Issues in farmerIssues in farmer--buyer relationships buyer relationships

and trade practices in Ugandaand trade practices in Uganda

JörgJörg WiegratzWiegratz

University of Sheffield, Department of Politics University of Sheffield, Department of Politics

Recent empirical findingsRecent empirical findings

University of Sheffield, Department of Politics University of Sheffield, Department of Politics

SOAS, Agrarian Change SeminarsSOAS, Agrarian Change Seminars

22.10.200922.10.2009

Overview of the presentationOverview of the presentation�� Findings from two studies, research period 2007Findings from two studies, research period 2007--99

�� ‘Case studies of lead firm governance systems in the ‘Case studies of lead firm governance systems in the context of commercialization of smallholder agriculture context of commercialization of smallholder agriculture context of commercialization of smallholder agriculture context of commercialization of smallholder agriculture in Uganda’ (Wiegratz, Nyabuntu and Omagor 2007)in Uganda’ (Wiegratz, Nyabuntu and Omagor 2007)

�� See also: Wiegratz (2009)See also: Wiegratz (2009)Uganda’s human resource challenge: Uganda’s human resource challenge:

Training, Business Culture and Economic DevelopmentTraining, Business Culture and Economic Development, Fountain , Fountain

Publishers: Kampala, Chapters 9 and 10 Publishers: Kampala, Chapters 9 and 10

�� ‘The cultural political economy of embedding ‘The cultural political economy of embedding neoliberalism in Uganda: an analysis of changes in moral neoliberalism in Uganda: an analysis of changes in moral

norms and trade practices in the rural economy since norms and trade practices in the rural economy since 1986’ (PhD research 20071986’ (PhD research 2007--10)10)

�� www.shef.ac.uk/politics/research/phd/jwiegratz.htmlwww.shef.ac.uk/politics/research/phd/jwiegratz.html2

Background study 1Background study 1

�� Five case studies of governance of value chains Five case studies of governance of value chains

between lead firms and supplying farmersbetween lead firms and supplying farmersbetween lead firms and supplying farmersbetween lead firms and supplying farmers

��Bee Natural Products (honey)Bee Natural Products (honey)

�� Sulmafoods (fruits/veg.)Sulmafoods (fruits/veg.)

��Outspan (sesame/chili)Outspan (sesame/chili)

�� Ibero (coffee)Ibero (coffee)�� Ibero (coffee)Ibero (coffee)

�� Jesa (dairy products)Jesa (dairy products)

��Extra study (different funding): Sameer and Extra study (different funding): Sameer and Paramount (both dairy) (not discussed)Paramount (both dairy) (not discussed)

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Abbreviations Abbreviations

�� Domestic Value chains (Domestic Value chains (DVCsDVCs))

�� Domestic Value Chain Development (Domestic Value Chain Development (DVCDDVCD))

�� Lead firms (Lead firms (LFsLFs))�� Lead firms (Lead firms (LFsLFs))

�� Smallholder farmers (Smallholder farmers (SHFsSHFs))

�� Lead farmers (Lead farmers (LFAsLFAs))

�� Supervisors (Supervisors (SVsSVs))

�� Support institutions (Support institutions (SIsSIs))

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�� Support institutions (Support institutions (SIsSIs))

�� Private Sector (Private Sector (PSPS))

�� Public Private Partnership (Public Private Partnership (PPPPPP))

�� For the lead firms: For the lead firms: BNP, SF, OS, IB, JE BNP, SF, OS, IB, JE ((PM, SEPM, SE))

Research rationaleResearch rationale

�� Past studies: Past studies: problems problems in agro value chain governance in in agro value chain governance in Uganda’s agroUganda’s agro--sector regarding business practicessector regarding business practices

�� Low level of: trustLow level of: trust--basedbased, , long term long term oriented economic relationsoriented economic relations�� Low level of: trustLow level of: trust--basedbased, , long term long term oriented economic relationsoriented economic relations

�� Rather: Rather: short term oriented, onshort term oriented, on--off off relations, low mutual relations, low mutual trust/mistrust, trust/mistrust, opportunistic behaviour, malpracticesopportunistic behaviour, malpractices

�� Low trust atmosphere shapes actors’ expectations re action Low trust atmosphere shapes actors’ expectations re action motivations and practicesmotivations and practices

�� Yet, Yet, relevance relevance of meaningful buyerof meaningful buyer--farmers interaction for farmers interaction for development of smallholder farmers (within Uganda’s development of smallholder farmers (within Uganda’s neoliberal neoliberal

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development of smallholder farmers (within Uganda’s development of smallholder farmers (within Uganda’s neoliberal neoliberal setting setting –– which we largely take as ‘given’ in this study)which we largely take as ‘given’ in this study)

�� Thus, what are the Thus, what are the experiences experiences of buyers who engage in direct of buyers who engage in direct and and long term oriented long term oriented relations with SHFs (‘developmental relations with SHFs (‘developmental buyers’)?buyers’)?

Key research questionsKey research questions

�� How did the relationship How did the relationship startstart between SHFs and the LF? between SHFs and the LF?

�� What is the What is the rationalerationale of the relationship? of the relationship? �� What is the What is the rationalerationale of the relationship? of the relationship?

�� What were What were requirementsrequirements for SHFs to participate in the VC? for SHFs to participate in the VC?

�� Did SHFs Did SHFs fulfillfulfill requirements from the beginning, or, if requirements from the beginning, or, if not, did they receive not, did they receive assistanceassistance from LFs (others) to do so? from LFs (others) to do so?

�� What are What are different governance systemsdifferent governance systems of LFs? Rationale? of LFs? Rationale?

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�� What are What are different governance systemsdifferent governance systems of LFs? Rationale? of LFs? Rationale?

�� What are the What are the rolesroles of the LFs and SHFs in a specific VC?of the LFs and SHFs in a specific VC?

�� What are What are forms, reasons, resultsforms, reasons, results of LFof LF--SHFs cooperation? SHFs cooperation?

�� What are forms of What are forms of cooperationcooperation among SHSs? among SHSs?

Key research questions, cont. (1)Key research questions, cont. (1)

�� What are What are challenges/opportunities challenges/opportunities of the of the relationshiprelationship? ? �� What are particular challenges/opportunities of What are particular challenges/opportunities of SHFsSHFs? ? �� What are particular challenges/opportunities of What are particular challenges/opportunities of SHFsSHFs? ?

�� Which are SHFs’ improvement (Which are SHFs’ improvement (upgradingupgrading) efforts? ) efforts? What are What are results results of upgrading?of upgrading?

�� What are overall What are overall benefits and costs benefits and costs for SHFs/LFs of for SHFs/LFs of being in the business relationship?being in the business relationship?

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being in the business relationship?being in the business relationship?

�� What are What are lessons learnt lessons learnt for LFs and SHFs?for LFs and SHFs?

Key research questions, cont. (2)Key research questions, cont. (2)

�� How did How did support institutions support institutions help the LFhelp the LF--SHFs VC? SHFs VC?

�� How did How did government policies government policies impact on the relation impact on the relation between LFs and SHFs?between LFs and SHFs?

�� How can How can Government (&donor) programmes Government (&donor) programmes and policies and policies

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�� How can How can Government (&donor) programmes Government (&donor) programmes and policies and policies support the VCs in support the VCs in futurefuture? ?

Hypotheses of the studyHypotheses of the study

�� All pretty much the basics of All pretty much the basics of conventionalconventional value value chain governance analysis!chain governance analysis!chain governance analysis!chain governance analysis!

�� E.g., production and trade dynamics E.g., production and trade dynamics at level of at level of SHFsSHFsand and LFsLFs are are related to forms of relationships related to forms of relationships between between VC actors; and thus to forms of VC governance.VC actors; and thus to forms of VC governance.

