English

While considerable progress has been made over the last 30 years in poverty reduction, about ten percent of the people in the world still live in extreme poverty. It is the field of economics that formulate theories, devise methods, and make empirical analyses that inform policies and practices to reduce poverty and improve welfare in developing countries. This dissertation consists of three essays at the intersection of development and agricultural economics. Each essay has its own introduction, methods, results, and conclusion section. The essays share a common ground in that they are based on primary data collected from smallholder coffee-growing households in eastern Uganda. Approximately 80 percent of the extreme poor live in rural areas and growth in agriculture sector is found to be more poverty-reducing than other sectors in poorest countries. The first essay of this dissertation relates to commonly identified informational barriers to agricultural technology adoption which is associated with agricultural growth. In particular, the essay explores the role of the communicator of information in agricultural extension by testing the effectiveness of two approaches. In the first approach a peer farmer supports an extension worker whereas in the second approach a high-status market actor supports an extension worker in communicating information to farmers. Results show larger effects on improved harvest practices if the extension worker is supported by a peer farmer and that farmers who receive information both from an extension worker and a market actor participate more in high-value markets. Additionally, we show that harvest quality and participation in high-value markets lead to higher coffee revenues for farmers. In the second essay, the phenomenon of value-degrading in the coffee value chain is examined. Coffee growing households regularly undertake home-processing of coffee cherries harvested fresh and sell parchment coffee: an activity that is commonly regarded as value-adding. This essay shows that parchment production is, in fact, a value degrading activity that generates a considerable potential profit loss for households selling large amounts of parchment. Our results indicate that efforts for value upgrading through processing of fresh produce in agri-food markets can also generate a value reduction and should integrate relevant characteristics of the value chain, such as quality-assurance. The current way in which poverty is measured does not allow for an accurate understanding of individual poverty, as it assumes equal distribution of resources within household members. Yet, the effectiveness of development interventions, such as value chain development and income transfers depend on how household members with differing preferences make decisions regarding household income. In the third essay of this dissertation we study decision-making about resources within the household. In particular, employing the Becker-DeGroot-Marschak (BDM) mechanism, we elicit the willingness of women and men to pay (WTP) to receive a small cash transfer in private (secret from their spouse) instead of in front of their spouse. Our results show that participants are willing to give up on average half of the endowment to receive it in private. Exploring the drivers of WTP, a negative and significant relationship is documented between willingness to hide income and women’s empowerment (say in household decisions), frequency of conflict and aggression in the household, and membership in savings groups. Results also suggest that household members may be hiding money to alter resource allocations to their favour and not necessarily in a way that maximises household welfare. In order to produce these three essays I conducted a field work of 15 months in Uganda. In particular, I implemented two different field experiments, i.e., one randomised controlled trial (RCT) and a separate lab-in-the-field experiment, and collected data through interview-based surveys with smallholder coffee growers in the Mt. Elgon Region of Uganda. In total, I carried out three surveys: one baseline and one follow-up survey for the RCT with around 1600 farmers for the first and second essay, and one additional survey with a sub-sample of 422 of these farmers for the third essay.

Value chain development (VCD) dominates discussions on how to address poverty through engagement with the private sector.Interventions by development organizations working in poor rural areas typically focus on building or otherwise improving linkages among two or more chain actors engaged in the supply or marketing of products and services.However, the poverty impacts of VCD remain an open question.This research examines the impacts of interventions that involve linking smallholder specialty coffee producers and their cooperative in Nicaragua with international buyers of certified fair trade and organic coffee.Impacts are assessed based on changes in five livelihood asset endowments from 2006 to 2009 for 292 households.Clustering was used to identify differences in asset building across the sample.The results suggest that most households benefited from VCD in terms of asset building, increased income flows, and greater resilience.However, faced with high vulnerability, harsh tradeoffs for intensifying coffee production, and incomplete access to crucial inputs and services, many households struggled to make effective use of their gains in assets for intensifying or diversifying their agricultural production.Significant differences in asset building across the clusters highlighted the role of preexisting assets in determining VCD impacts.This paper indicates that more attention to the needs and realities of smallholders is needed in intervention design if VCD is to have a greater impact on poverty reduction.

ABSTRACTThis article presents a review of seven guides for gender-equitable value chain development (VCD). The guides advocate persuasively the integration of gender into VCD programming and raise important issues for designing more inclusive interventions. However, gaps persist in their coverage of gender-based constraints in collective enterprises, the influence of norms on gender relations, and processes to transform inequitable relations through VCD. Guidance for field implementation and links to complementary value chain tools are also limited. The article identifies opportunities for conceptual and methodological innovation to address the varying roles, needs, and aspirations of women and men in VCD.

