W2A031T
Future Prospects for Rural Cooperatives in Tanzania 
5.2.1 The Need for Clear Cooperative Development Policy
The history of the cooperative movement in Tanzania has shown that marketing cooperatives can play an important role in bringing about rapid social and economic development in the rural areas. Through the traditional marketing cooperatives, farmers were able not only to get rid of middlemen who were involved in buying produce in the rural areas, but were also able to get better prices for their crops. In this way, their standard of living rose substantially, year after year, as a result of improved bargaining power which they were able to mobilise through their cooperatives. 
At the same time, the marketing cooperatives were able to improve the productive capacities of farmers by supplying them with fertilizers, insecticides and farm implements, as well as agricultural credit at reasonable cost. Through continuous education and training, the ability of farmers to organise themselves and to manage their cooperatives improved tremendously over the years. It is for the reason that the cooperative movement in Tanzania was once, during the late sixties, recognised as one of the best in Africa, South of Sahara. 
However, looking back at the past events, there is no doubt that there was a lot of confusion and misunderstanding between the policy-makers and cooperators, particularly on the issues related to the ways and means of accelerating the pace of <ea/>ujamaa programmes in the country. As a result, in the absence of clear cooperative development policy, cooperators and policy-makers found themselves at loggerheads instead of working together as partners in development. When the marketing cooperatives were dissolved in 1976, the farmers suffered tremendous hardships and the production of the major cash and food crops declined substantially, thus, making it impossible for the country to achieve its objectives of improving the social and economic conditions of farmers and the attainment of self-sufficiency in food.
There is, therefore an urgent need for Tanzania to prepare a comprehensive cooperative development policy document which, besides minimising conflicts of interest, will guide cooperatives towards the set objectives. The need for such a document is felt much more now than ever before because of the past failures. As it has been revealed earlier in this work, already at this stage of implementation of the new cooperative programme, conflicts of interest have come to the surface regarding the role of cooperatives in the new set-up.
One group of development strategists believes that the newly established rural cooperatives should be given all the necessary support to enable them to provide vital services which farmers need; the other is of the opinion that the cooperatives should be seen as a temporary solution to the problem of bringing about socialist change in the country. In terms of policy, the issue in this case is not who is right or who is wrong, but what steps to take next to move Tanzanians from where they are to a position of prosperity, where disease, ignorance and hunger will be less threat to their lives. The best way to approach the problem will be to work out a common strategy which takes care of the needs of the people and the socio-economic realities prevailing in the country.
Essentially, both development strategies offer possibilities for Tanzanians to move towards prosperity. As tools of development, particularly at this stage where there is need to motivate farmers to change their attitudes towards development, cooperatives have a lot to offer. Though cooperative farmers will be able, besides getting various services which are necessary for improving their productive capacities, improve their skills in tackling their problems in order to achieve social and economic prosperity. In the opinion of the first group of strategists, development, as a process of positive change, should be encouraged in all possible ways. As such, it is not a question of an infant millipede asking its mother which leg to use first in order to move but rather to move by all means, regardless of which leg should start first.
The validity of the argument of the second group of development strategists, on the other hand, is based on the fact that development, in Tanzania would be meaningful only if it took place within a socialist framework which guaranteed equality, justice and democracy. As a development strategy, the strategists see the possibility of increasing productive capacities of the country directly by encouraging farmers to produce communally, thus making it possible for them to benefit from the advantages of large scale operations. In this context the socialist strategy will offer possibilities of faster growth because it will be relatively easier to influence groups to accept changes than would be the case with individuals in their scattered homesteads. In the opinion of the group, it is important to nip the capitalist tendencies of society, in the bud in order to avoid the risks of class conflicts.
What is at issue in both cases is whether cooperatives can be used to bring about development which will be in line with the thinking of the two groups. As regards the first group, the issue does not present a problem because cooperatives, as tools of development, are acceptable. Maybe the question which will need to be answered is whether co-operatives should be regarded as tools for enhancing self-reliance and autonomy of members or as development agencies of government. Cooperative development policy which aims at promoting cooperatives as self-reliant organisations of members will emphasise the need to allow members' freedom and autonomy to participate in their development activities (i.e. development of the people by the people and for their own interests and needs). The strategy for promoting cooperatives which are development agencies of government will emphasise the need for government to play a predominant role in identifying and implementing cooperative programmes, according to its needs and priorities.
As regards the role of cooperatives under the socialist system, as represented by the second group of development strategies, there will be need to clarify whether socialism will be promoted from above (imposed) or from below (through conviction). The strategy for promoting socialism from above will emphasise the predominant role of government in decisions and implementation of development programmes. In such a situation the role of cooperatives as self-help organisations will be less relevant.
The strategy for promoting socialism from below, on the other hand, will emphasise the need for education, motivation and provision of possibilities to allow farmers to learn by doing. The strategy will emphasise effective participation of farmers in their development programmes and less interference from government. In such a situation, cooperatives, as tools for enhancing self-reliance of members, will have a major role to play in mobilising and preparing farmers to move on the long journey towards socialism.
On their long march towards socialism, farmers need agricultural inputs, efficient marketing channels, and orientation in their attitudes towards development, a high level of skills to manage and control their rural organisations and, above all, they need to be prepared to meet the challenges of the future. In cooperative development policy, rural cooperatives should be seen in the light of fulfilling such important tasks. In this case, cooperatives should facilitate and enhance the promotion of socialism and self-reliance.
As noted in the report on the ICA/FAO/ILO Inter-agency Mission to Tanzania, in support of cooperative development, Tanzania has had no formal statement of cooperative development policy. As such the Mission appealed to the policy makers to implement the recommendation of the Gaborone Ministerial Conference which stated that "a clear and coherent cooperative development policy statement, providing written guidelines and an operational framework, is an indispensable means of securing coordinated and sustained cooperative growth in accordance with the political, economic and social objectives of a country".
5.2.2 Main Considerations when Formulating Cooperative Development Policy
(a) Lessons drawn from past experience
Fortunately, the history of cooperatives in Tanzania offers very rich experiences which could be used to provide guidance for the future. In the course of history, cooperatives in Tanzania were subjected to various changes, either as a result of policy orientations or as a response to members' needs and wishes. In order to provide a basis for further discussions the following observations are revisited:
1. Most cooperatives which were established during the colonial era were characterised by effective grassroot support from members. The identity between the interests of members and those of cooperatives was so close that, at times, members were prepared to sacrifice themselves to face the wrath of colonial rulers when the interests of their cooperatives were also used to protect the interests of members in their fight against colonialism. The main reason behind such support was that cooperatives were regarded by members as self-help organisations which aimed at enhancing their economic and political autonomy. At the same time members, as owners, determined, to a high degree how their cooperatives should be organised, managed and controlled. The promotional strategy in such cooperatives represented development from below and from within the membership itself. Where such a strategy was not applied (e.g. cooperatives in Ngara), members' participation was less effective and the cooperatives were weaker and ineffective as tools of development.
2. After independence, cooperatives were characterised by a lot of dynamism which reflected the enthusiasm of the government and members to fight economic stagnation and maintain a national identity in business through cooperatives. However, from 1961 to 1966, members' enthusiasm towards their cooperatives dwindled. As a result, some cooperatives either fell by the wayside or were maintained artificially. There was a national outcry. Members complained that cooperatives were not representing their interests. Corruption and fraud became the order of the day. This situation was brought about by three important factors:
(i) Government's enthusiasm to use cooperatives as tools of development, particularly in those areas where there were no cooperatives, found expression in the amendment of the Act in 1963 to allow cooperatives to be formed for political reasons. Cooperatives were, therefore, formed regardless of whether they were viable or there was genuine interest from members. This pattern of development was strengthened in 1963 when the National Agricultural and Products Board (NAPB) was formed to deal with food crops like maize, paddy, groundnuts etc. The Board facilitated the establishment of cooperatives in order to handle these crops. Cooperatives formed in this way represented a top-down development approach. In such a situation, it was rare that the interests of the cooperatives which were established were identical to those members. The most serious problem was that members did not know the rules of the game.
ii) Government's enthusiasm to use cooperatives as tools of development made the Cooperative Development Department play a predominant role in initiating and implementing cooperative programmes because of the belief that cooperative members were unable to do so on their own. From 1961 to 1968, government influence in the affair of cooperatives was so great that members began to cast doubts whether the cooperatives were theirs, as provided by the bye-laws or they belonged to the government. Members' fears were based on three main factors. First, members' influence and participation in the affairs of their cooperatives had been replaced by the government. Second, the government had, without consulting the members, involved cooperatives in activities which were not related to their needs and interests. Third, after the 1968 Act which gave the Registrar of Cooperatives wide ranging powers to intervene directly in the affairs of the cooperatives, members saw their representatives and officials removed and far-reaching changes in their cooperatives instituted without their approval.
As a result of increasing government involvement, the identity of cooperatives changed from <-/statei>-sponsored - where government participation was limited to measures which aimed at providing favourable conditions for development of cooperatives - to state-controlled - as characterised by direct government intervention in the affairs of the cooperatives. <-/State controlled> cooperatives are cooperatives in name only (by legal recognition) but not substance because their aims are not to enhance the self-reliance to members but to promote the goals and objectives of the government.
(iii) Corruption and fraud which became common place problems in cooperatives should be seen in the light of great expectations of Tanzanians after independence to gain materials benefit, either as compensation for their efforts in fighting for independence or as a logical trend of behaviour in a situation where society suddenly changed from a position characterised by scarcity and poverty to a position of abundance and wealth, particularly where there were no professional ethics and controls to curb such malpractices.
W2AO32T
THE BUDGETING APPROACH TO PLANNING THE MARKETING EXPENSES 
INTRODUCTION 
Marketing planning is closely associated with budgets. In many firms, sales activity is regarded as an essential input for production.
Many of the individual marketing functions are thought of as being inevitably high cost. This is largely due to the well publicised and heavy expenditure laid out by producers of consumer goods on such functions as advertising, distribution, market research and Public Relations.
The marketing budget ensures that the financial resources available to the department <-_is><+_are> effectively allocated to such activities as Product Planning Research and Development, Test Marketing, Marketing Research, Public Relations, Promotion, Physical Distribution and other activities of the Marketing Department.
To carry out marketing programme, there is a need to prepare estimates on resources to be committed and the expected revenue. The marketing budget is that aspect of planning process which deals with the statements on marketing costs and their contribution to the organizations revenue. 
In this article, the focus is on the concept of marketing budget, its relation to the corporate budget, the budget planning process, its components and how it is monitored and assessed. A quantitative method for promotion budget has been described. The final section discusses the application of the concept of marketing budget by looking at a hypothetical situation involving National Distributors Ltd.
THE CONCEPT OF BUDGETING 
The word "budget" is considered to have originated from the Middle Age English word "budget" which means a budget or wallet.
In England the word "budget" was applied for a long period to the "leather bag" in which the Kings' Treasurer or Finance Minister and later the Chancellor of Exchequer carried the document explaining the country's needs and the sources of revenue to meet those needs. Eventually the meaning of the word "budget" shifted from the "bag" itself to the contents of the bag, that is the financial estimates and supporting statement of accounts.
The word "Budget" acquired several meanings over a number of years, until it was finally taken to mean the document showing the financial estimates and supporting statements of accounts. It is clear therefore that different scholars have defined a "budget" in different ways. Eric Kohler has defined a "budget" as a pattern for and control over future operations. Herman G. Heiser on the other hand has defined budget as an overall "blue print" of a comprehensive plan of operation and actions, expressed in financial terms. A budget may also be expressed in financial terms or in terms of labour hours, units of products, or any other numerically measurable term. 
However, a working definition for this paper looks at a budget as a monetary or quantitative expression of a plan of action and an aid to co-ordinate an implementation for a specific period of time. "Budgeting" therefore describes a continuous process by which financial estimates regarding the amount of manpower, material and other resources required by government, business <-_firm><+_firms> or other bodies to perform planned activities, e.g. marketing are made. The output of the budgeting process is the budget.