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�� Network Network relations with a LF offer better relations with a LF offer better earning and upgrading conditions for SHFs earning and upgrading conditions for SHFs than armsthan arms--length spotlength spot--market relations. market relations.

Hypotheses of the study, cont. Hypotheses of the study, cont.

�� Different governance forms require different degrees of Different governance forms require different degrees of farmers’ farmers’ capabilitiescapabilities; integration into more relational ; integration into more relational farmers’ farmers’ capabilitiescapabilities; integration into more relational ; integration into more relational governance modes requires a high degree of such governance modes requires a high degree of such capabilities capabilities

�� EnhancedEnhanced skillsskills and and collective actioncollective action of SHFs reducesof SHFs reduces governance governance costscosts and and risksrisks; so do enhanced opportunities to ; so do enhanced opportunities to efficiently efficiently transmit knowledge/info transmit knowledge/info between LF and SHFsbetween LF and SHFs

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efficiently efficiently transmit knowledge/info transmit knowledge/info between LF and SHFsbetween LF and SHFs

Field researchField research

�� InIn--depth interviews with: LFs and SHFs. depth interviews with: LFs and SHFs. �� InIn--depth interviews with: LFs and SHFs. depth interviews with: LFs and SHFs.

�� With the LFs: MDs, Farm Managers, SVs etc.With the LFs: MDs, Farm Managers, SVs etc.

�� With 2With 2--4 farmers groups per case study4 farmers groups per case study

�� With 3With 3--4 support institutions per case study.4 support institutions per case study.

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�� Field research period: JuneField research period: June--September 2007.September 2007.

�� Final document length: about 500pp.Final document length: about 500pp.

Governance Governance of of VCs: TheoryVCs: Theory�� LFsLFs are in a particular are in a particular functional position functional position in the chain, e.g. in the chain, e.g.

powerful buyers/retailers, processorspowerful buyers/retailers, processors

�� Way in which the LF (powerful buyers/retailers, processors) Way in which the LF (powerful buyers/retailers, processors) �� Way in which the LF (powerful buyers/retailers, processors) Way in which the LF (powerful buyers/retailers, processors) of a specific VC of a specific VC organizesorganizes, , coordinatescoordinates, , monitorsmonitors and and controlscontrols: :

1.1. Dispersed Dispersed activitiesactivities and and inputsinputs of the participating actors of the participating actors (to achieve certain functional division of labour in the VC)(to achieve certain functional division of labour in the VC)

2.2. BarriersBarriers of VC entry and of VC entry and spreadspread of skills, technology, of skills, technology, knowledge, information, advise, finance, profits along VC knowledge, information, advise, finance, profits along VC

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knowledge, information, advise, finance, profits along VC knowledge, information, advise, finance, profits along VC

�� Governance is typically required for specifications in terms ofGovernance is typically required for specifications in terms of�� productproduct (design, quality, standards)(design, quality, standards)

�� production production processesprocesses and technology, and/or and technology, and/or �� logisticslogistics (quantity, delivery, scheduling)(quantity, delivery, scheduling)

Aspects of VC governanceAspects of VC governance

�� SettingSetting rules that define conditions of VC participationrules that define conditions of VC participation

�� Incorporating/excludingIncorporating/excluding other VC actors accordingly, other VC actors accordingly,

and and allocatingallocating to them valueto them value--adding activities that LFs adding activities that LFs

do not wish to performdo not wish to perform

MonitoringMonitoring actors’ performance and rules’ complianceactors’ performance and rules’ compliance

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�� MonitoringMonitoring actors’ performance and rules’ complianceactors’ performance and rules’ compliance

�� AssistingAssisting VC actors in meeting rulesVC actors in meeting rules

Governance: WHY and HOWGovernance: WHY and HOW

�� Among Among main motivation for governancemain motivation for governance: :

�� Product definition:Product definition: Buyer’ product differentiation strategy Buyer’ product differentiation strategy �� Product definition:Product definition: Buyer’ product differentiation strategy Buyer’ product differentiation strategy

requires to provide suppliers with precise product requires to provide suppliers with precise product specification + ensure that specifications are metspecification + ensure that specifications are met

�� Perceived risk of producer failure:Perceived risk of producer failure: Governance is Governance is supposed to reduce that risksupposed to reduce that risk

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�� In some VCs: major governance work In some VCs: major governance work not done by LF but not done by LF but

fewfew (1(1stst tier) suppliers, buying agents, government actors, tier) suppliers, buying agents, government actors, consulting firmsconsulting firms

Different governance formsDifferent governance forms

�� Varying coordination patterns: along a VC and between VCs: Varying coordination patterns: along a VC and between VCs:

�� Arm’sArm’s--length relationshiplength relationship (pure market relationships) (pure market relationships)

�� NetworkNetwork--type relationships type relationships (explicitly coordinated)(explicitly coordinated)�� NetworkNetwork--type relationships type relationships (explicitly coordinated)(explicitly coordinated)

�� Vertically integrated Vertically integrated firms (hierarchy, explicitly coordinated)firms (hierarchy, explicitly coordinated)

�� Reasons for different governance types: Reasons for different governance types:

�� ComplexityComplexity of transactionof transaction

�� Ability to codify and transferAbility to codify and transfer information/knowledgeinformation/knowledge

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�� Ability to codify and transferAbility to codify and transfer information/knowledgeinformation/knowledge

�� CapabilitiesCapabilities of suppliersof suppliers

�� Others: product or market features, technology, trade policies, Others: product or market features, technology, trade policies, social capital, trust, human resources, local collective actionsocial capital, trust, human resources, local collective action

�� Also: differences in terms of Also: differences in terms of highhigh--trusttrust and and lowlow--trust VCtrust VC

Some implicationsSome implications�� Important to understand:Important to understand:

�� VC structure, functioning &VC structure, functioning & changechange of of governance modes governance modes along VC along VC

Ways in which Ways in which LFLF might intend to might intend to incorporateincorporate and and �� Ways in which Ways in which LFLF might intend to might intend to incorporateincorporate and and supportsupport SHFsSHFs and allocate new tasks to themand allocate new tasks to them

�� Capability requirements Capability requirements for SHFs’ integration and for SHFs’ integration and upgrading in VCsupgrading in VCs

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�� Quality of relation with LF vital for SHFs:Quality of relation with LF vital for SHFs:

�� LLLLLL--approachapproach: Local firms : Local firms linkinglinking with buyers, with buyers, leveragingleveraging knowknow--how, skills, technology from these how, skills, technology from these relations (to upgrade), and invest in relations (to upgrade), and invest in learninglearning

…in context of farmers’ development…in context of farmers’ development

�� Participating in VCs Participating in VCs cancan be be fastfast--track strategy track strategy for SHFs: for SHFs:

�� To gain access to markets (LF as a gatekeeper), marketing To gain access to markets (LF as a gatekeeper), marketing �� To gain access to markets (LF as a gatekeeper), marketing To gain access to markets (LF as a gatekeeper), marketing channels, credit, technologies, knowledge, skills of the LF and channels, credit, technologies, knowledge, skills of the LF and

thus mobilizethus mobilize farmers’ potentialfarmers’ potential

�� LFs put LFs put pressurepressure and at the same time provide and at the same time provide assistanceassistance

�� Again, note that this is the view of the Again, note that this is the view of the conventionalconventional VC VC

approach which is in parts insightful (but also tends to approach which is in parts insightful (but also tends to

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approach which is in parts insightful (but also tends to approach which is in parts insightful (but also tends to

exclude important issues such as power, cultural political exclude important issues such as power, cultural political

economy, moral economy, etc. which we turn to in study 2)economy, moral economy, etc. which we turn to in study 2)

�� For references on theory (for study 1 and 2) see Wiegratz et For references on theory (for study 1 and 2) see Wiegratz et

al. (2007a), Wiegratz et al. (2007b), Wiegratz (2009).al. (2007a), Wiegratz et al. (2007b), Wiegratz (2009).

