This paper presents an economic evaluation of problems inherent in emergence from colonial status during 1960s for Tanzania. and the problems of merging former colonies of Zanzibar & Tanganyika.

Tanzania is an African nation that took a socialist path to development. Tanzania is ruled by one political party, the CCM, and it exercises supreme authority over all state organs. Its constitution became effective in 1977, and the principal doctrines are that all human beings are equal, that every individual has a right to dignity and respect, and that only with socialism and self-reliance can a society of free and equal citizens be constructed. The party has a broad membership, and any citizen eighteen years or older can become a member by accepting the aims, beliefs, and objectives of the CCM (Kaplan, 1978, 104-105).
Prior to the Arusha Declaration, development policies for Tanzania had encouraged extensive private investment and large financial contributions from abroad, and these orientations were…

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