SESSION 5INTEGRATING GENDER INTO VALUE

CHAINS - THEORY

SESSION GOAL

To enable workshop participants to:

• become familiar with value chain analysis• understand the process of gender analysis in value chain

development

…is a linked set of activities and enterprises that brings a product from conception through disposal.

Value chain Supply chain Market chain

  GLOBAL commodity chain filiere (thread) INTERNATIONAL ASSEMBLY LINE

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VALUE CHAIN CONCEPTS

A Value Chain

MAP OF A VALUE CHAIN

VALUE CHAIN CONCEPTS

… is the process of documenting and analyzing the operation of a value chain, and usually involves mapping the chain actors and calculating the value added along its different links

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Value Chain Analysis

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Competitiveness

…is the ability of a firm or industry to develop and maintain an edge over market rivals

VALUE CHAIN CONCEPTS

Competitiveness can be achieved through:

• producing and delivering goods and services more efficiently

• differentiating products or services through quality; standards and branding

• exploiting new market demand

The Value Chain Framework Briefing Paper, AMAP

COMPETITIVENESS CONTINUED

VALUE CHAIN CONCEPTS

…is a process of increasing the economic competitiveness of enterprises, occupying new positions in a global value chain. or delivering to new markets and buyers. Upgrading is achieved by, e.g., improving working conditions, job and employment security, and maintaining a clean environment are all important means by which to upgrade.

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Upgrading

Types of Upgrading:

• Chain upgrading: moving to a new chain

• Functional upgrading: changing the mix of activities

• Process upgrading: increasing the efficiency

• Product upgrading: introducing new products

UPGRADING CONTINUED

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COMMON VALUE CHAIN CONSTRAINTS

• Small land holdings• Low productivity or lack of access to productive

technologies• Limited range of finance and credit options• Lack of access to affordable inputs and BDS• Weak producer associations • Weak market linkages• Lack of access to market information• Lack of coordination between public and private sector

stakeholders• Trust

CHARACTERISTICS OF THE SHIFT TO PRODUCING IN VALUE CHAINS

• Shift from production processed that draws on indigenous or local knowledge to practices that depend on technical knowledge received from other input suppliers or buyers

• Increasing coordination of the activities from production to end user

• More complex contractual arrangements

• Greater concentration in procurement processes and end retailing

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• Global value chains can create employment opportunities and improve living standards for the poor

• To achieve this design and implementation of projects must aim to:– increase the total amount and value of products that the poor sell

in value chains; and,– sustain the share of the poor in a given sector or increase their

margins per product, so that– poor producers and employees gain both an absolute increase in

income as well as an increase in the relative income of the poor compared to other actors along the chain

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VALUE CHAINS FOR DEVELOPMENT

PART 2GENDER AND VALUE CHAIN

ANALYSIS

WHAT DOES IT MEAN?

• Looking beyond women’s role as farm laborers towards increasing their participation as farmer-entrepreneurs

• Recognizing that women and men can be equally productive when given access to equivalent agricultural inputs and technology

• Providing more equitable access to all factors of production: land, labor, water, credit, and information for both women and men

• Increasing women’s employment increases economic growth

• Increasing women’s employment can reduce poverty• Addressing gender constraints to employment and

productivity can increase competitiveness• Ignoring gender may limit the strategies considered

WHY DOES IT MATTER?

• Analysis of men and women’s distribution throughout the chain

• Analysis of gender relations that influence patterns described and measured in value chains

APROACHES TO ADDRESSING GENDER ISSUES IN VALUE CHAINS

GATE’S Two Gender VCA Approaches

RESEARCH• Describe men and women’s

roles in value chains• Reveal sex segmentation

and gender bias in labor markets

• Link economic data to power and gender differences along the chain

IMPLEMENTATION• Examine underlying gender

issues using a qualitative gender analysis framework

• Link gender analysis to program objectives

• Build the capacity of USAID and partner staff to recognize gender constraints and opportunities in value chain programs

GENDER VCA APPROACHES

A GENDER AND PRO-POOR VALUE CHAIN ANALYSIS

GATE uses a gender and pro-poor value chain analysis:• to explore the nature of production and the terms and

conditions of employment along a specific chain; and,• to identify opportunities to improve market outcomes,

raise productivity and wages, and foster pro-poor growth in the sector

GATE conducted two gender and pro-poor value chain analyses examining the shrimp sector in Bangladesh and the artichoke sector in Peru.

