Value Chains & Livelihoods: What's the difference and why should we care?

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The Sustainable Livelihoods Approach and the Value Chain Approach are both tools available to development practitioners seeking to improve the economic situation and overall well-being of youth, though proponents of each methodology have tended to not understand the benefits of the other. In February 2009, the CYES Network and the Washington Network for Children in Armed Conflict continued this discussion, in an event addressing how these two approaches might be of use in promoting youth employment in crisis-affected areas. At the event, Radha Rajkotia of IRC and Jason Wolfe of USAID gave the following presentations on, respectively, the Sustainable Livelihoods Approach and the Value Chain Approach.

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Value Chains & Livelihoods: What's the difference and why should we care?

  1. 1. Value Chains & Livelihoods What’s the difference and why should we care? Jason Wolfe, Enterprise Development Advisor USAID Microenterprise Development office
  2. 2. WHAT IS THE RATIONALE FOR THE VALUE CHAIN APPROACH? <ul><li>Integrating poor households into growing markets </li></ul><ul><li>Empowering poor households to benefit from increasing globalization </li></ul><ul><li>Economic Growth </li></ul><ul><li>Poverty Reduction </li></ul><ul><li>Large and systemic impact </li></ul><ul><li>Catalytic impact </li></ul>
  3. 3. WHAT IS A VALUE CHAIN? <ul><li>End Markets </li></ul><ul><li>Enabling Environment </li></ul><ul><li>Inter-Firm Cooperation </li></ul><ul><li>Supporting Markets </li></ul><ul><li>Upgrading </li></ul>Global Enabling Environment National Enabling Environment Financial (cross cutting) Input Suppliers Sector specific providers Cross-cutting providers Producers Wholesalers Exporters National Retailers Processors/Traders Global Retailers
  4. 4. WHAT IS THE VALUE CHAIN APPROACH? <ul><li>Taking a market systems perspective </li></ul><ul><li>Driving growth through end markets </li></ul><ul><li>Fostering competitiveness through improved inter-firm relationships </li></ul><ul><li>Upgrading at the firm and industry level </li></ul><ul><li>Facilitating improved competitiveness </li></ul>
  5. 5. WHAT ARE KEY DISTINCTIONS BETWEEN THE APPROACHES? <ul><li>SLA centered on household; VCA centered on market system </li></ul><ul><li>SLA can be very descriptive; VCA can be very prescriptive </li></ul><ul><li>SLA emphasizes constraints; VCA emphasizes opportunities </li></ul><ul><li>SLA can be too broad; VCA can be too narrow </li></ul><ul><li>SLA naturally focuses on assets; VCA naturally focuses on revenue/income </li></ul>
  6. 6. WHAT DOES IT ALL MEAN? <ul><li>SLA and VCA are two different views of the world </li></ul><ul><li>CLA and VCA are not incompatible </li></ul><ul><li>Neither is absolutely right nor absolutely wrong </li></ul><ul><li>But they emphasize different aspects that can both help and hinder our efforts </li></ul>
  7. 7. <ul><li>Knowledge </li></ul><ul><ul><li>General Info: micro LINKS .org / valuechains </li></ul></ul><ul><ul><li>Briefing Papers: micro LINKS .org / AMAP kp2 </li></ul></ul><ul><ul><li>Conflict-specific: micro LINKS .org / conflict </li></ul></ul><ul><ul><li>Impact Assessment: micro LINKS .org / PSDIAI </li></ul></ul><ul><li>Learning </li></ul><ul><ul><li>Training Curricula: micro LINKS .org / VC training </li></ul></ul><ul><ul><li>Breakfast Seminars & Screencasts: micro LINKS .org / breakfast </li></ul></ul><ul><li>Technical Assistance </li></ul><ul><ul><li>Jason Wolfe 202 712 1882 jwolfe@usaid.gov </li></ul></ul>WHERE CAN I LEARN MORE?

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