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Vc ct integration-methodology_feb 28

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  • This value chain map is based on the abaca production and marketing activity of KKMPK or the KooperatibasamgaKababayen-an saMahaba Para saKalambuan. Mahaba could now be the biggest abaca-producing barangay in all of Agusan del Norte, if not in all of the abaca-producing barangays in Caraga Region. KKMPK operates in their barangay of Mahaba, Cabadbaran City. Their members produce and sell the fiber to KKMPK. KKMPK , in turn procure traders with higher price quotations. The process in abaca fiber extraction includes Land Preparation, Planting, Fertilizer application, weeding, harvesting(cutting), tuxying, stripping, classifying and drying. These processes form part of the activities of the producers in the value chain. The City of Cabadbaran and the Department of Agriculture in partnership with the AECID or the Agencia Espanola CooperacionInternacionalepara el Desarollo act as input suppliers providing the producers with financial assistance in the form of soft loans and equipments for stripping, roping and weaving. AECID, thru the project SAIS-BC ( Enhancing the Agro-industrial Sectors in Bicol and Caraga), also provided KKMPK with building for their office, training center and for weaving activities. KKMPK consolidates all the fiber extracted from their members’ individual farms. Non-members of KKMPK have 2 other choices of consolidators where to sell their fiber in Mahaba. But all of the fibers consolidated are also sold to the same trader.Local abaca handicraft makers directly buy fiber from the farmers. Some of whom have direct market in Japan and Europe for their handicraft products (e.g. Sandals and home decors).There is only one grading and baling enterprise in Caraga – the JAT in Prosperidad, Agusan del Sur. JAT sells its classified and baled abaca fibers either to Newtec in Iligan City or to Ching Bee in Davao City. Exporters also produce abaca pulp for export.
  • Double Lines – with existing policies, standards and agreements Producer to CLGU – CLGU with existing program (OTOP) for abaca productionProcessor to Exporter – have reached purchase order level
  • Lack of skills to negotiate among producers
  • Transcript

    • 1. Methodological Approach INTEGRATING CONFLICT TRANSFORMATION AND DEMOCRATIZATION IN VALUE CHAIN SUBSECTOR DEVELOPMENT A KPI-TRICOM-AFRIM collaboration project in partnership with ICCOKPI 1
    • 2. CTD&D-VCD Integration Rationale • Risks of failure in economic initiatives that do not take into account and address conflicts and role of governance in promoting economic development • Higher risks of failure in peace building and democratization that is applied around conflicts and not orientated in-conflict or directly working on conflict.KPI 2
    • 3. Project purpose and desired outcomes • Purpose – develop a model of FED-CT&D programmatic integration using an inter-partner and multi-stakeholder approach applied in the abaca, coconut, banana and coffee sub-sector • Desired Outcomes – A model of SFED and CT&D integration applied in sub-sector platforms for promotion of local economy development – A model of inter-NGO and multi-stakeholder collaboration based on a modified value chain development framework – Local sub-sector framework plans and action agendas – Model production, processing and marketing enterprises in the coffee, coconut (macapuno) and banana sub-sectorsKPI 3
    • 4. Strategies • Inter-partner collaboration • Multi-stakeholder collaboration at various levels • Building stakeholder capacity • Developing framework plans for sustainable subsector development • Integration of the Project into ongoing programs and projectsKPI 4
    • 5. Project components • Capability building – Partners orientation-training – Training on conflict transformation in value chain – Cross visits • Research and documentation – Establish the research and policy links between and state obligation to promote economic development • Advocacy and Networking – Multi-stakeholders forums and consultations – Publications and info dissemination • Pump-priming enterprise developmentKPI 5
    • 6. CTD-VCD Integration Project Design Policy research and integration of action researches Subsector Framework Plans CTD-VCD and Action Integration Participatory value Capacity building Agenda framework in chain and conflict on CT&D and partners’ mapping & analysis VCD programs Early Warning System Development of conflict-sensitive enterprisesKPI 6
    • 7. CTD-VCD Integration Model Outcome and Outputs • The implementation of the project has produced a model that demonstrates the effective integration of conflict transformation and democratization framework in the development of the coffee, abaca and banana value chain • The model has not reached full development and may still be subjected to future innovationsKPI 7
    • 8. Developing Conflict Sensitive Subsector Development Model • Multi-stakeholders Action agenda formulated for coffee, abaca, coconut and banana subsectors • Value chain and conflict maps produced for coffee, abaca, banana and coconut subsectors • 194 men and women trained in CT&D in Value Chain Development – Mostly PO members and IPs, with participation of LGU, NGO staff, MFI, youth, small traders, academe, church peopleKPI 8