Selected findingsSelected findingsSelected findingsSelected findings

All LFs tried to link up and support SHFsAll LFs tried to link up and support SHFs

�� All LFs have undertaken efforts to build direct and constant All LFs have undertaken efforts to build direct and constant relations with farmers and build their productive capacities relations with farmers and build their productive capacities and group organization. and group organization. and group organization. and group organization.

�� There are various reasons for LFs to do this: There are various reasons for LFs to do this:

�� Strive for sufficient product quantity and qualityStrive for sufficient product quantity and quality

�� Control of diseases and pests in the production areaControl of diseases and pests in the production area

�� Meeting standards (traceability etc.) of the target marketMeeting standards (traceability etc.) of the target market

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�� Meeting standards (traceability etc.) of the target marketMeeting standards (traceability etc.) of the target market

�� Statutory regulationStatutory regulation

�� Market dynamics such as enhanced competition (quality) Market dynamics such as enhanced competition (quality)

�� Interest in Interest in local development around the LF’s location local development around the LF’s location

LF’ support relevant for SHFs’ upgradingLF’ support relevant for SHFs’ upgrading

�� Setting up a factory (or project office, ‘being visible’) in an Setting up a factory (or project office, ‘being visible’) in an area helps the LF getting security from local ‘stakeholders’ area helps the LF getting security from local ‘stakeholders’ (farmers etc.) allowing the factory not to be a ‘white (farmers etc.) allowing the factory not to be a ‘white (farmers etc.) allowing the factory not to be a ‘white (farmers etc.) allowing the factory not to be a ‘white elephant’ but to be protected (in broader sense) by stakeh.elephant’ but to be protected (in broader sense) by stakeh.

�� LFs offer significant benefits to SHFs; the results of the LFs offer significant benefits to SHFs; the results of the cooperation are usually significant (farmers’ upgrading)cooperation are usually significant (farmers’ upgrading)

Despite the upgrading efforts/results of LFs and SHFs, some Despite the upgrading efforts/results of LFs and SHFs, some

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�� Despite the upgrading efforts/results of LFs and SHFs, some Despite the upgrading efforts/results of LFs and SHFs, some LFs face a LFs face a supply supply problem, others a problem, others a market accessmarket access problemproblem

�� LFs still noted deficits among farmers in terms of: adoption of LFs still noted deficits among farmers in terms of: adoption of improved agronomic practices, technology advancement, and improved agronomic practices, technology advancement, and risk taking behaviour, amongst othersrisk taking behaviour, amongst others

Continuation!?Continuation!?

�� LFs have to be ready to (continue to) invest in SHFs: LFs have to be ready to (continue to) invest in SHFs:

innovation, inputs, training, advise, promotion of GAP innovation, inputs, training, advise, promotion of GAP innovation, inputs, training, advise, promotion of GAP innovation, inputs, training, advise, promotion of GAP

(good agricultural practices), certification costs etc.(good agricultural practices), certification costs etc.

�� Such efforts have a good chance to yield positive returns Such efforts have a good chance to yield positive returns

in the long run (if loyalty & market challenges can be kept in the long run (if loyalty & market challenges can be kept

in control) in control)

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in control) in control)

�� There are high expectations There are high expectations -- among SHFs/stakeholders among SHFs/stakeholders --

that LFs further increase the that LFs further increase the scopescope of their supportof their support

LFs positively different from ‘other buyers’LFs positively different from ‘other buyers’

�� Farmers in all case studies appreciate the relation with their LF; Farmers in all case studies appreciate the relation with their LF; despite respective despite respective challengeschallenges

�� Training, price, demand stability, increased business volume, Training, price, demand stability, increased business volume,

technology & knowledge transfer, better agrotechnology & knowledge transfer, better agro--practices, practices, various kinds of assistance, more trustvarious kinds of assistance, more trust--based (and at times based (and at times

partnershippartnership--like) relationships, motivation, learning by like) relationships, motivation, learning by repetition, lower level of malpractices (if any) in particular repetition, lower level of malpractices (if any) in particular

cases, joint business projectscases, joint business projects

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cases, joint business projectscases, joint business projects

�� Farmers: the LFs’ actions is different from other buyers/agents Farmers: the LFs’ actions is different from other buyers/agents

in the area; others mostly just purchase the produce but do not in the area; others mostly just purchase the produce but do not develop farmers capacities; they are often also less trustworthy develop farmers capacities; they are often also less trustworthy

than the LFs studiedthan the LFs studied

Yet, LF face loyalty problemsYet, LF face loyalty problems

�� Yet, almost all LFs suffer from the loyaltyYet, almost all LFs suffer from the loyalty--problem: problem: Farmers who benefit from the LF’s support sell to other Farmers who benefit from the LF’s support sell to other buyers who have not supported farmers in any way, but buyers who have not supported farmers in any way, but buyers who have not supported farmers in any way, but buyers who have not supported farmers in any way, but can pay a can pay a higher pricehigher price because they had not invested in because they had not invested in farmers’ capacities (in VCD in general). farmers’ capacities (in VCD in general).

�� LF’s LF’s initial assistanceinitial assistance resulted in a resulted in a loyalty boostloyalty boost; this ; this initial effect fades out to some extent over time initial effect fades out to some extent over time

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�� LFs will have to find new ways of boosting (or ‘reLFs will have to find new ways of boosting (or ‘re--freshening’) the farmers’ loyalty in later phases of the freshening’) the farmers’ loyalty in later phases of the relationshiprelationship

State support for LFs?!State support for LFs?!�� GOU has to consider the contribution of those LFs who are GOU has to consider the contribution of those LFs who are pioneerspioneers in developing a subin developing a sub--sector in a particular areasector in a particular area

Argument for special support (or protection) of the LFs Argument for special support (or protection) of the LFs �� Argument for special support (or protection) of the LFs Argument for special support (or protection) of the LFs efforts and investment into VCD in new subefforts and investment into VCD in new sub--sectors to arrive sectors to arrive at a social optimum (increased level) of such efforts at a social optimum (increased level) of such efforts

�� Without support (or protection from following buyers) in the Without support (or protection from following buyers) in the early phase, the pioneer firm will invest less than desired; early phase, the pioneer firm will invest less than desired; knows the following buyers will benefit from the capacity knows the following buyers will benefit from the capacity

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knows the following buyers will benefit from the capacity knows the following buyers will benefit from the capacity building of farmers and outbuilding of farmers and out--compete the pioneer on price compete the pioneer on price (scenario of BNP and honey production in West Nile region)(scenario of BNP and honey production in West Nile region)

�� Market failures Market failures -- information (‘discovery’) and training information (‘discovery’) and training externalities of LFs’ actions externalities of LFs’ actions -- to be addressed by policiesto be addressed by policies

Difficult enforceability of contractsDifficult enforceability of contracts

�� Some LFs face problem of enforceability of (Some LFs face problem of enforceability of (supply and paysupply and pay--back) back) contracts/agreements; contracts/agreements; dealing with defaulting farmers dealing with defaulting farmers

�� Deficient reDeficient re--payment behaviour of farmers (‘other needs’)payment behaviour of farmers (‘other needs’)

�� Enforcement of contracts is not yet feasible with SHFs: Enforcement of contracts is not yet feasible with SHFs:

�� Limited staff capacity of the LF to enforce contractsLimited staff capacity of the LF to enforce contracts

�� Fear to loose reputation among farmersFear to loose reputation among farmers

�� Need for LF to keep farmers in the VC to ensure supply Need for LF to keep farmers in the VC to ensure supply

�� Pressures from local politiciansPressures from local politicians

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�� Pressures from local politiciansPressures from local politicians

�� BNP approached NAADS (state agriculture programme) to BNP approached NAADS (state agriculture programme) to help with help with price negotiations/farmers’ loyaltyprice negotiations/farmers’ loyalty

�� Overall, highly relevant problem for VCD in Uganda Overall, highly relevant problem for VCD in Uganda (undermines & lowers LFs’ efforts)(undermines & lowers LFs’ efforts)

The role of training and lead farmers The role of training and lead farmers

�� LFs stressed the high level of training efforts needed to LFs stressed the high level of training efforts needed to keep the farmers motivated, committed, knowledgeable. keep the farmers motivated, committed, knowledgeable. keep the farmers motivated, committed, knowledgeable. keep the farmers motivated, committed, knowledgeable.

