Institutional and Policy Mapping for Small-Scale Producer inclusion in Modern Markets.

Institutional and Policy Mapping for

Small-Scale Producer inclusion in Modern Markets

Objectives

1 A framework for understanding the institutional and policy dimensions of small-scale inclusion

2 A framework for participatory analysis with key actors using participatory tools

• Agri-food businesses• Producer organisations• Public sector• Civil Society

3 Contribution to component three of Regoverning markets

Purpose of the Methodology

Methodology Development

• Initial concept

• Testing out in 5 countries– Turkey– Morocco– South Africa– Indonesia– Bangladesh

• Full use of methodology in learning / training workshop in Philippines with participants from Asia

Core Concepts

• Rapidly Restructuring markets

• Institutions

• Value chain analysis

• Multi-stakeholder processes and policy dialogue

Institutions

• Institutions – the ‘rules of the game’ that structure social (market) life.– Organisations are institutions but not all institutions are

organisations– Formal institutions

• Government laws and policies• Government agencies• Contracts between businesses• Public and private standards• Enforcement mechanisms (courts, police)

– Informal institutions• Consumer likes and dislikes• Informal market relations• Corruption• Trust

(informal institutions can strengthen or undermine formal institutions)

Interactions and Linkages

Actors

Institutions Markets(Value chain)

Actors receive economic gains from market participation

Institutions structure the way markets work

Markets depend on institutions to function effectively and efficiently

Actors recreate and change institutions in response to problems and interests Markets depend

on the participation of actors

Institutions create incentives that influence the behavior actors

Public policy

Government agencies

contracts

Norms and values

Business strategies

laws StandardsProduction consumption

Private sector

Public sector

Civil societyPolicy and

stakeholder processes

Adapted From Birner, 2006

Why Focus on Institutions

• The full set of institutions is what creates the incentives or disincentives for small-holder inclusion

• Market transaction costs are the result of how institutions work (or don’t)

• Institutional analysis goes beyond just public policy

• Institutions are often taken for granted• Institutions can be very difficult to change

Mapping and Understanding the Value Chain(functions, actors, influence, product flows)

1

Mapping and Understanding the Institutional and Policy Environment

(Government policies and laws, business strategies, cultural influences, informal market relations)

2

Influencing actors in the

chain

Influencing Institutional

change

Strategies for Supporting

Change

6

Arrangements supportive of

inclusion

Institutional Implications / requirements

Options for Greater

Inclusion

5

How things might change


Future Scenarios for Markets and

Inclusion

4

Current structure

Current Situation

DriversTrends

Issues and Opportunities

3

Methodology Overview

Monitoring and Evaluation

Scope and Purpose of

Institutional Mapping Process

Stakeholders

Stakeholder Engagement Process

Research Process

Overall Methodology


DriversTrends



Inclusion

Options for Greater

Inclusion


Change

Current structure


Arrangements in support of small-scale producer inclusion

Influencing actors in the chain

Current Situation



Influencing Institutional change

Mapping and Understanding the Institutional and Policy Environment(Government policies and laws, business strategies,

cultural influences, informal market relations)

1

3 4

2

5 6


DriversTrends



Inclusion

Options for Greater

Inclusion


Change

Current structure


Arrangements in support of small-scale producer inclusion

Influencing actors in the chain

Current Situation



Influencing Institutional change

Mapping and Understanding the Institutional and Policy Environment(Government policies and laws, business strategies,

cultural influences, informal market relations)

1

3 4

2

5 6

Getting Started

Flexibility in Using the Methodology

• May be spread out over some months with different actors contributing through different workshops– Multi-stakeholder– Single stakeholder

• Could be done in one go in a 2-3 day workshop• Could be done as a desk analysis/synthesis

using existing information• Can be done:

– To varying depths of analysis– Using more or less background research

Step 1 – Map the Value Chain and its Actors

Agro industry

Farmer

Vendor

Association Supplier

Distributor Modern Retail Consumer

Importer Wholesaler

Collector Food Services

Production WholesaleCollection Retail Consumption

Processing

Power and influence of

different actors

Visualisation helps……

Tools for Step

• Core – Value chain mapping– Stakeholder analysis

• Supportive– Rich pictures– Brainstorming– Stakeholder power analysis– Stakeholder influence mapping