    • 9. Developing Conflict Sensitive Subsector Development Model • Pumped prime revolving fund for enterprise development in coffee and banana subsectors; – TRICOM-KMDO partnership in Sultan Kudarat for coffee production, drying and trading – KPI-KMBJ-CABPA partnership in Leyte for banana production and trading • Model integration with existing abaca enterprise in Caraga – KPI-KKMPK partnership in Agusan del NorteKPI 9
    • 10. Inter-partner and multi- stakeholder collaboration • KPI brought in integrative approaches to the coconut, abaca, and banana platforms in Caraga and Eastern Visayas • TRICOM brought in integrative approaches to the coffee platform in Sultan Kudarat; and, • AFRIM brought in its competence in research, documentation, information and policy advocacy for influencing economic policy and specific government protection and support for the coconut, banana, abaca and coffee industries • Collaborative undertaking in common activities: course development, training, multi-stakeholders forumsKPI 10
    • 11. Research Outcomes and Outputs • AFRIM policy research on abaca, coffee and banana subsectors • Documentation reports packaged as a monograph series • Set up page in AFRIM website dedicated to the CT&D-VCD Integration ProjectKPI 11
    • 12. Methodological Approach in CTD-VC integration • Value chain and conflict mapping & analysis • Overlaying the conflict and value chain maps • Capacity-building on Conflict Transformation and Democratization and Value Chain Development • Establishment and formulation of an Early Warning System • Referral system • Conflict sensitive economic initiatives designing/planning and implementation • Monitoring and evaluationKPI 12
    • 13. Value Chain and Conflict Mapping & Analysis • Action research: data gathering • Participatory value chain mapping and analysis – Mapped subsectors: coffee, banana, abaca, coconut – Identified the various actors and their independent and common goals, and the incentives • Participatory conflict mapping and analysis – Mapped subsectors: coffee, banana, abaca, coconut – Inventory of conflicts and conflictive issues – Analyzed basis of conflictsKPI 13
    • 14. Cabadbaran Abaca Value Chain and Relationships Mahaba Abaca Production and Trading LGU Municipal Provincial Processors Trader Trader Exporter Foreign (NEWTEC) Processors Provincial Trader Individual Bgy (Innovative)Producers Exporter•Farmers, Strippers, Trader (Ching Bee)Laborers Regional Trader Coop Enterprise•Coop, non-coop (Daquipil) (KKMPK) JAT GBEmembers C (Grading, Baling O Trader Enterprises N Processor S (CHMA) U Exporter M E FIDA R AECID DA KPI S Legend: - Persistent Market Relation - Spot Market Relation KPI 14
    • 15. Value Chain Analysis of The Abaca Subsector in MahabaACTORS INDEPENDENT GOALS COMMON GOALS INCENTIVESAbaca Good harvest; Better price • Abaca Production • Profitable businessProducers expansion enterpriseKKMPK Increased expansion, enhanced • Good fiber quality fiber quality, increased membership, equitable benefits, • Plenty/ additional additional/enhanced (existing) clientele/market value adding activities, Direct link • Direct link and and market agreement with GBE/ market agreement Exporter, with GBE/ Exporter,Individual Local Good quality, lower price, plenty of more suppliersConsolidator clientele • Multi-stakeholdersMunicipal/Prov Direct link and market agreement collaborationincial/Regional with GBE/Exporter, more suppliersTrader • Good and saleable products, wideConsumer Affordable, quality and wide range market of product choices • Relative stableFacilitating Agents marketCLGU Improve quality of life of constituents Concerned Increased expansion, quality fiber, NGAs value chain development (FIDA,DA)KPI 15
    • 16. Conflict map Abaca sub-sector in Barangay Mahaba, Cabadbaran City ABARICO BRGY COUNCIL TRIBAL COUNCIL Anton Dy Daquipil SIUFM ULCO KKMPK KPI Non- Coop Members Newtech JAT Bgy. Trader DA/AECID CLGU FIDAKPI 16
    • 17. Type of relationships within a conflict map Total No. of Relationship lines ----- 42 Type Symbol Number Percentage Rank Good 19 45.2 1 Relationship Alliance 9 21.4 2 Weak 5 11.9 3 Relationship Differences in 3 7.14 5 views/conflict Interrupted 2 4.7 6 Relationship Influential 4 9.5 4 relationshipKPI 17
    • 18. • Good Relationship & Alliances – Understanding and collaboration among stakeholders• Weak Relationships – These are characterized by competing goals/interests i.e., the traders and producers.• Damaged/Interrupted Relationship – This characterized the relationship of KKMPK between the traders it no longer trades with in pursuit for higher trading price.• Conflict Relationship – Differing interest between actors (i.e., between KKMPK and trader Daquipil and between traders), the conflict for control of suppliers.KPI 18
    • 19. Conflict Analysis Abaca Subsector ACTORS INDEPENDENT INTERESTS CONFLICTING INCENTIVES INTERESTS Primary Actors KKMPK Increased production, • Access to and • Lack of • Policy support enhanced fiber quality, control over traders’ from LGU and fair price, equitable market interest in the NGA on traders benefits, information value chain participation in value chain additional/enhanced • Control of development development (existing) value adding suppliers for • Conflict undertakings activities, Direct link and more fiber between market agreement with volume and traders for • Multi- GBE/ Exporter, bigger profit control over stakeholder Trader More suppliers, more between supply and dialogues (Daquipil) profit, control of market traders price information • Producers’ • Inequitable • Capacity building on demand for sharing of Value Chain better price benefits in the Development, against value chain of Conflict Trans- traders’ goal abaca formation & for higher democratization profits by buying lowKPI 19
