ADKN

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ADKN
Best Practice Marketing for Communities in
Mountainous and/or Drug-Crop Producing Regions
Final Project Workshop
The Alternative Development Knowledge Network
Project Output 1 The Setting for Development
Oriented Rural Enterprises
Workshop Presentation
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DOCUMENT OVERVIEW
INTRODUCTION EFFECTS OF THE SETTING GROUP
ACTIVITY
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INTRODUCTION
Every Development-Oriented Rural Enterprise
(DORE) is in a unique setting
These enterprises must be adapted to their
setting as well as possible

• A DOREs setting includes
• Physical or natural setting
• Human setting
• Developmental setting
• Policy and political setting
• Security setting
• Whether or not drug crops are present

• To build a DORE we must identify
• How do all the factors created by the setting
  affect the organization, management and
  operations of the DORE?
• How can we respond? Can we manage or offset the
  factor? Do we just have to tolerate it?

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DOCUMENT OVERVIEW
INTRODUCTION EFFECTS OF THE SETTING GROUP
ACTIVITY
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FACTORS NATURAL SETTING
Factor
Impacts

• Set basic productive potential, e.g. crop
  varieties
• Raise or lower productivity

• Raise or lower productivity
• Favour certain crop types (e.g. crops that link
  sandy soil)

• Alter farm efficiency (depending on slope,
  distribution of fields)
• Affect distribution and market access
• Alter cost of infrastructure development
  projects
• Influences climate for institutions and economic
  activity

• Set total and seasonal productive potential

• Alters rate of mortality and morbidity
• Alters level of funds needed for relief instead
  of development
• Contributes to level of production volatility

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FACTORS HUMAN SETTING
Factor
Impacts

• Sets level of non-commercial interventions (e.g.
  food security)
• Affects risk-taking/entrepreneurialism

• Affects availability of collateral and
  co-finance
• Determines need for external credit sources

• Affects productivity (e.g. lowered due to
  morbidity)
• Affects need for non-commercial activities (e.g.
  health education)

• Affects available leadership skill in community
• Affects difficulty of modern agriculture (e.g.
  record-keeping)
• Affects community ability to interact with
  institutions (e.g. banks)

• Determines productivity and productive potential
• Determines cost and scope of likely extension
  activities
• Determines time before produce is fully
  commercial

Farming Skills
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FACTORS HUMAN SETTING (II)
Factor
Impacts

• Affects level of leadership in community
• Affects community ability to interact with
  institutions (bank, NGOs)
• Affects off-farm incomes

• Increases or decreases uptake of new crops and
  practices
• Affects disposition of labour (e.g. availability
  of labour, gender)
• Influences possible participation in management,
  governance

Values

• Influences possible participation in management,
  governance
• Determines ease of building community
  organizations
• Determines resilience of organizations to
  negative shocks

• Influences relationships with outside groups
  (e.g. value-chain players, other users of natural
  resources)
• Influences internal relations, social capital

• Alters population levels and burden on natural
  resources
• Alters balance of skilled and unskilled
  occupants
• Influences level of erosion of social capital

Demographic trends
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FACTORS DEVELOPMENTAL SETTING
Factor
Impacts

• Influences levels of health, education and
  community development
• Alters priority of non-commercial activities

• Influences public health
• Alters priority of non-commercial activities

Water Sewerage

• Influences distribution cost (strongly)
• Influences level of post-harvest losses
• Influences set of commercializable crops (e.g.
  towards crops with high value-weight ratios, high
  durability)

• Contributes to level of market information
• Influences ease and cost of sales process
• Influences ease of input acquisition
• Influences ease of field- and community-level
  management

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FACTORS DEVELOPMENTAL SETTING (II)
Factor
Impacts

• Determines location of processing (e.g.
  community or urban area)
• Determines availability of refrigeration

• Influences availability of development services
  and infrastructure
• Influences access to justice/court arbitration
• Influences community representation in political
  processes
• Influences level of security and rule of law

Public institutions
Commercial institutions

• Influences availability of credit
• Influences availability of agricultural inputs
• Influences ease of sale
• Determines level of competition to purchase
  produce of local farmers (free rider problem)

• Determines number and scope of development
  initiatives in area
• Influences representation and advocacy of local
  area in national and international
  decision-making groups

Development institutions
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FACTORS ECONOMIC SETTING
Factor
Impacts
Strategies

• Determines demand for produce
• Influences availability of agricultural product
  and service providers
• Influences level of competition
• Determines price conditions
• Contributes to investment climate

State of rural economy

• Shapes demand characteristics
• Contributes to investment climate
• Affects overseas competition

National Economy

• Affects price
• Affects continuity of supply
• Determines needed levels of quality, value
  adding and innovation

• Determines level of competition for labour and
  other transferable resources
• Affects overall strength of regional economy

Strength of local economic sectors
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FACTORS POLICY AND POLITICAL SETTING
Factor
Impacts

• Determines level of support for chosen
  commercialization activities
• Influences health and development of rural
  agricultural economy

Rural Development policy

• Determines productive potential area (e.g. by
  setting protected areas)
• Influences agricultural practices (e.g. soil
  management policies)

Natural Resource policy

• Influences health of sectoral, regional and
  national economy
• Influences level of overseas competition
• Alters level of services and benefits available
  (e.g. export aid)

Trade and economic policy

• Alters levels of services and benefits available
  to certain ethnicities
• Changes relationships and balance of power
  between ethnicities

• Alters population levels in area
• Alters productive potential of area (e.g.
  affects labour supply, moves population relative
  to carrying capacity)
• Alters population mix (age mix, gender mix,
  skill-level mix)

Demographic policies
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FACTORS SECURITY SETTING
Factor
Impacts

• Influences level of government services
  delivered
• Influences level of rule of law
• Influences level of security

State Presence

• Constrains possible activities in area
• Creates physical/personal risk of movement in
  area
• Increases likelihood of military operations in
  area

Non-State Groups

• Influences/correlates with level of security and
  state presence
• Influences ease of doing business and investment
  attractiveness

Rule of law
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FACTORS ILLEGAL DRUG CROPS
Factor
Impacts

• Increases difficulty of sourcing legal crops
• Increases difficulty of getting farmers to join
  suppliers groups

Sourcing and membership

• Correlates with weak state presence and rule of
  law
• Attracts criminals and non-state groups

Rule of law

• Weakens social capital (individual production
  and marketing)
• Creates climate of fear and suspicion
• Worsens relations with legal/public institutions

Social capital

• Increases likelihood of conflict and violence
• Creates risk for development staff

Resource base

• Leads to unsustainable use of natural resources

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DOCUMENT OVERVIEW
INTRODUCTION EFFECTS OF THE SETTING GROUP
ACTIVITY
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BREAKOUT GROUP ACTIVITY

• Make a list of factors relevant to the operation
  and management of Development Oriented Rural
  Enterprises, and management strategies for them.
• Each group should address the following factors
• GROUP ONE Physical Setting
• GROUP TWO Human Setting
• GROUP THREE Economic Setting, Policy Political
  Setting
• GROUP FOUR Security and Illegal Drug Crops
• Use the worksheet format and the manual if they
  help

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BREAKOUT GROUP ACTIVITY
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Thank you