When Germany was defeated in the First World War, Tanganyika was given to the British. Germany threatened to come back and take over Tanganyika. This uncertainty over the territory kept away the investors thereby leaving her undeveloped.

Tanganyika did not benefit from the industrialization that took place after the second world war.

The need for nationalization of all assets to be in the hands of government.

The colonial Masters had failed to develop agricultural production by the small scale farmers. Tanzania was capable of producing maize, beans, sisal, wheat, rice both for export and for domestic use.

By the time of independence, Tanganyika had very poor roads, industries, schools and health facilities and low skilled manpower.
The government found it very easy to assist the people because they were concentrated in one village. Provision of health services, piped water and electricity became easy.

Nyerere looked at Ujamaa as a means through which to increase production in both agricultural and industrial products.

Through organised Ujamaa villages, Nyerere had an aim of politicizing and educating more peasants. Each village had an attached expert in fields like education, health, politics, veterinary, and agriculture, among others.

Tanganyika's threat to recognize East Germany as well as the support it was giving liberation movements in Mozambique, Angola, and Zimbabwe caused the flight of the few remaining investors hence leaving the country in crisis.

The sharp fall of the price of sisal on the world market left the country in poor economic shape that needed a good policy, which would force the participation of all people to revive the economy.

There was need for provision of education for self-reliance with at least people who could make something good for Tanzania. Emphasis was put on Unity and same language.

Africanisation of the economy based on African, culture, extended family structure and the benefit for all Africans.

The need for promotion of equality of all Tanzanians to contribute equally to national development for the benefit of all people in the same way.

Promotion of national defence by taking all able bodied citizens for national training.

To fight poverty which was identified as a more serious problem causing all other problems.

To bring to an end the level of segregation which had come up during colonial period.