    • 20. Conflict Analysis Abaca Subsector ACTORS INDEPENDENT INTERESTS CONFLICTING CONFLICT ISSUES HOW TO INTERESTS TRANSFORM Secondary Actors • Limited • Building capacity JAT Control of market info, access to of producers on (GBE) more suppliers, comply market Value Chain with exporter’s quota, information Development machineries for value in the and Conflict adding (pulp prod’n) producer’s Transformation level and Non- Better price, prod’n • Inefficient democratization KKMPK capital, market • Producer/ delivery of • Federation of members information; better fiber labourer support abaca producers production income demand for services for sharing (for higher share in empowerment labourer/producers) fiber through production collective Intervening Actors marketing KPI, FIDA, Conflict sensitive value CLGU, DAR, chain development NCIP Value chain development Inclusion of IPs in abaca production supportKPI 20
    • 21. Overlaying the conflict and value chain mapsCommon Conflict/ Conflictive Issue in the VC:• Limited access to market information in the producers level and in some traders• Inequitable sharing of benefits among the value chain players. Production Processing (Cultivation & Trading Export Stripping) Conflict /Conflictive Conflict /Conflictive Issue Issue Conflict /Conflictive • Lack of traders’ interest Issue • Lack of government in the value chain support • Inefficient delivery of development and support services related processes • Land tenure/ • Conflict between boundaries traders for supply and price control KPI 21
    • 22. The Value Chain Map and The Conflict MapKPI 22
    • 23. Capacity building on Conflict Transformation and Democratization • Conceptual and theoretical foundations and processes related to CT&D • Sub-processes – Training on Conflict Sensitivity and Do No Harm – Training on Conflict Transformation – Building capacity for Negotiation and Mediation – Workshop on Early Warning System DevelopmentKPI 23
    • 24. Conflict Theories Structure Causes of Relationship Conflicts 1. Miscommunication 2. Strong Emotions 3. stereotyping Causes of Value 4. Repetitive negative Causes of Data Conflicts behaviour Conflict 1. Different ways of life, 1. Lack of information ideology, worldview, 2. Misinformation etc. 3. Differing views on data’s relevance 2. Different criteria for 4. Different interpretations evaluating ideas of data Causes of Interest Causes of Structural Conflicts Conflict 1. Perceived or actual competition 1. Unequal authority over interest 2. Unequal control of resources 2. Procedural interest 3. Time constraint 3. Psychological interestAttitude Behavior Galtung’s Conflict Triangle Moore’s Circle of Conflict KPI 24
    • 25. Transforming Conflicts • Structural conflicts: identified rules, institutions, laws, policies, regulations that needs to be transformed are – Monopoly of market information by traders – Traders control on product quality classification as basis for pricing – Bureaucratic development planning within certain government officesKPI 25
    • 26. Transforming Conflicts • Attitude conflicts that need to be transformed: – Highlighting value chain players as competitors instead of being partners in development – The mentality for instant acquisition of grant tangible projects and incentives – Exclusivity in decision-making – The production focus more on volume than fiber qualityKPI 26
    • 27. Transforming Conflicts • Behavior conflicts that need transformation: – Weak collaborative action between value chain actors – Pursuit for immediate gains and remedies, i.e., continual shifting of traders in favor of the highest bidder – Exclusion of NGOs in some development planning and implementationKPI 27
    • 28. Formulation of Early Warning System • Risk management and conflict mitigation • Sub-processes: – Multi-stakeholder participation in Early Warning System development • Inventory of conflicts • Identifying levels/status of conflict and risks • Color-coding of status/levels of risks and conflicts • Defining criteria of conflict status and risks • Identifying courses of action to mitigate conflictsKPI 28
    • 29. Referral System • Multi-stakeholder forums as mechanism for negotiating interests and building common platform for development • Development Framework and Action Agenda formulation • Needs analysisKPI 29
    • 30. Conflict-Sensitive Economic Initiatives • Locating specific initiatives in the value chain • Identifying roles and functions of enterprise stakeholders in the chain • Conflict-sensitive enterprise planning: Formulating operational design, processes and protocols • Formulating risk management strategiesKPI 30
    • 31. Monitoring and Evaluation • Monitoring framework – Process and result-oriented framework that looks into the results as well as the processes in attaining those results • Monitoring systems and mechanisms – comprehensive, multi-level, integrated and multi- functional – Looks into the overall integration level as well as the performance of partner-stakeholders – Internal performance and external results – Quantitative and qualitative data transformed into strategic knowledgeKPI 31

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