President of Convocation Anour Kassim,Chairman of the University Council



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<&/>cough agriculture in Tanzania uh <#/>My presentation will be divided into three parts <#/>The first I always try to expose the problem itself <./>re relating to the future of uh peasant cooperatives <#/>The second will be trying to show <+_article> historical perspective of the position and the role of peasant cooperatives and then the third will be just a conclusion as to what I think will be the future in terms of position and role of peasant cooperatives <#/>So beginning with the first part uh one aspect which is quite obvious to those who have come across the history of peasant cooperatives or development of cooperatives in Tanzania is that <&/>cough from the nineteen fifties uh during the period of <./>Ger British colonialism uh peasant cooperatives assumed at least began to assume a monopoly a monopolistic role in the marketing of peasant crops and particularly uh the export crops uh <#/>Before that of course uh the people who were going into the marketing of peasant crops were private traders uh the so-called middleman traders who used to purchase peasant crops uh and sell them to the big uh export companies and that was the structure from the period of German colonialism to the first phase of British colonialism but in the nineteen <./>fif fifties the cooperatives began to take over particularly in the area of export crops the so-called cash crops that is coffee tea cotton pyrethrum tobacco cashnuts <#/>So that's where they began to assume the monopoly <#/>Now this has continued this <-/>this monopolistic tendency has continued uh up to the nineteen nineteen eighties so with the structural adjustment programme liberalisation in the privatisation programmes which we have been discussing here since <-/>since yesterday <#/>So changes have begun to take place and these changes include uh now that private people again uh <./>where whereby the cooperatives in from the nineteen-fifties took over uh from the private traders <#/>Now they come in <#/>They <-/>they come in again to play the same role they used to play in the past uh the marketing of peasant crops uh which means that uh from the mid-eighties uh up to now we have this development whereby uh private traders side by side with cooperatives uh are competing <#/>But there is a need to qualify the extent of that competition the extent to which that competition has reached up to this stage uh <#/>It is still at its lower level of development in the sense that much of the export <./>crop crops traditional export crops have developed a system which is such that uh it's not easy for the private traders just to get in uh certain infrastructure structures <#/>If you have tobacco uh the <-/>the <-/>the cooperatives or the marketing boards own uh the processing plants so a private trader to take over the marketing of tobacco will not be that <-/>that much easy <#/>Then there are <./>coff the beginning of <-/>of <-/>of <-/>of cotton uh and and other crops so <-/>so the level the extent to which uh the private people are entering into the competition very much depends on the <-_>on the<-/> nature of the crop uh on the circumstance of a particular area <#/>This one <&/>grammar is as such most of them the competition has much more developed <&/>grammar in terms of fruit crops rather than in terms of uh traditional export crops <#/>Although even in that area still there are struggles uh <#/>For instance just by last year uh the regional governments of and uh decided to allow private traders to enter into the marketing of cashnuts which up to now are still under the monopoly of cooperatives the Cooperative Union and the Cooperative Union who sell to the uh regional cashnut uh <./>pro product uh marketing board so that possibly this year the nineteen ninety-three ninety-four year uh the private traders are expected to be allowed to enter into that competition and in for instance the private traders have managed to take over completely the marketing of of cacao <#/>Now cacao is a new <-_>a new<-/> crop there so it's not yet developed into a larger scale so it has been easy for the private traders Mohammed and Enterprise Limited has taken over completely from the and marketing union <#/>So and marketing union are remaining for the marketing of rice and uh uh coffee and uh cacao has been taken over by a private firm <#/>So uh this just some sure examples to show the way the process is going but then in the area food although also there <-/>there are some <-_>there are<-/> <-_>there are some<-/> <-/>some problems uh <#/>For instance in the four so-called four big <./>reg regions of Mbeya Rukwa and Iringa uh much of the maize for instance which is <-_>which is<-/> sold to Dar es Salaam is bought by private traders there but part of it is still through cooperatives who sell to the National Union Cooperation you see <#/>So you you still have in the fruit crop area uh this competition in developing <#/>Now the <-/>the uh <-/>the actual problem is is <-/>is <-/>is that uh uh first on the part of the cooperatives <#/><-_Historical><+_Historically> the cooperatives were particular cooperative unions were abolished nineteen seventy-six and then the uh crop authorities took over the position of crop uh uh cooperative unions so that it was the crop authorities which were now buying crops from primary cooperative societies in the villages which were now part of the development <#/>So the <-/>the effect of that abolition in nineteen seventy-six and then re-establishment of the <./>co <./>co cooperative unions in nineteen eighty-two uh uh after the act of nineteen eighty-two resulted <-_into><+_in> <&/>prep a situation whereby the cooperative unions began anew on a very weak capital base because when they were <-_>they were<-/> abolished