R. S. Damian M.A.

(UDSM)
1
THB BOLB OF THB THIBD SBCTOB IN
THB BCONOmY

BY RESPICIUS SHUMBUSHO DAMIAN



'The end of the Cold War has brought no mere adiustment among states
but a novel redistribution of power among states. markets. and civil
societv. National governments are not simplv losing autonomv in a
globalizing economv. Thev are sharing powersincluding political.
social. and securitv roles at the core of sovereigntvwith businesses. with
international organizations. and with a multitude of citizens groups.
known as nongovernmental organizations (NGOs). The steadv
concentration of power in the hands of states that began in 1648 with the
Peace of Westphalia is over. at least for a while.` (Mathews. 1997. 50)


Introduction


The 1980s and 1990s is recognized Ior great changes in global political and
economic experiences. First oI all. there was a quick spread oI the liberal
ideology over the world that Ior some scholars in international political economy
explained it as The end of Historv
1
(Fukuyama. 1992. 1). The second
experience was the spread oI multiparty politics and political pluralism. The third
change was the expansion oI the private sector in developing countries which
went side by side with shrinking oI the scope oI state participation in economic
spheres as well as production and provision oI public goods. The Iourth. and
indeed oI great importance in this discussion is the expansion oI Civil Society
which included a variety oI local and international Non-Governmental
Organizations. With time. there has been growing involvement oI these new
actors in the Economic and Political AIIairs that they got a special identity as the
third sector`.

The emergence oI the third sector has become a challenging revolution that has
weakened the conventional two actors` view
2
oI analyzing public administration.

1
Fukuyama`s End oI History was based on the idea that the liberal ideology had deIeated all the preceded
ideologies. and indeed no political and economic ideology which is likely to rise above the liberal ideology. Ho
explained diIIerent Ieatures Irom which he deducts that liberalism was becoming the world political and economic
ideology.

2
The two actors view in analyzing public administration is used to reIer to the assumption that the state and
market are the only sectors which are interacting to IulIill production. delivery and distribution oI public good and
services.
R. S. Damian M.A. (UDSM)
2
Today. the third sector is actively involved in advocating and inIluencing
policies. they directly deliver public services. and they also inIluence the
direction and implementation oI economic policies. ThereIore. its impact cannot
be underestimated.

This paper provides an analytical assessment oI the impact oI the third sector to
governance at general level. and speciIically on the process oI development and
delivery oI goods and services in Tanzania. For the purpose oI clear organization
oI ideas. the presentation is organized into three maior themes. The Iirst part
attempts to look at the third sector Irom a theoretical angle that iustiIies its role;
mainly the liberal Social Contract Theory. The second presents a brieI historical
overview oI the third sector development in the context oI state-market
interaction and it narrows down to highlight the environment in which the third
sector developed in Tanzania. The third part oI the paper concentrates on the
empirical analysis oI the role the third sector components play in governance
Iocusing on political. economic and service spheres Irom which a summary oI
assessment is made.

To accomplish its obiective. the analysis Iocuses on the speciIic issues in each oI
the spheres studied. In the economic sphere we Iocus much on employment.
direct labor. investment and venturing. On political spheres the analysis Iocuses
on policy advocacy and inIluence. anti-corruption campaigns. civic and voter
education. and partnering with the state and private sector in implementing public
policies. On the side oI services production and delivery. this paper concentrates
on education and public health. Where some relevant examples are missing. the
analysis will compare the available evidences and pattern oI characteristics with
relevant cases out oI Tanzania.

The Third Sector: Theoretical 1ustification and Analysis
The name third sector Ior some scholars is used as a synonymous to civil society
organizations. while Ior some it is broadly used to replace Non Governmental
Organizations. Considering the linguistic principle that true synonyms do not
exist in a single language` (Palmar. 2009. 234). it is worth important to reconcile
the meaning oI the third sector with civil society and Non Governmental
Organizations. The third sector does not entirely include all NGOs. An NGO
qualiIies to be part oI the third sector when it has no proIit obiective. The third
sector is constituted by all those organizations that are not-Ior-proIit and non-
government. together with the activities oI volunteering and giving which sustain
them. They may be identiIied with several names including non-proIit. non
government. community. voluntary. club. society. association. co-operative.
Iriendly society. church. union. Ioundation and charity. but it is important that
R. S. Damian M.A. (UDSM)
3
they must be civil society organizations which cannot qualiIy to be part oI the
market institutions.

