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TanzaniaA Political Economy$
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Andrew Coulson

Print publication date: 2013

Print ISBN-13: 9780199679966

Published to Oxford Scholarship Online: September 2013

DOI: 10.1093/acprof:oso/9780199679966.001.0001

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Parastatals and Workers

Parastatals and Workers

(p.319) 23 Parastatals and Workers

Andrew Coulson

Oxford University Press

The years after the Arusha Declaration saw a proliferation of parastatals, or government corporations, in almost every sector, including industry, agriculture, banking, trade, transport and housing. The Government negotiated compensation with the owners of the banks and large factories that were nationalized, and run as parastatals––Government-owned arms-length bodies. Many new factories depended on protection provided by tariffs on imports. But transfer pricing, which provided a mechanism for international companies to take money out of Tanzania, was an issue from the start. The State Trading Corporation, which in 1970 took over the import of all consumer goods, building supplies and agricultural inputs encountered many problems, as did the Mwananchi Engineering and Construction Company (MECCO), the state-owned construction parastatal. The chapter also explores the dilemmas faced by the Party when it encouraged worker and Party involvement in the management of industries, at the same time crushing workers’ initiatives in particular factories.

Keywords:   compensation, parastatals, protection, transfer pricing, workers’ initiatives, State Trading Corporation, MECCO

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