they were abolished that <-_>sudden<+_suddenly> by <-/>by <-/>by the order of the government and then all their uh property financial uh movable the movable property was handed over to crop authorities <#/>So when they were re-established maybe they could get again the immovable property such as buildings uh but the movable and the <-_>and the<-/> financial capital uh was no longer there and therefore they had to start at a <-_>at a<-/> very weak position <./>cap in terms of capital base to be able to to market peasant crops <#/>So the result of that they had to depend now borrowing from the National Bank of Commerce and the uh Cooperative Rural Development Bank in order to get financed to be able to purchase uh crops from the peasants <#/>So this tendency developed to the extent that uh because of the high rate of <-/>of <-/>of interest which they had to pay and also coupled with the corruption which developed within the cooperative unions themselves so the uh <-/>the <-/>the there was a rapid rise of debts to the extent that by nineteen eighty-nine about eighty-fifty <./>eigh uh uh a survey of only seven cooperative unions amounted to a debt of fifteen billion shillings uh <#/>The cooperative unions could not pay and therefore the banks began to be strict <&/>prep the cooperative unions so they had now to buy crops on credit so you <-/>you <-/>you <-/>you go to the peasants uh uh uh in fact by <-/>by last year the their cooperative unions <&/>noise were negotiating very seriously to convince the peasants uh to <-/>to <-/>to sell their crops uh to the cooperative union on credit and you heard then their coffee is <-/>is <-/>is <-/>is sold on the world market <#/>When the money comes then they can pay the peasants <#/>And this has created a lot of problems in terms of relationship between the peasants and the cooperatives <#/>So this is uh one problem on the side of the cooperatives <#/>And then on the side of the private traders uh a rough survey indicates that only <-/>only very few traders with strong capital base uh such as Mohammed and Enterprise and others but the majority are just petty traders who have very weak capital base <#/>So it is feasible when you go along the many roads to collect the maize to collect I don't know what uh and then uh sell it to the areas uh where they are demanded <#/>Now the problem is that uh these traders have not been able to satisfy uh the <-/>the <-/>the <-/>the <-/>the marketing needs of the crops <#/>For one because of the transport infrastructure problem <#/>If they go uh deeper into the <-_>into the<-/> villages where you have got problems of transport that means uh transport expense will be very high and therefore they only choose areas where you have got easy access of transport and therefore they can only uh purchase uh crops from one part of the peasants but the majority of the peasants have no access to these traders <#/>So this is uh one problem <#/>Given the weak capital base they can’t buy large quantities <#/>So there have been cases where the cooperatives because of this also the cooperatives having financial problems they could not purchase crops from the peasants such as maize and because again the private traders have the weak capital base most of them they <&/>grammar/subject could not satisfy uh uh the <-/>the supply of <-/>of crops from the peasants <#/>So you have a crisis situation and uh there are and and up to now there is no clear <-_>there is no clear<-/> government policy or guidance to regulate this type of competition <#/>So this is uh one of the aspects of the problem <#/>But the other uh is that also connected with the private traders is the fact that the private traders are only interested in the crops while cooperatives had two roles purchasing crops from the peasants marketing them and then ensuring that the peasants get uh some <./>ne <./>nec necassary inputs such as fertilizer uh and other uh necessary inputs <#/>But uh private traders have no interest <-_on><+_in> <&/>prep that and therefore their interest is just to buy the crops <#/>So where cooperatives withdraw <-/>uhu the peasants have got a problem of getting inputs and the example I've told you about the cacao is facing that problem so that the Mohammed Enterprise Limited uh is only interested in the buying of the crop and exporting it rather than helping the peasants also to get seedlings and other necessary items <#/>So anyway in short I wanted just the first part to expose this the nature uh of the problem itself <#/>So coming to the second part is that cooperatives and this I will be just brief the history of cooperatives peasant cooperatives in Tanzania begins uh from the nineteen nineteen-twenties and it begins through the initiative there of the <-/>the <-/>the farmers themselves the peasants particularly the peasants who were involved in the production of export crops and this is partly as a struggle against the middlemen traders <#/>The peasants <./>com perceived that the middlemen traders were responsible for giving them very low uh prices for their crops and therefore they were exploiting them so consequently uh peasants began to organise themselves so that they could take over the marketing of their crops <#/>So peasant associations began to be formed so that by nineteen twenty-four you had the <./>Ba <-/>the uh uh <-/>the Bukoba Bahara Union nineteen twenty-five you had the Kilimanjaro Native Planters Association uh later on you had the Association Iringa you had the Meru Growers Association uh and uh in Mwanza you had also Cotton Growers Association <#/>These were organised by the peasants themselves independent of the government <#/>So that was the beginning <#/>So this was the first stage in the development of cooperatives <#/>So when the British colonial government saw that development uh it found that it was not easy uh to abolish