interests of the bourgeoisie and began to yield its benefits to the
peasants and workers.

An important point which should be kept in mind while
reading this chapter and while dealing with the S.T.C. in general
is that, although the story tends to be negative, particularly with
respect to the S.T.C. management, there were not only many
positive aspects of the S.T.C. experience but many of its problems
stemmed from phenomena totally beyond its control. It is often
overlooked, for example, that the prices of pharmaceuticals were
reduced on the average from 15 to 25 per cent by S.T.C. and that
the massive import requirements related to the local costs of con-
structing the Tanzania-Zambia railroad were undertaken almost
entirely and unflichingly by S.T.C. The devaluation of Sterling,
had service from Kenya suppliers who enjoyed a monopolistic
position within the East African Community, the refusal of many
suppliers in capitalist countries to provide even normal commercial
credit to S.T.C. because of their hostility to socialism, and general
world inflation, all reduced S.T.C.’s effectiveness while providing
very little room for counter-action.

Organisational Structure and Management Systems

The organisational structure and management systems given
S.T.C. by McKinsey and Co. consultants were poorly suited to ac-
complish even the goals aimed at by the consultants. Two main
aims were sought by the new system: to procure goods regularly
on favourable terms (i.e. to supply without disruption and at low
prices); and to construct a network throughout the country which
would allow S.T.C. to take over the whole trade. There were two
general and a series of specific reasons why the system failed to
achieve these aims.

In general, the consultants did not fully understand the Tan-
zanian milleu and built on fundamentally incorrect assumptions.
There are many constraints which militate against the successful
introduction of complex organisational structure and management
systems depending upon a network of relationships operating in
harmony. Manpower shortages abound in every occupation and
certainly in those relating to commercial activities it is well-known
that Africans have always been systematically excluded. The
McKinsey required hundreds of accountants, clerks, atockkeepers,
werehouse managers, dispatchers, bookkeepers, secretaries,

74