Journal:What is Community Ecomnomic Development

A List of Acronyms

EU- European union

EPA- Economic Partnership Agreement

WTO- World Trade Organization

ACP- African Caribbean and Pacific

CED – Community Economic Development

FAO- Food Agriculture Organisation

PPP- Peoples Popular Participation

AIDS – Acquired Immune Deficiency Syndrome.

1.0 Introduction

The aim of this work is to compile a journal focusing on the meaning of the concept of CED as a new approach to combat poverty in Tanzania. This journal will give a summary of what different schools of thought have expressed over time and also the writer’s reflection as a critical evaluation basing on the impact that is seen in the Tanzania community today. Economic development has its roots in the Western European society the understanding of which gives a clear comprehension of the economic dynamics in the community. Knowledge on the linkages regarding health, poverty and living diversities facilitates improvement of economic conditions of the community especially the rural community where 85% of the population lives. Economic development is viewed from the way society has undergone transformation of modes of production actually from primitive communism followed by feudalism, then the capitalistic mode of production, competitive capitalism and finally imperialism. Each stage portrays people’s interaction with nature to develop themselves. For each historical period there is a theoretical school of thought with its strengths and shortcomings in relation to economic development.

1.1 Feudalism (13^th – 18^th Century: The Feudal Society’s major goal was for the nobility to manage, politics, military and land, while the peasantry or serfs worked on the land. Feudalism did not value individual progress. Productivity was low and growth was static. There was growth of population and trade and a demand for manufactured goods. As described by Karl Marx, the power was in the hands of the ruling class (the aristocracy) who controlled the arable land on which the peasants worked as serfs.

1.2 The emergence of capitalism: Although the government’s role in the transition from feudalism to capitalisms was minimal, circumstances such as wars, growth in trade and demand for manufactured goods forced it to keep in control promoting economic development through taxes and mercantilism via export trade. This caused a shift from agriculture to industrial development. At the end of the 15^th Century, a capitalist mode of production was seen growing along side the feudal mode of production.

Competitive Capitalism: (1700-1800) transferred political and economic power from the feudal aristocracy to the capitalist bourgeoisie which promoted private ownership of the means of production. The early capitalists were for personal development who sought cheap labour from the liberated serfs to work in their factories and expand free trade. This gave rise to proletariats or the labourers on one hand and their exploiters the capitalist bourgeoisie on the other hand. Two schools of thought explained the role of capitalism in economic development. One was of Classical Political Economy by Adam Smith who stood for private enterprise, private property, self interest, maximization of personal well being, the market and the limited state. He argued that government should have less interference in the free trade. The government should do defence, security and laws. To him the free market is a mechanism for resolving basic economic problems.

Another school was on Historical Materialism by Carl Marx who believed that economic development was to be achieved as a class and not as individuals struggle. He stressed that as the capitalist class exploited the working class through a small pay and that further growth of capitalism gave the proletariat an opportunity to rise and destroy it, giving rise to Socialism. Marx cared for the reality of the material conditions of the worker’s lives and the social relations of production. Economic development for him was imbalanced because it was for only for those who owned the means of production excluding the working class.

1.3 Imperialism and Economic Theory (1860-1945) This was the time when the capitalist mode of production spread around the world and the poorly developed areas of the world were divided among the European nations opening doors to a global economy. More schools of thought emerged such as the Neo classical Economics by Alfred Marshall who believed that capitalism would eventually be beneficial to all leading to a better society educated, and with greater distribution of wealth. He focused on the impact of scarce resources on prices and increased participation of state, to include education encouraging trade unions, providing public health, restricting monopolies and creating employment for the poor. Another school was of Vladimir I. Lenin who argued that the proletariat and the peasantry would overtake capitalism in a quick manner.

1.4 Circular Flow of Money and Leakages Another economist, John Maynard Keynes and the state addressed unemployment in a capitalist economy threatening its collapse. He addressed the circular flow of money as the value of everything produced in a country in a period being equal to total income received. He also referred to Leakages as non consumption uses of income like savings, taxes imports. Keynesian economy promotes a mixed economy where the state and private play important role. Then there was Laisser faire economic liberalism advocating that market & private sector operate best without state intervention.

2.0 Competing Theories of Economic Development. After World War 2 the world was divided between the rich and the poor countries more economists explained the causes of this disparity. Four schools of thought emerged such as the structuralist school of development which looked at how structural aspects of domestic and international economy halted growth of developing countries. This argued for the modernizing of the economic structures of developing countries so that the governments adopt in country industrialization and import substitution and expand the domestic economy. Another one was The Linear model of development or the western European view of Economic Development (1940s – 1950s). Developing countries could imitate this but it was criticized for having false assumptions. The Neo-classical Revival came with the rejection of Neo- Marxists as it was concerned with efficient and cost effective allocation of scarce, resources & optimal growth of resources. Economic stagnation in developing countries was due to poorly designed economic policies.