this uh mushrooming of peasant associations and uh given the fact that at the same period the British had also this policy of establishing peasant cooperatives in other colonies <#/>So they found it's <-/>it's better to controls to control the associations peasant association instead of leaving them independent and autonomous <#/>That was a threat to the whole uh colonial system uh particularly the economic system and therefore in nineteen thirty-two uh the British government decided to enact a law uh the Cooperative Societies Ordinance of nineteen thirty-two which made sure that all peasant associations had to be registered as cooperative uh organisations under that law <#/>But then the process of registering uh was not complete <#/>That's why you still had some other independent associations being formed up to around nineteen fifty-two <#/>So between nineteen thirty-two and nineteen fifty-two only two uh peasant cooperative associations were <-/>were registered as cooperatives and that was uh the Kilimanjaro Native uh Cooperative Union uh which was The <-/>the Kilimanjaro Native Planters Association was now registered and changed its name into the Kilimanjaro Native Cooperative Union nineteen thirty-three and nineteen thirty-six uh the Cooperative Union uh uh which was also registered under this <#/>So up to nineteen fifty-two these were the two <#/>Otherwise others were still independent and autonomous peasant associations <#/>So by nineteen fifty-two the government made sure that all these associations uh had to be registered as peasant cooperatives and uh this time coincided with also the nationalist movement which also encouraged the formation of more peasant cooperatives uh because they very much supported the nationalist movement and therefore you had a rapid expansion of peasant cooperatives between nineteen fifty-two and nineteen sixty-one to the time of independence So but then uh what it was the conception or perception of British colonialism uh on the peasant cooperatives The peasants themselves their perception was that they had to use these cooperatives uh to liberate themselves from the exploitation uh by private traders and also to use these cooperatives to uh facilitate the improvement there of their production of their crops But then the British of course had also that perception of improving uh the <-/>the <-/>the production of peasant crops uh but particularly improving the export crops and particularly given during this time the nineteen fifties uh when you had condemnance of uh this <-/>this <-/>this modernisation fury uh and therefore improving peasant and cultural production in terms of export crops was very much emphasised and particularly given uh the fact that after the <-_>after the<-/> Second World War the British had to use her colonies to <-/>to revive <./>ec <./>ec economy in Britain So that was the perception of uh of the British as far as the peasant cooperatives were concerned and that therefore it was necessary to subordinate them uh to <-/>to <-/>to this <-_>to this<-/> law Now after independence there wasn't much change In fact the the fury of modernisation continued to play the significant role through the advice of the World Bank uh The World Bank report of nineteen sixty-one was very <./>in instrumental making sure uh that at least the nature of uh agriculture particularly peasant agriculture uh continued to be on the pattern uh of the nineteen fifties and precisely more production of export crops and they decided also the use of peasant cooperatives and therefore the result was that between nineteen sixty-one and nineteen sixty-seven uh you had a double in the number of cooperatives and particularly given the fact that since the cooperatives like trade unions played a very significant role politically during the struggle for independence to support TANU to achieve independence So they were also perceived after independence as also important instrument uh to consolidate the <./>po position uh of <-/>of <-/>of the ruling party and the new nationalist government uh among the peasants in the rural areas So that uh nineteen sixty-two a regulation an amendment of the cooperative societies was made whereby cooperative societies could be established even in areas where there were no crops for sale So every district had to have a cooperative union uh so whether it was viable or not viable So that uh uh the number of cooperatives expanded very very uh between nineteen sixty-one and nineteen sixty-seven So the new phase of the in the development of cooperatives after independence begins with the Arusha Declaration Now the <-/>the <-/>the state begins to perceive cooperatives not only in terms of improving the agricultural production facilitating agricultural production We can also the nineteen sixties actually one of the steps which were taken by the uh <-/>the new government was to <./>os use cooperatives not only for marketing but also as institutions that could facilitate uh the <-/>the provision of credit facilities uh to the <-_>to the<-/> <-_>to the<-/> peasants particularly those involved in the production of uh <-/>of cash crops So that's why the <-/>the Cooperative Bank established uh you had uh so many other institutions uh which were necessary to facilitate the uh <-/>the credits the <-/>the provision of credits uh <-/>credits to <-/>to the peasants although uh not very much succeed Eventually uh the credit system collapsed So the new phase after nineteen sixty-seven the perception is to use cooperatives as institutions to facilitate socialist transformation of agriculture uh in the rural areas and in fact one of the I’ve quoted here a statement by the late President Nyerere when he was addretting addressing the Cooperative Union of Tanganyika which is an APEX organisation in nineteen seventy-one He said that the policy of TANU for cooperative