Economic growth, rural assets and prosperity: exploring the implications of a 20-year record of asset growth in Tanzania

Dan Brockington,Olivia Howland,Moses Mnzava,Christine Noe,Vesa-Matti Loiske

doi:10.1017/s0022278x18000186

Abstract

AbstractMeasures of poverty based on consumption suggest that recent economic growth in many African countries has not been inclusive, particularly in rural areas. We argue that measures of poverty using assets may provide a different picture. We present data based on recent re-surveys of Tanzanian households first visited in the early 1990s. These demonstrate a marked increase in prosperity from high levels of poverty. It does not, however, follow that these improvements derive from GDP growth. We consider the implications of this research for further explorations of the relationship between economic growth and agricultural policy in rural areas.

Highlights

Rapid economic growth is transforming many African economies (Radelet )
We present data based on recent re-surveys of Tanzanian households first visited in the early s
Others observe that growth at the national scale is accompanied by rural differentiation and class formation in villages that maintain significant deprivation (Mueller )

Summary

Introduction

Rapid economic growth is transforming many African economies (Radelet ). Sustained high rates of growth (despite downturns and austerity elsewhere in the world), macro-economic stability, relatively low inflation, and growing investment and infrastructural development are seeing numerous countries become more prosperous. Some observers are celebrating a rising continent, that will be known for its growth, peace and stability (Chuhan-Pole & Angwafo ). Whether this growth is inclusive and pro-poor is less obvious (Barrett ). The highly visible prosperity in urban areas that characterises current economic growth can conceal persistent poverty in rural areas. Others observe that growth at the national scale is accompanied by rural differentiation and class formation in villages that maintain significant deprivation (Mueller ). Dercon’s call for more longer-term insights into the fortunes of rural households during periods of growth remains as relevant as ever (Dercon )

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Results

Discussion

Conclusion