�� LFs often designate successful farmers as ‘lead farmers’ LFs often designate successful farmers as ‘lead farmers’ who act as role models and champions of any innovations who act as role models and champions of any innovations the LF would like to push through the group of SHFs. the LF would like to push through the group of SHFs. The use of LFA is effective for farmerThe use of LFA is effective for farmer--toto--farmer learning.farmer learning.

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�� LF SVs reported that they had to learn how (i) to interact LF SVs reported that they had to learn how (i) to interact with farmers, (ii) communicate information, (iii) make with farmers, (ii) communicate information, (iii) make joint decisions, and (iv) be patient with farmers.joint decisions, and (iv) be patient with farmers.

Staff workload vs. VCD requirements Staff workload vs. VCD requirements

Some LFS have problem to expand Some LFS have problem to expand ��Some LFS have problem to expand Some LFS have problem to expand

their staff system adequately as their their staff system adequately as their system with farmers expandssystem with farmers expands

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Group formation and dynamics…Group formation and dynamics…�� …of farmer groups is a major issue in VCs. All farmers …of farmer groups is a major issue in VCs. All farmers

interviewed were organized in groups. Often, the LF has interviewed were organized in groups. Often, the LF has initiated the group formation process.initiated the group formation process.initiated the group formation process.initiated the group formation process.

�� The group arrangement has brought many advantages The group arrangement has brought many advantages (input sharing etc.)(input sharing etc.)

�� Due to group processes, the out put per SHF has Due to group processes, the out put per SHF has increased, knowledge of best practices is shared by increased, knowledge of best practices is shared by members members

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members members

�� However, weak group structures (generally institutions However, weak group structures (generally institutions from grassroots to higher levels) remain a major from grassroots to higher levels) remain a major challenge for most SHFs and respective LFs. challenge for most SHFs and respective LFs.

…are key and need to be addressed…are key and need to be addressed

�� All LFs called for enhanced group organization. This All LFs called for enhanced group organization. This issue should be of major concern for GOUissue should be of major concern for GOUissue should be of major concern for GOUissue should be of major concern for GOU

�� One LF: stated it would increase farm gate prices for One LF: stated it would increase farm gate prices for farmers if there is a higher level of group organization farmers if there is a higher level of group organization (thus reduced LF supervision costs)(thus reduced LF supervision costs)

�� LFs need to develop better LFs need to develop better group orientedgroup oriented incentivesincentives

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�� LFs need to develop better LFs need to develop better group orientedgroup oriented incentivesincentives

�� Related challenge: to use farmers’ network which is Related challenge: to use farmers’ network which is applied to certain areas (to help each other in applied to certain areas (to help each other in production) also for cooperation in investment, financial production) also for cooperation in investment, financial and other business issuesand other business issues

Bulking challenge: logistics & practicesBulking challenge: logistics & practices

�� Bulking of produce (farmers’ collective Bulking of produce (farmers’ collective

marketing) still faces challenges of: marketing) still faces challenges of: marketing) still faces challenges of: marketing) still faces challenges of:

�� Lack of stores in villages where produce can be Lack of stores in villages where produce can be bulked by SHFs as they wait fore the buyer to bulked by SHFs as they wait fore the buyer to

collect and pay for the producecollect and pay for the produce

�� SHFs wanting to be paid as soon as they deliver SHFs wanting to be paid as soon as they deliver

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SHFs wanting to be paid as soon as they deliver SHFs wanting to be paid as soon as they deliver the produce to the store the produce to the store

��Requires a LF’ approach to foster Requires a LF’ approach to foster gradualgradual

change in farmers’ practices (trust) change in farmers’ practices (trust)

((DisDis--)trust is another top issue in VCs)trust is another top issue in VCs�� Many interviewees Many interviewees -- farmers and LFs farmers and LFs -- refer to trust as the refer to trust as the

basis of a mutual beneficial business relationshipbasis of a mutual beneficial business relationship�� LFs have usually a high awareness of the importance of trust LFs have usually a high awareness of the importance of trust

and try to develop/deepen trust with SHFs; especially in and try to develop/deepen trust with SHFs; especially in and try to develop/deepen trust with SHFs; especially in and try to develop/deepen trust with SHFs; especially in absence of use of any/enforceable contractsabsence of use of any/enforceable contracts

�� LFs are not always successful in trust enhancement due toLFs are not always successful in trust enhancement due to�� High turn over, low job security/remuneration of SVsHigh turn over, low job security/remuneration of SVs

�� Cheating of LF’s buying agents Cheating of LF’s buying agents �� Irregular payment of farmers Irregular payment of farmers �� Logistical challenges, thus delayed picking of produceLogistical challenges, thus delayed picking of produce

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�� Logistical challenges, thus delayed picking of produceLogistical challenges, thus delayed picking of produce

�� DeDe--campaigning of LF by other buyers and politicians campaigning of LF by other buyers and politicians �� ‘Interference’ of other buyers into the VC ‘Interference’ of other buyers into the VC -- try to capture try to capture

produce after LF has developed farmers’ capacities (price wars) produce after LF has developed farmers’ capacities (price wars)

�� In one case, the LF and farmers call for intervention of GOU in In one case, the LF and farmers call for intervention of GOU in the price setting (BNP)the price setting (BNP)

How lead firms build/deepen trustHow lead firms build/deepen trust

Farmers said the LF builds trust and relations with them by: Farmers said the LF builds trust and relations with them by:

�� Providing an assured market and taking all the farmers produce, Providing an assured market and taking all the farmers produce, buying from and working with a group for longer (time factor)buying from and working with a group for longer (time factor)buying from and working with a group for longer (time factor)buying from and working with a group for longer (time factor)

�� Paying a more than average (local) price, paying regularly, being Paying a more than average (local) price, paying regularly, being flexible in terms of payment methods flexible in terms of payment methods andand other mattersother matters

�� Providing assistance (inputs, advise, visits, training, preProviding assistance (inputs, advise, visits, training, pre--finance) finance)

�� Fulfilling promises over longer period of time Fulfilling promises over longer period of time �� Being visible and approachable (factory shows commitment to Being visible and approachable (factory shows commitment to

the area), transparent and reliablethe area), transparent and reliable

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the area), transparent and reliablethe area), transparent and reliable

�� Being part of farmers’ social life (develop a more social relation)Being part of farmers’ social life (develop a more social relation)�� Being concerned with SHFs’ development/well beingBeing concerned with SHFs’ development/well being�� Increasing farmers identity towards the LFs’ projectIncreasing farmers identity towards the LFs’ project

�� Examples where trust has been improved by using an advanced Examples where trust has been improved by using an advanced machine for quality control/weightingmachine for quality control/weighting

And how lead firms loose it…And how lead firms loose it…Farmers: issues that undermine relations and trust betweenFarmers: issues that undermine relations and trust between

them and LF are them and LF are deficits of the LFdeficits of the LF in terms of:in terms of:�� Timely payment of farmers Timely payment of farmers

�� Price levels and price negotiations with farmers Price levels and price negotiations with farmers �� Price levels and price negotiations with farmers Price levels and price negotiations with farmers �� Flexibility Flexibility

�� Timely logistics arrangement to pick the produceTimely logistics arrangement to pick the produce�� Communication gapsCommunication gaps�� High field staff turnoverHigh field staff turnover

