Maximizing impact: The power of combining land tenure formalization and productive social safety nets programmes in Tanzania

Abstract

While standard economic theory considers formal property rights as vital for agricultural productivity and economic prosperity, its potential can be limited by absence of important complementary factors necessary for the mechanism to operate. This study sheds some light on complementarities between Land Tenure Formalization (LTF) and Productive Social Safety Nets (PSSN) programmes in Tanzania. Using the Tanzania national panel survey data (2020/21 wave), we employed a doubly robust Inverse Probability Weighted Regression Adjustment (IPWRA) to estimate the stand-alone and joint impacts of LTF and PSSN on farm productivity, consumption and food security. We find that joint participation in LTF and PSSN programmes significantly improve farm productivity, households’ consumption and food security. We show that joint impacts of LTF and PSSN are greater than sum of stand-alone impacts suggesting a great complementarity between the programmes. Our cross-tenure analysis suggests a stronger joint impact of statutory LTF with PSSN than that of customary LTF with PSSN, and the true opposite for stand-alone impacts. The study recommends the design of pro-poor productive interventions that incorporate potentially complementary interventions for more optimal outcomes. We suggest for further research on possible interactions between LTF and other anti-poverty interventions for more clarity and sound policy implications.