Explaining growth in Burundi: 1960-2000.

This study analyses Burundi’s economic performance over the period 1960- 2000 and finds that it has been catastrophic. The usual economic factors explaining growth are endogenous to political decisions, suggesting that it is politics not economics that explains the dismal performance. This picture particularly limits the relevance of textbook models that rely on the assumption of a competitive resource allocation rule. When cronies rather than qualified managers are running the economy, when priority is given to investment projects in function of their location rather than the objective needs of the economy, the economic model loses its explanatory power. Economic performance has been shaped by the occurrence of violent conflicts caused by factions fighting for the control of the state and its rents. The capture of rents by a small group have become the overarching objective of the successive governments that have ruled the country since shortly after its independence. Therefore, the economic system will not change unless the political system is modernised from a dictatorial regime playing a zero-sum game to a more democratic and accountable regime. Therefore, it would be naïve to propose that economic reforms will boost the country’s economy if they are not preceded or at least accompanied by political reforms. One central message of this study is that Burundi’s poor economic performance is the result of specific identifiable factors evolving around governance. There is nothing fundamentally wrong with Burundi: Development failure may be reversed if the issues identified in the study are properly addressed.

Explaining Growth in Burundi: 1960-2000

This study analyses Burundi’s economic performance over the period 1960-2000 and finds that it has been catastrophic. The usual economic factors explaining growth are endogenous to political decisions, suggesting that it is politics not economics that explains the dismal performance. This picture particularly limits the relevance of textbook models that rely on the assumption of a competitive resource allocation rule. When cronies rather than qualified managers are running the economy, when priority is given to investment projects in function of their location rather than the objective needs of the economy, the economic model loses its explanatory power. Economic performance has been shaped by the occurrence of violent conflicts caused by factions fighting for the control of the state and its rents. The capture of rents by a small group have become the overarching objective of the successive governments that have ruled the country since shortly after its independence. Therefore, the economic system will not change unless the political system is modernised from a dictatorial regime playing a zero-sum game to a more democratic and accountable regime. Therefore, it would be naïve to propose that economic reforms will boost the country’s economy if they are not preceded or at least accompanied by political reforms. One central message of this study is that Burundi’s poor economic performance is the result of specific identifiable factors evolving around governance. There is nothing fundamentally wrong with Burundi: Development failure may be reversed if the issues identified in the study are properly addressed.

Determinants of Transaction Costs to Farmers Participation in Groups from Mbozi District in Tanzania

Farmers are often encouraged to form producer groups to facilitate their access to markets in an effort to overcome transaction costs and enjoy economies of scale, which is often advocated in the collective action literature. The role of transaction costs in participation of smallholder farmers groups is attempts that underpin the present paper. The study uses a cross-section data of a sample size of 310 farmers collected from Mbozi District of Tanzania. They include variables capturing transaction costs on farmers’ participation in groups. A model that can be used tocapture elements of transaction costs while explaining influences for farmers’ participation in groups is specified and used in the analysis. Variables capturing transaction costs explaining decisions costs (including information gathering, contracting and negotiating) of farmers to participate in groups are demonstrated and used in the analysis. In light of transaction cost literature only three variables that show significant effect include registration fee or cost of joining a group, distance that captures access to a group meeting place and membership to a market oriented group. Based on the findings, we conclude that policies focusing to loweringtransaction costs through improved transportation, lowering participation fee and promotion of marketing oriented farmer groups would increase farmers’ decision to participate in groups and increase group participants.Keywords: transaction cost, farmers’ group participation, logit model

Innovation and Development in Blended Learning Mode in Higher Learning Institutions: Interactive Experiences from OUT’s Postgraduate Students and Instructors

Although blended learning mode of delivery has been found to be an effective and inexpensive way to enhance learning, there is still need to examine how students and tutors perceive it in the presence of the traditional modes. The purpose of the present study was to examine views and perception of both instructors and students on attributes related to processes of BLM implementation and interactions. Data were collected using a structured questionnaire administered to38 postgraduate students and 14 instructors from The Open University of Tanzania. Data were analyzed using descriptive. Crosstabs were used to describe the association between BLM processes and interactions of BLM by both instructors and students. The results revealed that students‟ and instructors‟ views on BLM processes, such as ease of use of the web environment, evaluation, face to face environment etc., are varied significantly with perceived BLM interactions. Unlike the relatively younger students, the older generations were found to value more of the BLM interactions than of the BLM implementation processes. This paper will help to inform learning institutions intending to go BLM of the best and effective processes for the blended learning environment.Keywords; Blended Learning Mode (BLM), blended learning interactions, BLM implementation processes, Open University of Tanzani

Determinants of Choice of Institutional Marketing Arrangements by Small Poultry Businesses in Tanzania: Application of Transaction Cost Theory

The transaction cost (TC) theory of the firm provides a conceptual model suitable for investigating the mechanism by which business firms evolve and grow. This paper uses poultry farm businesses (PFBs) in Tanzania as a vehicle of assessing relevance of the theory in explaining factors determining choice of institutional arrangement, for the purpose of identifying policy measures that can influence small business firms to opt for contractual businesses. A cross-sectional survey was conducted in two regions in the country covering 170 respondents. Logistic regression analysis indicate that the choice by business firms to opt for a particular institutional arrangement is determined by all the components of total transaction cost (TTC); as all were statistically significant (P < 0.05). It shows also that search and screening cost has greatest impact on choice of institutional arrangement (Wald = 8.745) followed by enforcement cost (Wald = 4.735) and negotiation cost (Wald = 4.735). It indicates in addition that, probability of PFBs to enter into contractual businesses falls with increase in Transaction Costs (TCs). Linear regression analysis shows, in addition that, search and screening cost has greatest elasticity to TTC (Beta = 0.596), followed by enforcement cost (Beta = 0.43) and negotiation cost (Beta =0.437). A theory based intervention should therefore, mainly be focused on reducing search and screening cost, followed by the other components of TTC.Keywords: Transaction costs, poultry farm businesses, institutional arrangement

