The context of Tanzania is such that there is close link between achieving industrialization and achieving agricultural transformation. Increased growth in agricultural productivity, output and income contributes to a rapid reduction in rural poverty, supplies raw materials to industries and makes agriculture a market for industrial outputs. Policies that fail to take into account this nexus are bound to have little if any, impact in the overall national development.

Smart Industrialization in Tanzania: The Process

Industrialization entails structural transformation of a traditional economy dominated by primary activities into a modern economy where high-productivity activities in manufacturing assume an important role. Invariably this process remains a defining feature of economic development. This definition suggests that economic growth and development requires shifting production factors from low-productivity to high- productivity activities that allow for learning, externalities and higher profits and wages. But this process is not spontaneous or automatic.

Limited non-farm opportunities in the rural areas of the developing world, coupled with population growth, means agriculture will continue to play a dominant role as a source of livelihood in these areas. Thus, while rural transformation has dominated recent literature as a way of improving welfare through diversifying into non-farm sectors, improving productivity and resilience to shocks in smallholder agricultural production cannot be downplayed.

Payment for ecosystem service (PES) programs are increasingly being promoted as suitable mechanisms for addressing degradation of forest resources in developing countries. While interest in PES has grown over the last decade, empirical research on factors influencing household involvement in PES remains limited. This paper analyses factors influencing household participation in a forestry PES scheme in Kenya.

A number of studies suggest the risk preference of low income individuals can result in behaviour that create conditions of sub optimal investment and thus persistent poverty. In this paper, we carry out a study with small-scale farmers in the Matzikama Municipality of the Western Cape, South Africa. We investigate how risk preference affect technology investment amongst small-scale farmers in developing countries.

The interdependence between agriculture and industry sectors has increased in developing countries where smallholder farmers dominate agricultural production.