33

Standards (organic, fair trade, quality and others) which requireStandards (organic, fair trade, quality and others) which require

buyers and farmers to be in close contact buyers and farmers to be in close contact -- beyond merebeyond meretransaction mode transaction mode -- have fostered relations and cooperationhave fostered relations and cooperation

between farmers and buyers between farmers and buyers

MixedMixed state efforts/results in supporting VCDstate efforts/results in supporting VCD

�� Some cases where government programmes have helped the Some cases where government programmes have helped the VC, LF and/or farmers in terms of training and equipmentVC, LF and/or farmers in terms of training and equipment

�� BNPBNP--NAADS cooperation most advanced NAADS cooperation most advanced

�� Other cases where government support in crucial issue areas is Other cases where government support in crucial issue areas is largely absent which leaves the LF with a considerable burden largely absent which leaves the LF with a considerable burden regarding VCD and farmers’ upgrading regarding VCD and farmers’ upgrading

34

regarding VCD and farmers’ upgrading regarding VCD and farmers’ upgrading

�� Some LFs noted to have overstretch their activity areas Some LFs noted to have overstretch their activity areas beyond core functions (training SHFs basics only, buying beyond core functions (training SHFs basics only, buying produce) produce)

LFs search for cooperation with: LFs search for cooperation with:

support institutions and industriessupport institutions and industries

�� Getting stakeholders involved in development of farmers Getting stakeholders involved in development of farmers

-- major strategy of all LFs to reduce their VCD burden major strategy of all LFs to reduce their VCD burden -- major strategy of all LFs to reduce their VCD burden major strategy of all LFs to reduce their VCD burden

�� VC partners: NGOs, donor/state inst., input suppliers VC partners: NGOs, donor/state inst., input suppliers

�� LFs take on a linking function for farmers LFs take on a linking function for farmers

35

�� LFs take on a linking function for farmers LFs take on a linking function for farmers

�� There are a number of examples of good cooperation There are a number of examples of good cooperation

between LF and input suppliers; which can benefit SHFsbetween LF and input suppliers; which can benefit SHFs

Support institutions/industries: Support institutions/industries: ++

�� Impression: in terms of presence, more international than Impression: in terms of presence, more international than

local support inst. are involved in VCD in cases studied local support inst. are involved in VCD in cases studied local support inst. are involved in VCD in cases studied local support inst. are involved in VCD in cases studied

�� Some support programmes/institutions outside the Some support programmes/institutions outside the

government realm do useful interventions government realm do useful interventions

36

�� There are examples where two/more support inst. partner There are examples where two/more support inst. partner

with a LF and the partners compliment one another and with a LF and the partners compliment one another and

improve the efficiency and performance of the VCimprove the efficiency and performance of the VC

Support institutions/industries: Support institutions/industries: --

�� Uncoordinated interventions from different development Uncoordinated interventions from different development agencies (incl. NGOs) can lead to ‘confusion of farmers agencies (incl. NGOs) can lead to ‘confusion of farmers

�� Organic farmers (or farmers close to them) advised to Organic farmers (or farmers close to them) advised to �� Organic farmers (or farmers close to them) advised to Organic farmers (or farmers close to them) advised to use nonuse non--organic chemicals/treated seeds organic chemicals/treated seeds ��Organic VCs can loose certification/be sanctioned for yearsOrganic VCs can loose certification/be sanctioned for years

�� Design of programmes show poor awareness of Design of programmes show poor awareness of prevailing VC issues: farmers are supported in prevailing VC issues: farmers are supported in processing to become more independent from LF and processing to become more independent from LF and sell at better price to sell at better price to anyany (non(non--developmental) buyerdevelopmental) buyer

37

sell at better price to sell at better price to anyany (non(non--developmental) buyerdevelopmental) buyer

�� Different quality standards Different quality standards being promoted in an area by being promoted in an area by provision of quality equipment which has lower quality provision of quality equipment which has lower quality level than the one promoted by the LF level than the one promoted by the LF

Support institutions/industries: Support institutions/industries: --, cont., cont.

�� Interventions that do not consider existing VC context Interventions that do not consider existing VC context

properly (e.g. strategies of LF/farmers) can cause properly (e.g. strategies of LF/farmers) can cause properly (e.g. strategies of LF/farmers) can cause properly (e.g. strategies of LF/farmers) can cause

confusion in the VC and maybe leave farmers worse off:confusion in the VC and maybe leave farmers worse off:

�� Link with LF has been cut; training, advice, market Link with LF has been cut; training, advice, market

access not offered anymore by LF, access not offered anymore by LF,

�� Low quality equipment brings poor result (discouraged Low quality equipment brings poor result (discouraged

farmers)farmers)

38

farmers)farmers)

�� Donors/support agencies: should be concerned with Donors/support agencies: should be concerned with

promoting a more harmonized system of standards, promoting a more harmonized system of standards,

knowledge, practices etc. in VCs in an areaknowledge, practices etc. in VCs in an area

Public Private Partnerships for DVCDPublic Private Partnerships for DVCD

�� GOU has to clarify about its conception of PPP in GOU has to clarify about its conception of PPP in

DVCD, e.g. scope of support for LF governance DVCD, e.g. scope of support for LF governance DVCD, e.g. scope of support for LF governance DVCD, e.g. scope of support for LF governance

systems, farmers etc. systems, farmers etc.

�� BNPBNP--NAADS case shows: clarification necessary to NAADS case shows: clarification necessary to

which extent GOU wishes to engage with LFs not only which extent GOU wishes to engage with LFs not only

39

on matters of production (training and equipment for on matters of production (training and equipment for

farmers) but also marketing (loyalty, contracts, prices) farmers) but also marketing (loyalty, contracts, prices)

Indications that LFs have to improve: Indications that LFs have to improve:

�� The relation with lead farmers (regularly getting their The relation with lead farmers (regularly getting their advice etc.)advice etc.)advice etc.)advice etc.)

�� Improve communication (prices, strategies etc.)Improve communication (prices, strategies etc.)

�� Improve field management (adequate level and Improve field management (adequate level and remuneration of field staff)remuneration of field staff)

40

remuneration of field staff)remuneration of field staff)

�� Work on loyalty challengeWork on loyalty challenge

�� Enhance system of rewards and sanctions for farmers Enhance system of rewards and sanctions for farmers

Hypotheses confirmedHypotheses confirmed

�� Production/trade dynamics at level of SHFs/LFs are related to forms of Production/trade dynamics at level of SHFs/LFs are related to forms of relations between VC actors (governance)relations between VC actors (governance)

�� Deficits in terms of loyalty/trust between SHFs and LF Deficits in terms of loyalty/trust between SHFs and LF reduce produce that SHFs sell to LF, increase side selling reduce produce that SHFs sell to LF, increase side selling reduce produce that SHFs sell to LF, increase side selling reduce produce that SHFs sell to LF, increase side selling

�� Organic certification requirements foster LF and SHFs to Organic certification requirements foster LF and SHFs to have a close & continuous relation which includes joint have a close & continuous relation which includes joint harvesting, quality checks, training; LFs need to build up harvesting, quality checks, training; LFs need to build up field presence for that field presence for that

�� Training, advice, preTraining, advice, pre--finance offered by LFs strengthens finance offered by LFs strengthens the skills and capacities and thus performance of SHFsthe skills and capacities and thus performance of SHFs

41

�� LFs link SHFs to SIs which again strengthens the SHFsLFs link SHFs to SIs which again strengthens the SHFs

�� Cooperation measures are result of advanced relations that are Cooperation measures are result of advanced relations that are different from purely transaction based approach different from purely transaction based approach common in the agro common in the agro sectors in Ugandasectors in Uganda

Hypotheses confirmed, cont. (1)Hypotheses confirmed, cont. (1)

�� Network relations with LF offer better earning/upgrading Network relations with LF offer better earning/upgrading conditions for SHFs than armsconditions for SHFs than arms--length spotlength spot--market relationsmarket relations

�� Different governance forms require different degrees of farmers’ Different governance forms require different degrees of farmers’ capabilities; network relations have requirement for SHFs to capabilities; network relations have requirement for SHFs to enhance their skills in GAP, post harvest handling, sorting, storage enhance their skills in GAP, post harvest handling, sorting, storage etc. etc.

