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1. How Should Donors Respond to Resource Windfalls in Poor Countries?

Author:
Alan Gelb, Anton Dobronogov, and Fernando Brant Saldanha
Publication Date:
07-2014
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Natural resources are being discovered in more countries, both rich and poor. Many of the new and aspiring resource exporters are low-income countries that are still receiving substantial levels of foreign aid. Resource discoveries open up enormous opportunities, but also expose producing countries to huge trade and fiscal shocks from volatile commodity markets if their exports are highly concentrated. A large literature on the "resource curse" shows that these are damaging unless countries manage to cushion the effects through countercyclical policy. It also shows that the countries least likely to do so successfully are those with weaker institutions, and these are most likely to remain as clients of the aid system. This paper considers the question of how donors should respond to their clients' potential windfalls. It discusses several ways in which the focus and nature of foreign aid programs will need to change, including the level of financial assistance. The paper develops some ideas on how a donor like the International Development Association might structure its program of financial transfers to mitigate volatility. The paper outlines ways in which the International Development Association could use hedging instruments to vary disbursements while still working within a framework of country allocations that are not contingent on oil prices. Simulations suggest that the International Development Association could be structured to provide a larger degree of insurance if it is calibrated to hedge against large declines in resource prices. These suggestions are intended to complement other mechanisms, including self-insurance using Sovereign Wealth Funds (where possible) and the facilities of the International Monetary Fund.
Topic:
Economics, International Trade and Finance, Natural Resources, and Foreign Aid
Political Geography:
Uganda, Kenya, Tanzania, and Ghana

2. Policy making and implementation in agriculture: Tanzania's push for irrigated rice

Author:
Ole Therkildsen
Publication Date:
11-2011
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
Tanzania's 2005 push to increase rice production by ambitious rural investments in irrigation and by tariff protection of its rice industry from cheap imported subsidised rice has apparently highlevel political support. Yet, the implementation has run into problems: non-compliance with the tariff, substantial smuggling of cheap rice through Zanzibar, and low sustainability of irrigation schemes due to poor local-level operation and maintenance.
Topic:
Agriculture, Economics, and Food
Political Geography:
Africa and Tanzania

3. Cargo Cult in Africa: Remittances and the State in Tanzania

Author:
Peter Hansen
Publication Date:
07-2010
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
This paper examines remittance and diaspora policy formation in Tanzania as cargo cult. Both migration-development policy formation and cargo cults express the belief in the miraculous transformation of the local by the arrival of wealth emanating from the outside. The paper is based on ethnographic research in Dares Salaam, and adds to our understanding of the links between migration and development in Tanzania, and to our understanding of the relationship between remittances and the state, where the underlying cultural values, ideas and imaginaries expressed in remittance policies and thinking have been ignored.
Topic:
Development and Economics
Political Geography:
Africa and Tanzania

4. Strategies for Growth and Poverty Reduction: Has Tanzania's Second PRSP Influenced Implementation?

Author:
Dennis Rweyemamu
Publication Date:
09-2009
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
Tanzania's current growth and poverty reduction strategies are contained in its second PRSP. This document, and the processes leading to its formulation, has helped to mobilize donor funds. However, the content of the PRSP is largely irrelevant for implementation, and has contributed little to better inter-sectoral linkages and synergies both of which were its main purposes. The immediate reasons for this irrelevancy include a participatory planning process not aligned with the domestic political process and with no budget constraints which led to a shopping list of un-prioritized initiatives; an implementation machinery around the budget process which in practice does not ensure that resources are allocated in line with the document's priorities; and limited understanding and/ or acceptance across the spectrum of government institutions and political leadership that the PRSP is the overall strategic guiding document.
Topic:
Development, Economics, Poverty, and Foreign Aid
Political Geography:
Africa and Tanzania

5. What's in it for Labour? Private social standards in the cut flower industries of Kenya and Tanzania

Author:
Lone Riisgaard
Publication Date:
08-2007
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
Export of cut flowers from East Africa to Europe is an example of how tightened quality regulations and increasing concern with social and environmental issues have created a highly codified industry. For producers participating in value chains driven by large retailers, adopting social and environmental standards is a requirement and specificities are dictated by the buyers. In this paper focus is on private social standards and the opportunities and challenges they pose for labour organizations, especially trade unions. By incorporating the concept of labour agency, global value chain analysis is widened to encompass not just industrial development but also labour development.
Topic:
Agriculture, Economics, and Emerging Markets
Political Geography:
Kenya, Africa, Tanzania, and East Africa

