Abstract: While enough has been written on the role of state and market in the economy, the intellectual attention has now been how the market can operate smoothly and for mutual benefits of investors and host countries. Following failure of state planned socialist economies and success of state planed capitalist countries followed by financial crisis in East Asia over the last century, capitalism and market policies were said to be an alternative. However failure of market economy in the recent years, made most scholars to conclude that both state and market have vital role in the economy. However both need to be regulated by effective institutions to avoid arbitrary state interference on one hand and corrosive market effect on the other hand. In most developing countries market is considered to be the best option to realize catch up industrialization through capital and technological transfer possibilities. Market policies are running smoothly in pure capitalist countries than in post socialist countries. This study explores effects of socialist legacy in the smooth functioning of market institutions in Tanzania. Based on convergence-divergence-cross-vergence (CDC) theoretical framework, this study provide a model on how to solve the conflict between socialist legacy, national culture and newly introduced capitalist values in the form of market economy.
Keywords: Market, Market Institutions, socialist legacy, post socialist countries and economic ideology.
Title: Effects of Socialist Legacy in the Smooth Functioning of Market Institutions in Tanzania
Author: Tresphory Othumary Mgeni
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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