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A Socio-Economic Profile of the Rufiji Floodplain and Delta.

A Socio-Economic Profile of the Rufiji Floodplain and Delta.

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<strong>Socio</strong>-economic pr<strong>of</strong>ile <strong>of</strong> <strong>Rufiji</strong> flood plain <strong>and</strong> <strong>Delta</strong> - Vol. 1<br />

The asset index is <strong>the</strong> proportion <strong>of</strong> <strong>the</strong> remaining value <strong>of</strong> <strong>the</strong> assets summed over all <strong>the</strong> assets<br />

owned. Assumptions were made regarding <strong>the</strong> nature <strong>of</strong> <strong>the</strong> depreciation <strong>and</strong> <strong>the</strong> salvage value <strong>of</strong> <strong>the</strong><br />

assets. For simplicity, <strong>the</strong> assets were assumed to depreciate at a straight-line method <strong>and</strong> <strong>the</strong> assets<br />

are used until <strong>the</strong>y do not have any value (Salvage value =0). In practice however, some <strong>of</strong> <strong>the</strong> assets<br />

may not be depreciating at a straight-line method <strong>and</strong> may also have some value at <strong>the</strong> end <strong>of</strong> <strong>the</strong><br />

useful life. Appreciation <strong>of</strong> <strong>the</strong> assets in <strong>the</strong> course <strong>of</strong> use was also not considered.<br />

Table 48 <strong>and</strong> figure 3 give <strong>the</strong> statistics <strong>of</strong> <strong>the</strong> calculated asset index by AEZ. The results show that<br />

<strong>the</strong>re are high variations in <strong>the</strong> asset index as indicated by <strong>the</strong> st<strong>and</strong>ard deviation. Highest asset indices<br />

were recorded in South flood plain, Inner delta North <strong>and</strong> Inner delta south. However, <strong>the</strong>re are no<br />

overall significant differences between <strong>the</strong> AEZ as indicated by <strong>the</strong> F-test.<br />

Table 48: Means <strong>of</strong> asset index by AEZ<br />

AEZ Mean n Std. Deviation<br />

Inner <strong>Delta</strong> North 2563.7 44 4370.5<br />

Inner <strong>Delta</strong> South 2555.3 15 3516.1<br />

<strong>Delta</strong> North 1665.2 26 2742.5<br />

<strong>Delta</strong> South 1073.6 30 1532.1<br />

North Flood Plain 2306.5 24 3141.3<br />

South Flood Plain 3095.1 13 4606.7<br />

West Valley 2092.6 30 2706.6<br />

Overall 2115.4 182 3330.4<br />

F value<br />

F=0.94 p=0.5<br />

Source: Computed from <strong>the</strong> survey data (2000)<br />

3500<br />

3000<br />

2500<br />

Tshs<br />

2000<br />

1500<br />

1000<br />

500<br />

0<br />

Inner <strong>Delta</strong> North<br />

Inner<strong>Delta</strong> South<br />

<strong>Delta</strong> North<br />

<strong>Delta</strong> South<br />

North flood plain<br />

South flood plain<br />

West valley<br />

Overall<br />

Figure 3: Mean asset index by AEZ<br />

3.6 Expenditure<br />

The aim <strong>of</strong> soliciting information about expenditure was to single out high expenditure items in <strong>the</strong><br />

household as well as using it as a proxy <strong>of</strong> income generated by <strong>the</strong> households. It is believed that<br />

when asking about expenditure, respondents are willing to give information ra<strong>the</strong>r than asking <strong>the</strong>m<br />

about <strong>the</strong> incomes obtained from various economic activities.<br />

For convenience <strong>and</strong> ease in getting data from respondents, <strong>the</strong> expenditure items were categorised in<br />

two main items namely expenditure on main food items <strong>and</strong> expenditure on o<strong>the</strong>r household items.<br />

45

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