6. The Spice Industry in Tanzania: General Profile, Supply Chain Structure, and Food Standards Compliance Issues

Author:
Evelyne Lazaro and Adam Akyoo
Publication Date:
03-2007
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
The fall in the agricultural sector's contribution to Tanzanian export earnings since the early 1990s has increased attention toward new crops with the potential of supplementing the country's traditional export crops. Particular attention has been focused upon identifying crops enjoying price stability, high demand elasticity and low substitutability. Spices fall into this category. Consequently there have been efforts by public agencies and private exporters, both on the mainland and on Zanzibar, to promote the crop. However, access to high value export markets raises issues of supply chain dynamics and conformity with international standards. This paper focuses upon the recent history of the spice industry in Tanzania with reference to these issues. The main conclusions are that Certified Organic standards are the only international standards complied with, and that a very loosely coordinated chain exists alongside a more coordinated one. Macro- and micro-institutional weaknesses need attention if the full potential of the sub-sector is to be realized.
Topic:
Economics, Health, and Industrial Policy
Political Geography:
Africa, Zanzibar, and Tanzania

7. Local stakeholders' use of forest reserves in Kasyoha-Kitomi forest landscape, Uganda and Nguru south forest landscape, Tanzania

Author:
Kim Raben, Michael Kidoido, David Loserian, Johnson Nyingi, and Zarupa Akello
Publication Date:
01-2007
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
Tropical forests are characterised by stakeholders with multiple and often conflicting interests. This paper identifies and analyses local stakeholders in the Participatory Environmental Management (PEMA) programme in the Kasyoha-Kitomi forest landscape in Uganda and the South Nguru forest landscape in Tanzania. The overall objective of the PEMA programme is to pilot and promote an approach to the management of natural resources in two high-biodiversity Forest Reserves and surrounding landscapes that reconciles the conservation and development interests of multiple stakeholders at local, national and international levels. The Danish Institute for International Studies had as one of its task to carry out an analysis of local stakeholders i.e. the rural people in the forest landscapes, who directly or indirectly benefit from services provided by the forests. The image of stakeholders and interests in forest management is complex and stakeholder analysis provides a means to start understanding it. Based on the stakeholder identification methodology (Ravnborg and Westermann 2002) the paper investigates stakeholders and the interdependencies among them with regard to the management of natural resources. Point of departure is taken in individuals’ interests, and previous and current uses of services provided by the Kasyoha-Kitomi Forest Reserve and Nguru South Forest Reserve are documented. These services are for instance the provision of agricultural land, wood products, NTFP, hunting, fishing, grazing and the less tangible services such as climate regulation, water quantity and quality. Where possible, interests are distinguished according to social groups. It is concluded that local inhabitants’ stakes in the forest reserves are determined by their access to technology, capital, markets, skills, as well as their locality, gender, age, ethnicity and (lack of) alternative livelihood strategies. In addition, the context of inter-related demographic and socio-economic processes that influence patterns of resource use and determine (and change) local inhabitants’ interests in and use of the forests are described and conflicting interests and interdependencies identified. The stakeholder analysis provides a start to understanding the complex picture of interests attached to the forests and the potential for involving local stakeholders in the PEMA programme. The paper concludes, among other things, that activities such as cultivation within the forest reserves, labouring in logging activities, collection of material for thatch and sambu oil seeds are mainly the interests of the poor local inhabitants. Findings from both forest landscapes show that NTFP such as weaving and thatch material constitute important sources of income for the local inhabitants including the poor and should thus be considered when negotiating use rights to resources in the forest reserve. In general, it is recommended that profound attention is given in the PEMA programme to improving the local stakeholders’ access rights to the forest reserves and not just meet the interests of more powerful non-local stakeholders
Topic:
Economics and Environment
Political Geography:
Uganda, Africa, Tanzania, and Southeast Asia

8. Institutional Analysis of Financial Market Fragmentation in Sub-Saharan Africa: A Risk-Cost Configuration Approach

Author:
Machiko Nissanke and Ernest Aryeetey
Publication Date:
08-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The paper examines the source of financial market fragmentation in sub-Saharan Africa in the framework of institutional economics. Based on fieldwork data from Ghana, Malawi, Nigeria, and Tanzania, it analyses financial risk management, the transaction costs for loan screening and monitoring, and contract enforcement. It shows how, faced with various institutional constraints, the range of clientele selected by formal and informal lenders becomes both narrow and at the extreme market-ends. It evaluates the prevailing state of managing risks for market structure, and binding institutional constraints for market transformation and deepening in sub-Saharan Africa.
Topic:
Development, Economics, and Markets
Political Geography:
Africa, Tanzania, Nigeria, Ghana, and Malawi