Value Chain Development and Employment creation

Transcription

1 Value Chain Development and Employment creation Making the Connection conference Addis Ababa November 2012 Merten Sievers Value Chain Development Global coordinator ILO Geneva

2 Structure of this session 1. Where are jobs good for development? 2. How can we address job creation with Value Chain development? A. VC Selection as a key to job creation B. Scale and sustainability C. Working conditions in value chains 3. The Oromia Coffee Farmers Cooperative Union: how did it reach scale? 4. The experience of the Nyala Dairy value chain in central Kenya

3 Jobs according to the World Development Report 2013 Jobs in cities Jobs connected to global markets Green Jobs Jobs for the Poor Development Jobs that provide sense of fairness Jobs that empower women Jobs that do not shift burden Living Standards / Poverty Productivity /Enterprise development Jobs Social Cohesion Developmen t Jobs that link to networks Jobs that shape social identity

4 1. Jobs: where? Employment contribution by enterprise size: Employment conditions by enterprise size: High quality Low quality

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6 being small has disadvantages

7 1. Jobs: a few key issues Massive and long lasting job creation is only possible with growth Sustainable growth builds on functioning market systems That provide a sense of social cohesion and value to most actors in the chain Addressing underlying constraints in market systems becomes key

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9 2. Value Chains and Markets End market Final Consumers Business Environment Global Retailers Sector-specific providers Exporters National Retailers Wholesalers Potential Business Service Markets Cross-cutting providers Buyers Internal Value Chain markets Financial (cross cutting) Producers Input Suppliers

10 ILOs VCD project portfolio Textile Horticulture Timber, Construction Rattan Bamboo Agriculture, Tourism Skills in VCD EnterGrowth LED/VCD Construction, Tourism, Community Services, Agroprocessing Meat, Horticulture

11 The Bamboo Value Chain in Vietnam Bamboo laminated flooring and panels Fuel Pellets Source: Oxfam Hong Kong Blinds Building products

12 A. Sector/VC selection as a crucial step for job creation Relevance to the poor? (MSEs, women, workers)? High number of poor or disadvantaged groups (poor close to markets: producers, workers, consumers) Poverty and Employment change potential? Stepping-up (productivity, market share, work quality). Stepping-out (new markets, jobs, opportunities) Criteria Size Relevance Prospects Intervention potential? Feasibility of stimulating value chain development for Decent Work through systematic market change Considerations Priorities Capacity

13 Medium Growth in the past 5 years Positive Choosing sectors in the Free State (South Africa): past growth and employment Grafico Sudáfrica Construction Finance Community Services Food and beverages Trade Manufacturing sector Tourism Primary Agriculture 0% Mining Negative large Low 5% Scale (Employment) 35 % High

14 B. Scale and sustainability: Interventions in market systems Need to build on existing structures and players Need to work with incentives that can be identified with in the market system Facilitates the system, does not create new systems or players

15 The Intervention METHODS OF INTERVENTION DIRECT PROVISION FACILITATION Direct delivery of training Deal making Services delivered through local providers (time bound subsidies?)

16 HOW?: DIRECT PROVISION IMPLEMENTER IMPLEMENTER Producers

17 Implementer HOW?: FACILITATION

18 B. Scale: Ugandan SME radio programmes

19 The Rattan Value Chain in Quang Nam: working conditions Part-time jobs/ Child labour? High risk and low pay jobs Stable jobs: and labour norms? Top jobs in VC Local retail Local Harvesters (8000) Collectors Factories (3000) Exporters Imported Rattan from Laos Subcontractors Local wholesale Village level craft shops (3-5000) Artisans

20 Scale The Oromia Coffee Cooperative in Ethiopia

21 Implementation The experience of Nyala Dairy value chain in central Kenya

22 Thank you Merten Sievers

23 Value Chain Development: ILO guides and tools VCD for Decent Work A practical guide linking VCD and Local Economic Development Gender in VCD ITC ILOs distance and F2F training courses

24 Value Chain Development for Decent Work

25 Project team VC Stakeholders Stages Value Chain Analysis: a participatory approach Interviews Research planning Regular team meetings Evaluation meeting Initial VCD Workshop VCD Intervention Planning Workshop Focus group discussions Initial research and mapping Value Chain Analysis 6-8 weeks Strategy discussion and intervention selection

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27 Embedded Services What will give you the impact you are looking for? Interventions to Improve the business environment Final Consumers National Business Environment Global Retailers Exporters National Retailers Sector-specific providers Wholesalers Horizontal interventions Cross-cutting providers Buyers Vertical interventions Financial (cross cutting) Producers Input Suppliers

28 Thank you Merten Sievers