Arusha Declaration Policy helped Shape Many Top Economies
According to Dr. Honest Ngowi of Mzumbe university, Many Economies borrowed a leaf or two from the Arusha Declaration Policy and benefited from it.
THE Arusha Declaration, whose principles on the economy are largely considered outdated, can not be written off completely as its tenets proved useful in dealing with the global financial crisis of the 2008, a Tanzanian economist has cautioned.
Dr Honest Ngowi of the Mzumbe University, Dar es Salaam Business School says in his new book that most of the world's top economies borrowed a leaf from the document whose proclamation in 1967 ushered in socialist policies in Tanzania. "Different countries took several measures after deterioration of the economy from the last quarter of 2008.Dr Ngowi said Tanzania founding president, Julius Nyerere who was the architect of Arusha Declaration, was a follower of Lord John Maynard Keynes, the founder of Keynesian school of thought. "During financial turbulence in capitalism, many countries, even the capitalist ones, reverted to and embraced Arusha Declaration philosophy to avert the crisis," he says in the book.
"These have been evident endeavours undertaken by different countries to tackle the economic crisis and its effects. Among those are mastermind of capitalism in the world led by US. Many countries...were left with no option but to buy shares and even nationalise companies, especially banks and other financial institutions.