Public Sector Value for Value Chain Development:

The role of the Public Sector in the long-term sustainability and scaling up of Value Chain Development Initiatives

   Marco  Bartholdy   54252  

Lavanya  Katyal   49375    

Amaka  Ogbonna   57656  

Andrew  Mutegi  Paito   48556  

This  presenta,on  is  based  on  research  conducted  on  behalf  of  the  LSE  for  CARE  Interna,onal  UK  

THE   LONDON   SCHOOL  OF   ECONOMICS   AND  

POLITICAL  SCIENCE    

Structure 1.  Conceptual  framework  

•  The  role  of  the  public  sector  •  BoRom-­‐up  approach  •  Value  Chain  Development  •  Scaling  up  

2.  Methodology  3.  Case  studies  

•  Cocoa  Life  •  Strengthening  the  Dairy  Value  Chain  •  Pathways    

4.  Discussion  and  consolidaUon  of  findings  

Conceptual framework

1. The  role  of  the  public  sector  

2. BoRom-­‐up  approach  

3. Value  Chain  Development  

4. Scaling  up  

The role of the public sector •  Free  market    

•  Addressing    government  failure  •  Economic  efficiency    

• Need  for  government  support    •  Addressing  market  failures  •  Reduce  inequaliUes  •  Delivering  public  goods  

• Rodrik’s  diagnosUc  approach  (2010)  •  Need  to  choose  “the  right  model  (and  remedy)  for  specific  realiUes”  

Sources:  Rodrik  (2010);  Krugman  and  Wells  (2006);  Sen  (1999)  

Bottom-up approach

•  State-­‐led,  top-­‐down  policies  can  create  inequaliUes  •  E.g.  East  Asia  (Ali,  2007)  

• Need  to  support  small  and  informal  enterprises  •  Inclusive  growth  •  Huge  economic  opportunity  (Prahalad,  2006)  •  Poverty  reducUon  •  PosiUve  effects  along  the  enUre  supply  chain  

 

Value Chain Development • CARE’s  approach  

•  Strengthen  the  weakest  links  in  the  chain  •  Establish  partnerships  with  other  value  chain  actors  (McKague  &  Siddiquee,  2014)  

•  CreaUng  Shared  Value  (Porter  and  Kramer,  2011)  

•  The  public  sector  is  able  to:    •  Create  sustainability  •  Scale  up  iniUaUves  •  Our  research  has  looked  at  this  in  3  case  studies  

Consumers  

Retailers  

Distributors  

Processors    

Coops,  Traders  

Small-­‐holders  

Input  suppliers  

Scaling up   • The  extension  of  a  VCD  iniUaUve  to  more  people  and  

communiUes  acUve  in  the  value  chain    QuanUtaUve  

• Expansion  by  increasing  the  scope  of  acUvity  FuncUonal  

• PosiUve  engagement  with  poliUcal  processes  and  other  stake-­‐holder  groups  PoliUcal  

• The  involvement  of  exisUng  insUtuUons  or  the  creaUon  of  new  insUtuUons.    InsUtuUonal  

Source:  Uvin  (1995)  

Methodology • Research  methods  

•  10  interviews  with  CARE  staff    •  Analysis  of  project  documents  •  Broader  literature  review  

•  3  case  studies  of  VCD  iniUaUves  vary  across:  

•  Scope  of  project  objecUves    •  Key  drivers  of  the  projects    •  Level  of  decentralizaUon    •  Land  access    •  Income  level    

Programme   First  round  interviewees  Cocoa  Life   Programme  Administrator  SDVC   Project  Manager  Pathways   Project  Manager  

Programme   Second  round  interviewees  

Cocoa  Life  Project  Coordinator  (Ghana)  Project  Manager  (Côte  d’Ivoire)  Governance  Advisor  (West  Africa)  

SDVC   Extension  Agent  (Bangladesh)  

Pathways  Project  Manager  (Tanzania)  Project  Manager  (Malawi)  Project  Manager  (India)  

Case study overview     Cocoa  Life   SDVC   Pathways  

Country   Côte  d’Ivoire   Ghana   Bangladesh   India   Tanzania   Malawi  

Value  chain   Cocoa   Dairy   Agriculture  (various)  

