This background briefing describes recent developments in Tanzania in light of the general election in 1980, which hinged upon the prevailing economic malaise within the country. This has been accompanied by an expanding bureaucracy. Against this background, a protest vote was registered on the part of the population, but directed at the National Assembly, rather than the Presidential and Vice-Presidential candidates. The reasons for Tanzania’s economic predicament, include increasingly rigid socialism, the cost of the Tanzanian involvement in ousting Amin from Uganda, recurring drought since 1977, and imported inflation from Tanzania’s trading partners. This document discusses economic development in Tanzania since 1967, as well as the marketing and weaknesses of the agricultural sector, and its regional position since the break-up of the East African Community. President Nyerere’s credibility is threatened on the domestic front, but he also faces increased external criticism which, although muted, is sufficient to reduce his international influence. The international influence of Third World states is not necessarily related to their domestic problems.