LESS THAN A TENTH OF THE TANZANIAN LABOR FORCE IS IN PAID EMPLOYMENT, AND MOST ABLE-BODIED ADULTS ARE STILL ENGAGED IN LOW-YIELDING AGRICULTURE AND HERDING. MODERN PRODUCTIVE EMPLOYMENT IS SCARCE EVEN FOR THOSE WITH AN EIGHT-YEAR PRIMARY EDUCATION. THE INVESTMENT IN FORMAL EDUCATION HAS OUTRUN INVESTMENT IN EDUCATION AIMED AT INCREASING PRODUCTIVITY AND ECONOMIC OPPORTUNITY. HIGHEST PRIORITY SHOULD GO TO AGRICULTURAL EXTENSION, ACCOMPANIED BY A TEMPORARY RESTRICTION OF THE EXPANSION OF FORMAL PRIMARY EDUCATION. THE VICIOUS CIRCLE OF LOW PRODUCTIVITY, INADEQUATE EXTENSION SERVICES, AND SCARCITY OF REVENUES TO TRAIN AND PAY EXTENSION AGENTS CAN BE BROKEN ONLY BY INCREASING EXTENSION SERVICES WITH AN ABSOLUTE MINIMUM OF RECURRENT EXPENDITURE BY THE GOVERNMENT. SIMPLE CRAFT AND COMMERCIAL TRAINING, COMMUNITY DEVELOPMENT AND RESETTLEMENT PROJECTS, YOUTH SERVICES, NATIONAL SERVICE, AND COOPERATIVE TRAINING ARE ALSO NECESSARY. (THE DOCUMENT INCLUDES SIX TABLES.) THIS DOCUMENT IS ALSO AVAILABLE FROM UNESCO, PLACE DE FONTENOY, 75 PARIS-7E, FRANCE, FOR $1.50. (LY)