Private Capital, Public Goods: Forest Plantations' Investment in Local Infrastructure and Social Services in Rural Tanzania

28 Pages Posted: 17 Nov 2017

See all articles by Mohammed B. Degnet

Mohammed B. Degnet

Wageningen University and Research (WUR)

Edwin van der Werf

PBL Netherlands Environmental Assessment Agency

Verina Ingram

Wageningen University and Research (WUR) - Forest and Nature Conservation Policy Group

Justus Wesseler

Agricultural Economics and Rural Policy Group, Wageningen University

Date Written: October 18, 2017

Abstract

With the rapid expansion of private forest plantations worldwide, their impacts on local development are under scrutiny by NGOs and researchers alike. This study investigates the impacts of private forest plantations on local infrastructure and social services in rural Tanzania. We take a comparative approach involving households living in villages adjacent to private forest plantations and households in villages adjacent to a state-owned plantation. We use survey data from 338 households to analyze their perceptions about the impacts of the plantations on the number and quality of roads, bridges, and health centers, as well as on school enrolment and quality of education. We triangulate the results from a logistic regression model with observations of the size and quality of infrastructure and social services in the villages and with findings from focus group discussions. The results show that the private forest plantations have positively affected local infrastructure and social services in adjacent villages. The results suggest that large-scale private forest plantations can contribute to rural development in developing countries. We highlight the importance of taking into account the perceptions of various groups in society when assessing the sustainability of forestry investments and their impacts on local communities.

Keywords: Private Forest Plantations, Infrastructure, Public Goods, Perceptions, Socio-Economic Impacts, Tanzania

JEL Classification: H410, M140, Q010, Q150, Q230

Suggested Citation

Degnet, Mohammed B. and van der Werf, Edwin and Ingram, Verina and Wesseler, Justus, Private Capital, Public Goods: Forest Plantations' Investment in Local Infrastructure and Social Services in Rural Tanzania (October 18, 2017). CESifo Working Paper Series No. 6690, Available at SSRN: https://ssrn.com/abstract=3072249 or http://dx.doi.org/10.2139/ssrn.3072249

Mohammed B. Degnet (Contact Author)

Wageningen University and Research (WUR) ( email )

Hollandseweg 1
Wageningen, 6706KN
Netherlands

Edwin Van der Werf

PBL Netherlands Environmental Assessment Agency ( email )

PO box 303
The Hague, 3720
Netherlands

Verina Ingram

Wageningen University and Research (WUR) - Forest and Nature Conservation Policy Group ( email )

Droevendaalsesteeg 3
Gaia Building (Building 101)
Wageningen, 6700
Netherlands

Justus Wesseler

Agricultural Economics and Rural Policy Group, Wageningen University ( email )

Hollandseweg 1
Wageningen, 6706 KN
Netherlands

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