The link between farm household objectives and investment in irrigation scheme: implications for collective action coordination efficiency

Abstract

This paper examined the association between farm household varying objectives (commercial or subsistence orientation) and own investment expenditures (enterprising tendency) interdependence in explaining the implications for Collective Action (CA) coordination in the common. Cross sectional research design was employed to collect data from a total of 184 randomly sampled farm households involved in rice irrigation farming in the selected seven irrigation schemes located in five districts of Ngudu, Misungwi, Shinyanga rural, Bunda and Rorya within the Lake Victoria basin. Collected data were analysed using 2SLS regression analysis to establish factors determining enterprising tendency, a proxy for coordination incentive. Results indicated that farm household objectives; particularly commercial/market oriented production was an important incentive for coordination. This variable must be hand in hand with other exogenous variables designated as “excluded instruments” for greater impact, which positively and significantly supported market oriented production. Other variables like trust, contact cost/communication and experience were important determinant of enterprising tendency (incentives/ disincentive) in the Tanzanian irrigation systems CA coordination. The study recommends strengthening of advisory services in the irrigation schemes, particularly capacity building with regard to business development services (BDS) for commercial oriented production, and a comprehensive CA management training tailored particularly, into building trust among member farmers, which positively influenced enterprising tendency. Improvement of group leadership management training- which was a disincentive for investment in the irrigation, and so do CA coordination is crucial.

Keywords: Transaction cost, collective action coordination, irrigation systems, 2SLS, Instrumental variable, Tanzania