Using agriculture for development: Supply- and demand-side approaches

For most poor countries of today, using agriculture for development is widely recognized as a promising strategy. Yet, in these countries, investment in agriculture has mostly been lagging relative to international norms and recommendations. Current wisdom on how to use agriculture for development is that it requires asset building for smallholder farmers, productivity growth in staple foods, an agricultural transformation (diversification of farming systems toward high value crops), and a rural transformation (value addition through rural non-farm activities linked to agriculture). This sequence has too often been hampered by extensive market and government failures. We outline a theory of change where the removal of market and government failures to use this Agriculture for Development strategy can be addressed through two contrasted and complementary approaches. One is from the “supply-side” where public and social agents (governments, international and bilateral development agencies, NGOs, donors) intervene to help farmers overcome the major constraints to adoption: liquidity, risk, information, and access to markets. The other is from the “demand-side” where private agents (entrepreneurs, producer organizations) create incentives for smallholder farmers to modernize through contracting and vertical coordination in value chains. We review the extensive literature that has explored ways of using Agriculture for Development through these two approaches. We conclude by noting that the supply-side approach has benefited from extensive research but met with limited success. The demand-side approach has promise, but received insufficient attention and is in need of additional rigorous research which we outline

Product Service Systems and Sustainability: Opportunities for Sustainable Solutions

Given that the concept of PSS is beginning to 'catch on' and gain attention, it is time for UNEP to contribute to, and influence the progress of PSS, to ensure that in concept and application it incorporates the idea of sustainability. In this context its potential is not generally understood by the public and private sectors or civil society. This booklet is intended to contribute to the dissemination and the discussion of the PSS concept as a promising approach to sustainability. The ultimate goal must be to achieve Sustainable Product-Service Systems. This UNEP publication is targeted at industry and government, academia and civil society to explain PSS – their potential benefits and limitations – in the sustainability context – using real company examples. To prepare this booklet, UNEP has drawn on the knowledge and experience of PSS experts to flesh out the concept of a sustainable PSS, to collect case studies of PSS in practice, to begin to document both its benefits and the hurdles which need to be overcome in its application, and to suggest ways forward in its development

Contract Farming for Better Farmer-Enterprise Partnerships: ADB\u27s Experience in the People\u27s Republic of China

[Excerpt] Agriculture should provide safe and nutritious food to people. In the People’s Republic of China (PRC ) and many other developing members of the Asian Development Bank (ADB), agriculture is also the main source of income for rural residents. Yet as compared with the total labor force absorption, the contribution of agriculture to gross domestic product is very small, suggesting lower productivity, often resulting in poverty. Recognizing the invaluable contribution of agriculture to the PRC ’s development, the government has been prioritizing agricultural modernization in its policy agenda with an aim to further improve the agricultural sector’s productivity and efficiency. ADB’s support to the sustainable development of agriculture in the PRC covers broad areas ranging from irrigation infrastructure and farmland upgrading to agribusiness development and food safety. The Dryland Sustainable Agriculture project commenced in 2009 with ADB assistance supports the development of partnerships between private agro-enterprises and farmers using contract farming arrangements to strengthen farm productivity, food production, and processing capacity in 27 counties in Gansu, Henan, and Shandong provinces. After 6 years, the project has delivered considerable amount of outputs in terms of facilities established and farmers engaged, showing promise in achieving its outcome. Concurring with the request from the Ministry of Agriculture, the project executing agency, ADB provided a grant to study the experiences arising from the project with respect to developing sustainable farmer–enterprise partnerships particularly contract farming models. Equally important, the study examines the issues involved in current contract farming practices and recommends policies that may help resolve them

The commercialisation of BDS through an NGO: case study of AKRSP-Pakistan

Book ChapterBased on the theme of how donors can play a more effective role to stimulate effective and sustainable provision of BDS by or through private sector intermediaries, this case study looks at how the Aga Khan Rural Support Programme (AKRSP) has sought to encourage the development of markets for Business Development Services (BDS) in the remote areas of northern Pakistan. This paper explores that the isolation of the region, poor infrastructure, small scale of landholdings, and lack of economic development leads to problems when attempting to promote markets for business development services. In the short term, the priority is the development of more basic markets, rather than markets for business development services. Without active markets there are a few opportunities for BDS provision let alone the development of vibrant private sector markets for BDS. It specifies the geographic, economic, political, and institutional context in which the AKRSP’s interventions have been implemented. Grassroots village based initiatives have been discussed, where groups of farmers are facilitated by AKRSP to provide BDS to neighboring farmers (farmers interest groups in Chitral), along with more structured formal approaches such as the more direct provision of BDS through commercial entity associated with AKRSP (North South Seeds). It is argued that both models have a positive impact on MSME performance and lead to market development in the long run. Both are methods through which donors can promote BDS markets but which model is most appropriate depends on the market being served. Where the service offered is relatively simple and the business of the BDS provider is relatively straight-forward, facilitating private sector intermediaries may be the most effective way of creating markets for BDS. However, where the service is complex and there is a need to establish a sophisticated organisation to provide the service, it may be necessary to set up an organisation within the NGO, on commercially sustainable basis if possible, with a view to fully commercialising and ideally privatising the organisation over time