 1982-3, it is still blamed for the decline in output. He fails to consider the
high propensity of the farmers (and other Nigerians) to purchase badly-
wanted consumable goods instead of ploughing back some/most of their
'profits' into their small-scale enterprises. He also discusses the incidence of high
produce taxes imposed by the commodity boards between 1957-8 and 1970-I
as one of the many ways in which the Government discriminated against
small-holders, without considering corresponding trends in the production of
coffee production. However, because of this, it is not yet clear whether his
work will be of interest to a general audience concerned with the rest of
Tanzania. If mercantile colonialism did, in fact, create 'socially necessary
consumption', an obvious follow-up question is to ask what this means for
development programmes in other geographical areas.
The fact that four recent publications represent different viewpoints about
these socio-economic and political experiments is an indicator that this debate
is maturing, and responding to the complexities to be found in East Africa. It
also provides hope that solutions to Tanzania's very real development
problems can be found.
TONY WATERS
Department of Sociology, University
of California, Davis
Agricultural Crisis in Africa: the Nigerian experience by DAVID A.
IYEGHA
Lanham, New York, and London, University Press of America, 1988.
Pp. xx+246. $24.50. ?i8.95. $15.75 paperback.
This book is considerably narrower than its title implies. As indicated in the
preface, the author feels that we are 'forced to look into the often avoided
repercussions of the management style of many post-independent African
leaders', and that Nigeria provides a classic example 'of how limited
resources have been mismanaged to the detriment of the population at large'
(p. vi). In particular he claims that the Government has neglected, exploited,
and abused the real producers, namely the small-holders.
Agricultural
Crisis
in Africa: the
Nigerian experience
offers a somewhat simplistic
view of a very complex and diverse problem. Although David Iyegha explains
that 'In order to avoid overgeneralization, a single country... has been
selected for investigation', and that 'Since Nigeria is experiencing a severe
agricultural crisis at this time, it is an excellent microcosm of greater Africa
and an excellent basis of study' (p. 6), he fails to provide the necessary
theoretical background against which his empirical evidence can be properly
understood and evaluated. He raises the thesis that 'the agricultural crisis in
Nigeria is much better explained by federal, state, and local mismanagement,
and political corruption and neglect, as well as by displaced priorities in
development strategy' (p. 6).
The key chapter, 'Political Mismanagement and Agricultural Development
in Nigeria', contains summaries of the four national development plans,
1962-8, 1970-4, 1975-80, and I980-5, but several of the author's conclusions
can be challenged. For instance, despite evidence that the Government
increased producer prices of some crops by over 400 per cent between 1972-3
and 1982-3, it is still blamed for the decline in output. He fails to consider the
high propensity of the farmers (and other Nigerians) to purchase badly-
wanted consumable goods instead of ploughing back some/most of their
'profits' into their small-scale enterprises. He also discusses the incidence of high
produce taxes imposed by the commodity boards between 1957-8 and 1970-I
as one of the many ways in which the Government discriminated against
small-holders, without considering corresponding trends in the production of
REVIEWS REVIEWS 7o3 7o3
25 25 MOA 28
MOA 28
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