The idea oI the third sector implies something more than civil society
organizations. In the society where these organizations do not have a critical
impact on public aIIairs (economy. policy and public good). civil society can
hardly be elevated to the status oI the third sector. This means that the
components oI the civil society may play a statistically invisible. but critical role
that aIIects the society in terms oI economic policy directions and provision oI
public good.

Theoretically. iI civil society is traced back to the social contract theory oI John
Locke. the importance oI the civil society as the third sector comes in existence.
In this Ioundational basis oI modern liberalism. the emergence oI civil society
organizations roots Irom the idealization oI the state oI nature. According to John
Locke (b. 1632. d. 1704). in the state oI nature man lived peaceIully and loved
one another. but the problem in the state oI nature was lack oI collective
authority
3
to protect mankind and man property. Due to this. the individuals came
together and Iirst Iormed the civil society. In addition. the civil society entered
into contract with the civil government so as to execute collective protection oI
the individuals` liberty and property
4
. In this view. the civil society as individuals
in a collectivity is the owners oI the government. The government is liable oI
respecting the contract by ensuring that individuals are economically and
politically protected Irom threat Irom other individuals` interests. From this
theory; a Iew points can be learnt:
Civil society constitutes the oldest institution than both the state and the
market in the history oI mankind.
AIter creation oI the government. Locke`s theory places a reservation that
attempts to avoid an authoritarian (Hobbesian ) Leviathan Irom
unquestionable control over the civil society and individuals; in this
respect he indirectly advocates the role oI the market to protect individuals
liberty (this is the essence oI the limited government).
Both the state and the market are created by the civil society which is the
owner oI the both the state and the market.
In Locke`s social contract both the state and the market are required. The
state makes sure that the law is not violated and protects individuals`
property and liberty. while the market is important to make sure that the

3
In Locke`s social contract. collective authority is also reIerred as the social government. which is responsible to
the civil society. subiect to the civil society and once it Iails to IulIill the terms oI contract can be removed Irom
power
4
In this respect. civil society is elevated above the civil government (limited government) that can be placed in
power and removed Irom power by the people.
R. S. Damian M.A. (UDSM)
4
state does not exert excessive control over the individuals and their
mankind property.

From the above lessons. the civil society organizations comes in to help
individuals collectively protect their liberty. mankind and man property when
both the state and the market (which are its own creations) Iail to IulIill the needs
oI the individuals politically. economically and socially. This view iustiIies the
emergence oI the third sector as an expression oI the deIects that individuals
observe in the state and market interactions aimed at catering Ior public needs.
Thus. in the next section a brieI explanation oI the context in which the third
sector grew is presented.

Figure 1. Civil Societv-State-Market Essence in Locke's' Social Contract.



From the World of two Actors to the World of Three Actors
The years between 1648 and 1910s have always not been the years oI citizen
groups or individuals in both national and international Political Economy. Both
political and economic relations in the international community were mainly
relations between states. This was basically due to the eIIect oI the Westphalia
treaty oI 1648. which highlighted the states as the only sovereign entities in
international political and economic arrangements. The spread oI the
Westphalian Principles had a sensitive impact on state-civil society relations that
it led to weakening oI the autonomy oI civil society over civil governments
internationally. This has been a Iactor Ior inadequate growth oI the civil society
(the third sector in this respect) internationally up to the Post World Wars period.
This trend can be summarized below.

Before World War II
Evidences oI active participation oI non-state actors in governance are learnt in
the US-European states during the enter war period. This was basically due to the
need Ior their contribution to the economic crisis oI the post First World War.
The period experienced active participation oI inIormal. nongovernmental
institutions in dialogues on managing the relationship and keeping it healthy. The
contributions oI these non-state actors to close relationship among policy leaders
Civil Society
(individuals)
Social
Authority
(Liberty
Protection)
The Market
(Private
Property.
wealth)
R. S. Damian M.A. (UDSM)
5
have been remarkable to the extent that other international community would like
to emulate. Internationally cited contributions oI non-state actors include those oI
the Council on Foreign Relations in New York (established in 1919) and the
Royal Institute oI International AIIairs in London (1920) which were born Irom a
nongovernmental agreement between people in the United Kingdom and the
United States that independent institutions Ior public enlightenment should be
established to Iacilitate discussions and dialogues on issues Iacing the two
countries and the entire world among leaders oI the private sector as well as
political leaders.

