Pro Poor Value Chain Development 121007


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Pro Poor Value Chain Development 121007

  1. 1. Pro Poor Value Chain Development Jitesh Panda Vrutti Livelihoods Resource Centre 12th Oct’07
  2. 2. Pro Poor Value Chain Analysis • Helps to identify points of intervention to: – increase efficiency and thereby increase total generated value, – improve the competence of poor to increase their share of the total generated value • Poor needs support: – to be actor in the existing Value Chains – to be able to negotiate in the Value Chains • Need to support Value Chain Actors interested to support poor • Support Pro Poor Advocacy Efforts: – Informing CSOs – Enabling all Actors to come together – Taking forward learning from small field projects
  3. 3. Steps in Value Chain Development • Extensive research • Value Chain Analysis • Stakeholder Consultations • Identify key constraints & possible solutions • Developing Intervention Plan • Mobilize Stakeholders • Undertaking Interventions – Through Facilitators – Existing VC Players • Assessing Impact of VC Development
  4. 4. Approach to Value Chain Development • Changing processes and behavior is important THAN just solving an identified problem • Focus on existing value chain THAN taking up functions in the Value Chain • Work with existing commercial entities THAN creating new marketing channels • Leverage THAN providing direct assistance Need to be impartial and build on trust amongst VC Players
  5. 5. Prerequisites to take up VC Analysis…. • Need to clearly communicate VC players on motivation for taking up analysis • Persons taking up VC Analysis must have minimum understanding of: – Markets – Actors – Informal rules and Laws – Services relating to VC • Basic skill in initiating change in VC
  6. 6. Value Chain Analysis in Practice We need to distinguish… • What we must know? • What we don’t need to know? • What we can not know? You can never be perfect!!!!
  7. 7. Focusing on Key players in the Value Chains Actors Influencers Supporters
  8. 8. Some Tools for Value chain Analysis • Transect Drive • Mapping – Economic activities – Functions of actors – Performance of actors – Value Additions at each actor level • Flow Diagram • Trend Analysis • Competitiveness Analysis • Rapid Market Appraisals (RMA)
  9. 9. Value Chain + Includes: – Sub-sector analysis – Studying enabling business environment – Cluster development
  10. 10. Potential Interventions • Support to VC Actors relating to – Technology, Information, R & D support, Training, Hand holding/Mentoring • Support to small farmers, poor rural households: – Improve market access – Improve their skills as entrepreneurs • Support to small and Medium Enterprises (SMEs) - Improve market access; Help face competition from local and Import - Improve overall competitiveness • Support large companies – Demonstrate how their operations can benefit from including a large number of intended beneficiaries • Overall start-up advice and financing is the most important Now Interventions are stand alone & fragmented…
  11. 11. Thank you