This chapter explores the debates about the future of the Tanzanian state after independence, which culminated in the Arusha Declaration of 1967. It sets out the contours of elite-level conversations about development in the 1960s, as Tanzania groped for a path forwards that would translate independence into meaningful socio-economic progress. After showing how Julius Nyerere’s decision to embark on a radical programme of socialist reform was motivated by local unrest and the fate of postcolonial regimes elsewhere in Africa, it then revisits the little-understood politics of the Arusha Declaration and its fallout. Offering an alternative dimension to readings of Arusha as a stimulant for national unity, the chapter demonstrates how Tanzania’s socialist revolution created fissures among the political elite. In particular, it pushed Oscar Kambona, a prominent politician, into exile in Britain. The Arusha Declaration represented a critical turning point in Tanzania’s postcolonial history that narrowed space for dissent, while also sowing the seeds for future challenges to the TANU party-state.