These NGOs worked on basis oI common awareness across the Atlantic that
international relations were too important to be leIt solely to governments. which
had indeed Iailed to contain World War I. The other examples include Foreign
Policy Association (1918). the Hoover Institution on War. Revolution and Peace
(1919). the Century Foundation (1919) the National Bureau oI Economic
Research (1920). the Chicago Council on Foreign Relations (1922). the
Brookings Institution (1927). the National Planning Association (1934). and the
American Enterprise Institute Ior Public Policy Research (1943) in the United
States and the Graduate Institute oI International AIIairs (1927) and the Institute
oI Policy (1932) in the United Kingdom. Something important to note is that. the
big companies in these countries encouraged them and Iinanced them to carry out
policy and economic initiatives.

World War II to the Mid-1960s
Post World War II 1960s is regarded as that oI reconstruction oI the
transatlantic relationship aIter the devastation during the war. The
emergence oI a common enemy. the Soviet Union. war devastation.
Iear oI dictatorial rule. and the call Ior the spread oI anti-socialist
economic proiects in new markets made Trans-Atlantic relations much
concerned with security and economic development. This eventually
led to the evolution oI new non-state economic and political
institutions within Europe and across the Atlantic supporting both the
transatlantic alliance and European economic integration.

Example oI these activities was indisputably the Bilderberg
Conference oI 1954 in Rotterdam. This annual NGOs conIerence on
important transatlantic issues is still attended by NGOs. presidents.
prime ministers. and key cabinet members Irom participating countries
R. S. Damian M.A. (UDSM)
6
as well as leading private business and citizens to discuss about
economic direction and policies oI the countries.

Since the Late 1970s
From the late 1970s non state actors have Iacilitated Ior searching
solution Ior the rising tensions between United States and Europe.
Important oI the Iamiliar tensions has been East-West tensions
resulting Irom the Soviet invasion oI AIghanistan and the crisis in
Poland.
During this period. the United States became heavily preoccupied with
its own problems. whereas Europe. too. was more concerned with
common problems on the continent and the prospects Ior a European
community. Europeans were also concerned about what appeared to be
an Asian shiIt by the Americans-as another U.S-European Crisis which
invited more Non state actors role in internal and external aIIairs. A
good contribution oI this era may be given to NGOs like the European
Policy Research Centre and the Council on Foreign Relations which
organized a series oI nongovernmental conIerences with the
participation oI scholars as well as high-ranking Ioreign and deIense
oIIicials on too delicate issues to be addressed via oIIicial channels
(Rosenthal 1998. 35).



Development of the third Sector in Tanzania: Contradicting Statistics.
It is clear that the number oI Non Governmental and Non ProIit Organizations in
Tanzania has increased rapidly aIter 1990. However. the available data on the
number oI Non-ProIit Organizations cannot satisIactorily tell us the exact number
oI NGOs at a given time; mostly due to the contradictory nature oI the data Irom
diIIerent sources. According to Kiondo (1999). there were 19 NGOs only at
independence. Between 1961 and 1980. more 66 NGOs emerged (including 4
quasi governmental NGOs) making the number 85. Between 1980 and 1990. 86
NGOs came into existence making the number oI NGOs 171. The data provided
by CODESRIA in February 2007 show that between 1961 and 1980. there were
only 25 registered NGOs. By 1990 this rose to 41. Between 1990 and 1993 the
number rose to 224. and Irom 1996 there have been more than 6000 registered
NGOs.

R. S. Damian M.A. (UDSM)
7
1able 1. 1rends showing the increase of ACOs in 1anzania, including Registered and non
Registered.
Years unspecified
Colonial
Period 1961-1980 1980-1990 TOTAL
1 Environmental 0 6 0 6
2 Professional 1 16 6 23
3
Quasi
Governmental 0 4 1 5
4 Religious 3 4 14 21
5 Service NGOs 6 27 18 51
6 Women 0 5 3 8
7 Youth 1 4 10 15
8 Not Specified 8 0 34 42
TOTAL 19 66 86 171
(Source. Kiondo. 1999. 8)

According to the Registrar oI Societies. Tanzania had 8499 NGOs as oI
September 1998. By December 2000. there were more than 10000 registered
NGOs (V.P. OIIice. NGO Calendar). Most oI the NGOs are concerned with
issues oI environment. proIessionalism. human rights. religion. education.
gender. poverty alleviation. and peoples` livelihoods. This number is Iar higher
than in Uganda where there are slightly over one thousand and in Kenya where
there are more than six hundred NGOs registered under the national council oI
NGOs (FES. 2000)".

