Briefing Paper

Institutional Innovations and Barriers to Competitiveness: Case Studies of Smallholder Farmers in Tanzania

Tanzania’s policy path has been characterized by institutional reforms aimed at increasing efficiency and productivity in key sectors of the economy. This book examines the potential of various forms of institutional innovations in building competitiveness of smallholder agriculture in Tanzania. Evidence used in the book shows that while some policies and interventions after independence contributed to the poor performance in export crop production, structural adjustments and trade liberalisation did not reverse performance as envisaged. The core argument is that a combination of market and non-market institutions is crucial in addressing market failures and other policy and institutional rigidities that impede the competitiveness of smallholder farmers in agricultural production.