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The political economy of urbanization in Tanzania Brain, Alan Richard Leonard 1979

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THE POLITICAL ECONOMY OF URBANIZATION IN TANZANIA by ALAN RICHARD LEONARD BRAIN B. A. (Hons .)'> University of Essex, 1969 M.A., University of B r i t i s h Columbia, 1972 A THESIS SUBMITTED IN.PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY i n THE FACULTY OF GRADUATE STUDIES (Department of Anthropology and Sociology) We accept t h i s thesis as conforming to the required standard THE UNIVERSITY OF BRITISH COLUMBIA A p r i l , 1979 Alan Richard Leonard Brain, 1979 I n p r e s e n t i n g t h i s t h e s i s i n p a r t i a l f u l f i l m e n t o f t h e r e q u i r e m e n t s f o r a n a d v a n c e d d e g r e e a t t h e U n i v e r s i t y o f B r i t i s h C o l u m b i a , I a g r e e t h a t t h e L i b r a r y s h a l l m a k e i t f r e e l y a v a i l a b l e f o r r e f e r e n c e a n d s t u d y . I f u r t h e r a g r e e t h a t p e r m i s s i o n f o r e x t e n s i v e c o p y i n g o f t h i s t h e s i s f o r s c h o l a r l y p u r p o s e s may b e g r a n t e d b y t h e H e a d o f my D e p a r t m e n t o r by h i s r e p r e s e n t a t i v e s . I t i s u n d e r s t o o d t h a t c o p y i n g o r p u b l i c a t i o n o f t h i s t h e s i s f o r f i n a n c i a l g a i n s h a l l n o t b e a l l o w e d w i t h o u t my w r i t t e n p e r m i s s i o n . D e p a r t m e n t o f foCTHILoQctLcrzti AWS Sociology T h e U n i v e r s i t y o f B r i t i s h C o l u m b i a 2075 Wesbrook Place Vancouver, Canada V6T 1W5 D a t e 15 frC-rggSg,!^. - i i -Abstract A theory of contemporary urbanization i n Tanzania i s elaborated. The underlying explanatory mechanism for t h i s i s an analysis of the generation and a l l o c a t i o n of economic surplus. I t i s argued that the towns are a r e s u l t of, and i n somesenses a p h y s i c a l expression of, the interaction of the economic substructure and the s o c i a l superstructure. Their h i s t o r i c a l o r i g i n s are shown to be l a r g e l y the r e s u l t of economic and p o l i t i c a l forces emanating from abroad. Towns were a key part of the c o l o n i a l economy that was set up, being the places where the main commercial and administrative functions were concentrated. The p r i n c i p a l d i r e c t l y productive sectors of the contemporary economy are described and analyzed, and a g r i c u l t u r e shown to be the main productive base on which a l l else r e s t s . The structure of the economy i s such that i t i s p r i m a r i l y geared to exporting a g r i c u l t u r a l raw materials and importing manufactured goods. The state sector has expanded since Independence and now encompasses most medium and large-scale economic a c t i v i t y . An analysis of the way i t a l l o c a t e s surplus shows that the e f f e c t of i t s expenditure i n many d i f f e r e n t f i e l d s i s to greatly concentrate economic surplus i n urban areas. The state invests and spends very unevenly, and since the state sector i s so large,, t h i s causes very uneven development. The o v e r a l l e f f e c t of government p o l i c i e s i s to ensure that most growth takes place i n the urban-located sectors of the economy. Economic growth i n r u r a l areas has been much more l i m i t e d . In e s t a b l i s h i n g a p a r t i c u l a r sort of economy, col o n i a l i s m created an e n t i r e l y new s o c i a l structure. The p o s t - c o l o n i a l modification of t h i s i s analyzed, and i t i s shown that the balance of class forces r e s u l t s i n a - i i i -followirig of p o l i c i e s that continue dependence on the i n t e r n a t i o n a l c a p i t a l i s t system and ensure that the economic structure does not change, r a d i c a l l y . The inherited urban framework, and the type of economy that such towns presume, has not been se r i o u s l y questioned. The towns do not contain enough d i r e c t l y productive a c t i v i t i e s to maintain t h e i r physical i n f r a s t r u c t u r e and s o c i a l structures, and they r e l y for t h i s on appropriation from a g r i c u l t u r e and, to some extent, on financing from abroad. Surplus concentration i n urban areas leads to migration from the r u r a l areas because of the income opportunities such concentration creates. The towns are very i n e g a l i t a r i a n i n t h e i r physical lay-out and, i n the provision of housing i n