Although hemp cultivation is increasingly perceived as a promising option in terms of crop diversification, especially in semi-arid conditions such as in the Mediterranean region, its adoption remains limited thus constraining the development of hemp value chains at a larger scale. Our objective was to explore suitable conditions, at farm and downstream levels, for organic hempseed oil production in Sicily, taking on an action-research perspective that involves local actors. Based on a preliminary characterisation of barriers to organic hemp development at different value chain levels, we carried out targeted complementary investigation: (i) assessment on agroenvironmental performances of integrating hemp in durum wheat-based rotations; (ii) chemical analysis of local hempseed oil; (iii) exploration of marketing opportunities and value chain development. Our results showed that the lack of technical and economic knowledge as well as the deficiencies of suitable cultivars and adequate machinery were the main barriers for the organic hemp value chain development in Sicily. The analysis of agroenvironmental performances also revealed both strengths and weaknesses of hemp introduction in durum-wheat based rotations. Despite the identified limitations, we demonstrated that the organic hemp value chains represent interesting perspectives for the Sicilian farming sector, particularly in case of substantial barriers removal or adaptation.

PurposeThis paper is designed to assess the sustainable value chain approaches for marketing channel development opportunities for agricultural products in coastal Bangladesh to combat climate change through an approach of community-based adaptation options.Design/methodology/approachThe study was designed to select the potential value chain candidate and to analyze and establish a value chain map to benefit the crop farmers. In this connection, the resources of the whole context were evaluated. The approach uses few tools to generate three outputs, the last of which are the final list of value chains selected for in-depth assessment to design interventions as community-based adaptation practices of the study to combat climate change in the study areas.FindingsThe study demonstrated that the difference in the institutional circumstances of the end markets of the agriculture products is connected to the different categories of harmonization and control of the facilitating environment throughout the supply chains. National and local networks improve the value chain in terms of the value addition of the agriculture products, technology improvement, market access and profitability of the products. Strengthening the weak financial structure, focus more on formal financial systems and resolving sociocultural and climate change-induced hazard concerns are the major concerns on the development of value chains in the countries. Apparently, guarantee for good governance, checking illegal and unregulated market contexts, proper mitigation measures to climate change are some paramount important issues for the sustainable management of livelihood, yield, income and development.Practical implicationsAll kinds of stakeholders of the agriculture product value chain should focus on competitiveness and productivity and look for and exploit multiple ways to add value once initial success has been attained with a single deal. Ensuring sustainability within the value chains is an important feature to cater to the challenges and changing demands of the age.Originality/valueThe study will help to established a sustainable value chain approach in response to climate change, which process will help to existent opportunities for firms to manage the issue of climate risk by codeveloping and employing adaptation options that may be more preferred or accepted by consumers across the entire chain for the sustainable management of livelihood, yield, income and development.

Value chain development (VCD) is the conscious effort to address coordination failures and common environmental and social problems in a specific economic subsector. Essentially, VCD engages private enterprises and public actors in a long-term effort to build better institutional structures. “ValueLinks 2.0” is a VCD methodology and a systematic collection of tools to support this joint capacity building. It uses the experience of GIZ in tracing the boundaries of a value chain, analysing its structure and sustainability, and providing strategic orientation for its development. ValueLinks 2.0 also helps devising VC solutions, from business model innovations to agreeing on rules for markets.

Relevance of the research topic. Climate change is one of the key challenges of today, which has evolved into a global undertaking on an unprecedented scale. In order to ensure that industrial growth is not accompanied by a negative impact on the environment, but rather ensures sustainable development, the world community has proposed various ideas and initiatives, such as the adoption of the United Nations Framework Convention on Climate Change (1992), the first step towards tackling climate change; Kyoto Protocol (1995), Paris Agreement (2016), European Green Agreement (2019) as a new growth strategy aimed at transforming the EU into more equitable and prosperous societies , with a modern cost-effective and competitive economy based on zero-level decoupling greenhouse gas emissions in 2050. Ukraine is also joining these processes by setting up an interagency group to coordinate the effects of climate change under the European Green Agreement. The primary issue is to substantiate the mechanisms for involving Ukrainian industry in the Green Agreement. Addressing these challenges is the integration of Ukrainian producers into value chains, which determines the relevance of this study. Formulation of the problem. The growing danger of catastrophic global environmental changes and other aspects of irrational policies for the natural resources using threaten the future safe development of society and the ability to meet the needs of consumers. All these challenges require decisive action and adaptation of manufacturers to new operating conditions. Selection of unexplored parts of the general problem. Given the transformation of the model of organization of production, which in the face of increasing international competition is organized within global value chains and strengthening environmental requirements for the integration of producers at different stages of the production process, the problem of substantiating mechanisms for adapting producer’s instruments of state regulation to intensify cooperation of export-oriented industries s producers Ukraine with foreign partners. Setting the task, the purpose of the study. The task of the study is to substantiate the importance of implementing circular principles as a strategic priority for the development of global value chains and substantiate the mechanisms to support Ukrainian producers in the integration into circular (closed) value chains. Method or methodology for conducting research. The work uses general scientific methods: abstract-logical, system; analysis and synthesis, statistical comparisons, grouping, sampling; expert assessments. The field of application of results. The results of this study can be applied in the formation of state policy on the main aspects of export development of industry in the context of integration processes, as well as in the development of industry "greening". Conclusions. Based on the analysis of the development of global value chains, the peculiarities of the formation of circular value chains are revealed and effective tools of industrial policy for intensification of industrial landscaping processes and integration of national production into circular value chains are proposed.

