LRED and Value Chain Promotion

Transkript

1 LRED and Value Chain Promotion combining spatial and sectoral perspectives on economic development Andreas Springer-Heinze GTZ Head Office Division Agriculture, Food and Fisheries Abteilung Agrarwirtschaft, Fischerei und Ernährung - Abteilung Wirtschaft und Beschäftigung 1

2 1 Strategic orientations in economic development Combining LRED and value chain promotion Some conclusions for development practice Abteilung Agrarwirtschaft, Fischerei und Ernährung - Abteilung Wirtschaft und Beschäftigung

3 Strategic Orientations in designing market riented development 1 Product markets Agric & Food Poverty alleviation promoting broadbased economic growth Perspective on markets Service and Resource markets Other sectors Perspective on locations Securing livelihoods enabling people to participate in markets Abteilung Agrarwirtschaft, Fischerei und Ernährung - Abteilung Wirtschaft und Beschäftigung

4 Overview of Approaches focus on political and social dimensions Regional Management Rural Development LRED focus on the economic dimension PACA Value chain promotion Spatial Focus Sectoral Focus Abteilung Agrarwirtschaft, Fischerei und Ernährung - Abteilung Wirtschaft und Beschäftigung 4

5 1 Strategic orientations in economic development Combining LRED and value chain promotion Some conclusions for development practice Abteilung Agrarwirtschaft, Fischerei und Ernährung - Abteilung Wirtschaft und Beschäftigung 5

6 Combining the Perspectives 1 Value chains >> specific markets Regions >> Specific locations activating the growth potential at the location Local Economic Development activating the growth potential of a marketable product Value chain promotion Abteilung Agrarwirtschaft, Fischerei und Ernährung - Abteilung Wirtschaft und Beschäftigung 6

7 LRED to Chain Promotion (and back) From region.to chain Spatial and multisectoral Region 1 Region Sectoral at various locations Region 1 Region Region Region Region 4 Region 4 Abteilung Agrarwirtschaft, Fischerei und Ernährung - Abteilung Wirtschaft und Beschäftigung 7

8 Synergies Contributions of LRED to value chain promotion 1 Adjustment of factors of location to comply with value chain development Management of conflicts between competing demands on local resources Working on complementarities between chains Contributions of value chain promotion to LRED strengthening the local economy working on high potential markets - integrating the private sector perspective strengthening the competitiveness of the value chain and hence of local chain actors enhancing the share of the region in total value addition Abteilung Agrarwirtschaft, Fischerei und Ernährung - Abteilung Wirtschaft und Beschäftigung 8

9 1 Strategic orientations in economic development Combining LRED and value chain promotion Some conclusions for development practice Abteilung Agrarwirtschaft, Fischerei und Ernährung - Abteilung Wirtschaft und Beschäftigung 9

10 The ValueLinks Methodology Setting system boundaries Chain analysis & strategy formation Implementation in different fields of action Monitoring and evaluation 1 Deciding the use of chain promotion Selecting a value chain for promotion Analyzing a value chain Visioning / determining the strategy Cooperating with the private sector Facilitating business linkages Strengthening service systems Monitoring and measuring impact Facilitating the chain dev t process Strengthening financial services Introducing quality standards Influence on policy & biz environment Abteilung Agrarwirtschaft, Fischerei und Ernährung - Abteilung Wirtschaft und Beschäftigung 10

11 Chain Promotion at Regional Level Integrating local enterprises into national value chains 1 Promoting (upstream) segments in view of end markets Operating at the micro level, with local producer associations and companies Reorienting infrastructure development Clusters - where region and value chain coincide Public support services Local enterprise networks and associations Local roundtables coordinating investment in key subsectors Regional marketing initiatives Abteilung Agrarwirtschaft, Fischerei und Ernährung - Abteilung Wirtschaft und Beschäftigung 11

12 Value Chains and Poverty A matter of carefully selecting value chains to promote 1 high share of SME and poor producers low entry barriers (small scale, low start up cost etc) labour intensive technology locally available raw material, services and skills in line with livelihood conditions (use of family labour, rapid returns, keeping the environment intact, contributing to food security) Improving the conditions for inclusion regulation of land and water rights support of credit and savings groups skills training and targeted services Abteilung Agrarwirtschaft, Fischerei und Ernährung - Abteilung Wirtschaft und Beschäftigung 1