into a centrally administered common pool ‘out of which
allocations will be made according to concrete approved program-
mes’. This measure now gives the Treasury complete oontrol over
declared parastatal surpluses. In future it will need to be ac-
companied by a tightening up of controls over recurrent spending
to ensure that declared surpluses are, as near as possible, at an op-
timal level. But as the formal machinery of control is steadily im-
proved upon, the need for the careful definition of strategies will
be felt even more acutely. Until the development policies and
goals of government itself are defined more clearly there will
always be ambiguity over what parastatals are supposed to be
doing and therefore doubts as to what the control mechanism is
designed to achieve.

III. Management and Management Systems

The nationalisation of the major, modern sector, means of
production in Tanzania was not accompanied by a complete break
with Western capitalism. On the contrary, ‘full and fair’ com-
pensation was offered to all former owners specifically to avoid
such a break and only in a few isolated instances was deadlock
reached in compensation negotiations. New parastatal investments
continue to rely heavily on foreign borrowing and/or foreign
minority share participation and foreign companies aggressively
sell ‘projects’ in the form of machinery and equipment to
parastatals. But it is in the field of management — in terms of both
personnel and systems — that the influence of western capitalism is
still all-pervasive. In many instances the former foreign owners of
enterprises have entered into management agreements with the
Government or the parastatal holding companies; in other cases
new management partners have been found almost without ex-
ception from western capitalist countries. In addition, extensive
use has been made of foreign management consultants for the in-
troduction of new management control systems in the parastatal
sector and, finally, parastatals turn almost exclusively to western
business schools and companies for the training of management
personnel.

There is therefore a firm belief in the ‘neutrality’ of
management — that management systems are capable of universal
application regardless of the socio-political context and the
ideological basis of the economic system. Even the recent

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