FUNCTIONS OF BUDGETS 
From different expressions as to the definition of budget, one could say that a budget is a management and accounting tool which when administered intelligently <-_facilitate><+_facilitates> the following functions:
a) Compliments planning and plan implementation
On many occasions, every day problems interfere with the idea of planning ahead 
Operations drift along until time catches the firms in undesirable situations that could 
have been anticipated and avoided. Budgets formulate expected performance. They express managerial targets without which operations may lack direction, problems are unforeseen, results lack meaning and future policies are dwarfed by the pressure of the present circumstances. Furthermore, Budgets have direct or indirect influence on strategies.
b) Promote communication and coordination
Budgets help management to coordinate in several ways:
The existence of a well-laid plan is a major step towards achieving coordination. Executives are forced to think of relationships among individual operations and the company as a whole.
Budgets broaden individual thinking by removing unconscious biases on the part of employees in the various units of organizations.
Budgets search out weaknesses in the organizational structure. The formulation and administration of budgets isolate problems of communication, fixing responsibility and of working relationship.
c) Framework for judging performance
Employees do not like to fumble along. The budget meets this difficulty by letting employees know what is expected out of them. Budgeting forms an important basis for gathering data for evaluating performance.
d) Providing guidance for allocating resources
Budgets aid in directing capital and efforts into the most profitable channels.
e) Authorizing actions
This function seems to predominate in government budget and not-for-profit budgeting, where budget appropriations serve as authorizations and ceilings for management actions. 
THE MARKETING BUDGET 
The marketing budget is a tiny bit of entire corporate budget. It is one of the most important and the last budget which actually matches the firm with the target market.
The goals, strategies and planned actions allow the Marketing manager to formulate supporting budget statement for carrying out the marketing actions. In essence the marketing budget is an aspect of the operating budget of the company. It reflects the financial commitment to the firm's marketing operations.
The purpose of such budgets include:
1. Anticipation of the impact of various operational strategies.
2. Fixing responsibility for performance
3. Anticipating the cash consequences of operations; cash can easily be converted into resources,   
and this determines the flexibility of the firm in its strategic planning.
4. Permit modifications in plans because it should enable the manager to detect and respond to
unanticipated events as quickly as possible.
Composition of the marketing Budget
The total marketing expenditure is closely related to the number and type of functions which are included within the orbit of the marketing department.
The full spectrum of the marketing budget may include, Research and Development, Test Marketing, Market Research, Public Relations, advertising, pricing, sales merchandising and physical distribution. 
As study of marketing expenditure by British manufacturing firms in 1970 indicated the following element:
As Table 1 indicates, salaries and wages accounted for the largest proportion of the expenditure (35.8%). This is not surprising because marketing is a labour intensive activity. Packaging, transportation and distribution were also major items absorbing about 47% of the marketing expenditure.
Marketing expenditure varies significantly within industry and among different industries. Firms selling directly to customers tend to have a heavy commitment to packaging and advertising, spending significantly on marketing than firms selling exclusively to industrial markets. In developing countries the absence of studies and information makes it difficult to make a judgement on marketing budgets. However, measured in terms of consumer expenditures, the trend might be the same. 
PLANNING THE MARKETING BUDGET. 
The control of marketing expenditure, or the maximization of benefits from any given level of expenditure demands careful planning .The major components of the plan are:
1) Detailed statement of what to be achieved during the planning period.
2) A translation of that statement into budgetary (financial) implications.
The result is a marketing budget related to a course of action to be taken by the firm:
The statement of objectives should include:
1. Forecasting the sales revenues
2. Determining the production levels
3. Determining the cost of goods sold
4. Determining the operation expenses
5. Determining the budgeted income statement
6. Determining the cash budget
7. Determining the budgeted statement of changes
8. Determining the financial positions/balance sheet
These objectives if undertaken stage by stage, will generate an operating budget.
When planning the development of a budget it is necessary to distinguish between essential and peripheral marketing activities. The latter are functions which may be useful in supporting the major marketing activity but can be dropped without seriously affecting the sales yield in a short term.
Advertising and the public relations may be essential activities for a firm attempting to build an image in a new market but a luxury for a monopoly supplier in a well established market. Personal selling may be essential when the sales programme demands a high level of customer education on the value of the product and the credibility of each order is low and direct mail is an acceptable method of reaching customers and receiving orders. Each marketing situation should be carefully assessed and minimum acceptable approach decided on. In depth marketing information is a key input to this procedure, which implies that market research as well as market planning are invariably essential components of a marketing programme.
BUDGET DECISIONS 
One of the decisions which managers often make is how much should be spent on marketing activities especially, distribution and promotion.
Two methods qualitative and quantitative are used in business life. Qualitative methods for determining marketing budgets are based on:
1) All you can afford i.e. there is no specific rule or method for determining the amount to be spent.
2) The budget as a percentage of sales e.g. for the Board of Internal Trade (BIT) Companies 5-6 percent of sales is allowed to be used for promotion. This percentage is determined by the management for individual group companies.
Quantitative methods, which may be either simple or complex exist, and are used to good advantage.
A quantitative method for setting a promotion budget, might be discussed by drawing upon information gleaned from the literature. 
Assume that a given firm sold a quantity Q in a particular period by spending an amount X on promotion. While the firm maintains a fixed cost of F and a variable unit cost V, it sold each unit at price P.
If the quantity Q sold is explained by the function
and that the parameters assume the following values: a = 30,000 units of merchandise and b = 1000 the trend under various assumed value of X is shown in Fig. 1 
The chart shows that the firm will sell Q = 30,000 units of merchandise, even if no money was spent on promotion. This may be attributed to the effects of past promotional efforts, consumer loyalty, shortages, word-of-mouth communication among consumers (especially in developing countries), etc. The chart also shows that equal increments of promotion expenses lead eventually to smaller increments in Sales, a reflection of the concept of diminishing returns. 
The above calculations are based on several assumptions. First that values of all the variables are known for certain. Second the chosen functions are continuous, differentiable and that only local maximum or minimum are identified. When one must deal with non-continuous functions, involving several variables the assumption would not be tenable.
No matter what type of quantitative method is used, there is always an element of judgment. It depends on the objective to be achieved. It is <-/worth while> to be more practical. In most cases many companies use what they can afford. A caution should be raised here that promotion expenditure should not be determined in isolation from the rest of the other marketing mix variables.
Assessing the budget 
By focusing the cost of the marketing functions, firms have a tendency to regard costs as the only criterion by which to evaluate their marketing programmes. "We'll do it if we can afford it," is a common sentiment when appraising specific marketing proposals, when in many situations firms should be asking whether they "can we afford to do it?". Marketing costs must be related to the benefits which can accrue from the expenditure and provided the cost/benefit equation is <-/favorable> the expenditure may be considered worthwhile. Much of the marketing expenditure is a long term investment because it establishes company's reputation and image in the market place and generates new products which will sustain the company's future business.
Monitoring the marketing budget 
No marketing plan can be regarded as complete unless an effective monitoring system is incorporated within the programme of activities. Certainly the marketer needs to know what he has spent and the effects of his expenditure in improving his profit. A constant review of the monitoring process in relation to expenditure serves another important purpose. It facilitates scrutinizing the performance of the marketing personnel. 
Budgeting periods tend to be a year or six months, yet the effect of the expenditure can be seen well before that period is up.
W2A033T
TOWARDS DEVELOPING AN ENVIRONMENTAL DISASTER RELIEF COORDINATION NETWORK IN TANZANIA 
Introduction 
The paper presents a brief and tentative account of an environmental disaster relief coordination network in Tanzania. The proposal points to the need to establish a sound network based on the utilization of available local resources.
Generally a disaster may be described as a natural hazard whose <-/occurance> within a specific period of time in a given place is potentially damaging to the total environment. In some instances, a disaster may also be man-made or <-/man induced> due to man's actions on the physical environment. In the final analysis, however, the actual damage is very much dependent upon a combination of social, economic and political factors.
A review of disasters that have occurred between August 1985 and April 1986 in Development Countries, for instance, shows drought, cyclones, hailstorms, floods, landslides, volcanic eruptions, earth-quakes, fires, armed conflicts, among others, as the major <-/reccuring> disruptive forces to reckon with. Experience in Developing Countries points to a pressing need to develop and strengthen their capacity to handle natural hazards problems.
As for Tanzania environmental disasters have in most cases inhibited socio-economic development inertia by impinging upon the welfare of the people and the security of their property. The most commonly reported and indeed frequent disasters include floods, storms, and drought. Progress in science and technology, however, has contributed to the present day capacity to mitigate natural hazards although the story in Tanzania leaves much to be desired. there is, for instance, no standard system of natural hazards information flow and as a result measures taken to combat disasters may mostly be described as too little too late .
The primary objectives of this paper are two-fold. Firstly, to develop a disasters relief coordination network capable of coping with environmental disaster problems whenever and wherever they occur. This can be done firstly by training and developing a pool of expertise in all matters of disaster early warning systems (EWS), preparedness, mitigation effects of disasters and disaster relief administration to serve as focal points from village government to national level.
Secondly to introduce environmental protection in the socio-economic planning process by involving the relevant ministries, institutions and the masses in mitigating the disastrous effects of natural hazards in the long-term.
Background to Natural Hazards Assessment 
Natural hazards are better studied in the field of Environmental Sciences. Disciplines in this field include meteorology, geophysics/geology, hydrology, geography and agriculture. These disciplines provide a direct link in the analysis of temporal and spatial location and magnitude of disasters and form the basis for disaster early warning, preparedness and mitigation.
In Tanzania, a meteorologist, for instance, is capable of weather forecasting for both short and long term periods given over 2000 rain gauge stations, one international forecasting station and several local ones. He is also capable of providing data on storms, hurricanes and drought. The information on storms is essential in predicting the <-/occurance> of landslides in soil erosion prone areas which is the domain of a geographer. The same information may be used by a hydrologist to predict stream behaviour which is a precursor to floods in floodplains, and an indicator of drought in the catchment area.
A geophysicist is able to locate and assess the <-/occurance> in time and space and magnitude of earthquakes and volcanic eruptions by using a network of seismographs, a feature not available in Tanzania. Such information, however, may be relevant to a geographer who may use it to foretell areas likely to be blanketed by lava and ash. The same information may be used to predict the falling of acid rain which may lead to environmental degradation by `killing' the life-support systems.
An agriculturalist is able to predict areas suitable for vermin breeding especially <ea_>quelea quelea<ea/> and red locusts basing his interpretation, in part, on the changing weather patterns as predicted by a meteorologist. Furthermore, on the basis of the land use type in a given area, he is able to predict environmental degradation resulting from land mismanagement which enhances the likelihood of drought hazard.
From the theoretical plain, it is clear that if an efficient communication network is developed amongst these specialists at all levels of administration in Tanzania, natural disasters may no longer take the people and the state unawares. It is important to note that a reliable risk assessment of a potentially disastrous hazard is a prerequisite for a sound disaster mitigation programme and proper organisation of relief operations. Given that different communities behave differently in response to hazards there is need to engage social scientists, preferably an economist and a sociologist or anthropologist in the above exercise.
An Environmental Disaster Relief Coordination Network Model 
In designing an environmental disaster relief coordination network for Tanzania a number of assumptions are made. They are:
Existence of a good organisational structure of government from national to local level to facilitate coordination and accountability.
Existence of a potential for a `bottom up' approach in development planning through the re-established local government and cooperative unions planning machineries. This would facilitate the introduction of environment protection in the plans.
Availability of a pool of a potentially resourceful manpower at all levels of the state administration capable of serving as focal points.
Availability of national and international institutions capable of carrying out disaster early warning, <-/survaillance> and monitoring and mitigation activities.
Existence of a potentially good system of education from primary through secondary education and folk development and teachers' colleges to University level to facilitate training of disaster management staff when environmental education is introduced in the system.
