Guides for value chain development: a comparative review

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Guides for value chain development: a comparative review

04-May-2019

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Jason Donovan


Jason Donovan (World Agriforestry Centre (ICRAF), Lima, Peru) Steven Franzel (World Agroforestry Centre (ICRAF), Nairobi, Kenya) Marcelo Cunha (Freie Universität Berlin, Berlin, Germany) Amos Gyau (World Agriforestry Centre (ICRAF), Nairobi, Kenya) Dagmar Mithöfer (Rhine Waal University of Applied Sciences, Kleve, Germany)

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Purpose
– In recent years, governments, donors, and NGOs have increasingly embraced value chain development (VCD) for stimulating economic growth and combating rural poverty. In line with the rise in interest, there has been a proliferation of guides for VCD. The purpose of this paper is to present the results of a review of 11 guides for value chain along six different dimensions, ranging from objectives and value chain definitions to monitoring impact. The paper concludes with suggestions for the use of guides based on local needs and context, and recommendations for future guide development.

Design/methodology/approach
– The review compares the concepts and methods endorsed and it assesses the strengths and limitations of the guides for steering development practice.

Findings
– Overall, the guides provide a useful framework for understanding markets and engaging with chain stakeholders, with a strong emphasis on strengthening institutions and achieving sustainability of interventions. However, the guides often lack discussions on the conditions necessary at different levels for VCD to advance development objectives and achieve that sustainability. The guides are designed to be implemented largely independently of the specific context, in which the chain is situated, despite the major implications context has for the design of interventions and overall success of the chain. Attention to mutual learning, whether related to tool design or the outcomes and impacts of VCD interventions, is limited.

Research limitations/implications
– More critical reflection and debate is needed on the design of guides for VCD. The authors suggest three areas for this reflection and debate: concepts, methods, and tools for addressing the needs of the poor in value chains; tools for addressing variations in the context; and mechanisms for mutual learning on the design and implementation of VCD.

Originality/value
– The paper concludes with various recommendations for guide authors and donors that support VCD.

Keywords:
Small and medium-sized enterprises, Methods, Business environment, Developing countries, Business performance, Rural economies, Value chains, Development practice, Value chain development, Guides

Publisher:
Emerald Group Publishing Limited

Acknowledgments:
The authors thank the Technical Centre for Agricultural and Rural Cooperation (CTA) and the CGIAR consortium research projects on Forests, Trees and Agroforestry (FTA) and Policies, Institutions, and Markets (PIM) for providing the financial support that allowed us to carry out this study. Special thanks to Veronica Gottret, Douglas Horton, Mark Lundy, Andrew Shepherd, Felicity Proctor, and Anne Terheggen for their comments and suggestions on previous versions of this article. The authors would also like to thank the following authors of guides for value chain analysis and development for their comments and suggestions: Thomas Bernet (FiBL), Ruth Campbell (ACDI/VOCA), Carlos A. da Silva (FAO), Jeanne Downing (USAID), Veronica Gottret (CRS), Frank Hartwich (UNIDO), and Graham Thiele (CIP). While the support of all is gratefully acknowledged, the views expressed here are the authors’ sole responsibility.

Copyright:
© Jason Donovan, Steven Franzel, Marcelo Cunha, Amos Gyau and Dagmar Mithöfer. 2015
Published by Emerald Group Publishing Limited
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