The partnership with foreign private capital results in the loss of
control by the nation of its vital economic resources. The size of
the economic surplus available for productive investment is
critically reduced and the mode of utilisation of the surplus is
heavily biased in the interests of foreign imperialist capital. The
extent of technological development is minimal and the type of
technology, including technical know-how, is unsuited and not
likely to expand the productive capacity of the economy. The net
effect is that the public corporation, instead of being a vehicle of
economic development, becomes a vehicle for economic un-
derdevelopment.

Notes.

. See, for instance, figures given in Ronald Segal, The Race War (Har-
mondsworth: Penguin 1967), pp. 412 — 413.

2. The scope of this paper does not allow elaboration on these assumptions.
Hence, I will only state them in a concise manner and indicate some literature
for further reference.

3. Cf. W. Rodney, How Europe Underdeveloped Africa (Dar es Salaam: Tanzania
Publishing House, 1972); Paul Baran, The Political Economy of Growth (New
York: Monthly Review Press, 1968); Samir Amin, ‘Underdevelopment and
Dependence in Black Africa — their historical origin and contemporary
forms,” 1971 (mimeo.)

4. Cf. Oliver Cox, Capitalism as a System (New York: Monthly Review Press,
1964). Andre Gunder Frank, ‘The Development of Underdevelopment’, in I.
Rhodes (ed.), Imperialism and Revolution (New York: Monthly Review Press,
1970).

5. Cf. Issa Shivji, ‘Tanzania: The Silent Class Struggle’, in The Silent Class
Struggle (Dar es Salaam: Tanzania Publishing House, 1973) and I. Shivji,
“Tanzania: The Class Struggle Continues’, mimeo.)

6. National Christian Council of Kenya, Who Controls Industry in Kenya? (Nairobi,
East African Publishing House, 1968), p. 173.

7. See the T.D.F.L. Annual Report 1971, p. 5.

8. At the end of August 1970, 18 N.D.C. subsidiaries and associates had one or
the other form of Management/Service Agreement.

9. The Nationalist, 25 June 1971. In fact, the Tanzanian Government itself hired
McKinsey & Co., to draw up its decentralisation plan.

10. T.T.C. Annual Report 1969/70, p. 34.

11. The Silent Class Struggle, p. 27.

12. Michael Kidron, Foreign Investments in India (London: Oxford University
Press, 1965).

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