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Rural household vulnerability and insurance against commodity risks

Luc J. Christiaensen, Alexander Sarris

"This report has two objectives. It assesses the nature and the extent of vulnerability among rural households in Tanzania with a particular focus on smallholder cash crop growers through exploring all risks, including the decline in commodity prices. It further explores the potential role for market based insurance schemes such as commodity price and weather based insurance to mitigate household vulnerability. The empirical analysis is based on two rounds of specifically designed representative surveys of farm households in Kilimanjaro and Ruvuma, two cash crop growing regions in the United Republic of Tanzania in 2003 and 2004. The contrasting experiences of a richer (Kilimanjaro) and a poorer (Ruvuma) region substantially enriches the policy guidance emerging from the report. "--Publisher's description.

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