Innovation platform and governance of local rice value chains in Benin: Between game of power and internal democracy?

In Benin, rice plays a major role in the food security of the poorest rural and urban populations. However, the rice value chains have failed to achieve their potential because of some systemic constraints. In recent years, innovation platforms (IPs) have received increasing focus as mechanisms for strengthening the interaction between the stakeholders in the rice value chains. Nevertheless, the issues of information asymmetry and power between stakeholders with often divergent interests suppress the expected effects of the implementation of IP approach. This article used thematic content analysis to assess the influence of IPs on the governance of the parboiled rice value chain. The findings reveal that local rice value chains are characterized by unequal access to resources and asymmetry of power, which generates inequalities within groups. Although their influence is less discernible, IPs have contributed to greater visibility for some emerging stakeholders and rebalanced stakeholders in terms of influence in value chains. Moreover, the perverse effects of financial and human resources management limit the impact of improvement actions in various value chains. Therefore, the development model of value chains may be oriented toward the “business idea approach” instead of the “project approach”

Revisiting the economy by taking into account the different dimensions of well-being

In standard economic models benevolent governments are the unique actors in charge to tackle the problem of reconciling individual with social wellbeing in presence of negative externalities and insufficient provision of public goods. Some promising practices of grassroot economics suggest however that, even a minoritarian share of concerned individuals and socially responsible corporations which internalise externalities, significantly enhance the opportunities of promoting "sustainable happiness" harmonising creation of economic, social and environmental value.well-being; sustainable happiness; role; ethical and solidarity initiatives

Voting with the Wallet

The vote with the wallet is a new, emerging feature of economic participation and democracy in the globally-integrated market economy. This expression identifies the pivotal role that responsible consumption and investment can play in addressing social and environmental emergencies which have been aggravated by the asymmetry of power between domestic institutions and global corporations. In this paper, we examine (both in general and by using examples drawn from the financial and non-financial sectors) how ÒvotingÓ for producers which are at the forefront of a three-sided efficiency which reconciles the creation of economic value with social and environmental responsibility, may generate contagion effects by triggering ethical imitation of traditional profit-maximizing actors, thereby enhancing the production of positive social and environmental externalities. Within this new framework policies which reduce the search and information costs of voting with the wallet may help socioeconomic systems to exploit the bottom-up market forces of other-regarding preferences, thereby enhancing opportunities to achieve well-being with reduced top-down government interventionsocial responsibility, other regarding preferences.

Crisis in Nicaraguan Microfinance: Between the Scylla of Business for Profit and the Charybdis of Clientelism

From the being a poster child of microfinance development, Nicaragua became one of the nightmares for the industry. The negative influence on the countries' repayment culture of the Non-Payment Movement, ambiguously related to the new Sandinista government, is typically blamed for the crisis. A closer analysis, however, reveals that features of the mainstream microfinance policies in Nicaragua are possibly more to blame for the crisis than the political turmoil, which opportunistically seems to have taken advantage of the underlying problems. Overfunding of regulated MFI-banks and promotion of excessive competition, in particular of these banks with the non-regulated MFIs, led to reckless lending and created over-indebtedness. Gradual professionalization and conventionalization also led to the erosion of social embeddedness –once at the core of the Microfinance revolution- and left MFI weak in the face of political challenges. And the obsession with profitability and 'finance only' implied higher interest rates and left many poorer clients with little or negative impact, lending credibility to the accusation of usury. While the Non-Payment Movement could be understood as a Polanyian countermovement to the problems created by market development, its ultimate political objectives however seem to offer only dubious perspectives for future inclusive economic development.

Emerging resource flows for social entrepreneurship; theorizing social investment

In the UK and elsewhere, a ‘market’ in social investment has been developing rapidly over the last 10-15 years, yet there has not been an academic study of the phenomenon to date. This paper aims to address this important gap in social entrepreneurship research. Empirically, the aim of this paper is to outline the nature, scale, and forms of these financial flows. Theoretically, the aim is to conceptualize social investment and build an analytic model of its different orientations. The paper suggests three future scenarios for social investment that blend, in different combinations, instrumental and substantive rationalities and logics

Innovative experiences in access to finance : market friendly roles for the visible hand ?

Interest in access to finance has increased significantly in recent years, as growing evidence suggests that lack of access to credit prevents lower-income households and small firms from financing high return investment projects, having an adverse effect on growth and poverty alleviation. This study describes some recent innovative experiences to broaden access to credit. These experiences are consistent with an emerging new view that recognizes a limited role for the public sector in financial markets, but contends that there might be room for well-designed, restricted interventions in collaboration with the private sector to foster financial development and broaden access. The authors illustrate this view with several recent experiences inLatin America and then discuss some open policy questions about the role of the public and private sectors in driving these financial innovations.Debt Markets,Banks&Banking Reform,,Emerging Markets,Bankruptcy and Resolution of Financial Distress

Financing sustainable energy for all: pay-as-you-go vs. traditional solar finance approaches in Kenya