�� LFs offer assistance to raise the required skills, yet also demand LFs offer assistance to raise the required skills, yet also demand

42

�� LFs offer assistance to raise the required skills, yet also demand LFs offer assistance to raise the required skills, yet also demand that SHFs improve their work practices over timethat SHFs improve their work practices over time

�� SHFs need skills for communication, trust building and SHFs need skills for communication, trust building and transparency vistransparency vis--àà--vis the LF; integration into relational vis the LF; integration into relational governance modes requires a high degree of such capabilitiesgovernance modes requires a high degree of such capabilities

Hypotheses confirmed, cont. (2)Hypotheses confirmed, cont. (2)

�� Enhanced skills and collective action of SHFs reduces Enhanced skills and collective action of SHFs reduces

governance costs and risks for the LFgovernance costs and risks for the LF

�� Training provided to farmers reduce monitoring costs in Training provided to farmers reduce monitoring costs in

later periods and increase business volumeslater periods and increase business volumes

�� Enhanced farmer groups reduce coordination costs Enhanced farmer groups reduce coordination costs

�� Governance costs are reduced by enhanced opportunities Governance costs are reduced by enhanced opportunities

to efficiently transmit knowledge/info between LFs and to efficiently transmit knowledge/info between LFs and

43

to efficiently transmit knowledge/info between LFs and to efficiently transmit knowledge/info between LFs and

SHFs as a result of better group formation (farmers SHFs as a result of better group formation (farmers

acting increasingly as one voice), improved acting increasingly as one voice), improved

communication practices of farmers and the increasing communication practices of farmers and the increasing

mobile phone use mobile phone use

Further research neededFurther research needed�� Role of LFAs as link between LF and farmer groups Role of LFAs as link between LF and farmer groups

�� Role of SVs as links LF management Role of SVs as links LF management -- farmersfarmers

�� Trust links in VC, loyalty cyclesTrust links in VC, loyalty cycles

�� Practices of ‘nonPractices of ‘non--developmental’ buyersdevelopmental’ buyers

�� How LFs spend money from external state/aid agenciesHow LFs spend money from external state/aid agencies

�� LF’ claims re results of funded intervention (degree of ‘propaganda’)LF’ claims re results of funded intervention (degree of ‘propaganda’)

�� Politics of cooperation (e.g. limiting farmers’ ambition re processing)Politics of cooperation (e.g. limiting farmers’ ambition re processing)

�� Connections between state/donor Connections between state/donor –– LF(e.g., dairy, sugar, palm oil, LF(e.g., dairy, sugar, palm oil,

‘cuts’/shares for officials?, implications)‘cuts’/shares for officials?, implications)

�� Divide and rule strategies of LFsDivide and rule strategies of LFs

44

�� Divide and rule strategies of LFsDivide and rule strategies of LFs

�� Inter leadInter lead--firms fights over ‘our farmers’ (politics of outfirms fights over ‘our farmers’ (politics of out--grower schemes grower schemes

in specific territories, in ‘liberal’ economy setting)in specific territories, in ‘liberal’ economy setting)

�� CONVENTIONAL VC APPROACH cannot handle/seems not CONVENTIONAL VC APPROACH cannot handle/seems not

interested in: (CULTURAL) POLITICAL ECONOMY, e.g. MORAL interested in: (CULTURAL) POLITICAL ECONOMY, e.g. MORAL

ECONOMY ECONOMY

Study 2: Trade practices and moral norms Study 2: Trade practices and moral norms

in rural markets in neoliberal Ugandain rural markets in neoliberal Uganda

�� Research question: how have neoliberal reforms reshaped Research question: how have neoliberal reforms reshaped

the moral economy in rural markets (& beyond)the moral economy in rural markets (& beyond)the moral economy in rural markets (& beyond)the moral economy in rural markets (& beyond)

�� Reforms aim at the emergence & consolidation of Reforms aim at the emergence & consolidation of market society (freemarket society (free--market, capitalist social relations)market, capitalist social relations)

�� Includes a corresponding set of moral norms of Includes a corresponding set of moral norms of behaving and relating to each other behaving and relating to each other

�� Homo economicus, selfHomo economicus, self--interest, individualism including interest, individualism including �� Homo economicus, selfHomo economicus, self--interest, individualism including interest, individualism including

individual gainindividual gain--making and material success, utility maximizing making and material success, utility maximizing

behaviour, instrumental rationality, low otherbehaviour, instrumental rationality, low other--regard and regard and

empathy, opportunism, transactionempathy, opportunism, transaction--based relations, moneybased relations, money

45

Neoliberal moral restructuringNeoliberal moral restructuring�� Reforms, therefore, have to undermine, overwrite and Reforms, therefore, have to undermine, overwrite and

displace predisplace pre--existing norms, values, orientations, beliefs, existing norms, values, orientations, beliefs, valuations and practices among the populationvaluations and practices among the population

Attempt to change, directly or indirectly, Attempt to change, directly or indirectly, moral normsmoral norms:: what is what is �� Attempt to change, directly or indirectly, Attempt to change, directly or indirectly, moral normsmoral norms:: what is what is

regarded as acceptable/unacceptable, proper/improper, regarded as acceptable/unacceptable, proper/improper, legitimate/illegitimate behaviour in light of moral principles legitimate/illegitimate behaviour in light of moral principles

in the countryin the country

�� Moral norms: standards of interaction concerning others’ Moral norms: standards of interaction concerning others’ welfare, norms: socially constituted reasons for actionswelfare, norms: socially constituted reasons for actionswelfare, norms: socially constituted reasons for actionswelfare, norms: socially constituted reasons for actions

�� Changing the criteria by which people evaluate each other’s Changing the criteria by which people evaluate each other’s

(and their own) actions(and their own) actions

�� Neoliberal moral code: unrestrained selfNeoliberal moral code: unrestrained self--interest, maximise interest, maximise self interest best for society (social welfare), microself interest best for society (social welfare), micro--macromacro46

The study of the moral economyThe study of the moral economy�� All economic relations, practices & organisations have All economic relations, practices & organisations have

moral dimensions, preconditions, implicationsmoral dimensions, preconditions, implications

�� Various moral (and other) principles shape motivation Various moral (and other) principles shape motivation �� Various moral (and other) principles shape motivation Various moral (and other) principles shape motivation

& behaviour of economic actors& behaviour of economic actors

�� An economic organisation (local economy/market) is An economic organisation (local economy/market) is

shaped by people’s relationships, their statuses and shaped by people’s relationships, their statuses and

positions in webs of kinship/community relations and positions in webs of kinship/community relations and

their entitlements, claims, rights, obligations, dutiestheir entitlements, claims, rights, obligations, dutiestheir entitlements, claims, rights, obligations, dutiestheir entitlements, claims, rights, obligations, duties

�� Different frames of reference: age, sex, community Different frames of reference: age, sex, community

membership, position in kinship/community membership, position in kinship/community

structure, etc.structure, etc.47

Moral economy, cont.Moral economy, cont.�� All economies are moral economies; all actors are All economies are moral economies; all actors are

moral actors (identities, motives, relationships, actions moral actors (identities, motives, relationships, actions

have necessarily a moral connotation)have necessarily a moral connotation)

�� Actions are always ‘moral statements’Actions are always ‘moral statements’

�� Study of the moral economy: ‘a form of enquiry that Study of the moral economy: ‘a form of enquiry that

examines how ordinary economic practices and examines how ordinary economic practices and

relationships embody or affect moral dispositions, relationships embody or affect moral dispositions,

evaluations, rules, values, customs and norms’ evaluations, rules, values, customs and norms’ evaluations, rules, values, customs and norms’ evaluations, rules, values, customs and norms’

(Sanghera et al. 2009); but also the study of the (Sanghera et al. 2009); but also the study of the

respective politicalrespective political--economic dimensions economic dimensions

�� For details on references see e.g. Wiegratz (2009) and For details on references see e.g. Wiegratz (2009) and

Wiegratz (forthcoming)Wiegratz (forthcoming)48

MethodologyMethodology�� Around 50 elite interviews in Kampala (officials from state & donor Around 50 elite interviews in Kampala (officials from state & donor

agencies, NGOs & associations, journalists, academicians, religious agencies, NGOs & associations, journalists, academicians, religious

leaders, elders, observers...)leaders, elders, observers...)

