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close this bookAid and Entrepreneurship in Tanzania (Dar Es Salaam University Press, 1993, 165 p.)
View the documentMobilization of entrepreneurial capacity
View the documentState and modernization
View the documentThe colonial state
View the documentThe Nyerere regime
View the documentEffects of aid in Tanzania

Mobilization of entrepreneurial capacity

How has Norwegian aid into Tanzania functioned on one of its prime goals: the mobilization of entrepreneurial capacity in the country? More specifically to what degree has the aid input increased the professional competence and the autonomy of the aid receiving projects, organizations and public institutions in Tanzania?

This question puts focus on the role of state organizations in the development process, assuming that how the state is organized is of importance for the impact of the aid input, whom it serves and the kind of resources that are mobilized.

This is a study of how the Norwegian aid agency, through its assistance to five large projects, affected the recipient projects, organizations and public institutions. The purpose is to develop a description of how public assistance channeled through donor agencies in Tanzania, affects the mobilization of entrepreneurial capacity (professional competence and autonomy) in the aid projects and their responsible government institutions. Autonomy is seen as ability to plan and act effectively and independently. From an ongoing discussion in the literature on how state organization matters for the transition to a growth economy and from the researched materials, I define some analytic concepts to be used in describing the effects of NORAD assistance on competence-building and autonomy in Tanzanian projects and government agencies.

The focus is on the role of NORAD relative to the public administration in Tanzania. The wide definition of NORAD includes all NORAD financed personnel in Tanzania, working as consultants, as project employees or as government employees. The study will also look into the specific role of the NORAD office in Dar es Salaam, named NORAD-D.

Some assumptions are made: (1) In Tanzania the state has strong authoritarian traits. It can be characterized as a bureaucratic, socialist type, one-party state; (2) Tanzania therefore lacks a pluralist type of democracy; (3) The Tanzanian state is heavily dependent on foreign aid and (4) The Tanzanian state may be active and powerful in subsistence agriculture, but it draws relatively small parts of its revenue from the peasantry and has a separate and important economic base in foreign governments and international organizations willing to supply economic support.

The study puts focus on the aid agency as an actor in the Tanzanian state. It does not attempt to analyze the effects of the aid projects in Tanzanian society. We want to study how NORAD as a planning, policy-making and implementing agency affects entrepreneurial capacity within the Tanzanian state. We thus view NORAD as a public organization, a group of people paid by the Norwegian government, employed in Tanzania, working in the central NORAD administration in Dar es Salaam (NORAD-D) and within NORAD supported projects interacting with Tanzanian project- and government personnel.