p a r t i c u l a r , state expenditure on "modern" f a c i l i t i e s ensures that a large proportion of urban residents are l e f t to t h e i r own devices to l i v e i n inadequate, and often i l l e g a l , accommodation. Government urban p o l i c i e s consume a large amount of the surplus that the economy generates, and necessitate dependence on foreign finance and planners. This, and the fact that the most p o l i t i c a l l y powerful classes benefit from the p r i v i l e g e d urban f a c i l i t i e s , ensures that there i s no r e s t r u c t u r i n g of the economy that would be s u f f i c i e n t to change the present d i r e c t i o n of urbanization. I t i s argued that probably only economic res t r u c t u r i n g on the scale (though not the type) of the introduction of colonialism i t s e l f could a l t e r the l i n e s along which urban growth i s occurring. The balance of p o l i t i c a l forces from d i f f e r e n t classes would seem to ensure that t h i s w i l l not happen, and therefore one can expect Tanzania's urban population to grow, for the foreseeable future, at a rate that represents at least a doubling per decade. - i v -Table of Contents Page L i s t of Tables v i L i s t of Figures v i i . Acknowledgement v i i i CHAPTER ONE: INTRODUCTION 1 Summary 26 CHAPTER TWO: ECONOMIC HISTORY The I n t e r i o r and the Coast, upto 1800 29 1800-1885, The Advent of German Colonialism 32 German Colonialism: 1885-First World War • 37 B r i t i s h Administration: 1919-1961 50 Independence: 1961-1966 55 The Arusha Declaration and A f t e r : 1967-1976 62 Summary 75 CHAPTER THREE: THE STRUCTURE OF THE ECONOMY 77 Agr i c u l t u r e 84 Industry 98 The Structure of the Economy 111 State Sector Revenue and Expenditure 121 Summary 141 CHAPTER FOUR: THE SOCIAL STRUCTURE Introduction 144 Ethnic Components of the Population 145 The Development of the So c i a l Structure: 19th century to Independence 153 Soc i a l Structure 163 A g r i c u l t u r a l Wage Labourers 170 Peasants and P a s t o r a l i s t s 173 Urban Petty Producers, Traders, and Suppliers of 195 Services Urban Workers 206 The "Middle Classes" 216 Medium-Sized C a p i t a l i s t s 224 The Bureaucratic or State "Bourgeoisie" 231 The International Bourgeoisie and i t s Representatives 242 Summary 247 CHAPTER FIVE: THE URBAN STRUCTURE Introduction 250 Features of the Urban Structure 251 The History and Function of Urbanization i n Peripheral C a p i t a l i s t Economies 258 The Physical Structure of Tanzanian Towns 270 Towns and Uneven Development 285 -v-Urban., Migration 293 Housing 306 Squatters 320 Summary 356 CHAPTER SIX: CONCLUSION 359 Summary 385 FOOTNOTES 386 BIBLIOGRAPHY I^Q APPENDIX 4-2.1, - v i -L i s t of Tables Table Page I Value of Export Products, 1903 and 1911 ( i n rupees) 41 II S i m p l i f i e d Breakdown of GDP, 1967 and 1973 78 III Breakdown of Monetary GDP by I n d u s t r i a l D i v i s i o n s , 80 1965 and 1975 IV Value of Marketed Quantities (in M i l l i o n s of Shs.), 1973 88 V Production i n Selected Industries, 1967, 1971, and 1975 99 VI No. of Establishments and Employment i n Main Industries, m 1972 i U 1 VII T o t a l Imports i n 1967 and 1973, M.Shs. 112 VIII Value of Exports i n M.Shs., 1967, 1972, and 1973 113 IX Growth of Imports and Exports, 1965-1975 115 X Government Finances (M.Shs.) 1974/75 and 1975/76 122 XI Central Government Expenditure by. Purpose, 1973 125 XII Parastatal Enterprises Expenditure, 1973 129 XIII Employment by Major Divisions,1972 209 XIV Settlements i n Tanzania, 1967 251 XV Populations of main towns, 1967 252 XVI Trends i n Proportions Urban,. 1950-1970, Third World 255 XVII Percentage of People L i v i n g i n Townships i n Tanzania, 256 1967 XVIII Per c a p i t a Investments by Regions (1967 Population) 287 XIX Average Male Wages, 1972 289 XX GDP per capita, i n Shs., 1967 292 XXI Main Items of Government Investment i n Housing, 314 Iringa Region, 1969-1974 - v i i -L i s t of Figures Page F i g . 1: Tanzania: Urban Centres and Main Transportation ix Routes F i g . 2: Dodoma 272 F i g . 3: Tabora 273 F i g . 