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The strategic role of the private sector in agriculture and rural development - Tanzania
The strategic role of the private sector in agriculture and rural development - Tanzania
The strategic role of the private sector in agriculture and rural development - Tanzania
The strategic role of the private sector in agriculture and rural development - Tanzania
The strategic role of the private sector in agriculture and rural development - Tanzania
The strategic role of the private sector in agriculture and rural development - Tanzania
The strategic role of the private sector in agriculture and rural development - Tanzania
The strategic role of the private sector in agriculture and rural development - Tanzania
The strategic role of the private sector in agriculture and rural development - Tanzania
The strategic role of the private sector in agriculture and rural development - Tanzania
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The strategic role of the private sector in agriculture and rural development - Tanzania

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Join IFAD and the Global Donor Platform for the launch of the report: The strategic role of the private sector in agriculture and rural development. Jonathan Mitchell (ODI), lead author of Platform …

Join IFAD and the Global Donor Platform for the launch of the report: The strategic role of the private sector in agriculture and rural development. Jonathan Mitchell (ODI), lead author of Platform Knowledge Piece 3 will be joined in his presentation via video by the authors of the Tanzania, Thailand and Vietnam country studies: Frédéric Kilcher, Wyn Ellis and Pham Thai Hung. A Question and Answer session will follow each discussion point.

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  • 1. The strategic role of the private sector in agriculture and rural development Tanzania Case Study Frédéric Kilcher Wednesday 28th March 2012 International Fund for Agricultural Development, Rome .
  • 2. Content1. Policy environment for PSD in rural areas2. Donor approaches to PSD in rural areas3. Private Sector responses: Case studies – Rice Sector – Banana Sector – Coffee Sector4. Conclusion2
  • 3. Tanzania Policy Environment for support to PSD in rural areas• From “ujamaa” to a “free market economy”• A slow transition• Improving policies• But insufficient law enforcement – Doubletalk? – Budgets3
  • 4. Donor approaches to PSD in rural areas• Budget support: how does the Government support private sector development?• Construction of infrastructures• Projects and private sector support?• Ideology and “fashions” VS pragmatism: support to the private sector actors left out.• Weak areas – Finance, – Embedded private sector development services4
  • 5. Private Sector responses: Case studies• Overall private sector response – GDP growth • General • Agriculture – Investments and performance • FDI: General / Agriculture • Local: General / Agriculture5
  • 6. Private Sector responses: Case studies• Coffee – An important export commodity – Initially, there was a strong state involvement – Disengagement with economic crisis and management failures – Private sector engagement and state control through the coffee board – Hesitations between a value chain approach and unstructured responses to lobby groups – Hectic developments worsened by world market conditions6
  • 7. Private Sector responses: Case studies• Rice – A strategic commodity initially controlled by the state – Failure and slow privatization of the NAFCO and NMC – Support concentrated on infrastructure (irrigation schemes), research and subsidized inputs – Slow private sector take off7
  • 8. Private Sector responses: Case studies• Banana – Support concentrated on research on diseases – A perishable food crop – Value chain successfully built up without government support but endangered by insufficient extension and business development services8
  • 9. Private Sector responses: Case studies• Liberalization: a success for PSD in rural areas?• Reasons of failure: – A damaging double focus – State interventionism – Poor law enforcement – Insufficient Business Development Services (from the state, donors and private actors) – Financing mechanisms not adapted – Poorly utilised resources?9
  • 10. Conclusion• Liberalization: a success for PSD in rural areas? – Huge source of self employment, – Value chains built up without support but – Too many missing services: finance, extension, research, weights and measures, law enforcement, – Under-performing value chains that affect the farmers (1.5 USD/day for over 20 M persons) – Insufficient coordination of state interventions decrease the possible benefits of the good interventions – Donors not sufficiently private sector oriented10

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