Several Iactors are likely to be the source oI contradiction between these sources
oI data. First oI all. there has been a problem oI locating proIit NGOs as part oI
the civil society. Secondly. the deIinition oI the third sector as used today is
likely to disqualiIy quasi governmental NGOs that have been identiIied by
Kiondo (1999) as constituent part oI the civil society. Lastly; there have been no
clear policy guidelines that clariIy the registration oI NGOs in Tanzania. Some oI
the NGOs are registered by the Ministry oI Home AIIairs. some by the Ministry
oI Cooperatives. some under the ministries concerned with Women. gender.
children and youth. In addition. there are not-Ior proIit NGOs registered by local
authorities as well as BRELA. This nature oI dispersed registration has always
caused diIIiculties to the extent that it is hard to establish the accurate number oI
the organizations in the third sector. Following the estimate made by the
Foundation Ior civil society (FCS) in the late 2009. the number oI NGOs which
are not-Ior-proIit in Tanzania is estimated to be more than 13000 NGOs.

The Cherishing Third Sector in Tanzania after 1980s: Specific Forces
In the analysis above. it was highlighted that non governmental organizations
have existed as Iar as the German colonial period and they provided services to
R. S. Damian M.A. (UDSM)
8
the indigenous people
5
. These organizations may not accurately suit in the
meaning oI civil society as explained by Mallya. that civil society organizations
are groups set up to assist members oI civil society (The space between
individuals and the government (Mallya. 2009. 102). This is logically because
these organizations had an exploitative logic behind them. which aimed at
preparing the indigenous to be incorporated into colonial economy. The
explanations Ior expansion oI the third sector are summarized below:
A self-Help Paradigm. it is held that during the 1980s there was a weakening
oI the welIare state worldwide. This reduced assurance oI the public to service
like water. education and health. The market which could be alternative
provider oI the service Iailed to satisIy the needs oI the public due to the cost
oI services and its special treatment character
6
. Thus. a civil society which had
called both the state and the market
7
to serve its people had to organize the
people Ior designing the means oI helping themselves to produce and
distribute services.
Economic Crisis of 1970s and 1980s. These are mostly attributed to the oil
crisis which led to higher dependence on donors Ior debts. The other crises
include the post Kagera economic collapse oI 1980 and 1981. the drought oI
1983 and the hunger oI 1984. All these iustiIied the inIluence oI western
donors whose conditions included allowing civil society and private
individual to take over peripheral business oI the state.
The Waves of Western Liberal Ideologv. these included democratizations.
pluralism and economic liberalization as a way oI building democratic
society.
The Downing Influence of Socialist Ideologies in Tanzania. The key socialist
path oI development was hampering cleavages and groups which could lead
into lack oI unity. It also emphasized the state as the sole provider oI services
and Iacilitator oI development. The end oI socialist ideologies opened Ior
Iormation oI strong and Iree civil society organizations and the entrance oI
international NGOs.
The emergence of Multipartv Politics. The increase oI political parties
broadened the quest Ior Ireedom oI association and ended unquestionable
suIIocation oI the ruling party and its government over vibrant civil society
organizations.
The Recent Governance Paradigm. The idea oI governance iustiIies the
growth oI the third sector through emphasizing networking relationship

5
A good example oI colonial non-governmental organizations are missionary sects which had built more than
1000 schools providing instructions to more than 110. 000 students over Tanganyika.
6
The market character oI private service is much based on rush Ior proIit in the way that the vender will Iavor a
potential customer who can buy good volumes oI services and products on higher prices.
7
Back to the clariIication provided in the social contract theory oI Locke. both the state and market have been
reIerred to as creations oI the civil society.
R. S. Damian M.A. (UDSM)
9
between the state. private sector and civil society to Iacilitate sustainable
development.

Developmental Role of the Third Sector: Cases and Local Experience
As it was said early. the third sector`s role in governance has increased
noticeably. The role played by the third sector in economic development and the
interaction between the state and the third sector on the Iirst hand. and the
business sector and the third sector on the other hand has not Iigured much in
oIIicial statistics. but the third sector has become an important economic and
developmental engine. This section attempts to analyze the role played by the
third sector in the economy and general development oI the Tanzanian society.
Much oI the attention is placed on the way NGOs and Civil Society
Organizations contribute to production oI goods and service. employment and
their inIluence on important economic policy.