It is proposed that the environmental disaster relief coordination network should constitute four stages namely village, district, regional and national levels. At each stage three operations namely disaster identification, assessment of elements at risk and taking appropriate action should be conducted. Based on a suitable early warning system, the network should be supported by the willingness to report as well as an appropriate communication method. Essentially between one stage and the next there should be a two-way communication system to ensure that the message is received and reply is sent in 'good' time for action. 
Village Level: 
In Tanzania, village leadership is built on democracy and self-determination within the limits of law of the land. The villages and <ea/>Ujamaa Villages Act of 1975 was designed to entrench and consolidate village self-government in the law. It is against this background that we propose the village as a nucleus for setting up a disaster relief coordination network for the nation.
At village level, it is proposed that a small committee be created and charged to deal with natural hazard(s) characteristic of the area. This committee should preferably be composed of the village chairman, as the chairperson, a primary school teacher, as the focal point and secretary to the committee and three members, one of them a woman. It is recommended that a school teacher, given his comparative academic competence in this environment, is capable of reporting fairly accurately on the hazard to higher authorities and vice-versa for action. Given the unique role played by women at household level, it is recommended that a woman be included in the committee to cater for women and children aspirations in the event of emergency.
The focal point would be responsible for collection of data on disaster early warning, working with other village committee members in developing an action plan and promptly reporting to the district authority on the proceedings of the meeting whilst implementing mitigation measures designed. The communication method should be by dispatching a militia-man to carry the message to the District Headquarters by hand.
District Level 
At the district level, participatory democracy in Tanzania was set in motion by the 1971 decentralization policy. Following from this move, medium and high level skilled manpower were posted in the districts.
In view of the availability of experts, it is proposed at this stage that a small committee to handle natural hazards be constituted. The committee would consist of the District commissioner as the chairman, the District Administrative Officer as the focal point and Secretary, the District Executive Director, the District Water Engineer, the District Agricultural Development Officer, District Land Development Officer, the District Medical Officer and one representative from the Women Organisation.
The primary tasks of the committee would be firstly to forecast natural hazards and secondly to carry out mitigation measures.
In the proposed network, however, this committee is also charged with the evaluation of the village committee report, technically assess the vulnerability land resilience and assess the rehabilitation cost. As a technical committee closest to the people it should maintain a sound system of early warning, <-/survaillance> and maintain of natural hazards problems. The committee is also expected to report immediately to the regional authority on the proceedings while at the same time taking mitigation measures. Due to the need for a forward and backward linkage in the network the committee should communicate with the village committee by dispatching a policeman and at the same time communicate with the regional committee by using a radio call, telephone or telex.
Regional Level 
The organisational <-/set up> at the regional level would essentially be similar to that at district level. Member to the committee would as well be limited to technical ability and political power.
The Regional Administrative Officer would serve as the focal point and secretary while the Regional Commissioner would be the chairman. Other members of the committee would include the Regional Development Director, Regional Water Engineer, Regional Agricultural Development Officer, Regional Land Development Officer, Regional Medical Officer and a representative from the Women Organisation.
The committee would basically be responsible for providing a regional coverage on the early warning system, <-/survaillance> and monitoring of disasters. Further it would be charged with the evaluation of the district plan of action technically assess the vulnerability and resilience, cost the needs and finally carry out mitigation measures and relief administration. The committee would promptly submit its plan of action to the district committee and to the Central Government for further action. The communication method would be by radio-call, telex, telephone or where appropriate by a local radio station.
National Level 
It is proposed that at national level the office of the Prime Minister and First Vice-President handle disasters problems.
The committee would constitute the Head of the Disaster Unit who would save as the focal point and secretary, a Principal Secretary would be the chairman and one expert from each of the following institutions would serve as members: Directorate of Meteorology, Ministry of Water, Ministry of Energy and Minerals, Ministry of Agriculture and Livestock Development, Ministry of Lands, Natural Resources and Tourism, University of Dar es Salaam, Sokoine University of Agriculture, Ministry of Defence, Ministry of Home Affairs and representatives from relevant Non-Governmental Organisations and United Nations Organisations.
Although the nature of the tasks for this committee is similar to the lower one, the difference is one of degree. This committee should be capable of maintaining functioning systems of early warning, <-/survaillance>, monitoring and mitigation of disasters at national level. In the event of the crisis, the committee should be responsible for evaluating the regional plan of action and carrying out mitigation measures and relief administration. This event will close the functioning of the network but not the struggle against nature. As new experiences are gained during the battle for survival, better methods to combat disaster problems will be discovered <-_land><+_and> tested.
Education as a Corner-stone for the Functioning of the Network 
The need for environmental education from village to national level cannot be over-emphasized. The primary objective should be to define the role each member of the society (at all levels) is likely to assume in the event of a disaster.
At village level mass education would be through community participation i.e. learning by <-/seing> and doing. Hence the issue of the people's awareness to disasters may be approached by use of word of mouth coupled with action. The early warning system at this level would be people's behaviour in response to the hazard based on socio-economic indicators.
W2A034T
INTRODUCTION
The pricing of merchandise is a most difficult task for the retailer because many variables influence the decision. In an investigation of department store pricing, Dalrymple and Thompson (1969) observed that the use of mark-up pricing results in a number of activities that go beyond the simple calculation of retail prices. An elaboration on the above statement has clearly been <-/broughtout> by Bolen (1982) who mentions the judgement of appeal of goods by target markets, competition, characteristics of merchandise, merchandise cost, the role of price in retail mix and legal consideration as among the many variables that influence retailers' mark-ups. Given these variables, one does not expect a uniform percentage of mark-up among products carried by retailers. Furthermore, one does not expect a uniform percentage of mark-up among the various categories of retailers.
The few empirical investigations that have been conducted in different parts of the World have come up with mixed results regarding the influence of some of the above mentioned variables on retail mark-ups. These studies are certainly an indication of the fact that there is need to identify concrete causes for mark-up dispersion among product groups/items and retail categories.
Mark-ups have been shown to vary considerably among different products and categories of retail businesses and organisations. Mark-ups have also been shown to vary between cities and locations.
In the case of US Department Stores in 1962 "some common mark-ups of 20 percent for books, 41 percent for dresses, 46 percent for custom <AmE/>jewelry, and 50 percent for millinery" were observed. Kotler further observed that in US retail grocery industry, items like coffee, canned milk and sugar tend to have low average mark-ups, while items like frozen foods, jellies and some canned products have high average mark-ups. For example, Preston (1963: 31) showed that within the category of frozen foods, <-/markups> range from a low of 15 percent to a high of 213 percent. Dalrymple and Thompson (1969: 182) observed that frequently purchased items like coffee and [vegetable] shortening carry low mark-ups of between 5 and 10 percent. They further observe that such fast-moving items are actually sometimes sold below cost.
On the other hand, Holdren (1960) found that baby food, flour, sugar, coffee, cornmeal and vegetable shortening were sold at a loss by one or more of eight stores he studied in the United States of America, a conclusion consistent with Dalrymple and Thompson's study which observed generally low mark-ups for grocery products in supermarkets. Holdren observed further that less important items such as spices and cleansers usually carry higher mark-ups of between 30 and 50 percent.
Mark-up differentials have been found also among various categories of retailers between shop types and between cities. Holdren (1960), for example, found a difference of about 10 percent between the lowest priced chain and the highest-priced independent supermarkets in a Midwestern community USA, a finding that has been frequently quoted in marketing. The average differential among the eight stores that he studied was about 2 percent. In Preston's study (1963) a maximum of 12 percent separating indices of advertised prices for eleven supermarkets in Northern California Community were observed. In another study of 25 food stores, Preston (1966: 27) found a 10 percent difference between the highest and lowest priced stores, with an average price differential of 3 percent.
While the above mark-up differentials have been observed in the United States of America similar observations have been done elsewhere. Trade and Industry records of the United Kingdom (1976), showed that grocers and provision dealers have lower margins (19.9 percent) than confectioners, tobacconists, newsagents (20.4 percent), clothing and footwear shops (36.4 percent), and household goods shops (38.8 percent). In the Netherlands, Noteboom (1985) observed mark-ups of between 26 and 35 percent for textile items while for the same items, Bode et al (1986) observed mark-ups of between 23 and 49 percent. In the same studies, Noteboom observed mark-ups of 19 percent for supermarkets while Bode et al observed mark-ups of between 15 and 25 percent for the same kind of retail organisation.
Mark-up differentials appear to exist not only in industrialized countries but also in developing countries. For instance, in Tanzania supermarket mark-ups for sugar and soap products were shown to vary between 6 and 8 percent, 15 and 18 percent for canned foods and 25 to 30 percent for fresh meats and produce. In Moshi Urban district retail outlets, mark-ups were observed to range between 10 and 15 percent.
	Mwaipopo (1988) observed mark-up dispersions of between 10 and 33 percent for laundry soap, 20 to 61 percent for textiles and 21 to 56 percent for footwear in Mbeya Urban retail outlets. A computation of percentage margins from the National Price Commission price list of 1986 indicated retail markups of 13.3 percent for food and beverages, 15 percent for textile and clothing, 13 percent for household and 17 and 20 percent for domestic appliances and building and electrical supplies respectively.
Many hypotheses have been advanced to explain the variation of the mark-ups within selected product groups, and categories of retail business or retail organisations. Three commonly used rules of thumb are that (a) mark-ups should vary inversely with unit cost (b) mark-ups should vary inversely with turnover and (c) mark-ups should be higher and prices lower on retailers' private brands than on manufacturers' brands.
Several studies have empirically tested some of these rules and other variables that may help explain dispersions in retail mark-ups. As noted earlier, these studies have failed to come up with a common conclusion. The number of independent variables investigated have differed from one researcher to another and often the number and variety of chosen independent variables have been determined by data availability. Several authors have also noted with concern the general lack of data in retailing. The result is that many studies have employed intuitive reasoning guided by the data patterns to arrive at their conclusions. Little formal testing of the suggested relationships has been undertaken.
Nevertheless, there are several empirical studies that deserve mention. Jefferys (1938) and Ward (1973) examined the influence of the rate of stock-turn on wholesale and retail gross margins, respectively. On the other hand, Holdren (1960) investigated the relationship between price and size of organisation. Preston (1963) formally tested the impact of the three commonly used rules of thumb on mark-up dispersion. Dalrymple and Thompson (1969) studied the correlation between mark-ups and retail prices. Also, the UK's National Board for Prices and Incomes (1969) investigated the influence of fifteen variables on margins of selected product groups. Another study by Reefs and Young (1975) attempted to determine the relationship between retail prices and wholesale price.
Bowbrick (1975, 1976) has examined the impact of price control on market margins of fresh produce. More recently investigations on mark-up variations have been undertaken by Noteboom (1980, 1982, 1985), and Bode et al (1986).
Given the differing results and conclusions regarding factors influencing mark-up variations as provided in the literature, this study found it worthwhile to empirically examine mark-up variations among selected products in Tanzania's retail businesses. The researcher was interested in percentage gross margins of individual product groups sold by retailers in the Dar es Salaam region.
1.1  RESEARCH OBJECTIVES
The primary objective of this study was to study the mark-up variations among selected retailers' product groups in general and to investigate the variables that affect such variation.
To this end, the specific objectives of the study were first to determine and assess the influence of merchandise cost on mark-ups.
The second objective was to examine the influence of merchandise turnover on mark-ups. Of great importance to the pricing policy of a retail outlet is the effect that lower prices will have on sales. In a competitive environment, as selling prices decline, sales rise. However, some merchandise is slower moving than others, that is to say, stock turns over fewer times per year. A store or product with a quick turnover can afford a small mark-up and lower prices because it will receive that mark-up many times during the period. This is perhaps another reason for the variation of pricing or markup policies among various categories of merchandise.
The third objective of the study sought to determine the influence of population on mark-ups. Population is a potential demand determinant and hence its anticipated effect on mark-ups.
