Donovan value chain_conference_2012

Donovan value chain_conference_2012

• 1.
  Review of guidesfor value chain development Jason Donovan ICRAF “Making the connection: Value chains for transforming smallholder agriculture” 6–9 November 2012 - Addis Ababa, Ethiopia
• 2.
  Setting the stage VCD forms key element of strategies for spurring economic growth and addressing rural poverty  proliferation of guides for VCD  Key elements of VCD are still evolving: – concepts: value chain, governance, pro-poor – methodologies: rigor, depth, scale, learning  Limited debate on the design of VCD guides – rigor / depth vs. user friendliness – specialization vs. all-in-one solutions – design issues vs. implementation problems
• 3.
  A review ofVCD guides  11 guides selected  Areas covered in review:  objectives, market focus, and assumptions  definitions VC and VCD  recommendations for data collection and analysis  user friendliness and adaptability  recommendations for M&E  originality, innovation, strengths, limitations  3-stage review: 1) coauthor, 2) authors of the guides, 3) external review
• 4.
  Portfolio of 11 guides
• 5.
  Definitions for chainand VCD  Chain definitions – lots of variation! – VC, market chain, market system, agrifood chain – 2 types of definition: activity focused, actor focused – most guides consider a chain to include all actors that comprise a subsector, despite the variation in scale applied in VC projects  VCD definitions – bit more consensus – World Bank: building mutually beneficial business links – CIP: improved chain relations (innovation, trust) – CIAT: developing strategic partnerships / networks – IIED: integrating smallholders into modern markets
• 6.
  Users, objectives andassumptions  All guides designed for use by non-researchers, often projects, NGOs, and government agencies  Outputs from implementation: strategy for VCD  Development objective: Most guides ultimately aim to stimulate economic development and reduce poverty  But… limited discussion on how VCD is expected to contribute to poverty reduction  no impact pathway  General assumption that smallholders have the assets needed to invest in VCD and don’t face major trade-offs related to the investment of assets To what extent do diversified rural livelihoods allow smallholders to participate in and benefit from VCD?
• 7.
  Chain selection  Carefulchain selection matters: – Sustainability of interventions – Inclusion of poor  Most guides include discussion on chain selection: Selection lead by Selection lead by Assumption that local stakeholders outside experts chain has already been selected 2 6 3  But… most guides provide: – incomplete set of parameters for selection – few examples of how to collect and assess data – limited discussion on costs/benefits of chain selection
• 8.
  Data and analysiscollection at different levels Level of Level of attention given to data data collection and analysis (n=11) collection No attention Basic High Intra- 10 0 1 household Household 4 4 3 Enterprise 4 3 4 Chain / 0 2 9 market Service 1 10 0 provider
• 9.
  Household and enterprise-level data collection Households  FAO: input availability, production costs, production technologies, management practices  CIAT: role in VC, problems with production, marketing, gaps in service offer  UNIDO: potential risk scenarios, options to eliminate, manage or mitigate potential risk Enterprises  M4P: identification of bottlenecks, analysis of costs and margins, estimate of income and income variability, employment generated  ILO: strengths and weaknesses for VC participation, working conditions
• 10.
  Open questions aboutsmallholders and VCD  What investments are needed for different types of smallholders to participate in VCD?  What interventions are needed before VCD?  What should be done with the most vulnerable – those that are not “VC-ready”?  What are the risks? How do mitigate them?  How to identify and address potential tradeoffs for VCD?
• 11.
  Open questions aboutcollective enterprises and VCD  Can enterprises effectively respond to the demands of buyers and members?  Are they economically viable?  What investments are needed to increase viability?  What investments can be carried out with internal resources?  What combination of support services are needed? Are they available?
• 12.
  Data analysis  Strongfocus on participatory analysis of problems and solutions – helps build collaborative base for VCD – but…limited attention to validity and reliability of qualitative information  Lack of tools for assessing risks, trade-offs, investment returns  Few guides suggest the possibility of variation in the population of stakeholders  Quantitative analysis is side-stepped by most of the guides
• 13.
  Flexibility and guidancein application  Pre-conditions for implementation – market focus (local vs international): none – business environment / history: yes – chain-actor capacities: sometimes – chain type: none  Altogether limited options for designing more tailored VCD strategies  Many guides provide examples of successful implementation  …but few guides discuss pitfalls in implementation or present a fully-developed case studies
• 14.
  Monitoring and evaluation Roughly half of the reviewed guides provide no discussion of M&E for resulting VCD strategies  Among those that address M&E, a basic set of indicators are provided for assessing changes at the level of enterprise and household – income generated, new product lines, productivity, investments  Only GTZ and USAID discuss attribution  Guides not designed to provide a full treatment of M&E in the context of VCD  Emergence of specialized guides: 5Capitals, DCED
• 15.
  Conclusions  Guides providean innovative framework for understanding markets and engagement with actors  But, need for more tailored strategies: based on context and local needs & interests  Need for increased attention to critical VCD issues: investments needs, investment sources, potential returns, risks, tradeoffs, vulnerability, gender equity  Issues too complex for any one guide: VCD toolbox  Conceptual frameworks are too simple – impact pathways are nonexistent  Urgent need for critical reflection, debate & collaboration for moving forward
• 16.
  Recommendations For authors:  Placegreater attention on the needs of the poor  Provide guidance for addressing critical contextual elements (market reach, exiting capacities)  Address head on the difficult aspects of VCD design and implementation (promote learning!) For funders:  Support research & learning for understanding how VCD contributes to rural poverty reduction  Encourage innovation in concepts & tools for VCD  Foster debate for improved design and implementation of VCD guides
• 17.
  Thank you! Jason Donovan ICRAF c/o Centro Internacional de la Papa (CIP) Lima, Peru [email protected]