4: Housing 310 - v i i i -Acknowledgement My main i n t e l l e c t u a l debts are to a number of people associated with the University of Dar es Salaam between 1973 and 1976. Those who are i n p r i n t are acknowledged at various points i n the footnotes; those who are not had best remain nameless. I am p a r t i c u l a r l y g r a t e f u l to Andrew Coulson and Roger van Zwanenberg for t h e i r encouragement, and for help that they probably hardly knew they had given on a number of occasions. My especial thanks are due to both Dave Macdonald and Ken Salmon for lengthy s p e l l s of accommodation, generously given. An enormous number of people i n a great v a r i e t y of occupations i n Tanzania very kindly went out of t h e i r way to provide me with a l l sorts of help and information. I hope i n the event, u n l i k e l y i n most cases, that any of them read these pages they w i l l understand that absolutely none of i t i s to be taken as c r i t i c i s m r e f l e c t i n g on them personally. In Vancouver, my thanks to Anna Wong for the lengthy task of typing t h i s t h e s i s ; to Dr. Graham Johnson for long-distance encouragement while I was away, and for h i s labours i n securing funding for me at a c r i t i c a l time; and f i n a l l y , but by no means l e a s t , to my supervisor Dr. Blanca Muratorio, who was enormously patient with me, who painstakingly read various dra f t s of t h i s , and whose knowledgeability and p e r s p i c a c i t y greatly improved i t . - i x -U f t f e A d ce N I T * £ S f- M A W T R . A MS K T - A T i OA/ -]So MILES "ROUTES - — p . ' ; M K E //V t I }>AR E S S A t A A M (SOAJOAO') " (10,000 — 100,000*] T USSSTHAM 10,000) s e e Kejfletow ^ MWA(ui 3, SHi^AH^A 4.. KAHAMA 5 Slrf«r'>A KbNl>«>A 7. I .USM0T0 U. MPWWVWA K»i-o5A 13. JOmAMoA UK 6 A * A » * IS. C H U ^ A It. TuKuNu. n 5o»** e A 18*. r/AcHiMSrWeA CHAPTER ONE: INTRODUCTION In the most recent f u l l Census, that of 1967, Tanzania's t o t a l population was 12.3 m i l l i o n . Of t h i s t o t a l , 5.4 m i l l i o n were below 15 years of age, and 1.1 m i l l i o n above 50 years of age"*" - so about h a l f the population are of an age where they are either only marginally productive, or wholly dependent on others who are productive. According to the United Nations, Tanzania i s among the world's 25 poorest nations. Average annual 2 per c a p i t a l income i n 1975 was about U.S.$90 (634 Tanzanian S h i l l i n g s ) . L i f e expectancy at b i r t h i s about 40 years, and infant mortality i s approxi-mately 160 per 1,000 l i v e b i r t h s . The great majority of the population are peasants l i v i n g i n the r u r a l areas. Of the 12.3 m i l l i o n i n 1967 only about 6.7% l i v e d i n urban areas, 3 and about a t h i r d of these l i v e d i n the one centre of Dar es Salaam. Total population i s growing at 2.7% a year, and urban population at nearly 7%. Most urban population growth i s the r e s u l t of migration from the r u r a l areas. In the ten years since the 1967 Census the number of people l i v i n g i n towns has approximately doubled, and about 10% of the population i s now urban. The towns are thus growing very fast - on average at a rate that doubles per decade, and for some towns at a rate that at l e a s t t r e b l e s . I n s t i t u t i o n a l arrangements are unable to cope with in-migration on t h i s scale, and most of the new migrants end up i n sprawling, and i l l e g a l , squatter settlements. In t h i s thesis I want to explicate a theory of urbanization i n Tanzania, and hopefully make a co n t r i b u t i o n to the understanding of the p o l i t i c a l economy of urbanization generally i n peripheral c a p i t a l i s t economies. The t h e o r e t i c a l framework i s l a r g e l y an h i s t o r i c a l m a t e r i a l i s t -2-one and takes i t s perspective from the l i n e of P. Sweezy (1946), P. Baran (1957), A. G. Frank (1969), A. Emmanuel (1972), and S. Amin (1974). Although they w i l l be e x p l i c i t l y referred to only r a r e l y , i t w i l l be c l e a r to those who are f a m i l i a r with t h e i r work that t h e i r thinking underlies a l o t of what i s written i n these pages. In s i m p l i f i e d form, the argument of t h i s thesis i s that Tanzania's urban structure i s la r g e l y a r e s u l t of the i n t e r a c t i o n of the economic substructure and the s o c i a l (including p o l i t i c a l and i d e o l o g i c a l ) superstructure. Successive chapters roughly follow an order of delineating f i r s t the economic structure, then the s o c i a l structure, then the urban structure. Although t h i s tends to draw a somewhat economically determinist p i c t u r e of how these r e l a t e to each other, I also try to show at various points how there are r e c i p r o c a l e f f e c t s feeding back i n the other d i r e c t i o n : how, for example, the inh e r i t e d towns tend to predispose those with e f f e c t i v e p o l i t i c a l power to