The fourth objective was to investigate the influence of distance (location) on mark-ups. Distance, say from the location of the store to the City centre may influence variation in mark-ups, given presumably different carrying costs.
The final objective was to examine and compare margin variations between product categories and product types.
1.2. RATIONALE FOR SETTING THE OBJECTIVES
This study was motivated by the gross absence of comprehensive empirical studies to justify or explain the variation of mark-ups or product margins, hence selling prices by retailers in Tanzania. Specifically, this study 	is justified by the fact that there is no other empirical study that has studied the mark-up disparities in Dar es Salaam.
Elsewhere, there have been differing results and conclusions from empirical studies reported in the literature. Some have been narrow in scope and yet others have been methodologically deficient. Certainly this may partly be responsible for the mixed results and conclusions. Further, some have differed in terms of scope and context. Scopewise, some researchers have investigated and predicted the influence of a single item on mark-up variation. Lack of consideration of the other factors has clearly been brought out by Tucker (1978: 32) who argues that "... given that so little of the variation in gross margins is explained by this simple relationship it can be argued that many others should be taken into account ..."
As far as methods of analysis are concerned, different researchers have used different analytical techniques. Some have used correlation analysis in which case "causality" is not taken into consideration. Yet others have used simple regression analysis, and the result is that many other factors have been excluded. Tucker (1978) has already criticized this approach. Corr (1974) has also argued that merchandise cost alone cannot determine mark-ups. Preston (1963) has concluded that the three commonly used rules of thumb, alone, cannot also explain mark-up dispersions. Further, Kotler (1971) has argued that mark-up variation among retailers and among product groups are sometimes the result of erratic decisions, random factors and better adaptation to the current market than can be provided for by the rules of thumb.
Contextwise, some studies have concentrated on investigating mark-up dispersions among retail types, retail organisation and between cities, and yet others have investigated mark-up variation among product groups.
The current study overcomes the shortcomings of previous studies by considering mark-up variation among product groups. The consideration of mark-up differences among various retail organisations in Tanzania may not be meaningful, because the retail business is still not modernized. In Tanzania retail business has been and still is dominated by the small retailer. There are, therefore, only a handful of supermarkets even in Dar es Salaam, the commercial heart of the country. Investigating mark-up variation among types of retailer may also not bring out meaningful results because the classification on the basis of whether one is a general or <AmE/>specialty (exclusive) retailer is not very distinctive. For instance, textile stores will generally be selling a lot of other items like food and miscellaneous articles.
Further, a study on mark-up variation along the above lines will entail the collection of data on operating expenses which is hard to collect in a country where retail business is dominated by the small and individual retailer. These individual retailers rarely keep formal records.
A more practical approach of studying mark-up variation in Tanzania could be based on classification of retail outlets by ownership. However, a similar problem to the one observed above is encountered because the individual small owner dominates. Attempts to introduce the socialization of trade since independence (1961) saw the emergence of consumer cooperative retail outlets.
Nevertheless, currently cooperative shops represent a very small number of retail outlets when compared with the total retail outlets. 
W2A035T
THEORY OF DEVELOPMENT BANKING AND WHY DO DEVELOPMENT BANKS NEED TO BE REGULATED BY LAW 
2.1 DEFINITION OF DEVELOPMENT BANKS 
	The term "development banks" or "development financial institutions" is used to describe those types of financial institutions which promote and assist industrial, agricultural, mining and other sectors of the economy. While there are a number of financial institutions providing medium and long-term credit for investments (such as commercial banks), these are different from development banks in that development banks promote and finance investment within the framework of a set of priorities and strategies derived from the national development plans. The development plans usually provide a set of broad objectives and an outline of a strategy which need to be translated into specific individual projects.
Many writers on development banking have used the term "development bank" synonymously with development "finance company/institution". These writers have also tried to give various definitions of the term development bank. Diamond gives a functional definition of the term which more or less follows the World Bank's definition. According to him, a development bank is:
This definition emphasises more on the financial aspect of the development banks and neglects the developmental aspect. In Africa these banks also offer technical and managerial consulting services at all stages of a project. Some of them have developed training programmes to produce local experts. Kane notes that development banks function as financial intermediaries in transferring domestic and foreign savings to investment and thus contribute to economic development. In addition to this financing function, they have other intangible effects upon economic development. These are:
i) development of a capital market by mobilising funds from both local and foreign sources; and
ii) through their relation with their clients, they have been able to help in the development of technology, promotion of viable projects, and practices and quality of management.
2.2 ORIGINS OF DEVELOPMENT BANKS 
Development banks began to be set up after the First World War to cope with special problems stemming from depression, wartime destruction, regional imbalances, and so forth. After World War II there was an increase in industrial reconstruction and so the acceleration of setting up of development banks. Such banks are at present very much involved in restructuring industrial activities. Examples are the Industrial and Commercial Finance Corporation in the United Kingdom, and the <foreign><-/Kreditaustalt> <-/fur> <-/Wiederaufban><foreign/> in Germany. These assist their respective governments by reallocating resources from labour intensive industries.
In most developing countries, development banks have evolved as a result of new needs created by the development of financial sector.
The second-quarter of the 19th century saw governments establishing specialised financial institutions to promote economic growth. These states saw the only means to economic progress was through industrialisation. Industrialisation would mean achievement of national income growth. Further, these countries would not be forced to trade in raw materials on terms set out by the industrialised countries just because they (developing countries) could not use them. And these banks would contribute to economic development by providing technical and managerial services and the mobilisation of resources. The first development bank in Africa was established in 1951 by the
national government with international financing assistance. In the former British colonies (i.e. Kenya, Uganda) development banks were established on the initiative of the colonial government. The Uganda Development Corporation (UDC) was established in 1952 and was the oldest. The colonial government was prompted to establish it because of the Korean boom which led to demand for and prices of Uganda's main crops (cotton and coffee) to soar. With the attainment of independence, the UDC was already a powerful institution and subsequently became the new government's sole instrument for the development of virtually all sectors of the economy. When the Development Finance Company of Uganda was formed in 1963, the UDC became a partner in this Company on behalf of the Ugandan Government.
	Earlier in August 1972, the Government of the then President Iddi Amin Dada pronounced the decision of transferring the economy to Ugandans from the Asians. The implementation of this decision dislodged the old establishment and brought in new entrepreneurs and businessmen who lacked business experience and were not known to the commercial banks. As a way of assisting these businessmen both in financing and provision of technical and managerial skills, the Ugandan Government formed the Uganda Development Bank.
	In Kenya, The Industrial Development Corporation (IDC) was formed in 1954 to make capital available to existing small businesses and those seeking to enter the retail trade. The colonial segregation of the economy had isolated African businessmen from the system of banking and commercial credit. The banks had always regarded assistance to the African economy as a government concern, seeing their own function rather as facilitating international movement of capital. Thus, in the years before independence the only sources of credit open to African businessmen were small government loans administered through local boards. The IDC could not continue operations by 1966 because of lack of funds. It could not contribute the size of capital needed for the increasingly ambitious commercial and industrial activities of the local governing aspirant bourgeoisie. The requirements of the petty traders were also not met. The aspirant bourgeoisie were finding alternative sources of capital through partnership or association with corporate institutions, governments and individuals from abroad. Tensions grew and demands for greater benefits of private enterprise for the Africans was raised. Thus, the 1967 Industrial Development Act, Cap.517 was amended to establish the Industrial and Commercial Development Corporation (ICDC). Other measures aimed at ensuring African participation and control in the economy were also instituted. Such were the Trade and Licensing Act, No. 33 of 1967 which empowered the Ministry of Commerce and Industry through licensing to control non-citizen trading in geographical areas as well as in specified commodities. The Immigration Act, No. 25 of 1967, gave government control over the long-term residence of non-citizens in the country. The Personnel Bureau set up in 1967 monitored employment opportunities in the private sector with special reference to the employment of Africans.
The ICDC's statement of activities include:
Later in 1970/71 this function was reiterated as follows:
Other development banks were also established in Kenya such as the Industrial Development Bank Ltd., the Development Finance Company of Kenya Ltd., the Kenya Tourist Development Corporation, and so forth. These parastatals are charged with the investment of governments' funds in the enterprises within the country.
	Apart from those few examples, the majority of the African Development Banks were established after independence. Examples are the National Investment Bank (NIB) of Ghana which was established in March 1963 (six years after independence) by the government when it simultaneously launched its Seven Year National Development Plan 1963/64 - 1969/70. In Tanzania, the Tanzania Investment Bank was formed in 1970. In Chapter III of this study we shall discuss in detail the Tanzania Investment Bank.
2.3 OWNERSHIP, LEGAL FORMS, OBJECTIVES, FUNCTIONS, etc. OF DEVELOPMENT BANKS 
	Development banks are among the basic institutions established by states to help achieve developmental objectives. They can be statutory bodies corporate set up through or under an Act of Parliament, or may be formed under the Companies Acts. However, they all have the primary responsibility for the development and co-ordination of various sectors of the economy and are directly accountable to the government and Parliament.
	Important questions in this area relate to the form of organisation, field of activities, degree of autonomy enjoyed by the development banks, and their relationship with other public bodies.
	Notably here is the fact that the specific form of organisation of these banks in the developing countries was determined by political and legal frameworks as well as by structures of business organisations. While in some countries these banks were established in the public sector as public corporations, in others both public and private development financial institutions exist. However, the distinction between public or private forms of organisation is really not significant so long as governments ensured that both conducted their business within the framework of planned priorities and objectives. And, apart from the colonial past of a country, the size and stage of development with the corresponding availability of skills will also influence the form of institution preferred. A number of development banks have been established as recipients of international aid which they are required to channel to development projects.
2.3.1 Ownership and Legal Forms 
	One way that has been used to classify these banks is by the type of ownership. It should be pointed out that there can be no such thing as the standard mode, ready-made, all purpose development bank which can be utilised effectively in every country. Thus, the form must be tailored to suit each situation. Some of the types of development banks are as follows:
Private Development Banks:
All the capital stock is owned within the private sector and their operating policy is under private sector control. Such banks are largely profit-oriented, seeking only projects with high marginal monetary returns as opposed to those which maximise development impact. Source of finance is generally from the private sector. This type of bank is established under the companies ordinance.
Public Development Banks:
All of the capital stock of this kind of bank is owned within the public sector and its operating policy is under public sector control. This type of bank is generally not only interested in profit, but places greater stress on development criteria. Although in the short-term there is a low marginal monetary return, it is expected this will be reversed in the long-term. Its main source of funding is government allocations. This type of bank is established by an Act of Parliament.
Mixed Development Banks:
In this type of bank, the capital stock is owned by both the public and private sector. Therefore, the bank may be under private or public ownership, depending on which sector owns the majority capital stock. Its sources of finance are both the public and private sectors.
It should be noted that one form of development banks outlined above, is not necessarily preferable to the other. All do make their own contribution to economic development. However, there tend to be special advantages to each kind of bank. The private bank is able to attract privately-owned financial assets into the development process, which would likely otherwise end up in lower priority investments or perhaps not be invested in the domestic economy in any form. Also this type of bank is able to deal more effectively with the aspect of project promotion because of its greater profit orientation.
	It has been argued, however, that the co-existence of both private and public development banks is very ideal in speeding up economic development. For example, in a given priority industry some firms are likely to be more profitable and more likely to prosper and grow. While other firms are likely to be marginally profitable, but then they are essential in that they promote a more developmental role. In such a situation the private type of bank may finance the more profitable firms while the public type of bank may finance the less profitable firm. In this way, both complement one another in financing long-term development.
2.3.2. Organisational Structure
The organisational structure of any development bank is set out in the instrument establishing it. In most development banks in Africa, the organisation structures show a remarkable similarity in that all have as their governing body a Board of Directors. The Board of Directors, subject to directives of a general nature, are responsible for the management of the development banks. The Minister of government has the power to give directions of general nature in respect of the basic policy principles.
