Small-scale Fishermen and Risk Preferences

Using an experimental approach, we investigate the risk preferences of artisanal fishermen in Tanzania waters of Lake Victoria. The experiment concerns pairwise comparisons of hypothetical fishing trips that vary in expected mean and spread of the net revenue. The results show that about 34% of the fishermen can be considered as risk neutral, 32% as risk averse, and 34% as risk seekers. Econometric analysis indicates that the likelihood of belonging to the risk-seeking group increases if motorboats are used, if fishing is the main source of household income, and if the fisherman is targeting Nile perch. Asset ownership and perhaps socioeconomic variables influence risk preferences.Risk aversion, artisanal fishermen, Tanzania, Lake Victoria, Nile perch, dagaa, Institutional and Behavioral Economics, Resource /Energy Economics and Policy, Q22,

Welfare Implications of the Payment for Environmental Services: Case of Uluguru Mountain –Morogoro

This study was carried to find out the impact of PES (Payment for Environmental Services) on the welfare of the communities in the Uluguru Mountains. The aim of the study is to assess the main objectives of the PES project which is to conserve the environment (forest) and reduce poverty. The assessment of the project is done by looking on the difference between the treatment group (those who participate in PES) and control group (households who do not participate). The study employed a combination of questionnaire and field observation to collect primary data together with a detailed review of literature. The study utilized Propensity Score Matching (PSM), Descriptive statistics, Perception and Logistic analysis. In all the methods of analysis the results shows that there is a significant difference in the poverty status between treatment and control groups with treatment groups showing low level of poverty. In the regression analysis it is shown that participation into the programme, age of the respondents, the level of dependence on natural resources are found to significantly reduce poverty.Keywords: Payment for Ecosystem Services, Welfare, communities Propensity Score Matchin

An Economic Analysis To Sustainable Fisheries Management

The coastal zone is a dynamic area surrounding the interface between land and sea. The coastal area and its resources offer great benefits and opportunities for human use. Most coastal activities in Tanzania rely on the natural resources that the coast offers (fishing, forestry, agriculture, tourism, mining, salt production mariculture etc). Therefore the condition of the coastal ecosystem and social well being are closely linked. The challenge is to maintain and improve the resources base on which those activities are dependent, while developing new economic opportunities in a way that benefits the people of the coast and the nation as a whole. A major constraint is the inadequate institution and legal framework for coastal management. Economics is about efficient allocation of resources. In normal cases market forces provide efficient allocation of resources. In fisheries, however, market forces alone can not produce an efficient allocation. And as it has been evident in this paper there is already overfishing in most of the offshore waters where majority of artisan fishernen concentrate. Thus calling for policy intervention to rescue the stock from depletion. This should include licencing, seasonal closure; finding alternative economic activities to fishermen, and community based conservation approach can as well be instituted.Keywords: Artisan Fisheries, Efficiency, Bioeconomic model, Maximum Sustainable Yield, Maximum Economic Yield, Open Access Equilbrium

The Effect of Climate Change on Agricultural Crop Returns in Uganda

The study examined the effect of climate change on agricultural crop returns in Uganda using the Ricardian Panel Tobit technique and the World Bank Living Standards Measurement Survey (LSMS) data, climate data from Uganda National Meteorological Authority (UNMA) and global weather data. The findings showed that climate related risks account for over 67 percent of agricultural risks and less than 2 percent of the farming households practise irrigation. Farmers that practised irrigation earned higher agricultural returns nationally than their counterparts did. The findings show that the output elasticities with respect to temperature range from -2.02 percent to 0.543 percent. This implies that for the average temperature increase by 1 percent, maize farm returns decreased by 2.02 percent, banana by 1.7 percent, cassava by 1.50 percent and beans by 1.01 percent. While 1 percent increases in rainfall, lowered banana returns by 0.02 percent, beans by 0.08 percent, cassava by 0.035 percent, maize by 0.025 percent except for groundnuts’ returns increased by 0.115 percent. Apart from climate factors, non-climate factors such as capital, labour, farm size, fertilizers and soil quality are equally important inputs and significantly impact on agricultural farm returns. The study proposes that due to unrelenting adverse climate change effects in Uganda, adoption of multi-pronged approaches such as extensive irrigation, agro-insurance, diversification of agricultural activities, use of food cribs during bumper harvests would be the breath of life for Ugandan farmers