Key  Drivers  CARE;  CCC;  Mondelēz  

CARE;  COCOBOD;  Mondelēz  

CARE;  Ministry  of  Agriculture  

CARE;  LANDESA;  Dept.  of  Agriculture  

CARE;  Seed  CerUficaUon  InsUtute  

CARE;  TradiUonal  leaders  

PopulaAon  density*  

64   114   1,203   421   56   174  

GDP/capita  PPP  (current  int’l  $)*  

$31.06  billion   $48.14  billion   $150  billion   $1.875  trillion   $43.65  billion   $3.705  billion  

Income  level*  Lower-­‐middle  

income  Lower-­‐middle  

income  Low  income  

Lower-­‐middle  income  

Low  income   Low  income  

Public  sector  engagement  **  

High   High   Low   High   High   Low  

*Source:  World  Bank  Development  Indicators  (2013)  **Source:  First  round  interviews  

Case Studies

1. Overview  

2. Public  sector  acUviUes  

3. Key  findings  

Cocoa Life: Overview

• Countries:  Ghana,  Cote  d’Ivoire  • Project  objecUves:  

•  Avoid  structural  supply  deficit    •  Improve  the  lives  of  farmers  and  their  communiUes  

•  Farming;  community;  livelihoods;  youth;  environment  

• Mondelēz  invest  heavily  in  small-­‐holder  farmers  

•  Shared  Value  • Partners  with  various  NGOs  and  public  sector  agencies  

Source:  CARE  Project  Report  2014  

Technical  acAviAes   Social  development  acAviAes  Technical  assistance  •  Farm  rehabilitaUon  

Community  consultaAon  •  Community  AcUon  Plans  

Infrastructure  •  Schools  

Community-­‐based  development  •  Youth  engagement  

Research  and  Development  •  Improved  seedlings  

DeliberaAve  governance  •  Reinvestment  of  cerUficaUon  bonuses  

Policy  frameworks  •  Minimum  farmgate  price  

Health  educaAon  •  Family  Planning  Services  

Cocoa Life: Role of the public sector

Cocoa Life: Key findings Ghana   Cote  d’Ivoire  

Decentralized   Centralized  

BoRom-­‐up   Top-­‐down  

Social  cohesion   Social  conflict  

1  CAP,  1  community   1  CAP,  8  communiUes  

Local  poliUcal  accountability   Steering  a  common  agenda  Source:  CARE  Project  Report  2014  

SDVC: Overview • Country:  Bangladesh    • Project  objecUves:  

•  Enhancing  producUvity  of  smallholder  farmers  • Women’s  empowerment  

•  Strategies:  •  Improving  producUvity  •  Increasing  access  to  inputs  and  markets  •  Strengthening  value  chain  relaUonships  •  Improving  the  policy  environment  

SDVC: Role of the Public Sector Public  sector  acAviAes  

Livestock  assistance  •  Training  Livestock  Health  Workers  •  Serng  up  Livestock  Research  InsUtute  

Improving  animal  geneAcs  •  ArUficial  inseminaUon  •  Breeding  facility  

Agriculture  extension  programme  •  Agriculture  extension  centres  •  Improving  farmer  return  

Establishing  milk  collecAon  centres  Improving  policy  framework  •  Import  tariffs  –  to  reduce  milk  dumping  

SDVC: Key findings •  Limited  government  presence/capacity  

•  AI  services  •  Technical  advice    

•  Land  constraint  •  Lack  of  naUonal  level  policy  discussion  •  Need  to  reconsider  some  policies  

•  Lack  of  public  sector  manpower  •  4  staff  members  for  10,000-­‐12,000  farmers  •  Not  enough  livestock  volunteers  

• AECs  important  to  ensure  sustainability  and  scalability  •  Public  dialogue  •  M&E  mechanism  

Pathways: Overview

• Countries:  India,  Malawi  and  Tanzania  

• Value  chains  :  Various  agricultural  value  chains  

• ObjecUves:    •  To  empower  women  in  agricultural  value  chains  •  Increase  farmer  producUvity  