Third Sector and Economic Growth.
The third sector organizations have been perceived as an importantly growing
economic Iorce not only in Tanzania. but worldwide. It is identiIied that iI the
third society organizations studied by Johns Hopkins in 35 countries are brought
together they may Iorm the world`s seventh largest economy in the world
(Salamon et al. 2003. 13). According to Kiondo (2004). the third sector was
Iound to contribute to economic development because a certain part oI the
national GDP comes Irom the non proIit and civil society organizations. In this
respect. third sector accounted Ior 260 USD which is worth 2.9 percent oI the
country`s Gross Domestic Product (GDP). With a strong network oI civic
organizations. it is estimated that the contribution oI the third sector to the GDP
is going to rise to 9.9 percent. From this point. it can be argued that the role oI the
third sector in the growth oI national economy is much important.

When it is compared with Kenya and Uganda. the third sector in Tanzania has a
great contribution to economic growth than the two sister nations. In Kenya. the
third sector was studied to contribute 2.5 percent oI the GDP oI the country. In
Uganda. where historically there has not been healthy environment Ior
development oI the third sector. their contribution to the national Gross Domestic
Product was studied to be 1.4 percent Arguably. the main point here is that; the
strongly the third sector participate in the economy. the higher their contribution
to the national Gross Domestic Product and general economic growth. The
diIIerence oI 1.5 percent in the rates that the third sector accounts to the GDP oI
the nations between Tanzania and Uganda not much bigger. but has a bigger
economic signiIicance when it comes to the contribution oI the sector to
economic growth.

R. S. Damian M.A. (UDSM)
10
Looking at comparative trends oI the national GDP between Tanzania and
Uganda can lead into another signiIicant explanation. As it was introduced early
that the trends Ior growth oI civil society in Uganda has not been as health as the
same trends Ior Tanzania. it can be argued that the diIIerence is partly caused be
the contribution oI NGOs to the GDP Ior each year. See the data showing the
comparative trends oI national GDP between Tanzania and Uganda.


1able 2. Comparative trends of national CDP for 1anzania and Uganda between 199 and 28 in
Billions of USD.

Year 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
Tanzania 4.26 4.6 4.51 6.5 8.38 9.08 9.76 11.4 14.3 16.8
Uganda 4.3 2.86 3.99 6.04 6.58 6.19 6.18 8.47 9.92 12.3

Source: World Bank International Economic Database, Update of Mav 7 21
Figure 1. Line graph showing comparative growth of CDP for Uganda and 1anzania 199 to 28.

0
2
4
6
8
10
12
14
16
18
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
Tanzania
Uganda

From the graph above. the trends suggest that the healthier the environment is Ior
including third sector actors in economic development. the more the opportunity
Ior growth oI national GDP. On basis oI this pattern oI relationship. it would be
concluded that the rising GDP oI Tanzania is due to expansion and more
involvement oI the third sector in economy. This conclusion may however be
hypothetical since the accurate contribution oI the third sector to economic
growth requires empirical studies across diIIerent economic ideologies.

Emplovment and Workforce Aspect.
GDP explains economic growth. but it does not directly include economic well
being oI the society. There are other important aspects through which the role oI
non-state. non-market and not Ior proIit organizations impact economic liIe oI
the society including employment and workIorce aspect. According to Salamon
(2003). there is a great variation among countries on the employment and
workIorce percentage accounted by third sector organizations to the total national
R. S. Damian M.A. (UDSM)
11
workIorce. but among the 39 surveyed countries. they employ 39.5 million Full-
Time-Equivalent workers including Iull staIIs and volunteers.

SpeciIically Ior Tanzania. third sector organizations` workIorce constitutes 1.2
per cent oI the economically active population who serve as Iull employed
personnel in the Iormal sector. 1.9 percentage oI the economically active
population work as volunteers in the Iormal sector oI employment. 75.2 percent
oI the third sector organizations in Tanzania are working as Iull paid staIIs. This
proportion oI the third sector employees who get Iull pay employment in Iormal
sector makes Tanzania the third sector oI Tanzania the second largest provider oI
Iull paid employment to the society aIter Sweden which has 75.9 percent oI civil
and third sector organizations who are Iull salaried employees in proIessional and
non-proIessional Iormal employment.
This trend oI expanding Iormal employment in the third sector is not static.
Between 2003 and the end oI 2004. the percentage oI the Full-Time-Equivalent
workIorce who are employed in the third sector grew Irom 1.2 percent to 2.1
percent thus creating more than 331.000 people employed in the third
sector(Kiondo. 2004. 19). It is worth convincing here to argue that the third
sector is an important contributor to creation oI ensured employment to the
public. Employment in the third sector contribute much to economic
development since it provides a good proportion with ensured source oI income
and livelihood. improved living standard and ability to buy services in the
market.

