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Thesis (MBA)--Stellenbosch University, 2002. / ENGLISH ABSTRACT: The process of privatisation has been prompted in many instances by economic necessity and high fiscal deficits prevalent in many developing countries in the 1980s. Although addressing fiscal prudence is commonly cited as the main objective, it has been argued that the choice of enterprises for privatisation suggest that the primary motivation for privatisation has been to secure World Bank, International MonetaryFund (IMF) and donor financial support. Privatisation of state assets has been a key element of the emerging new market orthodoxy concerned with redefining the role of the state. Market theories posit that sustainable development and achievement of more dynamic economic growth in most economies requires a greater role for the private sector. Underlying this consensus is the belief that resources will be used more productively if they are transferred to the private sector. The low saving capacity has led to the realisation by African leaders through the New Partnership for Africa's Development (NEPAD) initiative that Africa's achievement of long-term sustainable development is dependent on its ability to create conducive conditions that will attract Foreign Direct Investments (FDI). Consequently, the importance of Multinational Corporations in privatisation transactions, especially now that most African countries have embarked on privatisation of utilities and infrastructure sector cannot be emphasised enough. This has, inevitably, led to conflicting objectives between the need to mobilise foreign investors, particularly in countries such as Tanzania where broadening of ownership is a primary objective of privatisation. It is important to note that Tanzania's Parastatal Sector Reform Programme was initiated lnthe context of broader policy changes initiated since the late 1980s. The privatisation programme has formed part of comprehensive economic reforms and Structural Adjustment Programmes(SAPs) prescribed by the World Bank and IMF. This study presents findings on the extent of privatisation in Tanzania, its process, challenges and the impact it has had on the economy since 1993. The study explores and identifies key factors that have led to the varying performance of privatised enterprises. Key lessons and experience from Tanzania's privatisation exercise are also outlined. The study concludeswith possible areas for further research. / AFRIKAANSE OPSOMMING: Ekonomiese noodsaak en groot fiskale tekorte in menige ontwikkelende lande gedurende die 1980s het in baie gevalle aanleiding gegee tot die privatiseringsproses. Alhoewel die aanspraak van fiskale omsigtigheid gewoonlik as hoofrede aangegee word, is daar ook aangevoer dat die keuse van ondernemings vir doeleindes van privatisering daarop dui dat finansiële ondersteuning van die Wêreldbank, Internasionale Monetêre Fonds (IMF) en donateurs die eintlike motivering onderliggend aan privatisering is. Privatisering van staatsbates was 'n kern element van die opkomende nuwe markortodoksie wat betréf die heromskrywing van die staat se rol. Markteorieë postuleer dat handhaafbare ontwikkeling en die bereiking van meer dinamiese ekonomiese groei in die meeste ekonomieë 'n groter rol aandui vir die privaat sektor. Onderliggend aan hierdie konsensus is die aanname dat hulpbronne meer produktief eksploiteer sal word as dit na die privaat sektor oorgedra word. Die lae spaarkapasiteit het Afrikaleiers laat besef dat deur die New Partnership for Africa's Development (NEPAD) inisiatiewe, Afrika se langtermyn handhaafbare ontwikkeling afhanklik is van sy vermoë om bevorderlike omstandighede te skep wat direkte buitelandse investering sal lok. Die belangrikheid van multinasionale korporsies in privatiseringstransaksies, veral nou dat Afrikalande 'n poging in die werk gestel het op privatisering van gebruiksgoedere en die infrastruktuur sektor, kan derhalwe nie genoeg beklemtoon word nie. Dit is belangrik om kennis te neem van Tanzanië se Parastatal Sector Reform Programme sedert die laat 1980s wat in die konteks van breër beleidsveranderinge inisieer is.' Die privatiseringsprogram het deel gevorm van omvattende ekonomiese hervormings en strukturele aanpassingsprogramme soos voorgeskryf deur die Wêreldbank en die IMF. Bevindings oor die omvang van privatisering in Tanzanië, die proses van privatisering, uitdagings en die impak wat dit op die ekonomie gehad het sedert 1993, word in hierdie studie gebied. Hierdie studie eksploreer en identifiseer kern faktore wat tot die wisselende prestasie van geprivatiseerde ondernemings gelei het. Belangrike lesse en ervaring uit Tanzanië se privatiseringsoefening word ook toegelig. Die studie sluit af met moontlike areas vir verdere navorsing.

