Abstract
Laté Lawson-Lartego, director of the economic development unit at CARE USA, who was responsible for developing the initial proposal to work in the dairy sector in Bangladesh, offers a view of CARE’s approach: “A value chain approach is really an exercise in seeing the entire economic and social market system. As we see it, developing, strengthening, or upgrading a value chain is the process of increasing the value that is created and ensuring that value is distributed as equitably as possible, with emphasis on benefits for participants that are the least well-off, and especially women.”1 For CARE, the value chain approach takes a systems perspective and is holistic; quite simply, CARE sees a chain in which each link is as important as any other and, therefore, one must identify the weakest links and their obstacles or constraints and devise strategies to strengthen them in partnership with other value chain actors. It looks holistically at various pieces—the adoption of updated agricultural methods, gender, access to services and inputs, and relationships between other value chain actors—and looks for leverage points that can be addressed to improve the functioning and competitiveness of the entire chain.
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Notes
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See, for example, the case of CARE Kenya’s involvement in the livestock value chain in northern Kenya in Kevin McKague, “Value Chain Development: CARE Kenya’s Challenge to Make Markets Work for the Poor” (Case study, Richard Ivey School of Business, London, ON, 2012). Several years ago, CARE’s initial involvement in supporting the livestock value chain was to purchase cattle from marginalized pastoralists, feed and treat them with any necessary animal health services, and then sell to the commercial markets. However, without sufficient business capabilities, the venture quickly lost money and folded.
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Daryl Collins et al., Portfolios of the Poor: How the World’s Poor Live On $2 A Da. (Princeton, NJ: Princeton University Press, 2009);
Mariapia Mendola, “Farm Household Production Theories: A Review of ‘Institutional’ and ‘Behavioral’ Responses.” Asian Development Revie. 24 (2007): 49–68.
Mrinal Datta-Chaudhuri, “Market Failure and Government Failure.” Journal of Economic Perspective. 4, no. 3 (1990): 25–39.
World Resources Institute, The Wealth of the Poor: Managing Resources to Fight Povert. (Washington, DC: World Resources Institute, 2005);
Anantha K. Duraiappah, Exploring the Links: Human Well-Being, Poverty and Ecosystem Service. (Nairobi: United Nations Environment Programme, 2004);
World Bank, Linking Poverty Reduction and Environmental Management: Policy Challenges and Opportunitie. (Washington, DC: The World Bank, 2002).
DCED, “The DCED Standard for Measuring Results in Private Sector Development” (Report, Donor Committee for Enterprise Development, London, 2013).
Mike Field et al., Training Curriculum: Facilitating Value Chain Developmen. (Washington, DC: United States Agency for International Development, 2012).
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© 2014 Kevin McKague and Muhammad Siddiquee
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McKague, K., Siddiquee, M. (2014). Value Chain Development. In: Making Markets More Inclusive. Palgrave Macmillan, New York. https://doi.org/10.1057/9781137373755_2
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