Private (Producer) Partnerships (PPP/4Ps) as development - - PowerPoint PPT Presentation

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Private (Producer) Partnerships (PPP/4Ps) as development - - PowerPoint PPT Presentation

Jan 02, 2023 89 likes •480 views

Value Chain Development (VCD) and Public Private (Producer) Partnerships (PPP/4Ps) as development interventions: Theoretical Background and practical application Lecture at Roma 3 7 April, 2017 By Marco Camagni m.camagni@ifad.org and

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Value Chain Development (VCD) and Public Private (Producer) Partnerships (PPP/4Ps) as development interventions: Theoretical Background and practical application

Lecture at Roma 3 7 April, 2017 By Marco Camagni m.camagni@ifad.org and Philipp Baumgartnerp.baumgartner@ifad.org

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Ideal flow of our lecture

Q&A Discussion Feed-back Feedback & Wrap-up Concept of 4Ps in IFAD Game? 50min Experiences Pausa 15min VCD in an IFAD view 20min Practical examples from IFAD work 20min Conceptual approach VCD Activity 1 Some classics 10min Theory

Philipp Baumgartner Marco Camagni

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Objectives of the lecture

  • 1. Food system and rural transformation in 21st

century: what role/strategy for smallholder/ rural poor?

  • 2. Understand what is VC Approach/ VCD: a systemic

view

  • 3. Practical experience from IFAD operations:

strengths and weaknesses

  • 4. PPP/ 4Ps as mechanism in VCD

My agenda:

– excite you about complexity of rural development; – give some theoretical entry points for research; – explain a bit about IFADs work; – answer you questions

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Theoretical Background: some core discussions relevant for the VC approach/ PPPs

Rural Households as unit of observation Economics of “Small-holder agriculture” Context of todays agricultural system Link between farm and non-farm economy Partial specialisation and coordination

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Question:

What livelihood activities does a smallholder in a developing country / middle income country follow to earn his living/ feed his family? How does this change over time and as a country’s economy shifts away from agriculture? (as we have seen in many places of the world)

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Question:

Why would market-access play a role to foster livelihoods of the poor? How does Value Chain Development fit into this? (what is it actually) How does a Public-Private-Producer-Partnerhsip fit in?

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SOME CONCEPTUAL BACKGROUND

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Rural household: multiple incomes

  • HLPE 2013; p24

 Multiple income streams of a rural household: system approach

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Poor work in different livelihood segments (2007 – overview)

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FAO 2015: SOFA p7

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IFAD 2016 Rural Development Report

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Link between rural transformation and poverty reduction

IFAD 2016 Rural Development Report

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High vs. Low potential rural areas

Wiggins and Keaton (2013) p13

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  • P13

 Non-farm matters even in high-potential areas

High vs. Low potential rural areas

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Most low-pay jobs/self-employment are in the informal sector

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IDS 2016 (forthcoming) Informality and inclusive green growth

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Link between agr. and ind. labour

Dynamic model by Lewis (1954):

– Assumption: unlimited supply of labour (high population growth) – Thus: marginal productivity of additional workers in subsistence negligible – But: capitalist sector (plantation/ manufacturing) absorbs surplus labour – Wage = earning on family farm + bonus (~30%)

Link between population growth & rural transition Resource endowment matters! (Land/Labour ration)

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Farmsize of “small-holders”

  • What size is small?
  • HLPE 2013 p27
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Where do we move?

  • HLPE 2013 p29
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Where do we move?

  • HLPE 2013 p29
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Deininger & Beyerly 2011 p707

  • Question: what pushed what?
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  • Poulton et al 2010 p1414

 Function of and access to markets plays a major role!  Access to finance  replace labour with mechanisation: function of

  • pportunity costs of labour

 Technological change affects “optimal farm size” in given labour/capital ratio (e.g. India)

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Hence: transformation question

What shall a smallholder do:

  • Grow (scale & productivity)?
  • Diversify (on- and off-farm)?
  • Exit (off-farm/industry)?
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Task:

Work with 2 of your neighbours: Please organise this value chain flow chart.

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Value chain actors, functions and specialisation

Source: CTA (2012) rethinking the rice Value Chain

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USAID – microlinks methodology (webpage)

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Interim Conclusion(s): what have you learnt so far?

  • Rural poor have multiple income streams/

livelihood activities

  • “Small” is relative and changing
  • Optimal farm size is driven by population density

and technology (comparative advantage)

  • 3 options for smallholders: grow, diversify or exit
  • Value Chains are systems with multiple functions

and actors

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Questions & Reactions

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The (simplified) IFAD Project Cycle

Project Design (ca 1,5 yrs) Project Implementation (ca 7 yrs)

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Design of VC projects

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Interested in some examples?

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WELCOME

IFAD programme in Malawi: with a focus on VC projects

Picture: Farmer Business School

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Value Chain approach in RLEEP

  • RLEEP was the first national Value Chain Project

in Malawi

  • 3 components

1) Enabling environment: stakeholder platforms; training of government & service providers; studies 2) Strengthening Value Chain actors: capacity building

  • f various VC actors (producers, input suppliers,

traders/processors) 3) Infrastructure: Investing in supporting infrastructure (warehouses, bridges, milk cooling centres, etc.)

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Evolution of VC development approach within RLEEP

3rd Phase: Private-sector led selection process (market-pull)

  • Private-sector led

approach

  • Call for proposal to

national private sector

  •  Selection of 3 new VCs
  •  Private-sector leads

implementation 2nd Phase: Extension based on consultation and first experiences

  • Consultation with key

stakeholders to identify 2 additional VCs

  •  Selection of 2 further

VCs

  •  Activities based on

consultations and proposals received 1st Phase: Planning based on Analysis and Mapping

  • Economy wide mapping of

commodities

  •  Selection of 2 VCs
  •  in-depth VC studies for

2 commodities to design activities

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Extension modalities in Malawi

Government- led extension:

Training of lead farmers by government staff at village level (a, b)

Community driven models:

Farmer Business Schools (FBS): farmers trained each week; each farmer trains 10 to 20 fellow farmers the same week/following days (multiplier effect); (a) Community animal health workers: groups of para-vets trained by project (Heifer International); get paid for services and finance drugs from revolving funds (a) Community seed revolving funds: groups get seed- capital to by seeds, and grow the amount through revolving fund (access to input) (a, b)

Private sector led model:

Artificial insemination agents: Visit farmers and are paid by private sector (beef producer) who wants to have high quality supply; (a)

Private incentives for extension agent (cash) Incentives: mostly based on recognition (social capital)

Incentive: government support

Incentives for Extension service provider(s):

Project codes: a – RLEEP b – SAPP

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Shaping the enabling environment:

National Platform for Roots and Tubers

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Thank You