72. In the 31 October 2010 elections, Ali Mohamed Shein - Zanzibar CCM presidential candidate - won with 50.1 per cent of the vote. Seif Sharif Hamad, runner-up CUF presidential candidate, received 49.1 per cent. Shein selected Hamad as his First Vice President and Seif Ali, the former Union Deputy Foreign Minister, as his Second Vice President. 73. In discussing the political history of Tanzania, it is important to note that the process, which led to the multiparty system of government in the country was engineered and largely controlled by the state. As some analysts have observed, political transformation processes could have been faster. This slow pace, just like in many other emerging democracies of Africa, has been attributed to the fact that the process has been state-driven, and the state being reluctant to rewrite the political rules for other actors to participate freely and fairly. Since the introduction of the politics of plurality, there has been a reluctance to guarantee many rights, characterised by a strong interest in controlling the media and a hesitance to open up the political system to free and fair competition (Shivji, 1991; Meena, 2008). Economic transformation 74. In Tanzania, four major phases of economic policies affecting economic growth and socio-economic development can be identified. The first phase is from 1960 to 1967, when the country implemented a pro-growth marketdriven economic policy based on the colonial economic model. The second phase was the implementation of the Arusha Declaration - from 1967 to 1986 - a socialist model emphasising policies of social equity and self-reliance with state involvement for managing key sectors of the economy. The third phase involved the implementation of Structural Adjustment Programmes (SAPs) - from 1986 to 2000 -which were to lay the foundation for the economic liberalisation. The current phase covers the period from 2000 onwards: a fully liberalised economy with some attempts to balance social equity concerns, good governance, and poverty reduction strategies. The growth model (1960-1967) 75. Tanzania inherited an agrarian economy from the colonial state, with more than 90 per cent of the population living in rural areas. Julius Nyerere, founding President of Tanganyika, declared poverty and ignorance – the rampant disease - the immediate enemies of the newly-independent state. Development strategies were expected to usher in improved well-being for the people in terms of material welfare, health status, as well as literacy levels. A modernisation approach recommended by a World Bank Mission17 was adopted. However, by the end of the sixties, neither the transformation approach nor the improvement approach arising from the adoption of the World Bank Mission Report had yielded the expected results (Meena, 2008; Wangwe, 2011). Although annual Gross Domestic Product (GDP) grew by 6 per cent, this had no significant impact on people’s livelihoods since real per capita income increased by only 1 per cent per annum. The economy experienced what President Nyerere called “Growth without Development” (Nyerere, 1968). This is the context within which an alternative economic model was introduced through the . The Arusha Declaration: Socialism and self-reliance 76. The Arusha Declaration of 1967 marked a significant policy shift away from a market-driven economy - with its emphasis on economic growth - towards a state-controlled economy emphasising social equity. The State was to play a greater role in managing the economy and distributing the benefits from the production systems. The Declaration was anchored in the traditional African philosophy of friendship, mutual respect and shared responsibilities. 77. Two strategies lay behind the implementation of the Declaration: nationalisation of major means of production and, creation of Ujamaa villages. The latter aimed to improve the livelihoods of the majority of men and women, while the former aimed to build up state capacity to regulate the economy and hence, distribute the accrued benefits. Unlike the previous village settlement schemes adopted immediately after independence, the Ujamaa villages programme covered a wider spectrum of the rural population. The village was not only considered a 17 The mission was commissioned by the British colonial state. 37