c e r t a i n i d e o l o g i c a l p o s i t i o n s , and how t h i s i n turn constrains the economic 4 structure to develop i n s p e c i f i c ways. As w i l l become evident, the contemporary socio-economic structure i s very much an h i s t o r i c a l creation. I t , and the urban centres i t has produced, can only be f u l l y understood by thoroughly s i t u a t i n g them i n h i s t o r i c a l perspective. Although the towns we are dealing with are a l l e s s e n t i a l l y a product of colonialism and of the l a s t 100 years, the or i g i n s of that colonialism too must be understood to appreciate why the towns were set up as they were, what the functions were that they performed, and why they grew as they did. By a thoroughly grounded understanding of the main l i n e s of the process of h i s t o r y over the l a s t few centuries, one can see the more contemporary post-Independence period i n Tanzania, not -3-as some new beginning, but merely as part of and as a continuation of broader h i s t o r i c a l developments. These are by no means always evident to the p a r t i c i p a n t s , but t h e i r e f f e c t s both structure and l i m i t much of the contemporary s i t u a t i o n . Thus I hope to show that the current process of urbanization i s the culmination of a long period of economic and s o c i a l developments . that the present government i s quite fundamentally a part of. This explains both many of the s p e c i f i c urban p o l i c i e s i t pursues and many of the p o l i c i e s that, while not appearing e x p l i c i t l y oriented to urban planning, i n fact are a f f e c t i n g , planning, and deter-mining urbanization. It i s p a r t i c u l a r l y these l a t t e r that make almost f u t i l e some occasional overt attempts to change features of the urban s i t u a t i o n that are seen as undesirable. Such new i n i t i a t i v e s - to "eradicate" squatting, or "ban" indigenous house construction, or "r e p a t r i a t e " urban migrants - may s l i g h t l y modify temporarily i n some areas what i s happening anyway; but the momentum of urbanization - of the type of urbanization - i s such that i t cannot be stopped or s i g n i -f i c a n t l y changed i n the absence of a complete r e s t r u c t u r i n g of the economy - on a scale that there i s no evidence, i n the p o l i t i c a l balance of e x i s t i n g s o c i a l forces, to suppose i s about to happen i n the foreseeable future. What I am t r y i n g to do pr i m a r i l y i s present a coherent account of the process of urbanization i n Tanzania - an account, that i s , that coheres both with respect to a l l the various d i r e c t l y urban features and p o l i c i e s (some of which may often seem to c o n f l i c t ) and with respect to other broader economic and s o c i a l developments, the e f f e c t s of which on the urban structure may appear at f i r s t only i n d i r e c t or tenuous. Some of the things I w i l l attempt to describe and explain are what the towns p h y s i c a l l y look l i k e , what t h e i r function i s , what t h e i r r e l a t i o n s h i p - 4 -to the r u r a l areas i s , what kind of growth they are undergoing, the ef f e c t of the State on t h e i r development, why urban migration i s occurring, how most economic growth has benefited the urban areas (or more p r e c i s e l y , the urban-located sectors of the economy), how the present urban structure works to the benefit of the most p r i v i l e g e d i n the society, how the development of "modern" urban f a c i l i t i e s has an e s s e n t i a l l y class b a s i s , and what the function of foreign finance and " a i d " i s i n a l l t h i s . Most s p e c i f i c a l l y , I w i l l throughout be looking at the generation and a l l o c a t i o n of economic surplus i n the economy as the underlying mechanism for explaining much of the above. I w i l l t r y to demonstrate . that the o v e r a l l operation of the economy i s such as to greatly concentrate the a l l o c a t i o n (but not nec e s s a r i l y generation) of economic surplus into the urban areas. It i s t h i s , I w i l l maintain, that i s at the heart of the urbanization process i n Tanzania. This f i r s t chapter has a threefold purpose. F i r s t l y , to make e x p l i c i t and comprehensible the t h e o r e t i c a l framework of the thesis and to define c e r t a i n important terms that are used. Secondly, to sketch i n some of the basic h i s t o r i c a l background of c e r t a i n developments that may at f i