ABSTRACT
President Benjamin Mkapa elected in 1995 is continuing along the path taken by Tanzania's second President Ali Hassan Mwinyi. President Mwinyi, under pressure from the IMF and World Bank, initiated "structural adjustment" to transform the system of ujamaa or "African socialism" implemented by Tanzania's first President Julius Nyerere. The underlying assumptions of the theory of structural adjustment in Tanzania is that economic liberalization will create an "enabling environment" (Sandbrook, 1995) and usually this is tied to the notion that a national bourgeoisie will arise within civil society and be the dynamic social element that promotes economic development.