Development banks which have been established under Company law have directors which are elected by the shareholders mostly on account of their professional and business competence. The public/government owned development banks have directors who are either ministers and/or government officials. The members of the board in this case, are appointed by the government with the Chairman ordinarily being the Minister of Economic Planning, Industry or Finance. 
W2A036T
NATIONAL AGRICULTURAL PLANNING IN TANZANIA
In Tanzania agriculture is the backbone of the economy. Nearly 85 per cent of Tanzanians depend on agriculture for their livelihood, and external trade is largely dependent on agricultural products, accounting for more than 50 per cent of exports, while most of Tanzania's industries are dependent on agriculture. Besides these, the potential for producing surplus food and for financing the country's industrial revolution lies in the hands of the agricultural sector. In a nutshell, agriculture is the cornerstone of socio-economic development, the source of food, income, foreign exchange earnings and the base for industrialization in Tanzania.
Agricultural development planning has itself a number of dimensions macro level, meso level and micro level such as national, regional and village plans respectively. In Tanzania national or macro plans cover 5 years. These are presented against a background of 15 years perspective plan. Secondly, there is sector planning which refers to detailed planning of a specific sector. Agricultural Planning thus refers to a comprehensive set of policies for the development of the agricultural sector. Also at the secondary level we have regional or area planning where the focus of attention is a particular region or area within a country. Finally, at the tertiary level of planning there are some projects which refers to the identification of possible projects for their implementation.
Hence, agricultural planning is a secondary level planning. It aims at transformation and improvement strategies. The improvement approach relies heavily on agricultural extension, the provision of technical and economic advise to <-_formers><+_farmers>, supplemented by efforts to improve the existing situation by removing specific bottlenecks, by construction of feeder road and improvements in marketing facilities on the provision of credit to farmers.
The transformation approach aims at a much more drastic reshaping of the conditions of agricultural production. This may involve the introduction of tractors, the extension of the public sector into agriculture through large scale state farming, the organization of major settlement schemes involving the movement of population, and the establishment of cooperative farms of production, either among new settlements or within existing villages. The anxiety of governments and development agencies to make rapid progress away from underdevelopment has naturally inclined towards transformation approach in most of the developing countries.
Conceptual Framework 
Fig. 2 illustrates that in Tanzania due to primitive agricultural practices, agricultural production is low but the population is increasing at a more rapid pace - which leads to food shortage, malnutrition and food importation.
Hence, the main objectives of the National Agricultural Planning have been to improve agricultural production for food self-sufficiency, and planned development of agricultural settlements. These have been considered essential in order to provide essential services and infrastructural facilities to the majority of people living in remote rural areas.
Owing to these problems and objectives, the Ministry of Agriculture and Livestock designed various strategies and plans in order to solve the aforesaid problems and meet desired objectives. The government has formulated various policy guidelines and sought assistance of people in accordance with the targets set.
Improvement and transformation approaches have been adopted. The improvement approach considered the improvement of material structure such as seeds, fertilizers, implements, etc. besides infrastructural improvement, whereas transformation approach included the formation of planned <ea/>Ujamaa Villages after discarding the primitive abode of dispersed living.
Importance of Agricultural Planning 
The need for agricultural planning is vital due to the fact that:
(a) rural development (agriculture) has to receive top priority, as most of our latent wealth lies in our <-/under utilized> land and energies of the rural population.
(b) agriculture being the backbone of our economy produces food for both rural and urban population. It also produces raw materials for our industries and for export. Also the majority of our people (90 per cent) live in rural areas where agriculture is the chief occupation.
(c) planned and desired social change will be achieved in the context of a programme of planned output expansion, based upon a system of crop priorities and improvement of productivity through promotion of modern agricultural techniques. With the above points, there is a need to plan for our agricultural development.
Objectives of Agricultural Planning 
According to Tanzanian development plans, the objectives of agricultural planning in relation to national planning are as follows:
1. To diversify production in areas of monoculture - where markets are limited or uncertain.
2. Investment programmes in the rural sector to be geared at capital intensity forms of production so as to maximize utilization of local resources such as labour force.
3. To develop the rural infrastructure, so as to increase rural productivity and diversify rural economy.
4. To extend principles of socialism and extend the scope of cooperative and group activities - for attainment of socialist type of agriculture.
5. To formulate crop priorities for all major livestock and agricultural commodities with the aim of increasing self-sufficiency and improved nutritional levels, expansion of local market for agricultural products at reasonable prices and maximum exploitation of export markets. High priority crops should be emphasized i.e. tea, flue-cured tobacco, cotton, rice, wheat, cashew-nuts, oil seeds, some fruits, vegetable, fishing and livestock.
6. Expansion of small scale industries and crafts to provide consumer goods - hence generating an incentive for agricultural expansion. For all these to be achieved, the involvement of village, district, and regional levels is urgently needed.
The agricultural objectives are related to the national objectives. The former have been derived from the latter. So they are more or less the <-_name><+_same>.
In order to achieve these objectives which have been set, in its development plans, the government has emphasized on several measures to be taken as follows:
1. The first emphasis was on the need to use fertilizer both chemical, compost, and green manure so as to increase production.
2. Another area was on seed production. Seed production farms and seed laboratories were to be established under the Ministry of Agricultural so as to produce better and high yielding seeds to be distributed to farmers
3. Crop research units and crop experimental units were also emphasized so as to carry out research on agriculture.
4. Extension services were among other things which were emphasized too. Advises were to be given to farmers on crop management and animal husbandry.
5. Another area was that of agricultural mechanisation. This aimed at enhancing production by providing tractor hire services, training on the use of agricultural machineries at selected institutions.
In most of these plans the government simply puts it on papers and does not make a thorough follow up to ensure its implementation.
Trends and Approaches 
Agricultural planning first of all got a priority place in 1946 development plan. The 1951 plan aimed at improvement of agriculture in Tanganyika. The 1964 - 1969 First Five Year Plan aimed at increasing output by 6.7 per cent, while the Second Five Year Plan (1969 - 1974) aimed at boosting up crops with provision of research, extension services and training to the staff. The Third Five Year Plan (1976 - 1981) also aimed at self-sufficiency in food production. The 1982 - 1985 structural Adjustment Programme aimed at more production of each crops for export.
It has been identified that there are two methods by which agriculture should be planned. First is the improvement approach undertaken by the Ministry of Agriculture, Food and Cooperative through guidance and extension services provided to the farmers. Second is the transformation approach by the Ministry of Land, Settlement and Water Development involving the resettlement of people on newly provided land with all the infrastructure that goes to make a modern farmer.
What was the real situation in 1970's? The mass of our farmers lives on scattered small and uneconomic holdings along with primitive agricultural implements. In this situation, the country finds itself caught up in a vicious circle of poverty - little production, little surplus for investment, and low incomes to farmers.
Hence after 1969 our national agricultural planning took a transformation approach. The policy has been spelled out on paper in the original and later policy documents, and in the Second Five Year Plan. First, it emphasized the social as well as technical transformation of peasant agriculture and not just its marginal improvement. The objective is the development of <ea/>Ujamaa villages through the country. The Second Plan especially eschewed a 'project' approach and opted for a frontal approach moving towards <ea/>Ujamaa on all possible <-_front><+_fronts> rather than selective approach of providing a high level of service to small number of <ea/>Ujamaa communities. The socialist villages must grow from an application of the principles of self-reliance through the efforts of their own member.
In this way, the sole aim of the national agricultural policy is to facilitate the path to socialism to which Tanzania is committed, and the State should take the initiative to establish large scale modern State Farms, combining the production element of research and demonstration to farmers in the surrounding area. Agricultural development in rural areas through smallholders in cooperative production units (Ujamaa Villages) for selected crop priorities is regarded as critical in making development truly national and democratic.
Thus revolution of agriculture in the villages means socialist and modern agriculture which has the following attributes. First, big socialist farms which are owned and run by villages: second, it is based on the use of modern inputs, implements, expertise and skills: and third, it is a planned agriculture based on proper work plans which facilitate greater productivity.
The main objectives of the Five Year Plans have been to boost up agricultural production of various crops with provision of research, extension services and training, better quality seeds, construction of irrigation schemes and storage facilities.
It has been realised that resources available for agricultural development are scarce, efficient utilization is therefore of great importance. The nature of resources to be mobilized is also extremely diverse. The efforts of farmers should be gained towards the extension services, research, credit facilities, investment programmes of the Parastatal and Public sectors both directly in agriculture and also in infrastructure.
Early Agricultural Planning Experiences 
Tanzania came under German's rule in 1884 which introduced a number of cash crops including sisal, coffee, tea, cotton and rubber. They began concerned effort to develop the production of these crops on a plantation basis. To serve the expanding estate sector, the Germans constructed two railways: Dar es Salaam to Kigoma and Tanga to Moshi. Food crop production was left to the individual's initiative. Cooperatives for coffee, cotton and tobacco were established between 1930 - 1940's.
1. In 1946, the development plan (1946 - 1951) for Tanzania prepared and presented by the Development Commission of the Tanganyika Government, laid stress on the conservation and development of the country's natural resources.
2. In this period research projects undertaken included tsetse control, veterinary services, fisheries and agricultural research besides countrywide improvement of stock, routes, rinderpest control, the establishment of stock farms for the selection and testing of improved breeding stock and their multiplication and distribution.
3. In the field of crop production rice and cotton were helped by the construction of small dams for irrigation in the lake area where rainfall is deficient. For cotton, Ilonga and Ukiriguru Research Stations provided cotton breeding services as well as assistance in cotton pest control and eradication. Coffee was helped by the Bukoba investigation centre, groundnut farms at Nachingwea, flue-cured tobacco at Urambo, and cattle including pasture improvement at Kongwa.
4. In 1951 plan special attention on improvement of agriculture and veterinary practice was given in four areas namely Sukumaland, Ulanga district, Mbulu district and parts of Morogoro district, besides training programmes of agriculture, veterinary and forestry assistants.
First Five Year Plan (1964 - 1969) 
All agricultural activities were designed to help farmers to increase their output. "If we produce more meat our people can have better diet, if we catch more fish people's health will improve, and if we produce more sisal, cotton, coffee, and so on we can get more money from overseas with which to buy the other goods we want".
W2A037T
MANAGEMENT CONSULTING: THE EXPERIENCE FROM 
TANZANIAN INSTITUTIONS 
Introduction 
Most professionals will never be engaged in any large scale management consulting assignment but perhaps a majority of these professionals will be consumers of numerous consulting reports written by competent consultants. 
In this paper the author would like to share some of the problems that management consultants encounter in the field. The author has chosen to share his experience by analyzing these problems from two points of view: the consulting <AmE/>centered problems point of view and the client-<AmE/>centered issues.
The author intends to discuss these problems by relating his experience with the following assignments executed in Tanzania in the past few years. These include:
The Social Institutional Profile (SIPS) for Tanzania.
The Norwegian Commodity Import Support to Tanzania 
Rural Development Coordination in Tanga Region
The paper is organized in five sections; section one is an introduction; section two introduces the concept of management consulting in the context of bringing effective organization development. Section three analyses consultants problems. Section four <-_discuss><+_discusses> client-<AmE/>centered problems. Concluding remarks are given in section five.
What is Management Consulting?
Management consulting can be defined as a process of dealing or solving management problems that confront business organizations using appropriately - trained, qualified and experienced professionals. In this process there are two key agents: the clients and the consultants. The clients are the managers of such business organisations who seek services in terms of defining and working on a problem, analyses and solution search. Those who give the service in terms of technical advice, conducting indepth studies, etc. are known as consultants. From above it can therefore be generalized that there is a relationship between a client and a consultant. This relationship is a helping process to achieve certain specific tasks and objectives. This relationship can be described as:
(i) Voluntary - when a client perceives a consultant as <-/truthfull>.
(ii) Temporary - with a defined starting and terminating period on a task.
(iii) Supportive - consulting is on the support side.
(iv) Disciplined - work based on certain standards.
