Reform in the agricultural sector: the Tanzanian experience

During the mid to late 1980s and early 1990s, there were a series of reforms in the agricultural sector, including market liberalization, removal of state monopolies, withdrawal of government from production projects, and reliance on the private sector for agriculture production. A major concern has been the fact that reforms have not taken into account existing socio-economic differentiation, and little or no consideration has been given to how policy impacts might have reinforced access to economic opportunities and exacerbated inequalities. The overall objective of this study is to analyze the impact of reforms on both commercial and smallholder subsectors. The research was done through a review of micro-level studies looking at the performance of the sector and rural livelihoods in general under reforms.

The main findings of the paper are as follows:

• reforms in the sector opened up markets by allowing private traders to invest in marketing and processing
• farmers have not captured the full benefits of their production regimes despite operating under a liberalized market scenario
• reforms have been associated with declining access to agricultural inputs, declining output prices and declining access to credit particularly in remote areas
• men have more access and control over agricultural income and women, who have been largely dependent on agriculture, are increasingly diversifying their livelihoods with non-farm income sources

The paper concludes that:

• farming systems and cultivation practices vary, and farmers differ in wealth, resources and livelihood strategies
• the degree of market integration for agricultural, livestock, and natural resource based products also varies
• the impact of reforms in the agricultural sector varies according to these criteria
• a critical constraint for guided implementation of reform policies has been the lack of comprehensive strategic action plans taking on board such variations
• timely formulation of such plans for policy implementation is an important bridge to cross before smallholder farmers can capture the full potential benefits of their production regimes under reforms