r s t seem tangential to urbanization i n Tanzania, but which w i l l , as the thesis unfolds, come to be seen as fundamentally a f f e c t i n g t h i s urbanization. And t h i r d l y , to explain the o v e r a l l aim and d i r e c t i o n of the thesis - and what each subsequent chapter w i l l attempt to do. I w i l l proceed by defi n i n g and discussing c e r t a i n terms. Any society must be producing goods and services i n order to be able to s u b s i s t , m a t e r i a l l y . In everyday terminology - i t has got to make a -5-l i v i n g . Some of these goods and services may be being acquired from the l i v i n g s of some other society (and where t h i s i s the case i t has important consequences) but generally i t i s assumed that the society i s l a r g e l y producing i t s e l f the material wherewithal to e x i s t . Since a society e x i s t s i n time, part of the t o t a l output of i t s economy i n any one period of time must be held back from being consumed i n order to ensure s u f f i c i e n t output for the next period of time. If for example a society l i v e s e n t i r e l y by producing and eating wheat, some of the harvest must be held back as seeds for next year's planting. The grain that i s eaten and the grain that i s planted i n any one year i s obviously necessary to ensure the continued reproduction of t h i s l i t t l e economy. Any grain produced beyond t h i s necessary amount can be c a l l e d "economic surplus". The economies of far more complex s o c i e t i e s reproduce by the same sort of mechanism. V i r t u a l l y every society that has ever existed has produced some surplus - some differe n c e between the t o t a l output produced and the cost of producing i t . Baran made the f r u i t f u l d i s t i n c t i o n between " a c t u a l " economic surplus and " p o t e n t i a l " economic s u r p l u s . A c t u a l surplus i s what i s i n f a c t l e f t over, the Keynesian equivalent of "savings". P o t e n t i a l economic surplus has to do with what could be a v a i l a b l e as savings, but i s not. Either because i t i s wasted by i n e f f i c i e n c y , or excess or luxury consumption, or because the productive capacity i s not f u l l y u t i l i z e d -i e . f a c t o r i e s , the land, the work-force are not f u l l y employed. Those who follow Baran i n using the concept economic surplus do not always s t r i c t l y keep to the above d i s t i n c t i o n , and when they use the word they mean either one element, or the other, or both compounded. This,admittedly -6-somewhat loose, use w i l l also be followed here - but an awareness of the d i s t i n c t i o n i s always implied. The d i s t i n c t i o n i s an a n a l y t i c a l l y powerful one, because i t enables one to see i r r a t i o n a l i t i e s i n any given socio-economic structure. Just as the philosophers of the Enlightenment compared society as i t existed with what, on the basis of l o g i c a l argument, seemed reasonable, and c r i t i c i z e d the former on the basis of the l a t t e r , so Baran did the same. Adam Smith c r i t i c i z e d the economy on the grounds of i t s divergence from a t h e o r e t i c a l "free market", and Baran resurrected the t r a d i t i o n i n contemporary economics (though from a d i f f e r e n t standpoint) and t r i e d to show how what was d i f f e r e d from what could be. The mainstream of economic s i n the West took, and s t i l l takes, structures of e x p l o i t a t i o n and p r i v i l e g e as j u s t a "given". The concept of "savings" for example takes the s o c i a l structure of a society f o r granted. "Surplus" on the other hand allows one to pick out misuses and i r r a t i o n a l i t i e s i n the a l l o c a t i o n of t o t a l output i n class structured s o c i e t i e s . Conventional wisdom i n development economics has i t that one of the main things holding back the development of the underdeveloped economies i s c a p i t a l shortage. These countries do not have enough c a p i t a l to invest to make them developed, and that i s why they are underdeveloped. The c r i t i q u e of t h i s from the perspective I am arguing i s that t h i s i s not so. They became underdeveloped i n structure pre-c i s e l y because so much surplus was extracted from them, from the 16th century on, by the now developed i n d u s t r i a l western s o c i e t i e s . More important, t h e i r actual and p o t e n t i a l surplus over s o c i a l l y necessary -7-cost of economic reproduction i s quite