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Gauging the Welfare Effects of Shocks in Rural Tanzania

ABSENTEEISM ACCESS TO CAPITAL ACCESS TO CREDIT ACCESS TO IRRIGATION ACCESSIBILITY ADDITIONAL INCOME AGRICULTURAL ACTIVITIES AGRICULTURAL HOUSEHOLDS AGRICULTURE ORGANIZATION AMOUNT OF CONTRIBUTIONS ASSET HOLDINGS BANANA TREES BANANAS BANKING SERVICES CALCULATIONS CASH CROPS CASH RESERVES CASH-CROP CASHEW NUTS COFFEE COFFEE CROP COFFEE FARMERS COFFEE GROWERS COFFEE GROWING COFFEE PRICES COFFEE PRODUCTION COFFEE TREES COMMODITIES COMMODITY CONSUMER CONSUMPTION EXPENDITURES CONSUMPTION SMOOTHING COVARIATE SHOCKS CRIME CROP CROP FAILURE CROPS CROWDING OUT CULTIVATED LAND CULTIVATION DEMOGRAPHIC CHARACTERISTICS DIVERSIFICATION DROUGHTS EARNINGS ECONOMIC ACTIVITY ECONOMIC CRISES ECONOMIC CRISIS ECONOMIC DEVELOPMENT EDUCATIONAL ATTAINMENTS EFFECTS OF DROUGHT EMPLOYMENT OPPORTUNITIES ETHNIC GROUPS EXCHANGE RATE EXPENDITURE EXPENDITURES EXTERNAL SHOCK FAMILIES FAMILY MEMBER FAO FARM FARM ENTERPRISE FARM SELF-EMPLOYMENT FARMING FEMALE-HEADED HOUSEHOLD FEMALE-HEADED HOUSEHOLDS FOOD AID FOOD CONSUMPTION FOOD PRODUCTION FORMAL CREDIT FORMAL EDUCATION FULL ACCESS GENDER HEALTH CARE HEALTH ECONOMICS HEALTH SERVICES HEALTH SPENDING HOLISTIC APPROACH HOSPITALIZATION HOUSEHOLD BUDGET HOUSEHOLD COMPOSITION HOUSEHOLD CONSUMPTION HOUSEHOLD DEMOGRAPHICS HOUSEHOLD EXPENDITURES HOUSEHOLD HEAD HOUSEHOLD HEADS HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HOUSEHOLD VULNERABILITY HOUSEHOLD WELFARE HUMAN CAPITAL INCOME INCOME GENERATION INCOME SHOCK INSURANCE INSURANCE MARKETS INSURANCE SCHEMES INTERNATIONAL BANK IRRIGATION LANDHOLDING SIZE LANDHOLDINGS LIFE CYCLE LIVESTOCK OWNERSHIP LIVING STANDARDS LOW-INCOME LOWER INCOMES MARGINAL RATE MEDICAL EXPENSES MICRO-FINANCE MICRO-FINANCE INSTITUTIONS MORTALITY POLITICAL ECONOMY POOR POSSESSION POSSESSIONS POVERTY ALLEVIATION POVERTY INCIDENCE POVERTY REDUCTION POVERTY REDUCTION STRATEGY PRIMARY EDUCATION PROBABILITY PRODUCTIVE CAPITAL PRODUCTIVITY PROFITABILITY QUALITY OF LIFE QUESTIONNAIRE RATE OF RETURNS RECEIPT REMITTANCE REMITTANCES RISK AVERSION RISK FACTORS RISK SHARING RURAL RURAL AREAS RURAL HOUSEHOLD RURAL HOUSEHOLDS RURAL POPULATION SAFETY NET SAFETY NET PROGRAMS SALE SALES SAVINGS SECONDARY EDUCATION SELF-EMPLOYMENT SENIOR SOCIAL CAPITAL SOCIAL PROTECTION SUB-SAHARAN AFRICA TARGETING TOBACCO UNEMPLOYMENT VALUE OF ASSETS VILLAGE VILLAGES WAGE WORKING AGE YIELDS
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World Bank, Washington, DC
Africa | Tanzania
2012-06-08T20:27:48Z | 2012-06-08T20:27:48Z | 2007-11

Studies of risk and its consequences tend to focus on one risk factor, such as a drought or an economic crisis. Yet 2003 household surveys in rural Kilimanjaro and Ruvuma, two cash-crop-growing regions in Tanzania that experienced a precipitous coffee price decline around the turn of the millennium, identified health and drought shocks as well as commodity price declines as major risk factors, suggesting the need for a comprehensive approach to analyzing household vulnerability. In fact, most coffee growers, except the smaller ones in Kilimanjaro, weathered the coffee price declines rather well, at least to the point of not being worse off than non-coffee growers. Conversely, improving health conditions and reducing the effect of droughts emerge as critical to reduce vulnerability. One-third of the rural households in Kilimanjaro experienced a drought or health shocks, resulting in an estimated 8 percent welfare loss on average, after using savings and aid. Rainfall is more reliable in Ruvuma, and drought there did not affect welfare. Surprisingly, neither did health shocks, plausibly because of lower medical expenditures given limited health care provisions.

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