Source:  Pathways  website  

Role of the public sector Public  sector  acAviAes  Policy  and  law  •  Forest  rights  •  Land  laws  •  Minimum  procurement  pricing  Input  provision  •  Seedlings  •  Credit  •  Research  and  development  Capacity  building  •  Seed  producAon    •  CommercializaAon  •  FFBS  Gender  relaAons  •  Police  gender  desk  •  Advocacy  

Source:  Pathways  website  

Key findings: •  Formal  vs  tradiUonal  authoriUes  

•  E.g.  Land  laws,  gender  roles  • Women’s  economic  empowerment  

•  VSLA  •  CSI  •  Farmer  Field  and  Business  School  (FFBS)  

• Gender  relaUons  •  Police  gender  desk  •  Male  change  agents  

Source:  Pathways  website  

Discussion of findings 1. Scaling  up  

2. Challenges  

3. Strengths  

4. RecommendaUons  

5. Conclusion  

Scaling up         Cocoa  Life   SDVC   Pathways  

 Cou

ntrie

s      

Côte  d’Ivoire   Ghana   Bangladesh   India   Tanzania   Malawi  

Scaling  up

 

QuanUtaUve   Yes   Yes   Yes   Intended   Intended     Intended  

FuncUonal   No   No   No   No   No   No  

PoliUcal   Yes   Yes   No   No   No   No  

InsUtuUonal   Yes   Yes   Yes   Yes   Yes   Yes  

Challenges Challenges   Examples  

DecentralisaUon    

•  CAPs  in  CDI  vs  Ghana  •  IneffecUve  decentralizaUon  in  Malawi  

Public  sector  mandates    

•  CCC  and  MoA  limited  to  technical  concerns  

•  Gender  relaUons  in  India  and  Malawi  Local  poliUcal  economy  dynamics    

•  Social  fragmentaUon  in  CDI  •  Gender  discriminaUon  

IneffecUve  policy  environments   •  Transparency  of  minimum  price  policies  

•  Land  laws  

Strengths Strengths   Examples  

Mobilizing  collecUve  acUon   •  CAPs    •  CooperaUves  •  VSLAs  

Building  alliances   •  Mondelēz  and  Cocoa  Boards  •  Seed  CerUficaUon  InsUtute  •  BRAC  dairy    

Evidence-­‐based  results   •  CAPs  •  AECs  

Recommendations 1.  Measure  outcomes  • Measure  outcomes  (quanUtaUve)  

•  Explicitly  track  sustainability  and  scale  •  Measurable  near-­‐term  outcomes  for  long-­‐term  objecUves  

• Measure  risk  and  resilience  (qualitaUve)  •  Analyse  the  resilience  of  iniUaUves  to  risks  that  may  arise  auer  project  closure  •  Consider  poliUcal  forces  that  drive  or  oppose  long-­‐term  outcomes  

• Measure  partnership  impact  (counterfactual)  •  Compare  the  impacts  of  a  partnership  approach  to  a  similar  non-­‐partnership  approach  to  ensure  that  the  project  benefits  from  the  contribuUon  of  all  partners  

Recommendations 2.  Understand  public  sector  incenAves  • Demonstrate  project  value  • Cost-­‐benefit  analysis  • Policy  dialogue  

3.  Adapt  to  local  government  capacity  • Distribute  responsibiliUes  across  sectors  •  ImplemenUng  capacity  

Recommendations 4.  CAPs  2.0  • Community  parUcipaUon  •  Flexibility  and  adaptability    

5.  Target  mulAple  dimensions  of  scaling  up  •  IdenUfy  opportuniUes  • Current  focus  is  on  quanUtaUve  and  insUtuUonal  scaling  up  • PoliUcal  and  funcUonal  scaling  up  require  more  aRenUon  

Concluding remarks

•  State  engagement  correlates  with:  •  Resource  capaciUes  at  the  naUonal  and  local  government  level  •  The  policy  focus  of  each  governments  (the  importance  they  aRach  to  each  value  chain  or  agency)  

 

• Progress  could  be  made  in  understanding  local  poliUcal  economies  •  Ensuring  that  marginalized  people  benefit  equally  

Thank  you  QuesUons?