Public Sector Value for Value Chain Development: The role of the Public Sector in the long-term sustainability and scaling up of Value Chain Development Initiatives Marco Bartholdy 54252 Lavanya Katyal 49375 Amaka Ogbonna 57656 Andrew Mutegi Paito 48556 This presenta,on is based on research conducted on behalf of the LSE for CARE Interna,onal UK THE LONDON SCHOOL OF E CONOMICS AND POLITICAL SCIENCE
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Public Sector Value for Value Chain Development:
The role of the Public Sector in the long-term sustainability and scaling up of Value Chain Development Initiatives
Marco Bartholdy 54252
Lavanya Katyal 49375
Amaka Ogbonna 57656
Andrew Mutegi Paito 48556
This presenta,on is based on research conducted on behalf of the LSE for CARE Interna,onal UK
THE LONDON SCHOOL OF ECONOMICS AND
POLITICAL SCIENCE
Structure 1. Conceptual framework
• The role of the public sector • BoRom-‐up approach • Value Chain Development • Scaling up
2. Methodology 3. Case studies
• Cocoa Life • Strengthening the Dairy Value Chain • Pathways
4. Discussion and consolidaUon of findings
Conceptual framework
1. The role of the public sector
2. BoRom-‐up approach
3. Value Chain Development
4. Scaling up
The role of the public sector • Free market
• Addressing government failure • Economic efficiency
• Need for government support • Addressing market failures • Reduce inequaliUes • Delivering public goods
• Rodrik’s diagnosUc approach (2010) • Need to choose “the right model (and remedy) for specific realiUes”
Sources: Rodrik (2010); Krugman and Wells (2006); Sen (1999)
Bottom-up approach
• State-‐led, top-‐down policies can create inequaliUes • E.g. East Asia (Ali, 2007)
• Need to support small and informal enterprises • Inclusive growth • Huge economic opportunity (Prahalad, 2006) • Poverty reducUon • PosiUve effects along the enUre supply chain
Value Chain Development • CARE’s approach
• Strengthen the weakest links in the chain • Establish partnerships with other value chain actors (McKague & Siddiquee, 2014)
• CreaUng Shared Value (Porter and Kramer, 2011)
• The public sector is able to: • Create sustainability • Scale up iniUaUves • Our research has looked at this in 3 case studies
Consumers
Retailers
Distributors
Processors
Coops, Traders
Small-‐holders
Input suppliers
Scaling up • The extension of a VCD iniUaUve to more people and
communiUes acUve in the value chain QuanUtaUve
• Expansion by increasing the scope of acUvity FuncUonal
• PosiUve engagement with poliUcal processes and other stake-‐holder groups PoliUcal
• The involvement of exisUng insUtuUons or the creaUon of new insUtuUons. InsUtuUonal
Source: Uvin (1995)
Methodology • Research methods
• 10 interviews with CARE staff • Analysis of project documents • Broader literature review
• 3 case studies of VCD iniUaUves vary across:
• Scope of project objecUves • Key drivers of the projects • Level of decentralizaUon • Land access • Income level
Programme First round interviewees Cocoa Life Programme Administrator SDVC Project Manager Pathways Project Manager
Programme Second round interviewees
Cocoa Life Project Coordinator (Ghana) Project Manager (Côte d’Ivoire) Governance Advisor (West Africa)
SDVC: Key findings • Limited government presence/capacity
• AI services • Technical advice
• Land constraint • Lack of naUonal level policy discussion • Need to reconsider some policies
• Lack of public sector manpower • 4 staff members for 10,000-‐12,000 farmers • Not enough livestock volunteers
• AECs important to ensure sustainability and scalability • Public dialogue • M&E mechanism
Pathways: Overview
• Countries: India, Malawi and Tanzania
• Value chains : Various agricultural value chains
• ObjecUves: • To empower women in agricultural value chains • Increase farmer producUvity
Source: Pathways website
Role of the public sector Public sector acAviAes Policy and law • Forest rights • Land laws • Minimum procurement pricing Input provision • Seedlings • Credit • Research and development Capacity building • Seed producAon • CommercializaAon • FFBS Gender relaAons • Police gender desk • Advocacy
Source: Pathways website
Key findings: • Formal vs tradiUonal authoriUes
• E.g. Land laws, gender roles • Women’s economic empowerment
• VSLA • CSI • Farmer Field and Business School (FFBS)
• Explicitly track sustainability and scale • Measurable near-‐term outcomes for long-‐term objecUves
• Measure risk and resilience (qualitaUve) • Analyse the resilience of iniUaUves to risks that may arise auer project closure • Consider poliUcal forces that drive or oppose long-‐term outcomes
• Measure partnership impact (counterfactual) • Compare the impacts of a partnership approach to a similar non-‐partnership approach to ensure that the project benefits from the contribuUon of all partners
Recommendations 2. Understand public sector incenAves • Demonstrate project value • Cost-‐benefit analysis • Policy dialogue
3. Adapt to local government capacity • Distribute responsibiliUes across sectors • ImplemenUng capacity
Recommendations 4. CAPs 2.0 • Community parUcipaUon • Flexibility and adaptability
5. Target mulAple dimensions of scaling up • IdenUfy opportuniUes • Current focus is on quanUtaUve and insUtuUonal scaling up • PoliUcal and funcUonal scaling up require more aRenUon
Concluding remarks
• State engagement correlates with: • Resource capaciUes at the naUonal and local government level • The policy focus of each governments (the importance they aRach to each value chain or agency)
• Progress could be made in understanding local poliUcal economies • Ensuring that marginalized people benefit equally