3.0 What is the Community Economic Development? This is a process taking place in a community which is people driven reflecting togetherness, creativeness in a diversified and sustainable manner. CED is community led, a process of getting together and organizing its long-term holistic by addressing social, economic, construct and environment, inclusive of people’s goals in terms of strengths, sharing vision peoples’ development, sustainable, innovative, with diversification of economic opportunities and collaborative with other communities. CED is a basic daily life concept which touches the lives of everyone especially those socially excluded. Key issues for success of community development identification of needs, Local participation, Inter -organizational and inter group relations, Social interaction, on-going support. There are several types of Approaches to community developments and several strategies sand principles to realize Community Economic Development.

3.1 Sustainable Community Development. This is development that meets the needs of the present but also has capacity to go on in the future – economically policy ,socially, environmentally has long-term results.

3.2 Local Development. This is the joint effort of the local government the private and not for profit sectors and local communities to improve with the supportive central government. The last 2 concepts complement CED.

4.0 Conclusion: Do the above narrated theories really matter? Do we hear leaders using them or reflecting upon them? What can Tanzania learn from the theories? It is obvious that there is some significant relevancy of these development based theories for some reasons: The history of mankind is the struggle for survival, the documentation of which informs the consequent steps in man’s endeavors to improve his well being or development. The diversity based on wealth and poverty living together cannot be left in silence. The development economists and researchers have always deigned and shared new arguments and findings on this diversity and how it affects communities. The theories do not operate in isolation. They are linked to the realities we live with in the community where 85% of the people live in Tanzania

Although there are traces of economic growth in Tanzania, nevertheless this is not reflected in the parallel reduction in poverty. Community Economic Development therefore is the answer or appropriate response to the current poverty problems in Tanzania, the understanding and implementation of which will make big differences in the majority of the Tanzanian poor. Realistic speaking, there are some traces of Community Economic Development in our community although not embracing all the principles. Some of these include, the defunct Ujamaa villages, Sustainable Cities Programmes and also some form of Local Economic Development reflected in the village/street level local government operations. Moreover, for communities where there is research on medicines and human beings there are “Community Advisory Boards” formed which include the marginalized people, People Living with AIDS, researchers and ordinary community members to raise awareness and to make the community own research processes.

The Peoples’ Participation (PPP) established by the FAO to stimulate active involvement and organization of the grassroots rural people in their small informal self reliant groups of the rural poor, women and farmers to enhance their incomes.

In the Guardian of September 28^th, and article read,” Stop EU trade links with ex colonies- protesters” The Economic Partnership Agreement (EPA) viewed as a “balanced and equitable trade initiative between the EU and the African Caribbean and Pacific (ACP) is facing conflict with the civil society who want a full involvement of farmers as major stakeholders who will suffer the consequences when the agreement is signed by December 31^st. There has not had any awareness raising on what is transpiring. Also, the removal of tariffs as ordered by the World Trade Organization (WTO) will end up favouring the European counterparts. Why not broaden the participation during the negotiation stage? The leaders appear to be moving forward by ignoring the masses, is there a hidden agenda?

In the same paper, it was observed that the Private Sector infancy and small size in Tanzania was attributed to the adoption of Socialist Economic Policies after independence. This was in accordance with the paper presented by Dr Honest Ngowi a Senior Lecturer of Mzumbe University. He argued that Tanzania was slow to change from a socialist mode of production to market economies with the private sector led economic growth and development. There must be some hidden reality in all this and Africa should not make another mistake of developing Europe by the new Economic Development of the Western European Society. Will there ever be economic equilibrium between the wealthy and the poor countries? It Time to start reading on the African Community Economic Development which is more realistic and more meaningful to our people.

Each daily paper in Tanzania addresses community economic issues at various levels. On the 1^st of October the Guardian article on page 11 was about the threat of growing population trends on the Tanzania 2025 Vision realization since it aims at attaining a competitive economy by 2025, but with the annual population growth at 2.9% macro economic stability may flop. This means that there will be a long wait for sustainable economic development. However, we need to determine where the root problem lies since it may not be the rise in population. Even as this paper is being written, the president of Tanzania is asking for aid in the US to help alleviate poverty and boost economic growth. When will Tanzania say no to external aid and utilize her resources for sustainable purposes?

Annex 1: References:

1. Warren J. Samwels. The Political Economy of Adam Smith. Ethics Vol. 87 No. 3 April 1977, 189 – 207.
2. Historical Materialism, form Wikipedia, The Free Encyclopedia.
3. The Guardian Newspaper, Wednesday, September 19^th 2007.
4. Economic Development: The Story of an Idea. H. W (Heinz Wolfgang) Arndt.
5. World Bank Report (2004)
6. Modules on Stages of Economic Development. www.cla.purdue.edu.english/theory/marxism/modules
7. Understanding CEd. Hanadout
8. Feudalism. Wikipedia the free encyclopedia.
9. Contreras,R. Competing Theories of Economic Development
10. Contreras,R. How the concept of development got started