Direct Production and Deliverv of Services
Principally. third sector organizations are non-proIit oriented. but this does not
imply that they do not engage themselves in productive proiects. The non-proIit
orientation oI the third sector implies that their existence is not primarily iustiIied
with proIit making as a core goal. Unlike the private companies which exist to
make money. third sector organizations exist to make the members oI the society
able to articulate their collective interests and seek Ior ensured solutions
(including public service) through three basic ways. First is through inIluencing
the state so that it can provide better policies concerning distribution oI services
or improving the standard oI public services. Second is through acting as
reconcilers oI the conIlict between the private sector and the public on the quality
versus cost oI services. Third and last being through direct provision oI the
services to the society so as to ensure that public priorities are reIlected in the
services.

Liberalization oI public service production and delivery led to not only the rise oI
private sector. but also the emergence oI the competitive relations between the
private and the third sector. Third sector organizations have currently become the
R. S. Damian M.A. (UDSM)
12
third producer and provider oI public services as it has been Ior the state and civil
society. According to Salamon (2003). the service Iunction dominates the
business oI the third sector in governance. The services production and delivery
Iunction Iorms more than 60 percent oI the activities oI third sector organizations
in developing countries. The international classiIication
8
oI NGOs and civil
society organizations divides the public service production and provision
Iunction oI the third sector into health (services) and Social services (meaning
other services). Out oI the twelve types oI non proIit organizations. health
services oriented organizations more than other non-proIit organizations have
tangible statistical records in developing countries.

According to Mhina et al (2000). health and microIinance are the most model
areas Ior showing evidences oI active Non-ProIit role in service production and
provision. The data Ior the health institutions ownership in the country up to
1999 show that religious and other non proIit actors have done a valuable role in
health services compared to the government. parastatals. and private
organizations.

1able 3: Comparative data for ownership of health facilities in 1anzania up to 1999.

Government VoIuntary ParastataIs Private TotaI
Churches
Non
Churches
Hospitals 81.00 83.00 2.00 17.00 45.00 228.00
Health Centers 284.00 30.00 13.00 6.00 11.00 344.00
Dispensaries 2512.00 450.00 274.00 260.00 580.00 4076.00
Total Health
Facilities 2877.00 563.00 289.00 283.00 636.00 4648.00
Percentage 61.90 12.11 6.22 6.09 13.68 100.00

Source. Compiled from Ministrv of Health 2001.

From the above table it can be generalized that the potentiality oI non proIit third
sector organizations to the process oI making the services available important.
The non-proIit providers oI health services contribute 18.33 percent to the
availability oI health services. Through this way. non proIit provision oI public
services makes the services more available and competitive
9
. And more

8
The International ClassiIication oI Non-ProIit Organizations places non-proIit organizations into 12 categories.
These are; (1) Cultural and recreation (2) Educational and Research (3) Health (4) Social Services (5)
Environment (6) Development and Housing (7) Civic and Advocacy (8) Philanthropic (9) International (10)
religious Congregations (11) Business and proIessional Unions (12) other.
9
The existence oI non proIit organizations providing public services is a reliable means oI controlling unIair
pricing oI public services. Church hospitals have been appreciated in terms oI quality oI services and are said to
be more Ilexible and predictable in terms oI pricing oI services compared to private hospitals.
R. S. Damian M.A. (UDSM)
13
important it awakens the private sector to improve the quality oI services at a
reliable cost.

The third Sector and the State: Competition in Policy and Decisions
Apart Irom the direct economic role oI the third sector. it is important to highlight
the interaction oI the third sector and the state in the policy processes and the
decisions structures in diIIerent state organs. Both international organizations and
civil society organizations in Tanzania have played an important role in
inIluencing policy directions in Tanzania. To simpliIy the examples oI patterns oI
inIluence. the table below will outline the way some organizations have
inIluenced and shaped the policy directions and struggling to see rule oI law.
iustice and due process as parts oI good governance are inculcated in the daily
administration oI state sectors and institutions.

1able 4. 1hird Sector- influence in the social policv and decisions.

Organizati
on
Issue Spearheaded Policy effect/Direction
01
T
a
n
z
a
n
i
a

Y
o
u
t
h

C
o
a
l
i
t
i
o
n

(
T
Y
C
)

Organized the
Programme that
included several Youth
Organizations to design
and Iormulate the
Youth Parliament.
The youth parliament was Iormulated in the late
2009 with wishIul desire to Iormalize the
debate Ior inclusiveness oI the youth in political
and economic decisions. The YP has not proved
creating capacity Ior youth to participate
eIIectively in national economic decisions.
02
T
a
n
z
a
n
i
a

G
e
n
d
e
r

N
e
t
w
o
r
k

P
r
o
g
r
a
m
(
T
G
N
P
)
.