Tools for Step 1

Step 2 - Identify Key Institutional Factors Influencing Value Chain (and how they might change)

Agro industry

Farmer

Vendor



Importer Wholesaler


Key Institutional/Policy Factors Influencing Chain Dynamics and Actor Behavior

Production WholesaleCollection Retail Consumption

Processing

Tenure Private Standards

Marketing regulationsServices

Tariffs

Public Standards Foreign

InvestmentPolicy

Cultural Preferences

Cooperative law

Key Institutional/Policy Factors Influencing Chain Dynamics and Actor Behavior

Agro industry

Farmer

Vendor



Importer Wholesaler


Tools for Step

• Core – Institutional analysis

• Supportive– Brainstorming– Mind mapping

Tools for Step 2

List Drivers

Drivers Trends Stakeholder Issues/opportunities

Certain Uncertain Stakeholder Issues/

Opportunities

A

B

C

Desk studies, surveys, interviews, PRA’s, workshop brainstorming

Step 3 – Synthesis of Drivers, Trends and Issues

Tools for Step

• Core – Brain storming– Card clustering– Ranking

• Supportive– Data / information gather tools and methods– Cause and effect mapping

Tools for Step 3

Step 4 – Explore Future Scenarios and Vision

High uncertainty X

Low uncertainty X

High uncertainty Y

Low uncertainty Y

Future D

Future A Future B

Future C

Drivers and Trends

Certain Uncertain

Shared Vision

Tools for Step

• Core – Scenario analysis– Visioning

• Supportive– Incentive analysis– Decision trees

Tools for Step 4

Step 5a – Identify Key Opportunities, Barriers and Underlying Causes

Inclusion of small

scale farmers

KeyOpportunities

KeyBarriers

…

UnderlyingFactors / Causes

…


……

Tools for Step

• Core – Force field analysis– Cause and effect mapping

• Supportive– Brainstorming– Mind mapping– Problem trees– Risk management

Tools for Step 5a

Step 5b – Identify Options to Overcome Barriers and Build on Opportunities

Options for overcoming barriers and responding to

opportunities

Inclusion of small

scale farmers

KeyOpportunities

KeyBarriers



…… ……

Tools for Step

• Core – Brainstorming– Identifying for problem tree – General investigation and analysis– Ranking

• Supportive– Outcome mapping

Tools for Step 5b

Step 5c – Cluster Options and Specify Institutional Implications and Actions

Options for Inclusion

Institutional Implications

Required Action

Responsible Actors


opportunities

Inclusion of small

scale farmers

KeyOpportunities

KeyBarriers



…… ……


opportunities

Inclusion of small

scale farmers

KeyOpportunities

KeyBarriers



…… ……

Inclusion of small

scale farmers

KeyOpportunities

KeyBarriers



…… ……

Tools for Step

• Core – Card clustering– Action planning

• Supportive– Brain storming

Tools for Step 5c

Step 6 – Identify Strategies for Supporting / Driving Change

Key Options for Inclusion

Institutional Implications

Required Action

Responsible Actors

Strategies for Supporting Change

Stakeholder Power Analysis

4 R’sRights

ResponsibilitiesRoles

Revenues

Influence Mapping

Tools for Step

• Core – Stakeholder power analysis– Four Rs– Stakeholder influence mapping

• Supportive– Social network analysis

Tools for Step 6

• Introduction

• Overview of Key Concepts and Analytical Framework

• Detailed Description of Methodological Steps

• Key points for an effective participatory process with stakeholders

• Detailed Description of the Tools

Proposed Tool Kit Outline

Institutional and Policy Mapping for Small-Scale Producer inclusion in Modern Markets.

Documents

institutions institutions

public policy institutions

set of institutions

methodology slide

policy dialogue slide

asia slide

evaluation slide

started slide