Tanzania is one of the poorest countries in the world. Like the rest of the poor countries, there have been, for the past twenty years now, internal and external efforts to try and free the country from the woes of poverty that can be seen all over the country. There have been many theories attempting at an explanation of what went wrong in Tanzania. These range from colonial domination – and the resultant theories like dependencia, underdevelopment and so on, to those which pin down capitalism and its “predatory” nature leading to, among other things, to unequal exchange on the world market, world division of labour, etc, (Ellis, 1983; Dutkiewicz et. al, 1987); as well as the ubiquitous globalization currently affecting many aspects of life. However, not all see these theories are capable of providing a plausible explanation of what happened and why. Others see it as a structural problem in general as well as inappropriate policies pursued by many poor countries as it was candidly acknowledged by the Organization of African Unity (1986: 17). Others blame the way the policy was implemented (for example Babu, 199: 31 – 34, Shivji, 1974: 85 - 90). We will pursue the last paradigm of seeing the causes of the predicament more closely and see how things are being changed now.