Poverty-reducing effects of agricultural development in Tanzania

Poverty-reducing effects of agricultural development in Tanzania

Does agricultural development lead to poverty reduction in Tanzania?

This paper reports on a study designed to analyse the causes of agricultural development in selected areas of Tanzania, and to document the extent to which this development has led to poverty reduction.

The paper asks what are the mechanisms which have ensured that the poor have taken part in this development? It also evaluates what implications these findings may have for NORAD support to the agricultural sector.

Findings include:

  • Support to the agricultural sector leading to agricultural development is inherently conducive to poverty reduction
  • The kind of support that will have the largest impact on agricultural development will be location specific, depending on what constitutes the most important constraint to growth in a specific locality.
  • Support to agriculture should not be restricted to issues that are typically within the domain of the Ministry of Agriculture. It is also important to consider issues such as access to markets for outputs and inputs, as poor infrastructure leads to high transport and other transaction costs, and high marketing margins; alternatives to costly road construction to reducing transport cost, e.g. using donkeys; appropriate government policies in marketing, international trade, monetary and fiscal policies are crucial to the development of agriculture.
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