Evidence and implications of non-tradability of food staples in Tanzania 1983-98

Encouraging production and reducing domestic consumption of tradable goods by increasing the real exchange rate is an important feature of economic reform programs in developing countries. A report is presented to show that in Tanzania, during the period 1983-1998, the major food grains (maize, rice, cassava and wheat) - that are assumed to be tradable and which contribute towards real income - were non-tradables in at least twenty-five percent of the country. The significance of this trend on macroeconomic strategies is examined.