Tanzania, July 15 -- Whenever the price of coffee falls, farmers expect government to intervene. When fuel prices rise, motorists demand action. When bus fares increase, passengers look to regulators for protection.

More recently, butchers in Bukoba reportedly appealed to government to support higher meat prices after a local rancher began selling beef more cheaply than they were charging.

These examples have one thing in common. They all reflect a deeply rooted belief that government should determine prices whenever markets produce uncomfortable outcomes.

That expectation is understandable. It is a legacy of Tanzania's economic history.

For nearly two decades after the Arusha Declaration of 1967, government occupied the commanding he...