movement was transformed during Ujamaa into production based multi-purpose cooperative societies and encouraged the spirit of cooperation among peasant farmers uh among peasant uh <./>pea <./>pea <-/>peasant farmers The party saw the need to change the setup of primary societies because their members did not cooperate fully They only cooperated as far as marketing of their produce was concerned but how to produce then uh uh <-_>how to produce then<-/> came about what was <-/>was <-/>was <-/>was every 's own business So this is uh the new perception that now they have to be uh play the role of producer cooperatives in the Ujamaa but then besides various statements the prime minister and other ministers made a lot of statements but then there wasn't a clear uh policy statement as to how these cooperatives are going to function as producer cooperatives uh in the Ujamaa village so that it was until nineteen seventy-five uh when the Ujamaa and the Ujamaa Act uh uh Ujamaa and Ujamaa Village Cooperative Societies Act was passed uh which to greater degree recognised to be the role uh of these cooperatives but then that role was namely to be the role of primary societies because the <-/>the cooperative structure in Tanzania has been such that you have primary societies in the village level and it's a number of primary societies come under a cooperative union which can be at district level or regional level and then at the top you have the cooperative union of Tanganyika the APEX organisation So that is the structure but then the <-/>the <-/>the <-/>the <-/>the <-/>the level which had played this role socialist transformation was at the level of primary societies and according to this act of nineteen seventy-five so every village had to be registered as a primary society and every man <./>ab above the <-/>the year of <./>eight the age of eighteen had to be automatically a member of that primary society There was no Now the question of <-/>of being free to choose to become a member of the society or not to become and there and then the societies now as cooperatives they had no longer that freedom which they had in the past of electing their own leaders the chairman of the society and the council because it was now the village chairman who was also chairman of that primary society but that village chairman or the party chairman and also head of the village government So that what you see at this stage is the total subordination in the control of cooperative organisation so that after this uh <-/>this law the cooperative unions were not sure of their position so that's why by nineteen <./>seven in fact they had begun questioning this even before uh that period so that’s why by nineteen seventy-six the government found that uh the cooperative unions had to be abolished So you had now the abolition of cooperative unions in nineteen seventy-six So what you had now is cooperative societies and then above them instead of cooperative unions uh <./>rel relating with cooperative societies in the marketing for crops now you have cooperative societies which are also very strong subordinate to the government uh related now to crop authorities which were now parastatal organisations not no longer peasant uh organisations So that was now the structure which had to <-/>to <-/>to operate so that situation continued So instead of solving the problems of cooperatives this structure having made the problems even worse So the crop <./>auth authorities cooperative unions even if you had the development of corruption at least uh they had an interest on the peasants uh in the sense that because they were uh <-_>they were<-/> uh <-_>they were<-/> the <-/>the institutions which came about as a result of the peasants themselves because they were peasant organisations but now crop authorities were not So their interest was just to buy crops uh so the peasants in fact uh one of the factors if you observe very clearly which was a certain reason for the decline of field production in the <-_>in the<-/> <-/>the seventies was the resistance of peasants against crop authorities So that the crisis continued to the extent that the government had to decide to bring back cooperative unions in nineteen eighty-two That's why you have the law the new cooperative societies Act So cooperative unions had to come back uh as I said they had now to start at a very weak uh uh uh uh capital base uh Most of them started being formed nineteen eighty-four By nineteen eighty-nine ninety you had a very big crisis of the cooperative some of them failing to market the peasant crops uh and uh so on and so forth So this is uh that is the situation So that uh the question now if now I can move now to our third part uh given this historical background given the existing <./>pre present problem what should be the future of these cooperatives So uh I start by saying that uh I open this the discussion <&/>laughter I open this to the discussion but uh while opening this to the discussion uh let me make uh two main observations One is what's the conception of the peasants themselves now concerning cooperative organisations such I mean uh as you have confusion in terms at the level of policy uh the peasants themselves are not also very clear but certainly they still perceive the cooperatives as their organisations but there is also uh they are also very bitter about the problems which the cooperatives are facing particularly at the level of the unions the corruption uh the selling of and means uh the cooperative <-_>the cooperative<-/> can <-/>can borrow money from the bank uh and <-/>and <-/>and pretend to buy crops which do not exist so that the money is <&/>laughs So uh despite these problems the peasants see the cooperatives if they were transformed uh if <-/>if <-/>if <-/>if <-/>if <-/>if the cooperatives would be transformed uh into better cooperatives