Making Value Chains Work Better for the Poor

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Making Value Chains Work Better for the Poor
Developing and testing a Value Chain Toolbook

• Dominic Smith
• Making Markets Work
• Better for the Poor Project,
• Vietnam

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Implementer
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Comparing M4P approach and value chains

• Same Same but different

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Broad Approach

• M4P is broad based, not just looking at commodity
  markets. M4P looks also at land markets, labour
  markets, finance markets, service markets. Need
  to look at all together and the interactions
  between the markets.
• vocational training

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• Value chains already exist in most cases
  projects try to OPTIMIZE
• Exports
• Regional development
• Environmental concerns
• Special interest groups
• Economic Efficiency

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• BUT an efficient outcome may not necessarily
  translate into pro-poor results.

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Why develop a Toolbook on Value Chains and
Poverty?

• Projects and programs are undertaking an
  increasing amount of analyses of value chains
  with a pro-poor focus
• Increasing number of rural development
  investment projects are basing their pro-poor
  investment design on value chains
• Need for a set of tools to enable project
  partners at local level conduct efficient value
  chain analyses with a pro-poor focus.

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What is in the toolbook?
All from a pro-poor perspective
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Who was involved?

• Drafting team from
• M4P project
• SNV
• CIRAD/MALICA
• MDI Vietnam
• Marije Boomsma
• Agricultural Development Int.
• Fresh Studio Partners
• Macquarie University
• University of Technology Sydney
• With support and advice from
• ILO PRISED
• GTZ SME Project

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Who is the toolbook for?

• The book is aimed at organizations at the local
  level (provincial or district) who are interested
  in undertaking value chain analysis from a
  pro-poor perspective

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What has been done so far?

• First draft prepared and released in early 2007
• 65 international partners from 15 countries have
  volunteered to participate in testing and
  refining
• Feedback is being posted on M4P website and will
  be used to develop final version
• Toolbook being utilized by M4P project in
  Vietnam to support implementation of 40 million
  investment project, to support the design of a
  further 25 million investment project and to
  develop strategy for pro-poor handicraft
  development
• SNV and M4P project training a range of local
  partners using the toolbook. Some of these
  partners have gone on to train other
  organizations

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International Collaboration
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Vietnam Activities

• Rice
• Beef
• Pigs
• Poultry
• Shrimp
• Ornamental trees
• Coconuts
• Cocoa
• Bamboo
• Maize
• Groundnuts
• Soybeans
• Handicrafts

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What did we find so far?
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Example Matrix
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Example Matrix
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What did we find so far?
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What did we find so far?
Postharvest constraints can have a big impact on
the poor
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What did we find so far?
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Design
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What did we find so far?
Get everyone involved!
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Discussion

• Is a toolbook on pro-poor value chains useful?
• Does the content seem appropriate?
• What are your suggestions/ideas?
• Who is interested in getting involved?

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THANK YOU!
www.markets4poor.org