�� Around 100 interviews in Bugisu region in Eastern Uganda (in the Around 100 interviews in Bugisu region in Eastern Uganda (in the �� Around 100 interviews in Bugisu region in Eastern Uganda (in the Around 100 interviews in Bugisu region in Eastern Uganda (in the

town Mbale and surrounding districts of Mbale, Bududa, Manafa and town Mbale and surrounding districts of Mbale, Bududa, Manafa and Sironko) with smallholder farmers, traders and middlemen, elites; Sironko) with smallholder farmers, traders and middlemen, elites;

market practices were studiedmarket practices were studied

�� With assistance by research colleagues Samuel Bbosa, James Nkuubi With assistance by research colleagues Samuel Bbosa, James Nkuubi and Fred Guweddekoand Fred Guweddeko

�� Across agricultural sectors (maize, coffee, tomatoes, grains, cotton)Across agricultural sectors (maize, coffee, tomatoes, grains, cotton)�� Across agricultural sectors (maize, coffee, tomatoes, grains, cotton)Across agricultural sectors (maize, coffee, tomatoes, grains, cotton)

�� Analysis of academic literature, newspapers, periodicals, songsAnalysis of academic literature, newspapers, periodicals, songs

�� Analysis offers an account of the Analysis offers an account of the dimensionsdimensions, , dynamicsdynamics, , driversdrivers, , reasonsreasons, , tensionstensions and and consequencesconsequences of some of the main characteristics of moral of some of the main characteristics of moral

restructuring in the rural economy/community in neoliberal Ugandarestructuring in the rural economy/community in neoliberal Uganda49

Findings based on qualitative researchFindings based on qualitative research

�� Interviewees’ subjective views/perceptions, their Interviewees’ subjective views/perceptions, their

experiences, interpretations & sense making of experiences, interpretations & sense making of

trends in liberalised economy (and society) since trends in liberalised economy (and society) since the late 1980sthe late 1980s

�� Some economists might dismiss this collection of Some economists might dismiss this collection of peoples’ views as: ‘rumours from the village’peoples’ views as: ‘rumours from the village’peoples’ views as: ‘rumours from the village’peoples’ views as: ‘rumours from the village’

�� prominent World Bank advisor about results prominent World Bank advisor about results

of qualitative poverty research in Uganda, as of qualitative poverty research in Uganda, as

recalled by intervieweerecalled by interviewee50

Selected findings: overviewSelected findings: overview

�� Cultural (coupled with the politicalCultural (coupled with the political--economic) economic)

dimension of rapid neoliberal reform has negatively dimension of rapid neoliberal reform has negatively

affected the relationships and trade practices between affected the relationships and trade practices between affected the relationships and trade practices between affected the relationships and trade practices between

SHFs (peasants) and traders in rural marketsSHFs (peasants) and traders in rural markets

�� Higher levels of ‘malpractice’ and a change in their Higher levels of ‘malpractice’ and a change in their

form (compared to earlier decades of agro trade)form (compared to earlier decades of agro trade)

�� Malpractices include: deception, intimidation, theft, Malpractices include: deception, intimidation, theft,

collusion, corruption, and various manipulations collusion, corruption, and various manipulations

regarding price (misinformation, intimidation etc.), regarding price (misinformation, intimidation etc.),

quality (e.g. adulteration, incorrect assessment) and quality (e.g. adulteration, incorrect assessment) and

quantity (weighted scales) quantity (weighted scales) 51

MalpracticesMalpractices

�� Traders (middlemen/brokers) appear to have been the origin of Traders (middlemen/brokers) appear to have been the origin of

many of malpractices that people identifiedmany of malpractices that people identified

�� Some of the malpractices emerged, substantiated or mutated with Some of the malpractices emerged, substantiated or mutated with an increase in product demandan increase in product demandan increase in product demandan increase in product demand

�� Farmers estimated: about 7 to 10 out of 10 traders engaged in Farmers estimated: about 7 to 10 out of 10 traders engaged in malpractices (traders mostly agreed) malpractices (traders mostly agreed)

�� Estimates of officials/donors/NGOs: 2Estimates of officials/donors/NGOs: 2--3/10 traders 3/10 traders

�� Partly in response, as well as for other reasons, Partly in response, as well as for other reasons, some farmers also some farmers also engaged in malpractices (though engaged in malpractices (though with much less frequency, scope with much less frequency, scope engaged in malpractices (though engaged in malpractices (though with much less frequency, scope with much less frequency, scope and intensity than traders and intensity than traders ); tit); tit--forfor--tat rationale (exporter, tat rationale (exporter,

middlemen, farmer); middlemen, farmer); ‘chains of malpractices’ ‘chains of malpractices’

�� In some markets, rise of group of brokers with social power In some markets, rise of group of brokers with social power

�� more generally, intensified cutmore generally, intensified cut--taking culture, across the society, by taking culture, across the society, by

actors with relative power (in public and private offices, etc.)actors with relative power (in public and private offices, etc.) 52

Many reasons for malpracticesMany reasons for malpractices�� Malpractices existed in the decades prior to the neoliberal eraMalpractices existed in the decades prior to the neoliberal era

�� Yet, at lower level etc. (different political economy, regulation)Yet, at lower level etc. (different political economy, regulation)

�� LiberalisationLiberalisation, deregulation, , deregulation, privatisationprivatisation, neoliberal state, neoliberal state

�� Social buffers removed across the economy and societySocial buffers removed across the economy and society�� Social buffers removed across the economy and societySocial buffers removed across the economy and society

�� (Foreign) ‘investor’ discourse(Foreign) ‘investor’ discourse

�� No/hardly any regulation of traders’ behaviour No/hardly any regulation of traders’ behaviour

�� Officials don’t want to/cannot regulate markets/the economy (for Officials don’t want to/cannot regulate markets/the economy (for ideological/politicalideological/political--economic reasons, handseconomic reasons, hands--off approach)off approach)

�� Neoliberal ideology/cultural political economy ‘prohibits’ to critique Neoliberal ideology/cultural political economy ‘prohibits’ to critique �� Neoliberal ideology/cultural political economy ‘prohibits’ to critique Neoliberal ideology/cultural political economy ‘prohibits’ to critique &‘regulate’ traders’ practices (sacred traders/businesses, covered)&‘regulate’ traders’ practices (sacred traders/businesses, covered)

�� Farmers’ Farmers’ decline in their bargaining power visdecline in their bargaining power vis--àà--vis tradersvis traders

�� Due to e.g. destruction of cooperatives (now individualized actors), Due to e.g. destruction of cooperatives (now individualized actors),

cash needs, poverty, cash needs, poverty, commercialisedcommercialised education/health sector, education/health sector,

weakened public sector, etc.weakened public sector, etc. 53

Reasons, cont.: Neoliberal moral economyReasons, cont.: Neoliberal moral economy

�� Negatives outcomes of neoliberal socioNegatives outcomes of neoliberal socio--economic reforms economic reforms