M
e
d
i
a

W
o
m
e
n

o
I

T
a
n
z
a
n
i
a

(
M
E
W
A
T
A
)

Female Student Rights
to resume studies aIter
disruption arising Irom
pregnancy. Fair law to
protect school age girls
against Iorced
marriage. rape and
genital mutation.
Most oI legislations have been adopted; 30
years imprisonment Ior rape. pupils`
impregnation and the girls` right to resume
studies was worked upon though it is practically
hard due to the nature oI the socio-economic
settings including parents` unwillingness to
continue sponsoring education Ior their
daughters aIter they have dropped Irom school
due to pregnancy. Also. it has not become a
Iormalized legal practice to be complied with
by individual schools.
R. S. Damian M.A. (UDSM)
14
03
H
a
k
i
e
l
i
m
u

Struggling to build a
Iair educational policy
that provides equal
rights to education Ior
children Irom both rich
and poor Iamilies.
Formulation oI a policy
that does not allow Ior
commercialized and
competitive primary
and secondary
education.
Has provided critical messages against uniust
educational system including the employing
teachers who are not competent. Encouraging
liberalization and growth oI classes in the
educational system. Hakielimu has also
triggered debates Ior the need to build the
environment Ior protection oI Iemale pupils
against deception and sexual violence. Despite
this. the eIIects have not shaped the policy; they
have rather awakened the public on the need to
review and reIorm the educational system.
04

L
e
g
a
l

a
n
d

H
u
m
a
n

R
i
g
h
t
s

C
e
n
t
r
e

(
L
H
R
C
)
.


It inIluenced Ior
immediate and Iair
decisions oI the court
on the civil case
between Omari Mahita.
the Iormer Inspector
General Police Vs
Rehema Shaban his ex-
house girl. whom he
had impregnated and
abandoned without
care oI the pregnancy
and child.
The three called
upon the government
to close the North
Mara Gold mine due to
its Hazardousness to
human liIe.
LHRC provided advocate (Fredrick
Mkatambo) to volunteer Ior the case. on
September 2009 Resident Magistrate Suzan
Kihawi at the Kisutu Resident Magistrate's
Court gave a iudgment that the girl had to be
compensated Ior the period since 1997. when
she got pregnancy and Mr. Mahita continue to
provide the necessities Ior the child and the
mother without reservation.
On June 26th 2009 the three called upon the
government to order Ior an immediate closure
oI the North Mara Gold Mine. The team issued
a statement amid reports and conIusion over the
contaminated water which is said to leak Irom
the mine all the way to the river whose water is
used by its natives Ior consumption. However.
20 people and hundred oI cattle had been
reported to have died due to either bathing or
consuming the said water. no step was done to
rescue the liIe oI the people on Iavor oI
investors` return on investment.
05
B
a
r
a
z
a

l
a

W
a
n
a
w
a
k
e

T
a
n
z
a
n
i
a
.

(
B
A
W
A
T
A
)

Had to Iacilitate Ior
inclusion and
representation oI all
women in laws. law
making institutions.
and Iight Ior increased
opportunities Ior
women in economic
development related
activities.
Mobilized women Ior 1995 general elections. It
actively advocated Ior increase oI Iree pass oI
women Ior representation in the decision
making institutions. Just two years aIter
elections oI 1995 it was deregistered on
grounds that it had become more political and
had no internal Iinancial transparence
R. S. Damian M.A. (UDSM)
15
06
H
a
k
i

A
r
d
h
i
.

P
a
s
t
o
r
a
l
i
s
t
s

I
n
d
i
g
e
n
o
u
s

N
o
n

G
o
v
e
r
n
m
e
n
t
a
l

O
r
g
a
n
i
z
a
t
i
o
n
s

(
P
I
N
G
O
s
)
.

L
e
g
a
l

a
n
d

H
u
m
a
n

R
i
g
h
t
s

Fair land policy
concerning the
ownership oI Land Ior
Iurthering Women
Economic Intersts.
Actively worked to inIluence the land bill oI
1996 without success. In 1997. when the policy
was to be passed they Iormed the Gender Land
Task Force (GLTF) to work against the
adoption oI the policy. TAWLA reviewed the
land law and identiIied its weakness; TGNP led
played a lobbying role through the parliament.
TAWLA challenged the land commission under
Shivii that had recommended continuation oI
the customary law. Their inIluence was
reIlected in the Land Act oI 1999.


