Value Chain Analysis, Monitoring Results and Benchmarking Experience of SEDF/Bangladesh

Transcription

1 Value Chain Analysis, Monitoring Results and Benchmarking Experience of SEDF/Bangladesh Deepak Adhikary Chiangmai, Thailand, September 18 22,2006 SEDF/International Finance Corporation

2 SECTORS INTERVENTION MARKET DEVELOPMENT SERVICE PROVIDERS SMEs EMBEDDED SPS ASSOCIATION SERVICE PROVISION CROSS CUTTING INTERVENTION AGRI POVERTY GENDER LINKAGE BEE A2F IT RMG LES

3 Providers Particular Total PROVIDERS No. of Intervention Sector Performance Baseline (2003) Monitoring (2005) Change in % Sector Impact Female Staff (no.) Domestic Sales ( 000) Export ( 000 US$) Assets ( 000 US$) Profit ( 000 US$) 67,630 43, , ,641 35,136 78,202 48, , ,090 40, Cost Inputs PROG. DIRECT COST (US$) PROG. TOTAL COST (US$) 4,786,470 6,080,000 Leverage Value 1:24 1:19

4 Major Issues in Impact Monitoring Working with multiple donors in VC means different M&E expectations M&E considered a back office support, run by statistical acrobats not enough resources allocated Too many un-coordinated surveys leading to client fatigue Too much focus on Attribution and Control Group missing the big picture INDUSTRY COMPETITIVENESS!!

5 M & E (Traditional) M& E in its own orbit Problems Program M&E Global Benchmarks M & E systems not attuned to industry s measuring vocabulary and standards. Difficult to attribute changes to program interventions. National Benchmarks Does not provide insights into better business practices that: drive the industry forward

6 M & E (A Way Ahead?) Anchored M & E and benchmarks Problems addressed Benchmark linked M&E: Program M&E National Benchmarks Global Benchmarks Gives a sense to make the industry more competitive. Changes attributed to intervention with higher degree of certainty. Gender, poverty, environmental and public- goods can still be linked.

7 FORCE FIELD ANALYSIS ON VALUE CHAIN +ve -ve Cheap labor 90% value addition in knit Duty/quota free entry in Japan, Canada, EU Back to back LC facility Higher market share in low alued products Cotton Spinning Weaving/Knitting Dyeing Washing R/M, Accessories Pattern Making Sample Dev Cutting Sewing Quality Control Export Poor backward linkage in woven sector Port insufficiency Reduced price per C&M Poor compliance standard Few skilled worker/ productivity Poor forward linkages Limited market outside US & EU

8 Readymade Garments: Benchmarks Process Benchmarks Labor Turnover/ Year (%) Rejection Rate Plant Efficiency (Produced Min./Spent Min) (%) Financial Benchmarks Labor Cost (US$/ Operator Hour) Sector Performance Benchmarks Return on Invested Capital (Knit) (%) Social/Environmental Benchmarks Women in Supervisor Positions (%) SEDF Assisted B desh Baseline Sri Lanka Reference Country Benchmark 40 China Vietn Camb Global B mark

9 Re-rolling Mills Bangladesh Cost Savings/ Year (US$)) Gas reduction intervention (recuperator installation) has payback period of less than 1 month. $ million $2.6 million For 6 mills assisted by SEDF 50,000 Ton/ year $40.0 million Melting loss Scale loss Gas consumption SEDF total cost of US$51,000 Potential Industry- to realize cost wide saving savings of US$2.6 million 1 million Ton/ year

10 LOGIC OF LOGIC MODEL SETTING UP MONITORING AND EVALUATION SYSTEM Industry Standard Setting Rapid sector and value chain analysis Key global, regional, national sectoral benchmarks Work with few lead companies through industry experts Design industry level interventions Leverage/link A2F and BEE to the value chain Measure outcome and impact variables

11 Different Sectors Different Focus! Difficult to have common impact denominators for sector interventions Textiles and Apparels Focus on Gender, Compliance and Factor Productivity Agribusiness Information Technology Engineering Supply chain, Poverty nodes Profit and Export Growth, No social, employment or gender dimension Cost Reduction, Import substitution