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The Formal Divide: Customary Rights and the Allocation of Credit to Agriculture in Tanzania

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  • Howard Stein
  • Faustin P. Maganga
  • Rie Odgaard
  • Kelly Askew
  • Sam Cunningham

Abstract

It is generally held that one mechanism to enable inclusive growth in Tanzania is enabling farmers to access credit to raise productivity and incomes. The formalisation of property rights in Tanzania is being undertaken by a multiplicity of actors at great expense to donors, individuals and the government. While there have been a variety of different justifications for allocating Certificates of Customary Rights of Occupancy (CCROs) to farmers in Tanzania, perhaps the most prominent argument is that it will enable farmers to finally overcome the divide between ‘informal’ customary rights and the formal banking sector. CCROs would provide the collateral that would induce banks to lend money to small-scale farmers. As part of a six-year investigation in Manyara, Mbeya and Dodoma regions, our research team evaluated the impact of formalisation on farmers’ access to credit. The paper will present the results while pointing to the continuing institutional and market imperfections that perpetuate the formal divide.

Suggested Citation

  • Howard Stein & Faustin P. Maganga & Rie Odgaard & Kelly Askew & Sam Cunningham, 2016. "The Formal Divide: Customary Rights and the Allocation of Credit to Agriculture in Tanzania," Journal of Development Studies, Taylor & Francis Journals, vol. 52(9), pages 1306-1319, September.
    • Handle: RePEc:taf:jdevst:v:52:y:2016:i:9:p:1306-1319
    DOI: 10.1080/00220388.2016.1146701
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    References listed on IDEAS

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    1. Klaus Deininger, 2003. "Land Policies for Growth and Poverty Reduction," World Bank Publications - Books, The World Bank Group, number 15125.
    2. Field, Alfred J. & Field, Erica & Torero, Maximo, 2006. "Property rights and crop choice in rural Peru, 1994-2004:," MTID discussion papers 100, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Engström, Linda & Bélair, Joanny & Blache, Adriana, 2022. "Formalising village land dispossession? An aggregate analysis of the combined effects of the land formalisation and land acquisition agendas in Tanzania," Land Use Policy, Elsevier, vol. 120(C).
    2. Ali, Daniel Ayalew & Deininger, Klaus, 2021. "Does title increase large farm productivity? Institutional determinants of large land-based investments' performance in Zambia," 2021 Conference, August 17-31, 2021, Virtual 315328, International Association of Agricultural Economists.
    3. Ali, Daniel Ayalew & Deininger, Klaus, 2022. "Institutional determinants of large land-based investments’ performance in Zambia: Does title enhance productivity and structural transformation?," World Development, Elsevier, vol. 157(C).
    4. Howard Stein & Rie Odgaard & Kelly Askew & Faustin Maganga, 2024. "The World Bank and Rural Land Titling in Africa: The Case of Tanzania," Development and Change, International Institute of Social Studies, vol. 55(6), pages 1150-1181, November.
    5. Biddulph, Robin, 2018. "The 1999 Tanzania land acts as a community lands approach: A review of research into their implementation," Land Use Policy, Elsevier, vol. 79(C), pages 48-56.
    6. Biddulph, Robin & Hillbom, Ellen, 2020. "Registration of private interests in land in a community lands policy setting: An exploratory study in Meru district, Tanzania," Land Use Policy, Elsevier, vol. 99(C).
    7. Ali, Daniel Ayalew & Deininger, Klaus, 2024. "Using registry data to assess gender-differentiated land and credit market effects of urban land policy reform: Evidence from Lesotho," World Development, Elsevier, vol. 175(C).
    8. Bailey, Rachel & Hartarska, Valentina, 2017. "Women's Property Rights and Outreach of Microfinance Institutions Targeting Women," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 253159, Southern Agricultural Economics Association.
    9. Milford Bateman, 2024. "Land Titling and Microcredit in Cambodia: Examining the Reality of Hernando de Soto’s ‘Three Steps to Heaven’," Land, MDPI, vol. 13(4), pages 1-31, April.

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