The Impact of Development Projects on Rural Households’ Social Capital and Livelihood.

Abstract

The study aimed to establish the implications facing rural households in Tanzania, on the understanding that development projects impact on households’ social capital and livelihood, thereby undermine households’ capabilities and create dependency (Bebbington, 2006). The case study projects were implemented by CARE Tanzania in Magu and Missungwi districts Tanzania between 1997-2004 (Bisanda, 2001). Social capital measured in trust and membership in community-based organisations (CBOs) is associated with economic efficiency, growth, innovation, productivity and low transaction costs (Putnam 1993a; Putnam 2000; Halpern 2005) Meanwhile, livelihood is linked with assets, capabilities and households’ income earning strategies (Bebbington, 1999). Findings show that CARE projects ‘HISA’ CBOs enhance ‘bonding’ capital, which is exclusive, hence undermine ‘bridging’ or inclusive social capital to the wider community membership. Consequently, many CBOs lack access to mainstream resources and where ‘bridging’ and ‘linking’ social capitals are strengthened; the potential for regeneration into ‘cronyism’ and ‘enclaves’ among the CBOs members is likely (Field 2003). Furthermore, CARE’s transformation of traditional groups identified as ‘Mafogongho’ into ‘HISA’ CBOs led to rural inequalities; because non- HISA CBO members lacked economic access to resources especially micro-credit. CARE’s livelihood framework recognises vulnerability not only as lack of access to material assets but also to social capital ((Bebbington, 1999). The impact of projects in the two districts was marginal, fragmented and ineffective due to coordination problems, inefficiency as a result of too large operational areas that mismatched project’s human capital. Projects disrupt social capital and livelihoods; create ‘mistrust’ with local authorities and communities by promoting perceived ‘difficult’ and ecologically contradictory interventions. Thus, households become stretched in terms of labour, resulting from diminished roles of Mafogongho. Hence, projects are most likely to be abandoned when funding ends, a situation that sets households in dilemmas with enormous implications.