tial are generally ignored even by the more sensitive calculations
of costs and benefits. Yet there is evidence that they may be a
vital ingredient of development, particularly in its early stages. On
balance there is no doubt that the construction industry should ex-
ploit its extraordinary potential as a sphere for technological
developments of a kind whose net employment effects would
ultimately be positive.

Finally, there is the issue of seasonal unemployment. This is of
moderate significance and in Tanzania relates to the difficulties en-
countered during the rainy seasons. These problems are not in-
surmountable. A relatively flexible labour force, a degree of for-
ward planning which schedules a relatively large amount of in-
ternal ‘finishing’ work for such seasons, and a willingness to con-
tinue operations even if costs rise somewhat due to the special
techniques that must be employed, could reduce considerably the
effect of stoppages due to rain. At the same time ‘yard work’
could be used to employ large numbers at this time, preparing
materials for the next season’s building programme.

The larger issue of cyclical unemployment is related to the in-
vestment cycle and should not play a role in Tanzania, if it is suc-
cessful in building an economy where investment is generated to a
large extent by the public sector on a planned basis. Though to the
extent that the industry continues to use imported materials and
services, it will be affected by events in the international money
and commodity markets — by changes in the terms of trade, the
demand for exports, and the demand for imports, especially in-
termediate and capital goods. Of course, even if the industry does
not use imported materials, it will be affected by foreign exchange
crises which would make inordinate demands on local resources
for export requirements. Nevertheless the major impact of
cyclinical instability can be counteracted by proper investment
Planning.

To summarise the argument thus far let us itemise the points

made:

(i) employment in the construction industry in Tanzania is
irregular, and casual labour is used extensively; there is
now a demand that all labour should be employed on a
permanent basis;

(i) the issue should not be seen as a traditional
labour/ management conflict since this is a Government-

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