�� Poverty, unemployment, crime, corruption, injustices, inequality, insecurity, Poverty, unemployment, crime, corruption, injustices, inequality, insecurity, rising costs of living, crisis of reproductionrising costs of living, crisis of reproduction

�� Poverty and (relative) wealth ambition Poverty and (relative) wealth ambition �� Poverty and (relative) wealth ambition Poverty and (relative) wealth ambition

�� Corruption sagas since the midCorruption sagas since the mid--late 1990s; political/bureaucratic late 1990s; political/bureaucratic elites engaged in power and wealth projects; selfelites engaged in power and wealth projects; self--interest over interest over

national interest , morally compromised & disengagednational interest , morally compromised & disengaged

�� ‘New’ game in town: making money ‘New’ game in town: making money no matter how; no matter how;

�� ‘freed’ economy/individuals: from (social, cultural/moral) ‘constraints’‘freed’ economy/individuals: from (social, cultural/moral) ‘constraints’

Era of increasingly unconstrained moneymaking, in which those Era of increasingly unconstrained moneymaking, in which those �� Era of increasingly unconstrained moneymaking, in which those Era of increasingly unconstrained moneymaking, in which those with social, economic and political power pursue their selfwith social, economic and political power pursue their self--interest interest

almost without regard for the costs to others almost without regard for the costs to others

�� Focus on quick profits (little regard for quality/longerFocus on quick profits (little regard for quality/longer--term considerations) term considerations)

�� Increasing ability of the rich to ignore social conventions & constrainsIncreasing ability of the rich to ignore social conventions & constrains54

Reasons, cont. (2)Reasons, cont. (2)

�� This selfThis self--interest is being rationalised, supported and justified interest is being rationalised, supported and justified

by a new set of neoliberal orientations, norms and discourses by a new set of neoliberal orientations, norms and discourses that increasingly govern Ugandan economy and society (as that increasingly govern Ugandan economy and society (as

they do other countries)they do other countries)they do other countries)they do other countries)

�� Destructive norms and malpractices also spread in other Destructive norms and malpractices also spread in other sectors (education, health, general public administration)sectors (education, health, general public administration)

�� ForeignForeign (cultural(cultural--politicalpolitical--economic) drivers of neoliberal economic) drivers of neoliberal

moral restructuring inUganda include (many of the): moral restructuring inUganda include (many of the): donors/aid agencies, NGOs, organisations, special interest donors/aid agencies, NGOs, organisations, special interest donors/aid agencies, NGOs, organisations, special interest donors/aid agencies, NGOs, organisations, special interest

groups, companies including the media (DVDs, Premier groups, companies including the media (DVDs, Premier League)League)

�� Event of competitive, multiparty democracy (rationale, Event of competitive, multiparty democracy (rationale, tensions, corruption, malpractices etc.)tensions, corruption, malpractices etc.) 55

The tough rural moral economy of the 2000sThe tough rural moral economy of the 2000s

�� Often substantial levels of deceit and/or corruption among those Often substantial levels of deceit and/or corruption among those

people who interact with farmers: those who buy farmers’ produce and people who interact with farmers: those who buy farmers’ produce and

sell them agricultural supplies, as well as shopkeepers, microfinance sell them agricultural supplies, as well as shopkeepers, microfinance

institutions, councils, courts, police officers, bureaucrats (e.g. some of institutions, councils, courts, police officers, bureaucrats (e.g. some of

those responsible for agricultural support, regulation of standards), those responsible for agricultural support, regulation of standards),

politicianspoliticians

�� Farmers: critical of realities of neoliberal rural economy; often reasoned Farmers: critical of realities of neoliberal rural economy; often reasoned

that malpractice are applied by the various actors to make/keep that malpractice are applied by the various actors to make/keep

farmers poor and consequently govern & exploit them with more ease farmers poor and consequently govern & exploit them with more ease

�� After many years of huge problems at the leadership level, revival of After many years of huge problems at the leadership level, revival of After many years of huge problems at the leadership level, revival of After many years of huge problems at the leadership level, revival of

Bugisu Cooperative Union (despite significant political pressure against Bugisu Cooperative Union (despite significant political pressure against

it) it) after a long struggle (of an alliance of farmers, elders, other after a long struggle (of an alliance of farmers, elders, other

concerned people and leaders) against the forces of the status quoconcerned people and leaders) against the forces of the status quo

�� A few other trends that seem to run counter to the spread of A few other trends that seem to run counter to the spread of

neoliberalism in the country (e.g. different business practices applied by neoliberalism in the country (e.g. different business practices applied by

some traders)some traders)56

Concluding remarksConcluding remarks�� Many respondents, and a growing public debate, invoked Many respondents, and a growing public debate, invoked

ideas like ‘moral degeneration’, ‘moral decay’ and ‘ideas like ‘moral degeneration’, ‘moral decay’ and ‘kiwaanikiwaani’ ’ (‘fake’, and the title of a popular song, which points to the (‘fake’, and the title of a popular song, which points to the

role of false/deceptive/’unreal’ behaviour and things in role of false/deceptive/’unreal’ behaviour and things in role of false/deceptive/’unreal’ behaviour and things in role of false/deceptive/’unreal’ behaviour and things in contemporary Uganda)contemporary Uganda)

�� Noted a significant shift since the late 1980s regarding the Noted a significant shift since the late 1980s regarding the

way in which more and more Ugandans (are made to) way in which more and more Ugandans (are made to) think, feel and actthink, feel and act

Moral authority of most institutions diminished Moral authority of most institutions diminished �� Moral authority of most institutions diminished Moral authority of most institutions diminished

�� Notwithstanding the official rhetoric &statistics of reform Notwithstanding the official rhetoric &statistics of reform success: ordinary people, in many ways, experienced success: ordinary people, in many ways, experienced

manifestations of neoliberal pseudomanifestations of neoliberal pseudo--developmentdevelopment

�� Affects relations and practices of farmers and tradersAffects relations and practices of farmers and traders 57

The neoliberal future!?The neoliberal future!?�� Embedding a neoliberal business culture changes not only Embedding a neoliberal business culture changes not only

the political economy but also the moral order of local the political economy but also the moral order of local markets, communities and the country at large markets, communities and the country at large

�� Hard to ‘reverse’ moral economy changes and trends: Hard to ‘reverse’ moral economy changes and trends:

because of because of dynamics and cumulative effects of the changes dynamics and cumulative effects of the changes in morality that have been taking place, coupled with the in morality that have been taking place, coupled with the

country’s politicalcountry’s political--economic situation (economic situation (distribution of distribution of power/wealth in the country, interests/projects of the power/wealth in the country, interests/projects of the

powerful actors including agents of neoliberal morality) and powerful actors including agents of neoliberal morality) and powerful actors including agents of neoliberal morality) and powerful actors including agents of neoliberal morality) and the the radical reorganisation of the global political economy radical reorganisation of the global political economy

since around 1990ssince around 1990s

�� Trends in Uganda (and elsewhere) in 2009; future trends; Trends in Uganda (and elsewhere) in 2009; future trends; future research…. future research…. 58

Finally...Finally...

�� See for further details (e.g. a summary of the PhD See for further details (e.g. a summary of the PhD

research findings and for other downloads): research findings and for other downloads): research findings and for other downloads): research findings and for other downloads): www.shef.ac.uk/politics/research/phd/jwiegratz.htmlwww.shef.ac.uk/politics/research/phd/jwiegratz.html

�� See also future publications by the presenterSee also future publications by the presenter

�� For comments and further information please email For comments and further information please email

to: to: j.wiegratz@sheffield.ac.ukj.wiegratz@sheffield.ac.uk

�� Thank you for your invitation and your attention.Thank you for your invitation and your attention.

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