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Addressing Poverty through a Market-Based Approach to Agricultural Development Ruth Campbell

Addressing Poverty through a Market-Based Approach to Agricultural Development Ruth Campbell rcampbell@acdivoca.org. What is a market-based approach ?. Works through private-sector actors Leverages commercial incentives Builds market relationships. Market-based approaches are de rigueur.

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Addressing Poverty through a Market-Based Approach to Agricultural Development Ruth Campbell

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  1. Addressing Poverty through a Market-Based Approach to Agricultural Development Ruth Campbell rcampbell@acdivoca.org

  2. What is a market-based approach? • Works through private-sector actors • Leverages commercial incentives • Builds market relationships

  3. Market-based approaches are de rigueur • Locally owned and driven • Cost-effective, potential for scale • Sustainable

  4. Market-based approaches are successful • Outreach, Outcomes and Sustainability in Value Chain Projects • Outreach—up to 380,000 farmers • Outcomes—up to 250% increase in profits, 5,000 new FTE jobs, 400% yield increases • ? Sustainability

  5. Market-based approaches are successful • Firms exhibit changes in their commercial behavior, becoming more responsive to market forces and end market demands. • Firms in new or modified vertical or horizontal relationships have experienced win-win outcomes that lead to greater trust and continued incentives to cooperate. • Firms exhibit a pattern of learning and upgrading that seems to extend, and even go beyond, project-promoted innovations.

  6. Do market-based approaches reach the very poor? • Sometimes… …but probably not as often as is claimed Objective: Stabilize household consumption/ stem asset de-accumulation Objective: Smooth household consumption/ protect assets Objective: Smooth household income/ acquire assets Objective: Expand household income/ leverage assets VERY POOR LESS POOR

  7. Can market-based approaches reach the very poor? Mennonite Economic Development Associates , Afghanistan Grameen Foundation, India SDCAsia, Philippines CARE, Ethiopia AMPATH, Kenya The Competitiveness Company, Jamaica International Development Enterprises, Bangladesh Cardno, Zambia

  8. Can market-based approaches reach the very poor? Yes—but… • Not necessarily as producers

  9. Can market-based approaches reach the very poor? Yes—but… • Complementary activities are required Photo credit: Grameen Foundation

  10. Can market-based approaches reach the very poor? Yes—but… • Not necessarily straight away Photo credit: AMPATH

  11. Can market-based approaches reach the very poor? • Market linkages • Improved input supply • BDS & technical services • Financial services PULL PUSH Consumption support (food and cash transfers) Basics skills training Savings programs Microloans & vouchers

  12. Resources for market-based approaches to addressing poverty • microlinks.kdid.org/library/reaching-very-poor • microlinks.kdid.org/groups/speakers-corner/e-consultation-pathways-out-of-poverty/discussion-resources

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