Responding to the challenges

1

• Responding to the challenges
• Debates and dilemmas

2
Objectives and structure
Key challenges to be faced How GTZ is
addressing these
3
External perspective process
External Perspective The Springfield Centre

• Study based on deskwork and telephone discussions
• 5-country focus (Nepal, Sri Lanka, Vietnam) and
  reference to Brazil
• Not an evaluation but evaluative!
• Learning purpose

4
GTZ Asian experience
GTZ Response GTZ value chain project
leaders
5
Presentation focus
External Perspective The Springfield Centre
GTZ Response GTZ value chain project
leaders

• Selection and analysis
• Strategies
• Interventions
• Monitoring and evaluation

6
Describing/assessing value chain work
Main criteria for assessment
Dimension of programming
Key issues
Selection and analysis
Strategy
Interventions
Monitoring and evaluation
7
Overall impressions

• Good examples of significant change
• Impacting at different levels
• Close to private sector
• Guided by good practice principles
• Positive experience of project teams
• - Scale (beyond individual firms and groups of
  poor people)
• - Appropriate in era of global competition and
  markets
• - Builds on lessons from previous approaches

• but major challenges ahead!

8
GTZs value chain experience in Asia
External Perspective The Springfield Centre
GTZ Response GTZ value chain project
leaders

• Selection and analysis
• Strategies
• Interventions
• Monitoring and evaluation

9
Selection and analysis current situation
Characteristics
Process Led by GTZ staff differences in
process structures
Origins Learning from previous approaches

• Overall
• Emphasis on process
• Building on value chain knowledge
• A focus on action

10
Process and product orientations in value chain
analysis
11
Challenges
?

• Are the underlying systemic constraints
  identified and understood with sufficient depth?

12
Analysis central to strategy and interventions
The poor and their context
Specific value chain system
Systemic constraints
13
Analyzing Value Chains (VC)

• 3 strategic step process of analyzing a Value
  Chain
• Step 1. VC map is drawn in close cooperation with
  the key stakeholders
• Snap shot view of different functions, chain
  operators, relationship, overview of the meso
  level stakeholders
• Step 2. Analyze with the objective of
  understanding key contraints and their
  relationship with the functioning/non functioning
  aspects of the subsector
• Identify critical bottlenecks and start
  interventions through them first
• Non critical bottlenecks/ situational (conflict)
  and related issues

14
Analyzing Value Chains (VC)

• Step 3. Designing appropriate interventions
• Done with the involvement of the main stakeholder
• Functional aspects are considered right from
  primary level to the marketing level while
  designing
• This analysis should result in a cohesive vision
  for the subsector
• Realistic short, medium and long term goals are
  also considered
• Component ME
• Goes together with designing iterative based
  interventions

15
GTZs value chain experience in Asia
External Perspective The Springfield Centre
GTZ Response GTZ value chain project
leaders

• Selection and analysis
• Strategies
• Interventions
• Monitoring and evaluation

16
Strategies current situation
Characteristics a variable picture
Approach to achieve large-scale change
17
Challenges
?

• Are strategies adequate to achieve large-scale
  impact?

The demonstration effect
Is there a clear credible path from small-scale
to wider impact? Have mechanisms for crowding-in
other players and activity been developed?
18
Is there a credible pathway to achieving wider
impact?
19
GTZs value chain experience in Asia
External Perspective The Springfield Centre
GTZ Response GTZ value chain project
leaders

• Selection and analysis
• Strategies
• Interventions
• Monitoring and evaluation

20
Current situation interventions
How principles of interventions
What range of activity
Working with (not displacing) value chain
players Cost-sharing Use external specialists
sparingly Consider the distribution of benefits
Critical skills Linkages Associations Standards Re
gulatory and policy reform
Who partners for intervention

• Mainly from the more vibrant members of the
  private sector
• Not usually the public sector

How organised - intervention structures
How much - resources
Average amount per value chain approx Euro
60-100k But varies with sector and stage of
intervention
Structural arrangements between facilitators,
sub-facilitators and partners differ.
21
Interventions issues and challenges

• Interventions consistent with analysis of
  constraints and with overall strategy
• Interventions promoting change that is
  sustainable
• Interventions supporting organisations in valid
  roles
• Relationships between facilitator and partners
  appropriate
• Facilitators sufficiently close and informed
• Resource committed appropriate for the value
  chain development task

22
Current approaches to addressing sustainability
?
23
Challenges
?

• Is there a coherent view of the future value
  chain system that helps to guide interventions?

. but towards what end?
Is there a clear view of (1) Who performs
different functions in the value chain? (2) Who
pays for different functions?
24
Other market functions around value chains a
more comprehensive picture
Information
Infrastructure
Related services
Informal rules norms
Regulations
Laws
Standards
25
Strengthening Sustainability in VCs
Subsidiarity Choosing the right partner for the
right intervention
Interventions are sub-projects in a value
chain, each one can have a different partner

• If your view of sustainability is based more on
• Transactions and profits then choose 1 and 2 and
  sometimes 3
• Promotion then choose 3 and sometimes 4, seldom
  1 and 2
• Regulation then choose 4 with the participation
  of 3

26
Strengthening Sustainability in VCs
Alternative Ownership Facilitation Strategies
S3 Supporting Some Competence High Motivation
S4 Delegating High Competence High Motivation
Low Motivation High
S1 Directing Some Competence Low Motivation
S2 Selling High Competence Low Motivation
Some Task Competence High
Source Hersey and Blanchard
27
GTZs value chain experience in Asia
External Perspective The Springfield Centre
GTZ Response GTZ value chain project
leaders

• Selection and analysis
• Strategies
• Interventions
• Monitoring and evaluation

28
Current situation monitoring and evaluation

• Built around fairly clear impact models -
  capturing flow of immediate cause and effect
  and acting as a useful management tool
• Resources activities outputs outcomes etc
• but (mirroring strategic weakness)
• Little attempt at assessing the degree to which
  wider change has been stimulated

29
Challenges
?

• Are approaches to monitoring and evaluation
  measuring wider systemic impact?

30
GTZs value chain experience in Asia
External Perspective The Springfield Centre
GTZ Response GTZ value chain project
leaders

• Selection and analysis
• Strategies
• Interventions
• Monitoring and evaluation

31
GTZs value chain experience in Asia
External Perspective The Springfield Centre
GTZ Response GTZ value chain project
leaders

• Understanding of systemic constraints?
• Adequate to achieve
• large-scale impact?
• Coherent view of the future
• to guide interventions?
• Capturing wider
• impacts?