The interpretation of the helping relationship is controversial. One school of thought advocates that consultants are hired to study the problem and tell a client what is to be done. This is the expert - syndrome approach, where a consultant is the central focus and the role of a consultant is supervisory.
The other school of thought argues that a consultant can achieve the same results by pinning down his/her directive role. The helping process takes place through a collaborative effort with a client. It involves in identifying a problem and finding out alternative solutions to improve the situation. In this alternative approach, a client understanding of an organization problem is the focus. The role of a consultant is merely a catalyst, a counselling and a training role. In this context, a consultant's focus on a problem is related to particular clients needs, leadership responsibilities and practice.
Whichever role one is pursuing there are certain problems which are intrinsic in consulting work that one can expect to experience. These problems are basically of two types:
Consultant-centred problems, and
Client-centred problems.
Consultant-<AmE/>centered Problems
While <-/Lippit> and <-/Lippit> define a consultant as: "a helper whose expertise has been contracted for by a client - system".
Block on the other hand <-_define><+_defines> a consultant as: "a person in a position to have some influence over an individual, a group, or an organization, but has no direct power to make changes or implement program".
From the above authorities, it can be concluded that a consultant may be an individual or a consulting firm approached to provide a service as engineers, planners, economists or financial analysts or any specialized expertise in a particular area. The tasks or assignments for which consultants are employed can include dam design and construction feasibility studies, auditing accounts, institutional development assistance, project preparation and implementation studies, etc.
From the <-_authors><+_author's> point of view, choosing a consultant or consulting firm much depends on the competence, experience and its ability to deliver total quality services. This also implies that a consultant is:
Wanted, 
Helpful, and 
Informed and can be objective. Even with a lot of care being employed to appoint a competent                                                                                                          consultant, certain problems can surface up and need to be expected.
Tendency not to Listen
More often than not consultants would walk into an organization to "tell" a client what is wrong and what should be done to rectify the situation. This is specially the case, when consultants perceive themselves as "experts". 
In this case a consultant makes the diagnosis and also develops a solution. The <-_clients><+_client's> role is to judge and evaluate the result. In engineering and accounting fields sometimes this approach is assumed, the argument being that the problems facing a client are of a purely technical nature.
In this process, consultants tend to neglect clients, tend not to be active listeners and do not internalize the motivations, biases and thoughts of a client.
For management consulting to be effective, it is proposed that a consultant should listen attentively, carefully, objectively and emphatically to a client. The role of a consultant vs a client is to gather information, seek clarification, encourage a client to speak by actions and words and not to look for <-_clients><+_client's> mannerism. The consultant should be encouraged to be free to consider and suggest options as to how to obtain the objectives.
"Know - It all" Attitude
This arises from a <-_consultants><+_consultant's> desire to demonstrate that one has all the answers to a <-_clients><+_client's> problem. Anything a client proposes will probably be rejected by the "know - it all". Such a consultant always perceives things in the light of what he or she knows.
For example, in our USAID consultancy for SIPS there was a tendency for our American consultants to impose to our client that the Tanzanian public corporations are inefficient and ineffective. For the American, what works must be organised within the framework of the private sector. It may be noted that in the case of Tanzania in the 1980's the enabling environment wouldn't have helped even the private sector to operate effectively and profitably.
Against the "know it all" it is suggested that the role of a consultant is to facilitate and help a client in the generation and arrive at alternative solutions. A client needs to have ownership of the solutions while a consultant assists to influence a change in clients' attitude. 
Timing - Inappropriate
Consultants tend to walk into clients' office unannounced. There is a tendency to give short notices and/or to start a consulting engagement when a client is busy and has no time to collaborate in the work.
Differences In Perception
Consultants walk into a client's offices with their individual and personal frames of references. These frames of reference consist of meanings they assign to people or situations based on their past experiences and often related to their interests. For example, in the consulting assignment with the Regional office in Tanga Region we <AmE/>favored the so called TRD (Training for Rural Development) system as opposed to Training and Visit system because of the consultants' special interest in the TRD system.
More often consultants <AmE/>favor a particular micro computer system because they are used to it and not because it is the best. This predisposition is a problem if a client's preference is different.
Against this approach it is advocated that consultants see things from clients' point of view and to exercise restraint towards their personal interests.
Hostile Attitude
Consultants sometimes exhibit hostility towards clients. We, consultants have the knowledge and expertise. Our attitudes towards clients is that they do not know. In this process we close our ears, cease to listen regardless of what is said. There is a tendency to develop <AmE/>defense mechanism and a clients' point of views are put off. During the consultancy assignment in Tanga Region there was a tendency to ignore views of local people in Pangani district as their Coastal ("Swahili") culture did not inspire the consulting team. Whatever information was collected, was merely used to justify that the team visited this district. 
The most serious encounter the consulting team faced was with respect to Norad Import support study when the consulting team wanted to know what were "core" industries. When the consulting teams' views did not match with that of a client, the response was ".... let us now reason like economists". The consulting team lost the cooperation of the client and some vital information.
It is being recommended that consultants try to approach a situation in a safe - controlled manner with an attitude of caring, encouraging, and supporting. A Consultant should be prepared to paraphrase, seek clarification and to explain issues.
Lack of follow-up Responsibilities
Once consultants have helped a client, and their solutions adopted and implemented, consultants feel that they are through. After all, they have already been paid.
More of the consulting assignments belong to this trap. The SIPS consultancy with the USAID ended the moment a final report was submitted.
However, in the CIS engagement there was an attempt to make a follow-up, test some of the results and get the views shared with other people and test the usefulness of the findings over a large environment.
Lack of Empathy
To emphasize is to put over the feelings of other people in your own frame. Consultants when <-/diagonising> problems, should put themselves in the position of a manager and how they would have solved the problems.
Focus on client-<AmE/>centered Problems 
Davis defines the term "client" "as the organization that engages the services of a consultant."
A Client in this sense could mean a business firm, a parastatal, a service organization, a non- government agency or a government department. At the operation level of an enterprise this could mean a chief executive or a manager of an organization. In this section the author wants specific problems related to a client during a consulting engagement be identified.
Resistance to change 
To maintain a successful business firm like those of IPP (Industrial Products Promotion), J.V. Group or Somaia Group in Tanzania is not easy. One secret behind is the extent to which the management adapts to changing environment in the quest to meet employees and customer needs. Invariably, most managers have a tendency to resist change when it is perceived as a threat to their work and their special interests.
In a consulting situation, resistance to change can block new ideas and new work behaviours. Clients should support consultants with a positive mind and encourage their input and seek an explanation on how such management change could be implemented smoothly in the organization. In the consulting assignment with the Regional office in Tanga, the idea of assigning development work to ward executive officers at the village level was highly contested by central government authorities who were interviewed.
Client: Too Busy
Sometimes a client may not be readily available to work with a consultant. Often most clients at the level of executives have no time to provide relevant information to consultants. They are too busy attending meetings. 
As a consequence they refer consultants to their subordinates who lack executive powers and/or are ignorant of certain confidential data. This is counter productive both to the client and the consultant as valuable time is wasted this way. This was the case in executing a study on Commodity Import Support to Tanzania. If you examine the list of Government officers the team interviewed, all of them, except the Governor, Bank of Tanzania, were not the chief executives but were subordinates.
Information Overload
Clients are not sure of the problems their organizations face. As a result they provide all the information in the company to the client for him to sort out what is relevant. Instead, the client should guide consultants by helping them manage time, set priorities and be specific to the consultancy needs.
Clients - Interest <-_on><+_in> Results only 
Most engagements undertaken by a consultant involve generating alternative solutions to a problem.
W2A038T
ARE THE PATTERNS OF THE FLOWS OF TRADE, INVESTMENTS, AND FINANCE BETWEEN STATES NECESSARY IN UNDERSTANDING INTERNATIONAL RELATIONS?
1.0 INTRODUCTION
Of late, there has grown a school of thought among students of International Economic Relations arguing that International Relations cannot be understood without knowing the patterns of the flows of trade, Investments, and finance between states.
This paper is an attempt to analyse, by using examples, the validity and sustainability of the argument.
2.0 TOWARDS A DEFINITION OF INTERNATIONAL RELATIONS
To proceed with the analysis of the argument posed above, it is important to provide a working definition of International Relations. 
International relations is a term and concept which refers to the sum total of interactions among international actors irrespective of whether these interactions are political, cultural, economic or scientific. It therefore embraces all that is categorized as International politics and more.
From this shorthand definition, three things stand out clearly; First, that there exists what is described as the International system; Secondly, there exist actors within the International system; and thirdly, that these actors relate to one another in the system.
That is why one can legitimately classify the following as International relations:
(a) Economic transactions among actors,
(b) Tourism, migration, and cultural exchanges across states and national frontiers,
(c) The entire range of communications among actors such as mails, intelligence reports,
(d) Military relations among actors such as the North Atlantic Treaty Organization (NATO) Australia New Zealand and United States (ANZUS), and the South East Asia Treat Organization (SEATO) etc.,
(e) Relations between International and supranational organizations such as those of the United Nations (UN), The Organization of American States (OAS) and the Arab League. etc.,
(f) Big and small business transactions across national frontiers.
From the above, there are at least four broad categories of International Relations:

2. l Private International Relations: 
These are relations between citizens belonging to diverse nation states. These relationships are not in any way mediated by the various states except in so far as these states issue passports, visas, stamps or foreign exchange.
2.2 Cultural International <-/Relationns>: 
These are cultural, social and intellectual relations that link many states and actors. They may be sporting activities such as the Olympic games, Commonwealth Games or the All Africa Games; or cultural festivals such as the World Black and African Festivals of Arts and Culture or the very many meetings of Intellectual association at world level.
2.3 International Economic Relations: 
These involve international trade, commerce, the transfer of capital and technology, commodity and payment arrangements, and of course, the entire critical problem of the relationship between the poor and the rich.
2.4 International Political Relations: 
These are the areas covered by International politics. Sometimes, it is called Public International Relations. It encompasses, and military diplomatic affairs and both intelligence and counter intelligence.
3.0 THE ROLE OF ECONOMIC FACTORS IN INTERNATIONAL RELATIONS 
Having defined what international relations are, it is now important to move to the significance of political economy in international relations. Here, we need to note first and foremost that economic factors have played an important role in international relations throughout history. Economic objectives, resources, and instruments of foreign policy have always been significant elements in the struggles among political groups.
There are very many examples of the role of economic factors (trade, investments, finance) in the affairs of states. In Homeric times, Helen's face, contributing factor though it may have been, was the primary reason for launching a thousand ships and causing King Agamemnon to lay siege to Troy. More likely the Greeks' crucial motive was their desire to seize control of the lucrative trade route that passed through the Dardanelles. Centuries later, the Persian empire used its great hoard of gold to influence the foreign policies of lesser states. In the 5th century B.C., the Athenian closure of ports of the Delian League to an ally of its Spartan rival provides one of the earliest recorded cases of economic warfare. Thus far one can argue that history is replete with similar examples of the role of economic factors in the affairs of states; in this sense, the political economy of international relations has always existed.
Although economic and political factors have had a reciprocal influence on one another throughout history, in the modern world this interaction has been transformed in fundamental ways. Over the past several centuries, the interdependence of national economies has increased due to greatly enhanced flows of trade, finance, and technology. Public awareness of the economic content of political issues has also expanded, and people can more easily trace the causes of economic discontent or bounty to the specific actions of specific groups at home and abroad.
This is due to the realization that the state can be used to effect economic outcomes and, in particular, to distribute wealth in one's <AmE/>favor. It is for this reason that today the scourge of unemployment, the rampant inflation and the distribution of wealth are viewed as the result of human actions rather than as the consequences of some immutable economic laws.
