THE POLITICS OF ECONOMIC DIVERSIFICATION - RECONCEPTUALIZING THE RURAL INFORMAL SECTOR IN SOUTH-EAST TANZANIA

This study examines how economic diversification is changing a Tanzani an village under economic liberalization. More specifically, it asks h ow different wealth groups are able to incorporate income-generating a ctivities into their livelihood strategies. The conclusion is that whi le diversification (as a division of labour) is advanced at the villag e level, it appears that different activities enhance the division of the village into segregated cultural spheres and increase economic dif ferentiation. At village level the diversity of income generating acti vities reduces any single line of economic dependency either on the st ate or on market actors.