In the current context, the development of agricultural tourism with its diverse activities has gradually become a global trend. This study aims to examine the relationships between linkage risks and the sustainable development of agricultural tourism value chains in the North Central region of Vietnam. A quantitative research method was employed through structural equation modeling (SEM). Research data were collected from a survey of 471 participants involved in the agricultural tourism value chain, including tourism companies and agricultural organizations. The findings reveal that among the identified risk factors, only supply-side risks and customer-related risks exert direct and negative impacts on the sustainable development of agricultural tourism value chains. Meanwhile, linkage integration plays a mediating role in the relationships between information risks, environmental risks, and sustainable development of agricultural tourism value chains. These results highlight the valuable contributions of the study and provide a foundation for future research. Based on the findings, several recommendations are proposed to foster the sustainable development of agricultural tourism value chains in the North Central region of Vietnam.

Global Value Chains - 2[-]Table of Contents - 6[-]Part I Theoretical Contributions - 8[-] 1 Global Value Chains An Overview of the Issues and Concepts - 10[-] 2 The Bottom of the Pyramid (BOP) and the Private Sector A Value Chain Research Approach - 32[-] 3 Value Chains in Developing Countries A Framework for Analysis - 44[-]Part II Local Agricultural Value Chains - 70[-] 4 Beer multinationals Supporting Africa's Development? How Partnerships Include Smallholders into Sorghum-beer Supply Chains - 72[-] 5 Bush-to-energy Value Chains in Namibia Institutional Challenges for Pro-poor Rural Development - 90[-]Part III International Agricultural Value Chains - 118[-] 6 Localizing Global Standards Illustrative Examples from Kenya's Horticulture Sector - 120[-] 7 Using a Partnership to Achieve Sustainable Development of the Palm Oil Value Chain in Malaysia - 138[-]Part IV Value Chains in the Industrial and Services Sector - 164[-] 8 Global Competition in the Semiconductor Industry A Comparative Study of Malaysian and Chinese Semiconductor Value Chains - 166[-] 9 Business-community Partnerships The Link for Sustainable Local Development? - 202[-]Part V Conclusions: Upgrading Value Chains in Developing Countries - 236[-] 10 Upgrading of Value Chains in Developing Countries - 238[-] 11 A Learning Case of a Local Value Chain The Banana Subsector in Arusha Municipality and Arumeru District: Producing Banana Beverages - 252[-]About the Authors - 274[-]Index - 278

This chapter aims to assess the performance of and policy responses to Africa’s rapidly emerging traditional staples value chains, which are dominated by small and medium-sized enterprises (SMEs) in the processing and trading segments. It addresses questions related to policy process issues such as (1) whether public intervention policies in Africa are in line with the needs and performance of the rapidly transforming value chains, and (2) how African governments should align policy interventions in emerging mid-chain segments to foster effective value chain development. The chapter uses the example of one of the most dynamic and fastest-growing staples value chains in Africa, the millet value chain in Senegal, thus contributing specifically to Senegal’s agro-industrial policy discourse. We begin with a review of value chain development evolution as a concept and in practice in Africa as a whole and outline a comprehensive list of critical policy concerns and priorities that must be addressed to respond to the needs of midstream value chain segments.

This paper introduces value chain analysis and development as tools for addressing gender inequities in markets. We describe how factors such as access to assets, gendered education differentials and the nature and value of economic activities affect the way in which men and women participate and gain in value chains, distinguishing among household, institutional and chain levels of analysis. Current empirical evidence for the role of upgrading in value chains in impacting gender inequities in markets is weakened by our as yet imperfect understanding of the issues. However, horizontal coordination can reduce gender-related disparities in bargaining and management power as a precursor to stronger vertical relationships. Improvements in processes, products and functional distribution in value chains can improve chain-level outcomes leading to women's empowerment and, ultimately, to improved household poverty outcomes. However, this progression from positive impacts to desirable outcomes is not a given and depends on often complex context-specific socio-cultural norms. In particular, the benefits of women's participation in agricultural value chains are determined by their control of productive resources and household level decisions. Where both sexes play a role in decision making generic interventions, or even those applied to men only, can benefit both sexes. Where women do not participate in spending decisions a more gender-specific approach that targets underlying gender issues in households and institutions is required. We illustrate that unsound gender analyses can miss the point, resulting in flawed understanding of the real issues and ineffective or even damaging interventions. We conclude that the universal application of packages of generic 'default' interventions risk doing harm and that upgrading strategies should be applied on a case by case basis and only after a thorough and robust analysis of causal factors. We outline for practitioners what a robust analysis should look like and present a menu of policy options for acting to promote gender equity and reduce poverty using the value chain analysis and development approach.

