DEVELOPMENT RESEARCH

by Hugh Wenban-Smith

This compilation of articles on Tanzania, culled from journals in the LSE library, cov­ers January to June 2015. The abstracts are based on those published by the author(s).

“Regulatory compliance in Lake Victoria fisheries” Eggert, H & RB Lokina Environment and Development Economics Vol 15(2).
This paper analyses the causes for regulatory compliance, using traditional de­terrence variables and potential moral and social variables. We use self-report­ed data from 459 artisanal fishers in Lake Victoria. The results indicate that the decision to be either a non-violator or a violator, as well as the violation rate – if the latter – are influenced by changes in deterrence variables like the probability of detection and punishment and also by legitimacy and social variables. We also identify a small group of fishers who react neither to normative aspects nor to traditional deterrence variables but persistently violate the regulation.

“Households’ income-generating activities and marginal returns to labour in rural Tanzania” Nerman, M Journal of African Economies Vol 24(3).
This study uses detailed household-level data to assess whether rural Tanza­nian households seem able to allocate labour so as to maximise their incomes, and what factors determine if they do. In contrast to much earlier work on in­come diversification I use crop-level data to explicitly evaluate marginal returns within agriculture. The integrated household survey used allows me to then link these returns to household characteristics and broader labour supply deci­sions and consumption behaviour. In line with expectations, agricultural wage work seems to be a last resort option, as agricultural wage labourers have lower marginal returns than others due to a higher labour allocation to own agricul­tural production. Furthermore, wage rates are much higher than the shadow wages, implying that there are gains to be made from expanding the non-farm side of the rural economy.

“Rural policies, price change and poverty in Tanzania: An agricultural house­hold model based assessment” Tiberti, L & M Tiberti Journal of African Econo­mies Vol 24(2).
The main objective of this study is to develop a robust and comprehensive tool to evaluate the effect on household welfare of different agricultural policies in Tanzania and food price changes. A two-stage estimation strategy is adopted: the shadow price of labour is first estimated and then used to estimate produc­tion and demand systems as well as labour market functions. These models are subsequently used to simulate the effect on household welfare of a hypotheti­cal 40% increase in the price of cereals and other crops and a hypothetical 10% increase in the hectares of arable land and in the use of ox-ploughs. The results are finally compared with the case in which a separable model is adopted.

“Inter-temporal and spatial price dispersion patterns and the well-being of maize producers in Southern Tanzania” van Campenhout, B, E Lecoutere & d’Exelle B Journal of African Economies Vol 24(2).
We revisit a methodology to gauge the short-term effect of price changes on smallholder farmer’s welfare that is popular amongst policy makers and aca­demia. Realising that farmers face substantial seasonal price volatility over the course of an agricultural year, we pay particular attention to the timing of sales and purchases. In addition, we depart from the implicit assumption that all farmers scattered across rural areas face the same prices when interacting with markets. Using maize marketing during the 2007-2008 agricultural season in a sample of smallholders in Tanzania as an illustration, we find that especially poor farmers face greater losses than what a standard analysis would suggest. We also relate our methodology to factors that are likely to affect potential ben­efits or costs from inter-temporal and spatial price dispersion, such as means of transport, access to price information and credit.

“The role of credit facilities and investment practices in rural Tanzania: A comparative study of Igowole and Ilula emerging urban centres” Larsen, MN & T Birch-Thomsen Journal of Eastern African Studies Vol 9(1).
Small urban settlements or small towns in rural areas represent the fastest ur­ban growth in most of the African continent. Along with a renewed political interest in African agriculture, the role of urban settlements has gained a promi­nent position in poverty reduction in rural areas and as an alternative to out-migration. Based on data collected between 2010 and 2012 covering more than 60 business operators in two emerging urban centres (EUCs) and their rural hinterlands, the article explores development trajectories in two EUCs in Tan­zania, both of which have experienced rapid population growth and attracted new investments in business by both migrants and the indigenous population in an effort to exploit new opportunities in the centres. The initial urbanization has not been driven by the state or by new institutional interventions such as microfinance but rather by the ‘market’. This paper argues that microfinance plays a role in facilitating possibilities for some businesses to sustain, expand or diversify their businesses once the business is well-established in the EUCs. Migrants play a pivotal role for the early development and later diversification of business activities within both EUCs. They have been attracted by new in­vestment opportunities and bring capital and knowledge from previous experi­ences with economic activities.

“The challenge of intermediary coordination in smallholder sugarcane pro­duction in Tanzania” Mmari, DE Journal of Modern African Studies Vol 53(1).
Orthodox approaches to development view the market as a key institution for driving economic transformation and for fostering innovation and com­petitiveness. The working of markets alone, however, does not always lead to improved outcomes such as increase in productivity or production efficiency in the context of smallholders. This paper examines the role of intermediary coordination in addressing constraints to efficiency and productivity in small­holder sugarcane producers in Tanzania. It also makes a contrastive analysis of different organisational arrangements for smallholder sugarcane producers in Malawi. The key proposition is that while intermediary organisations of cane out-growers in Tanzania have played a significant role in promoting effective market linkages, an increase in productivity required for competitiveness is limited by the lack of effective horizontal coordination.

“Participatory forest carbon assessment in south-eastern Tanzania: Experi­ences, costs and implications for REDD+ initiatives” Katani, KZ, I Mustalahti, K Mukama & E Zahabu Oryx (FirstView article, 25 June 2015)
The aim of this study was to determine the changes in forest carbon in three vil­lage forests in Tanzania during 2009-2012 using participatory forest carbon as­sessment, and to evaluate the capability of the local communities to undertake the assessment, and the costs involved. The results show that forest degradation is caused not only by disturbance as a result of anthropogenic activities; other causes include natural mortality of small trees as a result of canopy closure, and the attraction of wild animals to closed-canopy forests. Thus mechanisms are required to compensate communities for carbon loss that is beyond their control. However, an increase in the abundance of elephants and other fauna should not be considered negatively by local communities and other stakehold­ers, and the importance of improved biodiversity in the context of carbon stocks should be emphasised by those promoting REDD+ (Reduced Emissions from Deforestation and Forest Degradation). This case study also shows that the cost per Ha of USD < 1 for participatory forest carbon assessment is less than that re­ported for Tanzania and elsewhere (USD 3-5); this is attributed to the large area of forest studied. However, the cost of data analysis and reporting in 2012 (USD 4,519) was significantly higher than the baseline cost (USD 1,793) established in 2009 because of the involvement of external experts. “Landlords in the making: class dynamics of the land grab in Mbarali, Tanza­nia” Greco, E Review of African Political Economy Vol 42(155).
This paper reorients the analysis of land grabs in Tanzania towards the role of class dynamics. It draws on primary research on resistance against the privati­sation of a rice farm in Mbeya region. This is a land grab ahead of its time, as it occurred before the wave of global land enclosures spurred by the 2007/8 crisis. The paper argues that the recent wave of dispossession builds on pre-existing processes of rural social differentiation and class formation, which are played out through the politics of land and its class dynamics. It claims that if scholar­ship is to support the progressive potential of resistance against land grabs in Africa, the class dynamics of land grabs must be acknowledged.

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