Forest Reform in Tanzania: A Review of Policy and Legislation

Community participation in forest management has existed in the United Republic of Tanzania for a long time, but on a small scale. It is common to find trees of certain species are being protected and managed for traditional reasons. It has been observed that forests and woodlands that are managed using traditional knowledge and practices are accorded high respect by concerned communities. Thus, fires or encroachment does not affect them. While the strategy of setting aside forests and woodlands for protection remains the centerpiece of management of these resources in the United Republic of Tanzania, this has been the result of evolutionary process from a conventional to a participatory approach of forest management. In this regards, Tanzania has been considered among successful countries in African in implementing Participatory Forest Management (PFM) as promoted through both Community-Based Forest Management (CBFM) and Joint Forest Management (JFM). Policy provisions and legal framework has been important stepping stones for involvement of different players in forest conservation. In addition, legal reforms have tried to invert the colonial approach that excluded local communities from management and ownership of most resources in their vicinity. PFM typically has been implemented on a forest-by-forest or village-by-village basis, rather than using a landscape approach. But protecting one forest through PFM may displace villagers’ Non Timber Forest Product (NTFP) harvest into other less protected forests, possibly causing greater ecological damage. A landscape approach to PFM would take into account even those forests that are not used by villagers before PFM is introduced but that might be once PFM reduces or eliminates access to alternative forests

Technical efficiency and the role of skipper skill in artisanal Lake Victoria fisheries

Lake Victoria fisheries are important to Tanzanian food security, employment, and foreign exchange, but they have experienced declining performance, largely due to overfishing. This paper studies technical efficiency and skipper skill using Tanzanian fishery data for the two major species, Nile perch and dagaa. The relative level of efficiency is high in both fisheries and several observable variables linked to skipper skill significantly explain the efficiency level.

Fishing Business Arrangements and Sustainability in Lake Victoria Fishing

Fishing is an important activity for communities living adjacent to rivers and lakes—it is an economic activity that generates income and provides sustenance to those engaged in fishing as an occupation. Majority of the crewmembers of the fishing vessels, though small scale, are not the owner of the vessels. Majority are hired and their payment is made in-terms of the share of the catch. The main fish species are Tilapia, Nile perch (sangara), Dagaa, nembe, gogogo and furu. In this article an attempt is made to analyse the existing production relations between the owners of the vessels and the crewmembers and the concern for sustainability. Our results found that the existing sharing system in Lake Victoria poses a big challenge in as far as sustainability is concerned. Some of the system such as the percentage of catch after deducting operation costs are to some extent seems to be exploitative since majority of the owner of the fishing vessels assign high costs. Hence large percentage of the catch will go to the owner of the fishing vessels. Thus, fishermen are compelled to use any means to ensure that they have enough catch. The most favoured sharing model is the ratio in days, in which case each fishing unit is assigned a day, that’s owners’ day, crews day, and vessels day. Regression results further shows that type of fishing gears, in particular mesh size, net length, Boat size, method of propulsion significantly influence the value of catch and the quantity harvested. Mounting of fishing nets is found to negatively influence the quantity of catch in each fishing trip. Suggesting that given the current stock mounting of nets is not an efficient way of catching large quantity of fish

Regulatory Compliance in Lake Victoria Fisheries

This paper analyzes the causes for regulatory compliance using traditional deterrence variables and potential moral and social variables. We use self-reported data from Tanzanian artisanal fishers in Lake Victoria. The results indicate that fishers adjust their violation rates with respect to changes in the probability of detection and punishment, but they also react to legitimacy and social variables. A small group of persistent violators react neither to normative aspects nor to traditional deterrence variables, but systematically violate the regulation and use bribes to avoid punishment

Welfare Implications of the Payment for Environmental Services: Case of Uluguru Mountain –Morogoro

This study was carried to find out the impact of PES (Payment for Environmental Services) on the welfare of the communities in the Uluguru Mountains. The aim of the study is to assess the main objectives of the PES project which is to conserve the environment (forest) and reduce poverty. The assessment of the project is done by looking on the difference between the treatment group (those who participate in PES) and control group (households who do not participate). The study employed a combination of questionnaire and field observation to collect primary data together with a detailed review of literature. The study utilized Propensity Score Matching (PSM), Descriptive statistics, Perception and Logistic analysis. In all the methods of analysis the results shows that there is a significant difference in the poverty status between treatment and control groups with treatment groups showing low level of poverty. In the regression analysis it is shown that participation into the programme, age of the respondents, the level of dependence on natural resources are found to significantly reduce poverty