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2.1.9 Value Chains and adding value to value chain components

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Alessio Lupi16 May 2018

Indicators: a) GP and LL on value chains and adding value to value chain components

b) Challenges on GP and LL on value chains and adding value to value chain components

Data Analysis Methods: Identification of GP and LL on value chain with special attention to the existing linkages between formal and informal economy.

 

Recommendations:

1. Conduct commodity/product-specific value chain studies to determine recommendations for improving product quality, value added, potential market access for exports and identify high value commodities.

ReferenceIndependent Evaluation Group - IEG Public Sector Evaluation, 2013, Project Performance Assessment Report Tunisia Agricultural Support Services Project, Impact evaluation, World Bank, Washington DC.

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2. Keep within a feasible and realistic number of value chain and component analyses in accordance with available human and other resources. Over-extending the number of studies and support may result in only a limited success along the value chain.

Reference: RNSF analysis.

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3. When designing projects with women (and men) in home-based or other informal economy activities, include focus on the value chain. Incomes and working conditions can be improved when consideration is made of the means to strengthen informal economy products in the value chain.

References:

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4. Conduct studies on different possibilities within each potential value chain but do not over-extend. That is, remain within what is feasible and reasonable with regard to available human and other resources.  Include focus on improving value chain component product quality, means to add value and market access at each level.

ReferenceIndependent Evaluation Group - IEG Public Sector Evaluation, 2013, Project Performance Assessment Report Tunisia Agricultural Support Services Project, Impact evaluation, World Bank, Washington DC.

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5. When supporting projects that include value chain enhancement, consider the impact of the development of the value chain on a wider range of the community members as opposed to primarily on business owners.

Reference: Social Impact, Inc. Corporate Office, 2011, Empowering Municipalities Through Local Economic Development (EMLED) & Municipal Capacity Building And Service Delivery Program (TAMKIN) Program Evaluation (Lebanon), Midterm or interim evaluation, USAID, Washington DC.

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6. Conduct studies to determine whether, if any new value added/value chain components are developed, they do not compete with existing traditional non-beneficiary local producers.

Reference: Lassine, Bamba, 2015, Good practices collection from Implementing Partners Part 1  AVSI (Civil Society / NGO) - 12 October 2015, General background document on issues in our research matrix, Research Network Support Facility, Rome, Project: Projet integre d’appui a l’autonomisation des artisans de Côte d’ivoire.

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7. Study various forms of public private partnerships for food processing facilities and extract good practices for possible replication.

ReferenceNewkirk, James, 2013, Edible oil value chain enhancement in Ethiopia Final Evaluation of the Joint Programme, Final evaluation, Evaluation Summary, ILO, Geneva.

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8. Introduce certification of decent work produced items that are for example, “child labour free”, “forced labour free”, “produced in safe working conditions”, etc. Monitor certification program through public private partnerships. Such programs can go beyond fair trade certification as they can also be used within countries. Awareness raising around the certification program at national level can also be a means to raise general awareness of the need for decent work conditions.

ReferenceZegers, Mei, 2016, Independent Final Evaluation of Ethiopians fighting against Child Exploitive Labor (E-Face), Final Report, USDOL, O’Brien & Associates International, Washington DC.

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9. Support the development of the whole value chain of production and selling to improve local conditions and support beneficiaries independent from development projects. Pay particular attention to those parts of the value chain involving people dependent on the IE and how these can be strengthened to improve their decent work and income conditions.

ReferenceOrbicon A/S; GHK Consulting Limited; Pinto Consulting GmbH, 2011, Evaluation of the Danish Neighbourhood Programme with a focus on the Economic Development Portfolio.

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10. Pay attention to key debates of concern in value chain development on contract farming: equity of participants and fairness in quality control of products. Note that contract farming can be seen as a broad umbrella term of inclusive business models where smallholders/value chain producers are engaged and supported by larger firms to produce outputs.

ReferenceSahin, Sila; Prowse, Martin; Wigh, Nadia, 2014, Agriculture and Private Sector: Agriculture and growth evidence paper series, Meta-analysis of evaluations, DFID, London, Collection of studies concerning agricultural reforms and projects in several countries.

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11. Strengthen exchanges among enterprises from developed and developing countries in order to accelerate knowhow transfer in both directions. Companies in developed countries may, for example, increase their understanding of other cultures and new markets.

References:

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12. Note in planning and designing programming that road construction and cash for work can both contribute to improved livelihoods for people dependent on the IE.  These initiatives contribute to effective demand for products while roads facilitate the work of traders. (Informal economy related programming often ignores this type of support).

ReferenceTessema, Ato Tsegahun; Tadess, Beyen; Getahun, Zewditu; Buta, Ato Mengistu, 2008, Meket Livelihood Development Project MLDP (Ethiopia) phase II Evaluation Report, Final evaluation, Save the Children UK, Addis Ababa.

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13. Take into account that interventions in parts of a particular value chain may negatively affect the level of employment in those parts of the value chain. This may especially occur when more modern technical equipment is used to increase production.

ReferenceOrbicon A/S; GHK Consulting Limited; Pinto Consulting GmbH, 2011, Evaluation of the Danish Neighbourhood Programme with a focus on the Economic Development Portfolio.

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14. Consider that in agriculture projects there may be interest in and room for developing value-adding activities in food related projects. Limiting value chain development to trading of raw products means opportunities are missed to increase incomes for vulnerable groups. Determine if farmer interest in food processing exists and then support development of processing of agricultural products. Include support for value chain analysis and development to accommodate these diversified products. Include training on economic managerial skills to run a business.

Reference: Rodríguez, Abelardor; Engels, Jeffrey; Mucha, Noreen; Malunga, Chiku, 2015, The Feed the Future Integrating Nutrition in Value Chains Project (Malawi) Performance Evaluation Final Report, Final evaluation, USAID, Washington, DC.

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15. Verify whether projects are not over-extending themselves when working on different value chains and various interventions along the value chains. As there are many needs for value chain development with respect to people dependent on the informal economy, it may be tempting to wish to address all of them but quality of actions must be the priority as opposed to their quantity. Identify a mix of key value chains and gaps along these value chains that will maximize quantitative and qualitative impact, provide effective lesson learning and build a larger degree of sustainability.

Reference: i-TEC, 2011, Uganda Livelihoods And Enterprises For Agricultural Development (LEAD), Mid Term Evaluation, Midterm or interim evaluation, USAID, Washington DC.

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16. Facilitate focus on strengthening the functioning of the existing components of the value chain but also adding new components. That is, ensure that value chain development actions consider supporting the development of value such as on food processing even where this does not yet exist.

Reference: Rodríguez, Abelardor; Engels, Jeffrey; Mucha, Noreen; Malunga, Chiku, 2015, The Feed the Future Integrating Nutrition in Value Chains Project (Malawi) Performance Evaluation Final Report, Final evaluation, USAID, Washington, DC.

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17. When assessing a project proposal concerning value chain development, consider:

  • How beneficial it can be for local workers both in terms of production and income
  • If all the groups can be equally involved into the value chain (especially the most vulnerable ones)
  • How developed the last part of the value chain is (marketing, transport facilities, supplies, consumers’ customs etc.)

ReferenceBangui, Cécile, 2014, Mid-term Evaluation of the Integrated Food Security Project in Kassala: Sudan (IFSP-Kassala) – GCP /SUD/069/CAN, Midterm or interim evaluation, FAO, Rome.

 

SOURCE: RNSF research - Volume 4.2

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