The birth of modern Tanzania 51. On 26 April 1964, Tanganyika united with Zanzibar to form the United Republic of Tanganyika and Zanzibar. The country was formally named the United Republic of Tanzania (URT) on 29 October of that year. The name Tanzania is a portmanteau of Tanganyika and Zanzibar. Under the terms of this union, Mwalimu Julius Kambarage Nyerere became the first President of the URT while Sheikh Abeid Aman Karume became the Vice President of the URT, in addition to his position as the President of Zanzibar and the Chairman of the Zanzibar Revolutionary Council. Although formally united with the mainland, Zanzibar retained considerable independence over domestic affairs. 52. Zanzibar has its own President and a legislative body known as the House of Representatives. The Parliament of the URT has members of parliament from both Zanzibar and Mainland Tanzania. Zanzibari members in the Union Parliament include those directly elected from Zanzibar’s electoral constituents, Special seats for women and those appointed by the President of the URT. Zanzibar is responsible for all issues that concern it as a country, except for twenty-two ‘Union Matters’. 53. Julius Nyerere became a visionary nationalist committed to the creation of unity, peace and development in the emerging young nation. To form a sole ruling party in both parts of the union, he merged TANU with the Zanzibar ruling ASP to form the CCM (Chama cha Mapinduzi or Revolutionary Party), on 5 February 1977. To further his aim for national unity, Nyerere established Kiswahili as the national language. 54. As the sole legal political party for Tanzania, CCM had the role of directing the population in all significant political and economic activities. In practice, party and state were one. On 5 February 1977, the union of the two parties was ratified in a new constitution. The merger was reinforced by principles enunciated in the 1982 Union Constitution and reaffirmed in the Constitution of 1984. Box 2.2: Best Practice: the Union of Tanganyika and Zanzibar The URT is unique for being the only surviving pan-Africanist project involving the union of two independent African countries, through the adoption of a federal or quasi-federal constitution, which shares sovereignty between the countries involved in the union. The Union, therefore, offers useful lessons to countries seeking to join together, especially in terms of how to sustain diversity in unity, given the historical and inherited significant diversities within each of the parties in the Union. 2.2. Political and Socio-economic Transformation in Tanzania 55. Since independence, Tanzania has undergone significant political and economic transformation. This stems from a series of socio-economic and political processes over the past four decades. Major political shifts influenced economic processes at the same time as the economic processes influenced political shifts. 56. There were three distinct phases in Tanzania’s political and economic development. The first phase runs from 1961 to 1967, the main characteristic being continuity with economic policies inherited from the colonial masters. The economy (industries, plantations, mines and other commercial activities) remained essentially in the hands of British and Asian businemen. According to Kaiser (1996), after Tanganyikan independence, “…efforts were made to implement a programme which depended on foreign investment to support massive, capital intensive industrialization and agricultural development projects”. The capitalist, market-driven orientation continued during the first years of independence. However, the expected fruits of independence did not materialise for the majority of the people. 57. The second phase of political and economic transformation began in 1967. Facing the enormous challenges and imbalances brought about by capitalism in a largely rural and poor country, President Julius Nyerere sought to build a new nation based on the principles of egalitarianism, socialism and self-reliance. The Arusha Declaration - proclaimed in 1967 - dramatically altered Tanzania’s political and economic landscape. Drawing on a wide variety of traditional African values and European philosophies, President Nyerere developed a unique governing philosophy known as ‘Ujamaa’, or ‘familyhood’ in Kiswahili. The capitalist, market-led economy that was inherited at independence was replaced by a state-owned, centrally-planned and controlled economy. All the major means 34