be irrational. What is irrational therefore is not so much the in-
vestment decisions (based on profit) made at micro-level, i.e. at the
level of each individual project or individual public corporation,
but the system (i.e., the macro-economy) itself. And this overall
economy is what we call, the colonially-structured, externally-
oriented economy. Economic development on the other hand,
requires a structural reorganisation to lay the foundation for a
nationally-integrated or internally-oriented economy. * This in turn
requires a planned generation and utilisation of the economic sur-
plus. The use of economic surplus based on profit*! is therefore
fundamentally in irreconcileable contradiction to the planned
generation and utilisation of economic surplus. The former leads
to the reinforcement of the existing colonially structured economy
while the later towards complete reorganisation to build a
nationally-integrated economy or to fulfil what Professor Clive
Thomas calls the two laws of economic transformation:
(1) Convergence of domestic resource use and domestic
demand; and
(2) Convergence of needs with demand.*? (This, in fact, suc-
cinctly expresses the essentials of what we have called a
nationally-integrated economy. The colonially-structured
economy, on the other hand, is characterised by cumulative
divergence between domestic resource use and domestic
demand and between demand and needs).

The investment pattern of the N.D.C.and other public cor-
porations in Tanzania clearly reflect the profit criterion (as we
have discussed and defined above) as the most important one. If
this was not the case, we submit, it would not be possible to go
into substantial association with foreign private capital or the
multinational corporations.

Thus, for instance, at the end of 1968, N.D.C. investment in its
subsidiaries and associates was as follows:

57