(introduction...)

In the years following independence the country continued to promote the capitalist economic system it inherited. The government's non-interventionist economic policy coupled with a belief that the role of the public sector was to support the growth of the private sector, (except where private investment to provide support or services could not be found) had resulted in increased foreign investment and provided the impetus for a significant increase in the economic performance of the country.

In both the rural and urban areas, self-employment and small-scale enterprises were common, supplying both services (blacksmithing arts and crafts) and basic commodities such as food, tools and utensils. The population was relatively small, the land was productive and generally supported the needs of the people (except in times of drought). There was little need to develop informal sector businesses as unemployment was low and basic human needs were satisfied. In both areas people gained formal employment, i.e. on plantations or in factories. The important factor to consider was that patterns of consumption reflected traditional culture, bartering was in some ways more appropriate and accepted than monetary transaction.

Prior to Independence the country operated a three-tier school system (4-4-2-2), four years Primary school was followed by a further four years of Middle school, those successful at this level were then selected for secondary education. A further two years of study led to 'O' level (Std X) examinations and for a smaller number, the opportunity to progress to 'A' level studies and on to higher education. The objective of colonial education policy was to ensure that there was sufficient numbers of suitably educated Tanganyikans to assist in the administration of the country. The Five Year Development Plan (1956-1961) prior to independence envisaged the expansion of middle and secondary schools at the expense of the primary school. Middle school places were to be increased by 50%, secondary enrolment increased and a Higher School Certificate introduced. In the event this did not happen due to a shortage of funds.

At independence literacy rates were significantly below those of other low income countries, with adult literacy estimated at 10% -15% and primary school enrolment only 25%, compared with an average of 37% in comparable low income countries (Maliyamkono & Bagachwa 1990). In 1961 only 10,316 children sat for the Territorial Leaving Examination (Std VIII), a pre-requisite for admission to secondary schools, of which 4,230 (41%) progressed to secondary Form I. By 1965 this figure had risen to 46,666 entrants, which represented a fourfold increase, but only 6,903 (14.8%) gained a secondary school place. It is important to note the tremendous decline in the proportion of Middle School Leavers who achieved a Form I place. In the period of four years this had dropped from 41% to 14.8%, in real terms a reduction of 26.2% in the opportunity for enrolment. This may be considered to be the beginning of the problems encountered by the youth in gaining formal employment and the emergence of informal sector activities by this group.

In rural areas, the Church and other mission organisations had established a long tradition of vocational training to support local needs as one of a range of activities to relieve poverty and some of these young people were absorbed by the Church organisations who provided employment.