the opportunity for Tanzania trainees to work jointly with them. . . If
Tanzanians are to assume the full role of leadership and responsibility
they should be introduced to it by a process of integration with experts —
learning as it were by rubbing elbows with them. This will provide a
natural and smooth replacement of non-Tanzanian managers and
technicians . . .

The contrary view is that signing a management agreement is
putting our resources at the disposal of an organisation (i.e. a
capitalist firm from abroad) whose interests are fundamentally an-
tagonistic to our own, since the foreign firm’s main interest is in
maximising its transfers abroad, while ours is in maximising the
surplus, defined in the broadest possible way, at home.?

One would thus expect the foreign firm to be more concerned
with aspects of the agreement which can earn it foreign exchange
than with local profits, and to delay the training and recruitment
of local managers so that it can cover up many of its activities on
the foreign exchange market and delay the day when it has to
hand over to Tanzanians. An impressive body of ‘new theory of
the firm’ can be drawn on to suggest that in such a situation the
management who control the day to day operations of the firm
will have a great advantage over the owners (or whoever sits on
the Board of Directors) for whom the affairs of the firm are one
concern among many and who get access to what is going on in
the firm largely through papers prepared by the self-same (an-
tagonistic) management.*

Thus in the last resort the success of a management depends on
the good-will of the foreign partner. It might be expected that the
more serious Tanzania becomes in her persuit of the socialist path,
the less she will be able to depend on good-will from foreign
firms. It should also be obvious that these agreements would be
defended by the local executives who negotiated and signed them,
that the foreign firms would be supported by their Governments,®
and that opposition would come from the workers in the firms
concerned who would eventually realise how they were being ex-
ploited.

The way in which some of the agreements have actually
worked out may be seen in the two studies which follow, and
which cover the two management agreements which have been
publicly revealed.

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