This paper focuses on finance for Solar Home Systems (SHSs) in Kenya and asks to what extent emerging new finance approaches are likely to address the shortcomings of past approaches. Drawing on the STEPS Pathways Approach we adopt a framing that understands finance within a broader socio-technical context as a necessary but not sufficient component of achieving alternative pathways to sustainable energy access. The paper contributes in four ways. Firstly, it presents a comprehensive overview of past and new emerging approaches to financing SHSs in Kenya and their relative strengths and weaknesses. Secondly, it represents one of the first attempts in the literature to analyse the potential of new, real time monitoring technologies and pay as you go finance models to overcome the barriers faced by conventional consumer finance models for off-grid renewable energy technologies (RETs). Thirdly, by applying for the first time we are aware of a socio-technical approach, via the application of Strategic Niche Management (SNM) theory, to analyse the finance of RETs in developing countries, the analysis considers finance in the context of the social practices poor people seek to fulfil via access to the energy services that off-grid RETs provide, and the ways in which people previously paid for these services (e.g. via kerosene for lighting). This also situates the analysis within the understanding of SHSs as a niche that has to compete with the established regime of energy service provision and its attendant social and political institutional support. The paper therefore also contributes to the small but expanding body of literature that seeks to operationalise socio-technical transitions thinking and SNM within a developing country context

Four Revolutions in Global Philanthropy

Philanthropy is currently undergoing four revolutions in parallel. This paper identifies and analyzes the four main fault lines which will influence the next decades of global philanthropy. All are related to what we can refer to as the market revolution in global philanthropy. As global philanthropy moves beyond grantmaking, into investment approaches that produce a social as well as a financial return, this accelerates the mainstreaming of a variety of niche activities. They marry effectiveness, social impact, and market mechanisms

Farmer groups enterprises and the marketing of staple food commodities in Africa:

"There are some apparently successful cases of collective marketing with staple food commodities (grains and root crops), but these are less common than cases involving higher value agricultural products. These can be attributed to the benefit/cost ratio to participants being generally higher for collective marketing of the higher-value crops. Some of the costs are ‘hidden', in the sense that they are borne by individuals in time spent in attending meetings, and not shown in the financial statements of the enterprises concerned. Examining a series of cases, the paper advocates an approach to the marketing of staples which involves analyzing the value chain and identifying those activities which on the one hand, best lend themselves to individual initiative, and those where on the other hand, group approaches are more likely to prosper. Dual purpose food marketing involving village storage in anticipation of both external market opportunities and local lean season shortages usually falls into the former category. Collective initiatives have a higher probability of success when they complement agricultural intensification and involve bulking substantial quantities of produce for quality-conscious commercial buyers. Prospects for successful collective marketing are moreover greater where there is a history of collective endeavor, where focused on simple activities like bulking and distribution of inputs, where primary groups are small and homogenous in terms of interests and objectives, where they can establish lasting relationships with strong trade counterparties, where supported by effective training (especially re attitudes, numeracy, and business skills), where they can access effectively managed storage and inventory credit services, and where there is framework of law enforcement. The immediate poverty alleviation and programmatic priorities of funding agencies often undermine the effectiveness of promotional activities in support of collective marketing. This problem may be addressed by instituting systems of independent review and peer review processes, and involving open discussion of pros and cons of individual and collective approaches." authors' abstractCollective marketing, Producer organization, Staple food, Village storage, Inventory credit, Microfinance, Disbursement-driven,

Role of informal institutions in Ready-to-Use-Food (RUF) supply chains in Ethiopia

Ready-to-Use food (RUF) product are nutrient dense foods given to individuals that are suffering from acute malnutrition. Currently 5.8 million children suffer from malnutrition in Ethiopia and the timely and efficient delivery of ready-to-use food products has a significant impact on the lives of these children. However, challenges exist in both the local and international production and delivery of RUF products. One of the challenges is the high transaction costs that exist in the supply chains. Transaction costs are the costs associated with searching for information regarding a product or its market, negotiating a deal and enforcing the terms of the deal. In situations where transaction costs are high due to missing or weak markets and institution, people have relied on different mechanisms including social capital (trust and information sharing) to deal with these costs and carry out business and transactions. The purpose of the study is to examine the role institutions, in particular informal institutions, play in addressing these challenges and improving the supply chain for Ready-to-use food products and chickpea marketing (which is a potential ingredient in new RUF formulations). The institutions examined in this study are mainly the non-market institutions like trust and information sharing that build social capital. Data was collected through surveys and interviews from RUF supply chain actors in Ethiopia. These include chickpea producers, RUTF producers, major demanders (humanitarian organizations and governments), transporters, beneficiaries (feeding centers and hospitals). These agents’ use of informal institutions and trust level during transactions with each other is assessed. Interviews with key informants in the value chain in Ethiopia were conducted to further inform the analysis of institutions in supply chain organization and identify areas of high transaction cost. The transaction costs that are present in the supply chains were further identified through focus group discussions with farmers and a farmer survey. Both qualitative and quantitative methods were used to analyze these data. The structure equation model (SEM) was used to quantitatively analyze the data obtained from farmer survey. The study also found that trust between trading partners reduces the time farmers spent negotiating price with buyers. Trust between trading partners also increased the marketed surplus of farmers. Information sharing among trade partners positively affects trust between partners. The study finds that institutions facilitate chickpea marketing through improving trust and information sharing among trading partners. The results indicate that membership in informal institutions strengthens the trust and information sharing between trading partners and this in turn reduces the transaction costs associated with chickpea trade. In addition, the current performance of the RUF supply chain in Ethiopia is found to be relatively efficient with some issues in the availability of local and imported inputs and the failure to comply with quality standards. These results imply that existing, informal institutions in developing countries can be as effective as formal institutions so effort should be put towards their development and improvement. The RUF supply chain can also be further improved by increasing the capacity of local manufacturers to increase production and their capacity to adhere to quality standards. Stabilizing input markets to make inputs to RUF production more consistently available will also improve the production capacity and improve the price and accessibility of RUF products