Addressing Poverty through aMarket-Based Approach to Agricultural

Development

Ruth Campbellrcampbell@acdivoca.org

• Works through private-sector actors• Leverages commercial incentives• Builds market relationships

What is a market-based approach?

• Locally owned and driven• Cost-effective, potential for scale• Sustainable

Market-based approaches are de rigueur

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

Market-based approaches are successful

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.

• Sometimes…

…but probably not as often as is claimed

Do market-based approaches reach the very poor?

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

The Competitiveness Company, Jamaica

Mennonite Economic Development Associates ,

Afghanistan

Cardno, Zambia

Grameen Foundation, India

International Development Enterprises, Bangladesh

SDCAsia, PhilippinesCARE, Ethiopia

AMPATH, Kenya

Can market-based approaches reach the very poor?

Can market-based approaches reach the very poor?

Yes—but…• Not necessarily as producers

Can market-based approaches reach the very poor?

Yes—but…• Complementary activities are required

Photo credit: Grameen Foundation

Can market-based approaches reach the very poor?

Yes—but…• Not necessarily straight away

Photo credit: AMPATH

Consumption support (food and cash transfers)

Basics skills training

Savings programs

Microloans & vouchers

PU

SH

Market linkages

Improved input supply

BDS & technical services

Financial services

PU

LL

Can market-based approaches reach the very poor?

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