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Tanzania is ranked among the world’s poorest nations despite her enormous natural resource base, enviable tropical climate and geographic location as the gateway into several landlocked African countries. This abject poverty is particularly pronounced in the rural areas where almost ninety per cent of the population live. In this study, the researcher sought to unravel the complexity of participation with regard to Tanzania’s rural community development and thereby provide insight into possible policy guidelines that will result in more effective and sustainable community development. Since independence, grandiose government policies, political manifestos, different socio-political ideologies, astronomical budgets of national and donor funding as well as bona fide efforts have made little difference in the eradication of poverty in Tanzania’s rural communities. The researcher opines that Tanzania’s failure to meet its development goals and its dismal economic performance are a result of the rural communities’ lack of participation in development projects. Social inclusion as a concept and the game theory of participation were explored as dynamic and innovative analytical tools to understand the participatory process in community development. The framework was tested against the analysis of participation in multiple health, education and water projects in rural Tanzania. The key findings of this study indicate that the community members’ lack of participation has hindered development efforts but there are mitigating circumstances. The community members are, for the most part, willing to participate in development projects. However, they find themselves socially excluded by variables which include government policies, bureaucratic obstacles, conflicts arising from political alliances and deeply-entrenched corruption. Based on the findings and conclusion of this study, this study makes recommendations for the implementation of more meaningful community participation in rural Tanzania includes having more women and youth representatives at every leadership level especially at the grassroots level and giving local government autonomy. The researcher concluded that, for participation to be effective, it has to be accompanied by well-structured empowerment programmes. Wherever possible, participation by beneficiaries should be solicited from the initial stages of a project. Participation is therefore synonymous with the inclusion of all groups. The researcher’s conclusive thesis is that, should the government adopt this participatory approach, the stalled growth will gain traction and pull the nation from its position among the world’s poorest countries and place it on the path towards sustainable progress. / Development Studies / D. Litt. et Phil. (Development Studies)

Tanzania is ranked among the world’s poorest nations despite her enormous natural resource base, enviable tropical climate and geographic location as the gateway into several landlocked African countries. This abject poverty is particularly pronounced in the rural areas where almost ninety per cent of the population live. In this study, the researcher sought to unravel the complexity of participation with regard to Tanzania’s rural community development and thereby provide insight into possible policy guidelines that will result in more effective and sustainable community development. Since independence, grandiose government policies, political manifestos, different socio-political ideologies, astronomical budgets of national and donor funding as well as bona fide efforts have made little difference in the eradication of poverty in Tanzania’s rural communities. The researcher opines that Tanzania’s failure to meet its development goals and its dismal economic performance are a result of the rural communities’ lack of participation in development projects. Social inclusion as a concept and the game theory of participation were explored as dynamic and innovative analytical tools to understand the participatory process in community development. The framework was tested against the analysis of participation in multiple health, education and water projects in rural Tanzania. The key findings of this study indicate that the community members’ lack of participation has hindered development efforts but there are mitigating circumstances. The community members are, for the most part, willing to participate in development projects. However, they find themselves socially excluded by variables which include government policies, bureaucratic obstacles, conflicts arising from political alliances and deeply-entrenched corruption. Based on the findings and conclusion of this study, this study makes recommendations for the implementation of more meaningful community participation in rural Tanzania includes having more women and youth representatives at every leadership level especially at the grassroots level and giving local government autonomy. The researcher concluded that, for participation to be effective, it has to be accompanied by well-structured empowerment programmes. Wherever possible, participation by beneficiaries should be solicited from the initial stages of a project. Participation is therefore synonymous with the inclusion of all groups. The researcher’s conclusive thesis is that, should the government adopt this participatory approach, the stalled growth will gain traction and pull the nation from its position among the world’s poorest countries and place it on the path towards sustainable progress. / Development Studies / D. Litt. et Phil. (Development Studies)