if they could play a better function eradicating corruption and being committed to the peasants as their organisations certainly the peasants would prefer cooperatives also to continue This is uh perception rough perception of the peasants and then uh the second observation is the nature and the character of the Tanzanian peasantry given the present situation So the Tanzanian peasantry uh is at a situation whereby peasant agriculture uh basically is still stagnant uh as <./>mo most of our discussions and presentations here as we have seen uh with some few exceptions in some few regions at least where peasants have made a step in <-/>in <-/>in <-/>in <-/>in <-/>in getting into modern type of agricultural production uh at least enabling them to earn a reasonable income but the majority of Tanzanian peasants are still poor using primitive methods of production uh and uh in the end <-/>end <-/>end as <-/>as <-/>as we have heard from quite a number of parts the structure adjustment organisation achieves So this is another observation we have made Now given these two observations uh really my view is that cooperatives are still needed but they are needed only under conditions that they are greatly transformed and this transformation has to be at <-/>at <-/>at two levels first at the political level There is need for a serious democratisation of the cooperative organisations that they have to be controlled by the peasants themselves and that they have to be autonomised enough and that they have to have committed into serious leadership to ensure that they serve the peasants so that is at the political level and at the economic level they have to be economically strengthened their <-/>their their capital base financial base and all that have to be strengthened so that they can really serve the peasants And even their orientation instead of being pure marketing cooperatives I think they can play much more a much more serious role in facilitating the transformation of peasant agriculture uh from this stagnant primitive stage uh into a modern type uh of agricultural production So that these are the two conditions which are needed uh but then even even then of course uh in that form that the cooperatives can be in the position to compete now with the private traders to avoid the suffering which the peasants have begun so whereby where <-/>where a private trader cannot uh do the marketing uh at least the cooperative should be there and therefore the process can continue Thank you

<&_>Dr. Gaudens Mpangala, 19/6/94, on the future of co-operatives

S2B044T


<#/>Because almost everything that I'd have said has been said and uh that but since I’m <-/>I'm the only person in a way in this room a bureaucrat who is gonna try to act the academic so I thought I'd say something just from that perspective uh and I'll do that by looking at the <-/>the changing of state of agro-pastoralism and the agro-pastoralism I’m referring to is this term in which agriculture and livestock keeping have almost an equal uh social economic and uh political value to the people that practise it as opposed to mixed farming where there could be livestock and <./>re real farming and uh as has been presented already in previous presentations changes in Tanzania since independence uh have been tremendous <#/>We had over ninety per cent of our population living in the rural areas <#/>Now we are told it’s less about eighty per cent so with a growing urbanisation uh the population that is living in the rural areas is getting smaller but it is still predominant and quite significant and uh at independence agro-pastoralism was limited to a number of places like Karange Mwanza Shinyanga Iminara region among the and then among the then we had only a number of and then the Turu and all these places we have agro-pastoralists but then we have the pastoral peoples according to researches in the sixties by colleague and that is among the Barbaig <-_>the Barbaig<-/> who are groups who are still pastoral <#/>You have the Massai <#/>They are pastoral <#/>Of course the Arusha agro-pastoral around Mount <-/>Mount Meru so you have <./>agro-pastoral agro-pastoralists in certain areas pastoralism in others and cultivators shifting cultivators in other areas and when you look at the tribal the so-called tribal map drawn in the late fifties it could show you where the Sukuma are living where the Haya are living where the Massai are living all over the country and you could be told they are they are et cetera et cetera so you had a landscape which was very clearly limited in terms of geographic collocations of these people so this production system in Tanzania three decades ago was limited to particular areas which were known and in other places like southern Tanzania the biggest in was the goat <#/>They've never seen cattle and some of them saw cattle for the first time in the <-_>in the<-/> seventies through government policy and actually they were afraid of milking these animals <#/>Now uh what we have now in the three decades is the expansion of <./>agro <-/>agro agro-pastoralism <#/>That’s why I’m talking of a changing landscape in the sense that agro-pastoralism the map we have now is different from the map we had at independence of this production system <#/>The agro-pastoralism has now burst its borders in terms of the Sukuma who were known to be in Mwanza and Shinyanga <#/>They have systematically moved through the area into some plains and into the <-/>into Morogoro region where they are keeping herds of cattle and practising <#/>We have the <-/>the <-_>We have the <-/>the<-/> Arusha people who have moved into a mostly entire Massai land where they are practising cultivation in the higher potential areas like we were told the mountain areas or the highland areas where you have <-_>you have<-/>
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