ABSTRACT

The colonial experience of Tanzania began with German domination towards the end of the 19th century. In 1961 the country gained political independence and in 1964 united with Zanzibar to form the United Republic of Tanzania. The emergence of the 'modern' industrial sector after World War II followed a pattern moulded by the colonial economic system. The structure of the economy at independence reflected a colonial structure with an export-import enclave geared to serving the colonial power and a large traditional sector which supported the livelihood of over 90 per cent of the population. In 1961 the agricultural sector was characterized by a large subsistence sector with the monetary sector dominated by crops for export. The agricultural sector consisted of the plantation and estate sector which was largely owned by Europeans and to a lesser extent by Asians and a peasant sector which was operated by the indigenous population.