Determinants of Group Participation: Option and Impact of Farmers’ Participation in Groups in Mbozi District

This paper explores factors that determine farmers’ participation in groups in Mbozi district, Tanzania. Cross-section data used were obtained from face-to-face interviews from a sample of 310 households and 21 farmer groups. Analysis was done by using non-linear logit model and Instrumental Variable. The findings show that type of group, trustworthiness, transaction cost, marital status and the kind of institution initiating group formation are significant determinants of farmers’ participation in groups. The results further show that the average expected income accrued from group participation is Tanzanian Shillings 87,768 more than that obtained by nonparticipants.Key words: farmers’ groups’ participation, smallholder farmers, transaction costs, farmer and group choic

Determinants of Farmers’ participation in high value crops in Tanzania

This paper is based on a study undertaken to analyze market participation of tomato smallholder famers in three districts of Morogoro region in eastern Tanzania. A multi-stage random sampling procedure was employed to select the sample. Determinants and extent of market participation were estimated using Heckman selection and outcome equations respectively. It was found that characteristics of market participants and non-market participants were not statistically different. The paper recommends that that the government should beef up extension services especially in the aspect of market information to farmers in order to enlighten them on the recommended production techniques, market price and also to improve tomato production. Moreover, rural information centres as well as mobile telephony system should be formed so as to enhance tomato farmers’ regular access to information on market dynamics.Key words: Market participation, smallholders, high value crops, Tanzania

Value Chain Analysis of the Cotton Market in Tanzania: Application of Structure-Connduct-Performance (SCP) Model

Using field data from the western cotton growing areas, this discussion paper applies Structure-Conduct-Performance Model to assess the value chain of the crop with a view to identifying competition issues along the entire cotton value chain in Tanzania. Several actors in the cotton subsector were identified along each of the main five nodes of the value chain addition vis input supply, production, buying, processing/ginning and export marketing. The structure, conduct and performance of the cotton market are strongly regulated, and only partially liberalized. However, the assessment on the other hand analyzed a number of opportunities from the economies of scale that have shown that cotton production has a significant profit-margin to the market actors. There is equally ample room for improvement by capitalizing on the advantages pegged on the contract farming, organic cotton production and new low cotton producing areas. Keywords: Tanzania cotton market, value chain analysis, S-C-P mode

Implications of Self-selection Effects and Transaction Costs on Implementation of Collective Action Management for the Common: Evidence from Smallholder Irrigated Rice Farms in the Lake Victoria Basin, Tanzania

This paper explores how farmers self-select into irrigation farming ecosystem, and describe their characteristics and effects on Collective Actions (CA) management in irrigation systems. The study sampled seven irrigation schemes; both traditional improved and modern ones located in the Lake Victoria basin, namely Mahiga irrigation scheme (Ngudu), Igongwa (Misungwi), Nyida (Shinyanga rural), Maliwanda and Nyatwali (Bunda), Cheleche and Irienyi (Rorya). Cross sectional research design is employed to collect data from a total of 184 randomly sampled farm households involved in rice irrigation farming. Collected data are analyzed using Heckman two step procedures to identify self-selection factors. The inverse mills ratio result from the Heckman model is positive and significant at less than 5 % level, confirming the evidence for the presence of self-selection for the sampled farmers. Factors like large number of household labour force;  non tangible benefits like reciprocated information sharing and use of CA association as a bridge to access support; good working rules in the group;  net area sown;  trust in group members and leaders; irrigation position; respect of public services provision /contributions; dodging contributions; violation of rules are important determinants of self-selection, each with specific implication that impact positively or negatively on CA survival. The study concludes that irrigation farming ecosystem choice is a non-random choice, and hence selection of members for organized CA establishment should base on factors described above, which significantly impacted positively self-selection into treatment (irrigation ecosystem type)

Trade Impediments and Market Transaction Arrangements for Maize and Rice in Tanzania

This research paper is focused on the exploration of the impediments to beneficial trade and their resultant market transaction arrangement in maize and rice. The study therefore was confined to the following three specific objectives to first, explore perceptions and experiences on the impediments to beneficial trade among rice and maize growers and their socio-economic impacts for farmers and food security in the study area. Second, to identify production and marketing models and describe their structure, conduct and performance; and thirdly, to describe transaction costs and related impediments in the value added chain for both crops in Tanzania. Survey was done in three regions: Shinyanga region representing rice growing regions and Ruvuma and Iringa regions representing maize growing regions of Tanzania. The study involved a sample of 100 smallholder rice farmer traders and 131 maize farmer traders. This study adapted Williamsonian Transaction Costs Economics (TCE) approach (as applied in Pitelis (1993) and Furubotn et al. (2000) to identify market arrangements based on transaction costs of producing and trading in the two grain crops. Based on the observed farmers’ perception and experiences with prevailing trade impediments, this study has proposed five stylized market arrangements referred to in this paper as Cereal Transaction Arrangements (CTAs). Each of these CTAs was found to have strengths and weaknesses—hence no single trade policy could be more appropriate across all CTAs. The paper recommends that the government should reduce transactions costs in CTA4 and also CTA5 which involve more progressive commercial farmers by putting in place pro-poor trade policies. Such transaction costs include cost of identifying weighing devices, constructing warehouses, corruption, levies and quantitative trade restrictions