considerable, but i s either not produced when i t could be, or i s l a r g e l y wastefully expended or appropriated by others. Tanzania for example has completely u n u t i l i z e d c o a l , i r o n , and phosphate deposits, and greatly u n d e r u t i l i z e d land, labour, and f i s h i n g , f o r e s t , and h y d r o e l e c t r i c p o t e n t i a l . The neo-colonial economic structure set up within the l a s t hundred years prevents these productive forces being used as they could. Like many other A f r i c a n countries too, a considerable amount of the surplus that ±s_ generated i s not re-invested i n expanding productive capacity, but i s dissipated i n a number of e s s e n t i a l l y unproductive ways: through high consumption l e v e l s by a c e r t a i n stratum of the society ( e s p e c i a l l y of expensive imports); through i n e f f i c i e n t and un-cost-conscious management; through both public and p r i v a t e investment i n " p r e s t i g e " projects and unnecessarily luxurious housing; through remittances abroad of expatriates' s a l a r i e s and remunerations; through debt service on foreign loans; through m i l i t a r y expenditure (there are for p o l i t i c a l reasons two completely separate armies); through p r o f i t outflows through foreign companies; and through unequal exchange i n trading with i n d u s t r i a l economies. This i s a formidable l i s t . Green and Seidman estimate that only three of the above, " p r o f i t s , i n t e r e s t , and personal remittances exported from A f r i c a , t o t a l as much as one quater of the continent's gross annual income." Hughes estimates that A f r i c a n economies are p e r f e c t l y capable of r a i s i n g t h e i r c a p i t a l formation to 25% of Gross Domestic Product by tapping some of these "hidden sources" of surplus at present unproductively used. This i s a far higher percentage than the developed c a p i t a l i s t - 8 -economies reinvest annually - with the exception of Japan, the f a s t e s t growing c a p i t a l i s t economy u n t i l recently.' 7 To take an example of what has been done (as opposed to j u s t arguments about what could be done), the People's Republic of China inh e r i t e d a disasterously c r i p p l e d , war-ravaged economy les s than t h i r t y years ago. A l o t of i n d u s t r i a l plant, c a p i t a l , and 'know-how' was transferred out to Hong Kong and Taiwan. The only outside c a p i t a l received has been from the Soviet Union. This a i d was abruptly terminated i n 1960, with only h a l f the projects completed. Yet by the end of 1964 a l l debts to the Soviet Union had been f u l l y repaid , and by the end of the 1960's "the problem of food, s h e l t e r , and c l o t h i n g , at a minimum,but adequate, per capita l e v e l had been solved. That i n i t s e l f i s no mean achievement. There has been a large increase i n the per capita a v a i l a b i l i t y of mass consumer goods such as b i c y c l e s and radios. The improvement i n health services and educational f a c i l i t i e s has also s i g n i f i c a n t l y con-9 tributed to the betterment of general l i v i n g standards." The comparison with India, the only other Asian country of comparable s i z e , which received i t s independence at about the same time, and which has since considerably "benefited" from foreign aid - i s , to say the l e a s t , i n s t r u c t i v e . One can only conclude from the Chinese example that shortage of c a p i t a l was not the problem, and that t h e i r economic achievement was i n the f i n a l analysis paid for out of t h e i r own pockets. This vindicates Baran, who argued before the Chinese achievement was evident, that c a p i t a l shortage i s not i n f a c t the problem i n blocking the underdeveloped world's growth - that actual economic surplus may be short, but that there i s a large enough p o t e n t i a l economic surplus to create high rates of growth. - 9 -He based his conclusions on the economic performance of the Soviet Union, which drew only on i t s own i n t e r n a l resources, and argued that Soviet rates of growth of i n d u s t r i a l production were greater than have been ever achieved by any c a p i t a l i s t country. Others have agreed with these f i g u r e s , and Barratt Brown for example has stated that for the East European countries, t h e i r "rate of development i s impressively f a s t e r than that i n almost a l l the c a p i t a l i s t underdeveloped countries.""