Paper short abstract:

This paper examines the role of emerging urban centres (EUCs) as ‘drivers’ of rural development in Tanzania. It analyses the linkages and interactions between rural hinterlands and EUCs and discusses how economic dynamics in EUCs influence rural livelihoods.

Paper long abstract:

The interlinked relationships between urban settlements and their rural hinterlands in Sub-Saharan Africa are perceived crucial in enhancing possibilities for livelihood diversification and poverty reduction. Urban settlements provide opportunities for investment in more remunerative economic activities, job/employment opportunities that retain potential migrants in the area, and access to services for the rural hinterlands. This paper examines the role of emerging urban centres (EUCs) as 'drivers' of rural development based on a study of two EUCs and their rural hinterlands in Tanzania. Findings are based on data from multiple sources, including a survey of 695 households and interviews with 35 businesses in the rural hinterlands of the two EUCs. The EUCs have experienced rapid population growth and attracted new investments in businesses by both migrants and the indigenous population in an effort to exploit new opportunities in the centres. The number of shops and new types of business enterprises has increased substantially along with an increasing number of service functions located in the EUCs. The paper investigates how, and the extent to which, villages in the rural hinterlands are connected to the EUCs. This is done through an analysis of linkages and interactions between businesses and households in the villages and the EUCs. The paper ends by discussing the role of direct and indirect 'spatial connections' and their importance for local patterns of socio-economic development, rural livelihoods and poverty reduction.