Behind the Scene: Imminence of the Third Sector in Tanzania
Tanzanian scholars are inIormed about the third sector and its components. but
they hardly know what is real happening within the organizations operating in
this sector. The maiority oI the available literature about the role. nature.
classiIication. concepts and the nature oI the relations with the market and the
state are much inIluenced by the researches conducted by the international
organizations including World Bank. International Monetary Fund. United
Development Programme and. Apart Irom these sources. at least the Johns
Hopkins and the Journal oI AIrican Elections have published the knowledge that
roots Irom empirical studied by local scholars who can see what enters and what
leaves through the backdoors oI the third sector organizations.

Despite the Iact that the local scholars can see what is happening in the third
sector organizations. they can hardly get inIormed on what is real happening in
these organizations; at least those who have managed these organizations have
something more. but kept away Irom the eyes and ears oI the Iormal literature. At
this point. Irom my own view as having worked with non governmental
organizations I have Iive points which in my view can be considered to be the
truth about Tanzanian third sector organizations (mostly the NGOs).

The Five Truths about the Third Sector Organizations in Tanzania.
a) Still New and Trusted due to Lack of Alternative. The third sector in
Tanzania seems to be a new and reliable alternative even iI it is not true.
This has grown out oI the sense oI mistrust oI both the state and private
sector. The government oI Tanzania. like Iew developing countries is
accused oI grooming maladministration practices including grand
corruption. lack oI transparence and poor policies. The market which came
in to redress the situation learnt the same culture that has characterized the
public sector. Corruption has gone beyond the public sector to the private
sector. Since there is no trust oI both the government and the private
R. S. Damian M.A. (UDSM)
16
sector. the newly shining sector is trusted by donors and the international
community without option.
b) Monism. The maiority oI the third sector organizations are created by Iew
people with economic dreams (mostly money). These Iew people use other
people to have public legitimacy and name their organizations aIter a
certain burning economic or political issue as a way oI iustiIying their
importance. They alternatively name themselves aIter a certain
disadvantaged group and invite some members Irom those groups so as to
brainwash the registering authority. donors and the public. The real
character that come to highlight privateness oI interests in these
organizations include lack oI transparency. centralized management and
personalization oI powers and decisions
c) Relativism. Except Iew bigger proIessional and international organizations.
participants in the organizations are recruited not on basis oI technical
requirements and qualiIications. but on basis oI blood relations or other
historical and social relations like tribalism. love relations. schoolmate`s
history. having shared work in previous employments or having run certain
business deals together. In some instances. there are organizations in which
brothers and sisters. husband and wiIe. classmates or Iormer roommates at
a university hall oI residence invite each to run the organizations Ior
promised gains.
d) Dependent. a good percent oI the third sector organizations are not having
their own sources oI income. they are basically created to compete with the
government Ior scarce resources that might be attracted Irom diIIerent
sources to provide public good. The age oI competition has now proved the
end with the victory oI the third sector which has gained trust Irom the
donors and today most oI the proiects are directly Iunded and monitored
through NGOs. A good example here is the voter education grant Iacility
Ior the 2010 general elections Irom UNDP.
e) Lack Managerial Capacitv. Most oI the third sector organizations at local
level lack able management structures to manage proiects and Iinancial
resources. Except Iew proIessional and educational organizations. many oI
them use consultants in applying Ior proiects Iunds. when they receive
them they Iail to manage them eIIectively to achieve 100 implementation
oI the proiects. Most oI the Iunds received and are used to Iund
unnecessary study tours. hired vehicles. seating allowances and unqualiIied
consultants.


Conclusion

R. S. Damian M.A. (UDSM)
17
The third sector is a necessary partner in development oI the society in the
situation that both the state and private sector have Iailed to perIorm their
expected responsibility to the public. It has grown into the sector that should not
exist by choice due to the inIluence oI liberal political and economic ideologies.
It is the over trusted part oI the society as it has a sense oI ownership to the
public and it is an alternative to the weaker private sector that exists in the
developing countries. The third sector is growing into an institution that goes
beyond service direction. but a real collectivity oI the public to inIluence the
direction oI the society without private interests at the peril oI the organizations`
obiectives. In this sense. it is a real engine Ior true governance Ior sustainable
development.































R. S. Damian M.A. (UDSM)
18
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st
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