Scaling Up the Fight Against Rural Poverty - FIDAfrique
Scaling Up the Fight Against Rural Poverty - FIDAfrique
Scaling Up the Fight Against Rural Poverty - FIDAfrique
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approval of IFAD projects in which value chains were ei<strong>the</strong>r components or <strong>the</strong> primary instruments<br />
for poverty alleviation increased from 1.8 per cent in 2005 to 50 per cent last year.” 20<br />
IFAD is currently completing a <strong>the</strong>matic study of <strong>the</strong> development of value chains as a way to assist<br />
<strong>the</strong> rural poor. Based on a number of case studies it develops a thorough understanding of <strong>the</strong> value<br />
chain concept, reviews some of <strong>the</strong> experiences to date, analyzes <strong>the</strong> potential and constraints of <strong>the</strong><br />
value chain approach and draws conclusions for IFAD’s operational engagement in value chain<br />
development. The study does not specifically focus on <strong>the</strong> opportunities and challenges of scaling up<br />
with value chains, but some of <strong>the</strong> conclusions are of relevance here. First, <strong>the</strong> study identifies three<br />
key factors for successful pro-poor value chain development: (a) achievement of higher farm-gate<br />
prices; (b) development of strong and inclusive farmer organizations; and (c) outreach to rural women<br />
and <strong>the</strong> rural poor. Second, <strong>the</strong> study stresses <strong>the</strong> important role of <strong>the</strong> enabling environment (in terms<br />
of policies, regulation, and broadly <strong>the</strong> investment climate) and of effective private-public<br />
partnerships. Third, <strong>the</strong> development of appropriate financing mechanisms is a critical element to<br />
successful pro-poor value-chain development. All three factors will likely play and important role if<br />
IFAD wishes to scale up its value chain interventions so as to reach a broader range of poor rural<br />
beneficiaries.<br />
IFAD has various interesting examples of successful scaled-up value chain programs, among <strong>the</strong>m<br />
some going back 20-30 years. A case in point is IFAD’s engagement in support of a broad-gauged<br />
approach to cassava development in Africa. 21 Ano<strong>the</strong>r example of a successful value chain program,<br />
albeit more limited, is <strong>the</strong> case of “PhytoTrade Africa”, a membership-based company in South Africa<br />
which has aimed to develop, with IFAD support, “a sustainable natural products industry in sou<strong>the</strong>rn<br />
Africa that will be of benefit both to people and to biodiversity” (IFAD 2009a, p. 42). It involved “<strong>the</strong><br />
creation of new value chains from tree products in arid zones, including beverages, cosmetic oils and<br />
health-care products in eight countries in eastern and sou<strong>the</strong>rn Africa.” (ibid.) A third example in<br />
which IFAD was concerned with <strong>the</strong> scaling up of a value chain approach, involved a <strong>the</strong>matic<br />
evaluation of organic agriculture and poverty reduction in Asia, which in effect took a value-chain<br />
approach to <strong>the</strong> question how organic agriculture could be developed in Asia. (IFAD Office of<br />
Evaluation, 2005).<br />
However, according to recent evaluations, <strong>the</strong> effectiveness of IFAD’s value chain interventions<br />
remains a concern. The ARRI 2009 credits IFAD with incorporating more value chain elements into<br />
its programs, but it also concludes “that constraints to improving market access are enormous and<br />
<strong>the</strong>re are no easy solutions.” (IFAD Independent Office of Evaluation, 2009d, p. 10). The 2009<br />
Portfolio Review similarly gives IFAD credit for having given more attention to value chain aspects in<br />
<strong>the</strong> programs which it supports, but it concludes that <strong>the</strong> area of market access remains one of <strong>the</strong><br />
weakest in terms of IFAD’s effectiveness. (IFAD, 2009c, p. 14). The recent Country Program<br />
Evaluations for India and Nigeria also conclude that IFAD’s engagement in support of value chains<br />
needs improvement. (IFAD Office of Evaluation 2009 A, B)<br />
In short, <strong>the</strong> value chain approach holds great promise for establishing a pathway towards scaling up.<br />
20 http:/www.ifad.org/events/op/2010/unido.htm<br />
21 Cheikh Sourang summarized IFAD’s experience of <strong>the</strong> 1980s and 1990s in his Key Note Address at <strong>the</strong><br />
“Validation Forum on <strong>the</strong> Global Cassava Development Strategy (GCDS)” held in Rome on 26-28 April 2000,<br />
under <strong>the</strong> heading of “<strong>Scaling</strong> up <strong>the</strong> implementation of GCDS”. See FAO/IFAD (2001). p. 50. Based on <strong>the</strong><br />
experience of <strong>the</strong> 1980s and 1990s <strong>the</strong> Global Cassava Development Strategy was developed by a multistakeholder<br />
alliance in 2000 (including IFAD, FAO, CIAT, IITA, CIRAD and NRI), with a view to laying<br />
ground to fur<strong>the</strong>r scale up <strong>the</strong> development of <strong>the</strong> cassava value chain. Unfortunately, it appears that <strong>the</strong><br />
strategy has not been systematically implemented since.<br />
25