Prelims 1. Introduction Linda M. Jones 2. The Triple Trust - a threefold approach James Thomas 3. The Judo Trick, or crowding in Paul Streeten 4. Sub-Sector Analysis - a macro-analytical tool for microenterprise support Matthew Gamser 5. A sub-sectoral approach to small business and microenterprise development Biswajit Sen and Vijay Mahajan 6. Business associations in countries in transition to market economies Jacob Levitsky 7. Using franchises to promote small enterprise development Michael Henriques and Robert E. Nelson 8. Towards success: impact and sustainability in the FIT programme Jim Tanburn 9. Business development services - core principles and future challenges Alan Gibson 10. Facilitating small producers' access to high-value markets Jonathan Dawson 11. Value chain programmes to integrate competitiveness, economic growth and poverty reduction Olaf Kula, Jeanne Downing and Michael Field 12. From behind the veil: industry-level methodologies for disadvantaged communities in Pakistan Linda M. Jones and Alexandra Snelgrove 13. Value chain financing in agriculture Calvin Miller and Carlos Da Silva 14. How to assess if markets work better for the poor Harald Bekkers, Alexandra Miehlbradt and Peter Roggekamp 15. Managing the process of change: useful frameworks for implementers of making markets work for the poor programmes Marshall Bear and 16. Business environment reforms: Why it is necessary to rethink priorities and strategies Tilman Altenburg and Christian von Drachenfels 17. Integrated approaches to enabling the most vulnerable to participate in markets Alex Daniels and Andy Jeans Back Matter (Index)

Closing the Gender Asset Gap: Learning from Value Chain Development in Africa and Asia

Value chain in agriculture has a huge potential for enhancing farmers income and livelihood. In this context, the extension agents can play a pivotal role in linking the farmers to better value chain. Along with the traditional professional competencies, extension agents also need to develop capabilities in the area of value chain development. Under this impression the current study was conducted to assess the training need of the extension agents in this specific domain. A total of 80 extension agents working in the state department of agriculture in Haryana, Delhi development board, KVK Hapur, and KVK karnal were selected randomly for the study. A training need index consisting of the dimensions, crop production, market analysis, agribusiness management, and promoting a viable value chain was developed. The training need index score showed that 10 percent of the respondents were in the very high level of training need, followed by 30 percent in the high level and 25 percent in the medium level of training need. In total 65 percent of the extension agents expressed training need ranging from medium to very high level. Therefore, it can be suggested that, while designing training programme, areas such as promoting a pro-poor value chain, value chain analysis, maintaining good business relationships, judicious use of inputs should be given due consideration by the policymakers.

The paper dials with the results of studying the main components of a process of planning local economic development of the amalgamated territorial communities. Author focuses on current issues facing local governments in implementing an effective policy of local economic development. It substantiates the necessity of forming a Local Economic Development Working Group and points the requirements for its members. Author argues the necessity to diversify a Local Economic Development Working Group by criterion of belonging its members to various categories of local economic development stakeholders. The arguments for involving business and community to the planning process of amalgamated territorial communities’ local economic development identified. The importance to develop an Economic Profile of amalgamated territorial communities as an analytical document defined as well as double meaning of the document for an amalgamated territorial community. The paper defines potential users of economics profile of amalgamated territorial community. Author proposes the structure of an analytical document and determines the requirements for the content of its five sections. Priority tools for activating local economic development of amalgamated territorial communities identified. The general tendencies of choosing the priority instruments of local economic development of amalgamated territorial communities by the members of the working group noted. There are arguments concerning expediency of introducing the priority instruments of local economic development of amalgamated territorial communities from the point of view of the data of the economic profile, in particular there are arguments concerning cooperative movement in agriculture. The priority instrument of local economic development for amalgamated territorial communities with significant recreational potential and poorly equipped tourist infrastructure is determined. Thus, in the process of planning local economic development of the amalgamated territorial communities it is necessary to focus on the following important components: creation Local Economic Development Working Group, drawing up an Economic Profile, choosing the priority instruments of local economic development and justification expediency for their implementation.