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APPROACH

The value chain analysis is conducted from a distributional perspective:

• Segmentation analysis of labor markets by sex

• Estimating costs, returns and value-added

• Multipliers and spillover effects

Mixed Methods Data Collection

• Quantitative – Primary data collection through surveys– Secondary analysis of household surveys and national

accounts data

• Qualitative– Key informant interviews– Group interviews

• All data is disaggregated by sex

METHODOLOGY

• Valuable export crop: in 2004, over $360 million annually in earnings and 4.9 percent of foreign exchange

• Ranks second in foreign exchange• Generates signification employment• Two types cultivated

– Saltwater shrimp (Bagda)– Freshwater shrimp (Golda)

• Farm methods range from traditional to semi-intensive

PRO-POOR ANALYSIS OF SHRIMP SECTOR IN BANGLADESH

Sex Segmentation Along The Chain

• Women and men cluster in different segments of the chain and have clearly gender-defined tasks, roles and responsibilities

• Wage differentials: Women earn between 70-80% of men’s wages

• Women are disproportionately temporary or casual workers: 70% of all temporary workers in processing

PRO-POOR ANALYSIS OF SHRIMP SECTOR IN BANGLADESH

Power and Inequality Along the Chain

Small producers and women are the most vulnerable participants in the chain

Small producers are locked into sub-optimal contracts

Women are invisible at certain nodes or in casual/temporary labor

Intermediaries, larger farmers, and processors have more power to negotiate

PRO-POOR ANALYSIS OF SHRIMP SECTOR IN BANGLADESH

Illustrative Program and Policy Recommendations

• Develop a Welfare Fund to extend benefits, including health care and pensions, to informal and subcontracted workers

• Increase cultivation of ‘golda’ prawn which is less virus prone; earns consistently higher prices; cultivated in smaller household ponds; greater involvement of women

• Expand spot markets and inject credit to release many small farmers and intermediaries from usurious contracts

PRO-POOR ANALYSIS OF SHRIMP SECTOR IN BANGLADESH

Overview

• Two varieties of artichokes:– Traditional variety, “Criolla”

– Export variety, “Hybrid”

• Two modes of production:– Coastal

– Highland

• USD 70 million in exports (2006)• 20% of US market• Potential to produce all year• Opportunities to expand acreage

and number of small producers

GENDER AND PRO-POOR ANALYSIS OF ARTICHOKE SECTOR IN PERU

Sex Segmentation Along the Chain

• Women make up 51 percent of employment along the chain

• Women and men cluster in different occupations

• Women are employed for specific tasks: peeling, cutting and de-leafing

GENDER AND PRO-POOR ANALYSIS OF ARTICHOKE SECTOR IN PERU

Economic Spillovers

• Forward linkages are strong• Greatest backward linkages

are with small and medium-sized farmers who capture least amount of value-added along the chain

• Promoting better sales price for small and medium producers would amplify spillover effects and create more dynamism

GENDER AND PRO-POOR ANALYSIS OF ARTICHOKE SECTOR IN PERU

Illustrative Program and Policy Recommendations

• Strengthen mechanisms for labor supervision to hold processing plants accountable for providing adequate benefits for their men and women workers

• Increase agricultural product portfolios including use of traditional artichoke varieties to expand the market opportunities of small and medium-sized farmers

• Develop an appropriate technological package that includes low-cost irrigation technology and use of local inputs

GENDER AND PRO-POOR ANALYSIS OF ARTICHOKE SECTOR IN PERU

WHAT ARE THE DIFFERENT CHALLENGES FACING WOMEN AND MEN?

Can women/men be incorporated in value chains in a way that improves farm enterprise and/or sector competitiveness?

The challenges to women/men are:• Meeting quality and environmental standards• Maintaining consistent and reliable supplies• Meeting the costs of certification• Identifying multiple sales outlets

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INTEGRATING GENDER INTO VALUE CHAIN DEVELOPMENT

• Map the participation of men and women in the value chain

• Identify the gender-based constraints and opportunities

• Design solutions to remove gender-based constraints• Construct indicators to measure success of action• Revise program objectives as needed to be more

gender-sensitive

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Identifying the Gender Constraint in the General Constraint

General Constraints• Small land holdings

• Limited range of finance and credit options

• Lack of access to market information

• Low productivity

Gender-based Constraints• Laws or customs that restrict

women’s land ownership• Bank policies that do not

allow a married woman to obtain a loan without her husband’s signature

• Social norms limit women’s networking abilities

• Inequitable distribution of harvest income

IDENTIFYING GENDER-BASED CONSTRAINTS

GENERAL CONSTRAINT

IDENTIFYING GENDER-BASED CONSTRAINTS

GENDER-BASED CONSTRAINT

Small landholdings

Limited range of finance and credit options

Lack of access to market information

Low productivity

Laws or customs that restrict women’s land ownership

Bank policies that require a married women to obtain her husband’s signature

Social norms that limit women’s networking abilities

Inequitable distribution of household income

GENDER-BASED CONSTRAINTS

DESIGNING SOLUTIONS

Inequitable distribution of harvest income

• Promote joint accounts or accounts in women’s names

• Create innovative payment incentives to ensure married women producers receive returns from their labor

• Use multiple mediums for communicating price and marketing information (e.g. cell phones and radio)

• Increase women’s participation in producer associations

POSSIBLE SOULTIONS

Social norms limit women’s networking abilities