This conclusion is only possible if one looks at the changes which have taken place. First, the nation-state has largely displaced such pre-modern forms of political organization as city states, tribes, and empires, while simultaneously the market has become the primary means for organizing economic relations, displacing other means of exchange: reciprocity, redistribution, and imperial command economies. These two opposed forms of social organization, the modern state and the market, and their mutual interactions have become increasingly crucial to the character and dynamics of international relations in our world. They have elevated economic issues to the highest level of international relations. The direction of financial flows, the inevitable shifts in comparative advantage, and the international distribution of productive activities are preoccupations of modern statecraft. 
The role of economic factors in international relations has been viewed differently by various schools of thought. Economic liberals believe that the benefits of an international division of <AmE/>labor based on the principle of comparative advantage cause markets to arise spontaneously and foster
harmony among states; they also believe that expanding webs of economic interdependence create a basis for peace and cooperation in the competitive and anarchical state system. Economic nationalists on the other hand believe and stress the role of power in the rise of a market and the conflictual nature of international economic relations; they argue that economic interdependence must have a political foundation and that it creates yet another arena of inter-state conflict, increases national vulnerability, and constitutes a mechanism that one society can employ to dominate. Marxists are divided into two groups; Leninists and Kauskites. Leninists believe that market economies are by nature conflictual, and those of Lenin's chief followers, and protagonist, Karl Kautsky, who believe that market economies (at least the dominant ones) cooperate in the joint exploitation of the weaker economies of the globe.
Thus taking that stance, Marxists have criticised the market or capital society, that it tends to pursue an aggressive foreign policy. Liberals on the other hand, take the opposite position arguing that capitalist economies are fundamentally pacific.
Marxists, liberals, and nationalists have long debated the issue of whether economic interdependence is a source of peaceful relations or a source of conflict among nation states.
Liberals believe that the mutual benefits of trade and the expanding web of interdependence among national economies tend to foster cooperative relations. They believe that war has become unthinkable because it is antithetical to modern industrial society and does not pay. But for nationalists trade is merely another arena for international competition because economic interdependence increases the insecurity of states and their vulnerability to external economic and political forces.
The effects of trade, investments, and finance on international relations is an area of intense controversy. From Montesque's statements that "peace is the natural effect of trade" to contemporary theorists of functionalist and economic interdependence, liberals have viewed international economics as separable from politics and as a force for peace. Whereas politics tends to divide, economics tends to unite peoples. Trade and Interdependence create bonds of mutual interest and a vested interest in international peace and thus have moderating influence on international relations. The basic assumption of the Marxists and the economic nationalists, on the other hand is that international interdependence is not only a cause of conflict and insecurity, but it creates dependent relations among states. Because interdependence is never symmetrical, trade becomes a source of increasing the political power of the strong over the weak. Therefore, Marxists and economic nationalists advocate policies of economic autarky.
The historical record does not lend much support to either position; the pattern of economic and political relations are highly contradictory. Political antagonists may be major trading partners as was the case with Great Britain and Germany in the First World War; or as was the case with the United States and the Soviet Union after the Second World War; they may have negligible economic intercourse. What the evidence suggests is that, whether trade aggravates or moderates conflicts, is dependent upon the political circumstances. Attention therefore should be given to interrelated factors that appear to influence the ways in which trade affects international political relations.
The first factor affecting the political consequences of trade is the existence or absence of a dominant or hegemonic liberal power that can establish and manage the international trading system.
The great eras of economic interdependence have been identified with the unchallenged supremacy of hegemonic trading powers such as Great Britain in the nineteenth century and the United States after the Second World War. When the domination of these powers waned and they were challenged by rising powers, trade conflicts increased.
The second factor determining the political effects of trade is the rate of economic growth. The corollary is also true; a rapid rate of economic growth leads to increasing trade and economic interdependence.
By the same token, a slow down in the rate of economic growth makes adjustment difficult, intensifies international trade competition, and exacerbates international political relations.
The third factor affecting the political results of trading relations is the degree of homogeneity or heterogeneity of industrial structure, which in turn determines the composition of imports and exports. Although it is true that industrial nations trade more with one
another than <-/non industrial> countries, when nations have highly homogeneous or even similar industrial structures and exports, competitive trading relations and commercial conflict frequently results in periods of economic stagnation. By the same token heterogeneity of industrial structure tends to produce complementary trading relations.
Thus the heterogeneity of industrial structures of Great Britain and other nations in the early and mid-nineteenth century resulted in generally harmonious trading relations. As other nations industrialised by the end of the century, commercial conflicts became intense. The same phenomenon may be observed in the contemporary era, as rising industrial powers such Japan and the Newly Industrialising countries (NIC's) overtake and surpass the United States.
In a similar tone and argument, one can turn to the role of finance and even investments, and yet find the same thread running. And the conclusion will be similar to the one made on trade; that no single variable can explain international relations.
However the role of finance and the control of a currency in international monetary system provides states in control with financial and monetary power. Both Great Britain in the nineteenth century and, to a much greater extent, the United States in the twentieth, have used to their own advantage, the right of seigniorage "which is the profit that comes to the seigneur, or sovereign power, from the issuance of money". The United States has also employed its financial power to reward its friends with access to capital markets and to punish enemies through denial of access.
Also in the case of the United States, the financial pre-requisites of the <-/hegemon> have been crucial to its ability to maintain its dominant position and domestic prosperity into the 1980's. 
Even then, it is very difficult to sustain with certainty the assumption that an understanding of international relations is solely dependent on the knowledge of the patterns of trade, finance, and investments.
W2A039T
REGULATION OF BUSINESS: MUTUAL PARTNERSHIP OR CONFRONTATION? 
Government regulation of business is a common <-_phenomena><+_phenomenon> both in government and business circles. Neither the government nor the business community can ignore this reality. And there are justifiable reasons for this strange state business relationship. Indeed, state (state is preferred to government which has a more limited usage) regulation of business must be considered in a wider perspective as one of the many aspects of state business relationships. No business manager, let alone a financial manager can afford to ignore this relationship.
The success or failure of any enterprise, from its inception to its maturity, hinges on this relationship. Peter F. Drucker, an eminent scholar in the field of management had this to say about state business relationships:
A crucial social responsibility for the manager, and especially for the business manager, is the relationship of business and government. Few relationships are as critical to the business enterprise itself as the relationship to government. The manager has responsibility for this relationship as part of his responsibility to the enterprise itself.
State enterprise relationship is not the domain of any particular form of government. It exists both in capitalist countries of the west to socialist states in the east. Nor are third world, or the so called developing countries excluded. It is therefore essential that financial managers be conversant with the form and nature of state business relationship lest they fail their enterprises. This is crucial in order to re-emphasize that state business relationships be seen not as confrontational but rather as one of partnership. Indeed, to some extent, governments themselves are entrepreneurs, while other private entities operate as public realities. This reality has been observed by Drucker who declares that:
There are institutions that, while incorporated as private companies, are publicly owned and discharge public functions. There are also institutions which while government owned operate in fairly competitive markets and discharge "private sector" functions. 
A Financial Manager must also realize that, both public and private enterprises must deal with the state in one form or the other. They must not only cooperate as business partners, but both their survival as managers and the survival of their enterprises depends on how they cooperate with the state. Moreover, to some extent, the survival of the government depends also on how business thrives both public and private. Business survival means an improved ability of the state, to deliver goods and services to its population. Inability to deliver, puts the legitimacy of the state into question, and hence its survival. 
Both economic, political and social stability therefore depends on how business and state can join hands in a new partnership that can improve the social and material well being of the society that sustains them. This essentially means that this partnership must be able to guarantee the most basic needs of the community i.e. good living conditions in the form of adequate calorie intake in nutritious food, reasonable housing and shelter, basic education and health for all citizens. Included in the basket of basic needs is also state guarantee of human justice, and equality in the form of free speech, freedom of association, free press as well as protection of the environment that sustains the community. Now, this cannot be sustained either through private or public effort alone, only joint efforts can sustain this <AmE/>endeavor.
The success of this <AmE/>endeavor is the only way to guarantee the success of business. This is essentially the case because business can only thrive in a relatively, stable society. Stability can only be guaranteed when the community perceives the state and enterprise to be supporting better living conditions for them. And this can be done when both civil and political rights are available. When economic justice prevails. In discussing the US economy and the need to forge new economic arrangements in <AmE/>favor of economic justice for all, the US Bishops declared that,
The first step in such an effort is the development of a new cultural consensus that the basic economic conditions of human welfare are essential to human dignity and are due persons by right. Second, the securing of these rights will make demands on all members of society, on all private sector institutions, and on government.. . Indeed political democracy and a commitment to secure economic rights are mutually reinforcing.
While Bishops in the USA are calling for joint efforts between the state and business entities in the USA such efforts are said to have been the story of economic miracles achieved in Brazil, as well as the newly industrialized nations of Asia. Unfortunately, however, industrial development in those countries, has not been able to guarantee political democracy and a commitment to secure economic rights for the majority of the population in these countries. State rules and regulations cater for the rich few and suppresses the majority poor who are condemned to perpetual poverty.
Peter Evans, in an analysis of the Alliance of multinational, state and Local Capital in Brazil, concludes that:
The industrializing elite alliance that currently holds sway in Brazilis inherently incapable of serving the needs of the mass of the population yet the pressure of their unsatisfied needs remains the constant backdrop for the elite's strategies of industrialization. . . but the redistribution of economic rewards and political power can only be postponed for a certain period. The workers who burned the buses will not remain indefinitely a passive audience.
Evans argues that unless the state and private business alliance redistributes the wealth generated, both stands to loose. For as soon as the pauperized majority perceives betrayal, they will pursue their rights through sporadic protests demanding economic and political justice. When protests become nasty and out of hand, business suffers while the state looses its legitimacy.
In short, whereas, the partnership between state and business can result in some sort of development to be precise, some sort of economic growth, such growth may be short-lived. It may be short-lived because no development takes place. For development must take into consideration a whole package of social, political and economic justice for all. Otherwise, business as well as the state will end up as losers. Losers because the disenfranchised and marginalized poor will rise up against the alliance. They will revolt, and in the cause of rebellion tear down the semblance of growth. Business will suffer both material and moral losses. The criteria of business success is profit maximization. And profits cannot be maximized when business property is torn and burnt down. Morally business will have failed to improve the well being of those who produce the mega profits, the exploited. The state is not exonerated either. When mass rebellion ensues because of unfulfilled basic demands, the prerequisites to development, the state is further alienated from the masses. An alienated and withdrawn state will not be sustained except through dictatorial use of coercive instruments of the state, the police and the army. Martial law rules supreme. This further undermines its ability to rule and puts into question its legitimacy. An illegitimate state cannot survive because it cannot guarantee property rights, the production and exchange of goods and services, the very heart and soul of business. In analyzing the swift economic growth of the newly industrialized countries of South East Asia, Frederic Deyo states that:
State led strategies in capitalist economies entail continuing. Selective intervention by state agencies in private sector decision making and market transactions to achieve strategic goals. . . suggests the importance of consistent, developmentalist, state-led, strategy for economic growth and restructuring in South Korea, Taiwan, and Singapore.
The suggestion here is that business boom in South Korea, Taiwan, and Singapore was mainly due to state interventionist policies in business. Unfortunately for the masses, the state in those instances was dictatorial. Economic growth was not followed by development, in the form of guarantees to minimum basic needs both material, political and social justice and protection of the environment. Business prospered because the state used both the carrot and the stick to deal with business and only the stick to deal with the masses of the working people in these nation states. The state guaranteed business massive profits by denying workers the right to exercise their fundamental right. The right to strike. Low wages was a business present to the bourgeoisie. So were loans, subsidies and protection from foreign competition. These were given in exchange for investing in state priority sectors.
Since the legitimacy of the state was questionable foreign capital and troops were a vital element both to the survival of the state and the success of business. Thus, state business alliance is critical for both. However, when the workers and peasants, the bulk of the population is alienated, no one can enjoy the fruits of this success.
Riots are frequently reported in Seoul, South Korea and in Taipei Taiwan. Most often business suffers. Business therefore has a moral responsibility to make sure that their cooperation with the state ensures sustainable development for the benefit of all.
