According to this thesis, it is not a matter of whether or not to liberalize the economies in developing countries or whether not to allow private investors but exactly to what extent. With the ongoing globalization of trade and investment, it is peculiar to find that private individual, and foreigners, in particular, are restricted from participating fully in the said privatization and investment of especially developing countries' enterprises. This thesis is written with the hope of pinpointing problems and giving suggestions which may assist in bringing speedier economic changes to the countries in question. Even though other countries are cited for comparative purpose, the focus is on Tanzania as a case study whose current preoccupation is the marketization of its public sector. Tanzania represents the many other strugglings, yet determined, countries of the world.