Fluctuations in agricultural export proceeds: the case of Tanzania

The study reveals that in Tanzania like in many other African countries the economy is organized around the export of a limited number of primary products namely, coffee, cotton tea, tobacco and cashew nuts and as such the levels of investment growth and national income fluctuate with export earnings. The task of planning and implementation of various development projects and national economy as a whole becomes even more difficult, especially when we note that Tanzanian planners are still new to the job and that planning itself is new to Tanzania. In view of this the producing countries and Tanzania in this case should take the initiative of solving this problem more directly at home instead of relying on international negotiations and agreements. This however does not mean that there is no way out for international negotiations and agreements. This however does not mean that there is no way out for international solution. Although it is known that the trade in agricultural commodities on an international scale would to a certain extent increase exports from developing countries indications show that this change would not in itself ensure that the quantity of agricultural exports would go on rising every year especially when one considers the conditions under which the crops are grown. The study argues that the problem of instability in export earnings can be reduced or even cured through divers’ fiction and improved productivity in agriculture in addition to proper industrialization.