^ We have said that any society must be producing goods and services to go on e x i s t i n g . We have also said that v i r t u a l l y a l l s o c i e t i e s have produced more than i s minimally necessary to reproduce the society as i t i s , and that economic growth occurs when t h i s surplus i s invested i n such a way that a further and bigger surplus i s produced i n the future. A further assumption of the m a t e r i a l i s t approach i s that there must be some sort of s o c i a l organization ( i n the general sense) i n order to go about producing these goods and services. The way t h i s economic a c t i v i t y i s s o c i a l l y organized in the society i s c a l l e d the "mode of production". What i t looks l i k e w i l l be determined by two things: the forces of production, and the s o c i a l r e l a t i o n s of production. The forces of production are a l l those material and non-material elements that are both immediately necessary for producing commodities (type of land, s k i l l s of labour, raw materials, and knowledge of techniques with which to combine and u t i l i z e them), and that produce those parts of the s o c i a l , p o l i t i c a l , and i d e o l o g i c a l order that maintain the mode of production. Thus, as w i l l become apparent, Tanzania's p o l i t i c a l party, p o l i c e , newspapers and schools are also usually forces of production. -10-The " s o c i a l r e l a t i o n s of production" are the types of re l a t i o n s h i p s that constitute people being organized together i n order to produce, including what i s generally known as the d i v i s i o n of labour. H i s t o r i -c a l l y , these types of s o c i a l r e l a t i o n s h i p s have varied considerably. They may for example be ki n r e l a t i o n s h i p s , master-slave r e l a t i o n s h i p s , l o r d and peasant r e l a t i o n s h i p s , o r capitalist-wage labourer r e l a t i o n s h i p s . Even within these types there are v a r i a t i o n s . The way people combine together to produce, and the materials and knowledge they use to do t h i s , r e s u l t i n the means to reproduce t h i s mode of production - and a surplus. Any society i s importantly influenced by what surplus i s generated from, how i t i s generated, theform i t takes, who controls i t , and what happens to i t . Surplus can be invested, consumed, wasted, or appropriated by others. The d i s t i n c t i v e way surplus i s used i n any p a r t i c u l a r mode of production can t e l l us important things about the society. When surplus generated by the labour of one group i s co n t r o l l e d by and used for the purposes of another group, t h i s i s defined as " e x p l o i t a t i o n " . Types of ex-p l o i t a t i o n , or modes of surplus appropriation, can vary. One type of e x p l o i t a t i o n or another i s the basis of class s o c i e t i e s , and the type defines the kind of dominant and subordinate classes i n the society. In probably a l l s o c i e t i e s on earth some degree of e x p l o i t a t i o n e x i s t s -but i t i s the type and degree that i s c r u c i a l . There i s a large di f f e r e n c e between a Chinese peasant whose commune has to hand over 6% of i t s crop to the state, and an Ethiopian peasant who had before 1974 to hand over more than ha l f of what he produced to his landlord - or between a Canadian -11-logger making over $7 an hour and a South Korean woman t e x t i l e worker making only seven cents an hour.''"2 In the developed c a p i t a l i s t s o c i e t i e s the importance of non-c a p i t a l i s t economic r e l a t i o n s i s s l i g h t - w i t h probably the s i n g l e important exception of the f a m i l y . In the underdeveloped world however, p r e - c a p i t a l i s t s o c i a l r e l a t i o n s of production are s t i l l very important. This point i s the substance of Laclau's c r i t i c i s m of Frank's work - that the l a t t e r d e f i n e s c a p i t a l i s m too l o o s e l y i n c h a r a c t e r i z i n g L a t i n America as wholly c a p i t a l i s t ; i n f a c t , "semi-feudal c o n d i t i o n s are s t i l l w i dely 13 c h a r a c t e r i s t i c of the L a t i n American co u n t r y s i d e . " The same s o r t of point can be made f o r A f r i c a - the economies of each country are a c t u a l l y a combination of d i f f e r e n t modes of production - but w i t h the c a p i t a l i s t mode dominant and the other modes subservient to and d i s t o r t e d by the c a p i t a l i s t mode. The p a s t o r a l nomadic mode, f o r example, has