Africa is also a scene of fertile state business relationships. Given the high illiteracy rates of the African masses and their preoccupation with basic survival, they are rarely involved in deciding their own fate. The state in this respect takes advantage of this phenomena, and make policies that partially reflects the "interests of the national elites and those of the population at large"
In the absence of legally organized opposition, and true mass representation, the state intervenes in business decisions, most often in <AmE/>favor of the dominant business elite. The African elite constitutes the state bourgeoisie as well as private capital in the nation state. This <-/infact> forms the basis of state business relationship. Beno Ndulu, has explained this <-_phenomena><+_phenomenon> as simply another dominant characteristic of African regimes, stating that:
Another dominant characteristic of African regimes is the close link between the state bureaucracy and the private sector, both foreign and indigenous. Elites use state power either independently or in conjunction with private entrepreneurs to enter into the business sphere, tending to create a strong symmetry of interests between the private sector and the state bureaucracy.'
State business cooperation in this context is obvious. Given the low living standards of the African masses which is not guaranteed its supply of a full basket of basic needs, it means that, at least, in the short run, this business alliance between the public and private bourgeoisie is beneficial to commercial interests, but detrimental to sustained development in the long run. Yet, most reformers unwittingly <AmE/>clamor for more doses of the very policies that have hampered African development. As Paul Okojie succinctly put it, "It is quite remarkable that the World Bank is urging African Countries to pursue the very economic path which has been the source of their poverty and misery".
The economic path mentioned is unfortunately the very one also propounded by IMF, i.e. open the African, economy more and more to the mercy of international finance capital. Of course, the very alliance between state and private bourgeoisie in the African nation states is viewed as a healthy situation. So long as international capital dominates, and free reign of market forces sustain business. Mass poverty and misery do not count so long as maximum profits are generated for the consumption of the local bourgeoisie and repatriated by global capitalists through their transnational corporations. 
For Tanzania, following this economic path has meant the reinforcement of state business cooperation in <AmE/>favor of private capital. This has translated into an all out effort to create <AmE/>favorable conditions for private capital which meant passing laws guaranteeing non-appropriation, tariff protection, duty relief on imported raw materials and component parts of machinery, tax holidays, export profits etc. This view is shared by Hardley Smith, who emphasizes state support of private business by providing, "all reasonable guarantees for carrying out its business in conditions sufficiently attractive to induce the reinvestments of profits in Tanganyika and an inflow of new investments from abroad." Such conditions included the incentive package mentioned above
W2A040T
The Marketing of financial Services in Tanzania: The Challenges of the 1990s 
1.0 Marketing: A Forgotten Function 
In 1990 I was engaged by the Tanzania Housing Bank (THB) to assist its managers formulate a five-year Corporate Plan for their dear company. One of my many questions posed to these managers was whether THB needed a marketing man to help improve its performance. The answer to this question was quick and blunt: "No Sir, we do not need an "Arts" man. We need more engineers, instead."
1.1 This answer, which came from a Senior Manager of THB, possibly an engineer by training, was chilling, to say the least. It probably demonstrated the contempt that some bankers have on marketing as being merely a useless "arts" discipline. However, a subsequent discussion with this manager, as well as others, revealed that most THB managers did not know what really marketing was all about. And the few who did could not easily conceptualizes its place and importance in enhancing banking operations. This problem appeared to have been worse among those managers with an engineering background than those with commerce or economics degrees and/or diplomas. However, after pressing hard on the importance of a marketing oriented approach to strategic planning, most managers started appreciating "marketing" as an important and possibly inescapable function in all business operations, including banking operations.
1.2 The objective of this paper, therefore, is to try and impress upon the Chief Executives of our financial institutions on the importance and place of the marketing function in enhancing the operations of their firms. The importance of marketing in this regard is particularly so during this decade (1990s) due to the impending liberalization of the financial sector, following the recent enactment of the Banking and Financial Institution Act, (which, in principle allows creation of private banks), the Tanzania Postal Bank, the Loans and Advances Realization Trust and the National Investment (Promotion and Protection Act) of 1989. This "opening up" of the financial sector and the economy as a whole is expected to be intensified, partly through the restructuring of the National Bank of Commerce (NBC) and the National Insurance Corporation (NIC) along the lines proposed by the Presidential Commission of inquiry on Monetary and Banking System.
1.3 Furthermore, it is the objective of this paper to point out and explain briefly some of the necessary tools and skills needed to undertake, more professionally, marketing activities at the branch and corporate levels of our financial institutions. It is our sincere hope that at the conclusion of this paper and subsequent discussions on the issue raised therein, most of the Chief Executives, if not all, will be marketing or consumer-oriented in their thinking and operations. In other words, they should go back to their work stations and professionally market their products (services) more purposively, scientifically and effectively.
1.4 In this presentation, we first explore the Tanzanian financial Marketing Scene in a bid to determine its adequacy or inadequacy in the application of the marketing concept in our financial institutions. The exploratory survey is achieved in Section Two of this paper. The following Section looks at what marketing and the marketing concept is. The aim here is to look at an "ideal" marketing philosophy and contrast it with the "practice" as seen in the preceding Section. Possible reasons for the failure of our banks to apply the marketing concept in their operations follows in Section Four, Section Five, then proceeds to justify the need for a marketing orientation of our financial institutions in general, and banks, in particular. Section Six then looks at the tools of marketing and their application in the marketing of financial services.
2.0 Bank Marketing: The Tanzanian Style 
The opening paragraph of this paper is probably an extreme case of the way THB views marketing negatively. After all THB knows about advertising and actually advertises its services vide the radio and newspapers. It also has a fully fledged Public Relations Department. But that is all. This national company with a branch in every region does not have a marketing department, let alone a marketing officer! It would appear that marketing research, one of the corner stones of marketing is completely unknown to THB!
2.1 The Co-operative and Rural Development Bank (CRDB) is not much better than THB, either. Marketing is a diffused section within the Directorate of Banking. But even here, it does not use the name "marketing". Instead it is termed "business development", whatever its meaning.
2.2 Our largest and oldest commercial bank, the National Bank of Commerce (NBC) should give us a more complete picture about the level of marketing activities among our banks. The Daily News edition of Monday, April 23, 1990 carried the following bizarre news about the collapsing of two NBC customers while "trying" to collect their money at the city Branch in Dar es Salaam
'Two people collapsed.... as they queued for their money.... A Tanzania News Agency Shihata
reporter who witnessed the incident said the two fellows had allegedly spent more than four hours at the bank ....
In another development at the same branch, tellers were shouting to customers that "those with cheques with big amounts of money not to waste their time" as the bank had not enough cash. "<ea_><ea/>" one teller was quoted as telling customers".
2.3 This story reminds us of the many de-marketing practices which were typical of the Tanzanian Marketing scene during the 1974-1984 decade of scarcity of consumer goods and service, price controls and controls in the distribution of goods and services through the policy of ''confinement". At that time it was usual to spend the whole day trying to buy a kilogram of sugar, a pair of <ea/>khanga, a bar of soap or a bus ticket to Songea. But whereas trade liberalization seems to have forced many Tanzanian producers, importers and other middlemen (wholesalers and retailers) to be consumer or marketing-oriented in their business undertakings, our banks continue to operate in the traditional fashion of "selling" rather than marketing.
2.4 The NBC Annual Report and Accounts for the year ended 30th June, 1988 has 57 (English) pages, but it does not carry a single word of "marketing". This is despite the fact that the Chairman and Managing Director of NBC repeats his Company's "Credo" of offering services to customers which are "qualitatively of the highest degree, prompt, efficient courteous and personalized". This, indeed, is paying lip service to marketing and it is no wonder that the same report shows a decline in demand, time and savings depositors by 14.3%,7.6% and 7.0%, respectively from 1986/87 to 1987/88 period. It is also not surprising for the bank to treat its customers with utter contempt and indifference as reported above!
2.5 The limited application of the marketing concept (to be explained in the next Section) is demonstrated by the way the marketing function is treated in NBC's organizational set-up. As early as 1973 this company seems to have appreciated the importance of the marketing function by placing it under a Chief Manager, although the title of this function was "Development", rather than "Marketing". In subsequent years we have seen this department being stripped off of its powers, and relegated to a mere section, and again lifted to a division, etc. For instance in 1984 it was a full department under the functional name of "Development"; In 1986 the department was relegated and placed under Planning and Research and in 1987 it was again upgraded to a division but placed under the Directorate of Domestic Banking. This Directorate deals with loans and overdrafts. In the circumstances it is so busy with borrowers that it rarely has sufficient time to think about marketing. As a matter of fact the Department is over-shadowed by other seemingly more important functions. Thus the marketing function's uncertainty about its "position" in the organizational set-up of NBC renders it ineffective and subject to ridicule. Appendix 1 shows the present (1989) organizational set-up of NBC.
2.6 While organizationally, NBC does not seem to have recognized and accepted Marketing as an important function, it has slowly and painfully been improving its marketing practices. A notable area in this regard is marketing research as a key input in marketing planning. Prior to 1983 market research for the Company was limited to socio-economic surveys which were, in essence an exercise of resource taking. However crude as they might have been, they accounted for many branches opened between 1967 and 1983. These surveys were accompanied with past data on the performance of the economy as well as the data on growth trends on deposits. This information was used to determine market potentials, an important ingredient of a market plant.
2.7 Beginning 1984/85 NBC introduced performance budgeting based on some limited market analysis. This analysis was based on demographic data and data on economic activities. The problem here is that most of these surveys were hurriedly carried out, and were done by people with little or no knowledge at all of marketing and marketing research. However, the most serious deficiency in most of these surveys was the absence of research on customer attitudes towards banking services, the driving forces that determine customer's decision to bank with NBC or with other banks, and a study of unsatisfied needs in respect of financial services. In other words NBC as well as other banks in the country have not bothered to know their markets in terms of characteristics and consumer <AmE/>behavior. They have taken them for granted.
2.8 The National Insurance Corporation (NIC) appears to be the only financial institution in the country with a fully fledged marketing function. This function is highly placed within the company's organizational set-up (Directorate level). This set-up, plus the company's country-wide "marketing agency" system has contributed significantly to NIC's savings mobilization (Ref. To Appendix 2 which shows substantial increase of both nominal and real deposits between 1978 and 1988), although part of this increase can be attributed to the statutory nature of some of NIC's Insurance schemes.
2.9 One can conclude this section by saying that to the National Bank of Commerce, the THB and to most other banks in the country, marketing is advertising. Or it is advertising and public relations. Or it is advertising, public relations and selling. Or it is all those plus research. But all these are not enough in and of themselves.
2.10 Most Tanzanian banks have a very narrow view of marketing. As will be discussed later, this position is understandable. Acceptance of marketing in the USA and Europe is dated as late as the 1960s and it was not until the 1970s that marketing of banking became a widely discussed topic in British Banking Circles. One reason for the delay in accepting marketing is the nature of banking to be discussed later. The illusion of having a face to face relationship with customers, (or) the absence of intermediaries, has made the financial institutions flounder in the application of the marketing concern whose important pillar is consumer service and satisfaction.
3.0 The Marketing Concept: A Reflection 
Companies can design great products, but if they cannot reach their customers, or if potential buyers remain unconvinced to buy, then all is for naught. Marketing is an essential business discipline that tests the company's product or service against the customers' willingness to buy at a price that is not only acceptable to them but also generates an acceptable profit to the company. The central place of the consumer in the success of a firm has led to the development of the so-called "marketing concept". 
3.1 The way the marketing concept is interpreted varies quite considerably as almost every text-book of marketing has its own definition. However, there seems to be a common thread cutting across authors, practitioners and politicians alike. Probably the best way of understanding the marketing concept is to contrast it with the sales concept ("selling" or "product concept" or orientation).
Two eminent scholars of marketing have made an excellent distinction of the two, almost opposing concepts: Theodore Levitt and Phillip Kotler.