De‐regulation/re‐regulation and partnership with the corporate business sector: The Tanzanian experience
| Date | 01 November 2006 |
| Author | P. M. Rupia |
| DOI | http://doi.org/10.1002/pad.4230150313 |
| Published date | 01 November 2006 |
PUBLIC ADMINISTRATION AND DEVELOPMENT, VOL. 15,253-256
(1995)
De-regulationlre-regulation
and partnership with the
corporate business sector: the Tanzanian experience
P.
M.
RUPIA
Government
of
Tanzania
INTRODUCTION
At the time of Tanzania’s independence in 1961, the provision of social services
(education, health etc.) was shared by the Government and non-governmental
organizations, while law and order and the provision and maintenance of basic
economic infrastructure (roads, railways, ports) and utilities (water, electricity,
telecommunications) were the responsibility of the Government. The limited
capacity of local entrepreneurs and a reluctance to see foreign investors play a
leading part in economic activities in Tanzania, saw the Government increasingly
playing an active developmental role itself. By 1966 the Government had 100% share
holding in 43 business enterprises engaged in activities ranging from manufacturing
and trade to banking and insurance.
The policy of socialism and self-reliance adopted in 1967 placed even more
responsibility on the state for social and economic development. Widespread use was
made of nationalization. Local, bilateral and multilateral funding was mobilized to
set up new public enterprises and expand others. By 1979 Tanzania had 380 public
enterprises and by 1990 the number had reached 425 accounting for about 24% of
non-agricultural employment but only 13% of GDP. Of this total, about 300 were
commercial (business-oriented) state enterprises.
The private sector, comprising a few foreign companies and several locally based
firms-the majority of which are owned by non-African Tanzanians, was allowed a
substantial role. In an environment with
a
diverse number of players, procedures had
to be established to harmonize and rationalize the different functions and activities
carried out by these players. This meant having in place different regulations to
define, monitor and control the behaviour of all business entities.
REGULATION
In the manufacturing sector, industrial licensing was instituted. Though well
intended, this item of regulation may have been misused and therefore served to
Paul Rupia is former Head of Civil Service, United Republic of Tanzania, The State House, Dar es
Salaam.
CCC
0271-2075/95/03025344
0
1995
by
John
Wiley
&
Sons,
Ltd.
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