been hemmed i n and r e s t r i c t e d i n i t s development ever s i n c e the beginning of the c o l o n i a l era. These people are amongst the very poorest i n East A f r i c a now, but t h e i r labour produces beef that s e l l s i n the towns f o r about one seventh p r i c e i t does i n Canada. In the dry season a whole goat can be bought, l i v e , f o r l e s s than two d o l l a r s . In a g r i c u l t u r e , some products - notably s i s a l - are produced by the c a p i t a l i s t mode, on extensive p l a n t a t i o n s using a l o t of wage labour and o f t e n w i t h i t s own l i t t l e i n t e r n a l r a i l r o a d system. Many other products however - cotton i s an example - are produced mainly by peasant households using only f a m i l y labour. Though theproduct i s being produced fo r the c a p i t a l i s t world m a r k e t , i t s mode of production cannot be s a i d to be c a p i t a l i s t . The method of surplus a p p r o p r i a t i o n here - the ways these peasants are e x p l o i t e d - l i e s i n the way p r i c e s are s t r u c t u r e d . The -12-"term of trade" between what a peasant produces and what he wants to buy are to h i s disadvantage - and moving even more so. This l e g a l manipulation of prices i s i n fa c t one of the main sources of state revenue - the state l i v e s i n part o f f the d i f f e r e n c e between what i t pays for peasant produce, and what i t s e l l s t h i s for abroad. A further, and very important, aspect of ^\ peasant > . production i s that i t subsidizes wage labour. Those i n minimum (and below) wage employment i n the towns, and those employed i n petty commerce and petty commodity production i n the "informal" sector i n the towns, have extensive economic t i e s with r u r a l k i n . These provide a means of s o c i a l s e c u r i t y when times are hard, but even when times are good, produce i s continually coming i n to the urban household from r u r a l k i n . Maize f l o u r , r i c e , onions, f r u i t , the odd chicken, help many an urban household to subsist. Wages do not therefore have to be enough to cover the cost of the t o t a l of wage goods necessary to support the urban household. The b e n e f i c i a r i e s of such labour are thus e x p l o i t i n g the labour of both the wage earner and h i s r u r a l k i n . I t i s the ways subservient modes of production are a r t i c u l a t e d with the dominant c a p i t a l i s t mode that accounts for much of the exploited and depressed 14 states of the former. In a f u l l y developed c a p i t a l i s t society a l l factors of production become freed of non-economic obstacles to t h e i r u t i l i z a t i o n by the mode of production. In p a r t i c u l a r , land and labour power become commodities, to be bought and sold, as economically r a t i o n a l - the labourer to t r y and maximize hi s wages, and the c a p i t a l i s t (or increasingly now, the c a p i t a l i s t firm or corporation) to maximize his (or i t s ) p r o f i t . Though c a p i t a l i s t -13-production r e l a t i o n s are dominant i n the underdeveloped world, there are s t i l l p r e - c a p i t a l i s t r e l a t i o n s that are by no means unimportant to the o v e r a l l productive structure, and which moreover are not l i k e l y to be "modernized" out of existence. These " t r a d i t i o n a l " ways of l i f e remain, a r t i c u l a t e d with and subservient to the dominant c a p i t a l i s t mode. Of fundamental importance i n understanding the underdeveloped countries - or any main aspect of them ( i n our case, urbanization i n Tanzania) - i s a grasp of t h e i r r e l a t i o n s h i p with the developed c a p i t a l i s t countries. This i s true both of the past and of the present. Their contemporary economic structures are the d i r e c t r e s u l t of European, and l a t e r American, influence. Underdevelopment as i t i s currently understood i s i n fac t a development of the h i s t o r y of cap i t a l i s m i n the world over the l a s t 500 years. This began when c e r t a i n European monarchies, i n t h e i r struggle to maintain dominance over strong, sometimes r e b e l l i o u s , feudal l o r d s , e n l i s t e d the help of a growing trading class of merchants, bankers, and shippers - i n order to gain an a l t e r n a t i v e source of wealth f o r the struggle. These merchant-capitalist-monarchies began to compete with one another f o r monopoly control of the most l u c r a t i v e trading areas. Overseas trading f o r t s a