Institutional and Policy Mapping for Small-Scale Producer inclusion in Modern Markets

Objectives 1A framework for understanding the institutional and policy dimensions of small-scale inclusion 2A framework for participatory analysis with key actors using participatory tools Agri-food businesses Producer organisations Public sector Civil Society 3Contribution to component three of Regoverning markets Purpose of the Methodology

Methodology Development Initial concept Testing out in 5 countries –Turkey –Morocco –South Africa –Indonesia –Bangladesh Full use of methodology in learning / training workshop in Philippines with participants from Asia

Core Concepts Rapidly Restructuring markets Institutions Value chain analysis Multi-stakeholder processes and policy dialogue

Institutions Institutions – the ‘rules of the game’ that structure social (market) life. –Organisations are institutions but not all institutions are organisations –Formal institutions Government laws and policies Government agencies Contracts between businesses Public and private standards Enforcement mechanisms (courts, police) –Informal institutions Consumer likes and dislikes Informal market relations Corruption Trust (informal institutions can strengthen or undermine formal institutions)

Interactions and Linkages Actors Institutions Markets (Value chain) Actors receive economic gains from market participation Institutions structure the way markets work Markets depend on institutions to function effectively and efficiently Actors recreate and change institutions in response to problems and interests Markets depend on the participation of actors Institutions create incentives that influence the behavior actors Public policy Government agencies contracts Norms and values Business strategies laws Standards Production consumption Private sector Public sector Civil society Policy and stakeholder processes

Adapted From Birner, 2006

Why Focus on Institutions The full set of institutions is what creates the incentives or disincentives for small-holder inclusion Market transaction costs are the result of how institutions work (or don’t) Institutional analysis goes beyond just public policy Institutions are often taken for granted Institutions can be very difficult to change

Mapping and Understanding the Value Chain (functions, actors, influence, product flows) 1 Mapping and Understanding the Institutional and Policy Environment (Government policies and laws, business strategies, cultural influences, informal market relations) 2 Influencing actors in the chain Influencing Institutional change Strategies for Supporting Change 6 Arrangements supportive of inclusion Institutional Implications / requirements Options for Greater Inclusion 5 How things might change Future Scenarios for Markets and Inclusion 4 Current structure Current Situation Drivers Trends Issues and Opportunities 3 Methodology Overview Monitoring and Evaluation

Scope and Purpose of Institutional Mapping Process Stakeholders Stakeholder Engagement Process Research Process Overall Methodology Getting Started

Flexibility in Using the Methodology May be spread out over some months with different actors contributing through different workshops –Multi-stakeholder –Single stakeholder Could be done in one go in a 2-3 day workshop Could be done as a desk analysis/synthesis using existing information Can be done: –To varying depths of analysis –Using more or less background research

Step 1 – Map the Value Chain and its Actors Agro industry Farmer Vendor Association Supplier DistributorModern Retail Consumer Importer Wholesaler Collector Food Services ProductionWholesaleCollectionRetailConsumption Processing Power and influence of different actors

Visualisation helps……

Tools for Step Core –Value chain mapping –Stakeholder analysis Supportive –Rich pictures –Brainstorming –Stakeholder power analysis –Stakeholder influence mapping Tools for Step 1

Step 2 - Identify Key Institutional Factors Influencing Value Chain ( and how they might change) Key Institutional/Policy Factors Influencing Chain Dynamics and Actor Behavior ProductionWholesaleCollectionRetailConsumption Processing Tenure Private Standards Marketing regulations Services Tariffs Public Standards Foreign Investment Policy Cultural Preferences Cooperative law Key Institutional/Policy Factors Influencing Chain Dynamics and Actor Behavior Agro industry Farmer Vendor Association Supplier Distributor Modern Retail Consumer Importer Wholesaler Collector Food Services

Tools for Step Core –Institutional analysis Supportive –Brainstorming –Mind mapping Tools for Step 2

List Drivers DriversTrends Stakeholder Issues/opportunities CertainUncertain StakeholderIssues/ Opportunities A B C Desk studies, surveys, interviews, PRA’s, workshop brainstorming Step 3 – Synthesis of Drivers, Trends and Issues

Tools for Step Core –Brain storming –Card clustering –Ranking Supportive –Data / information gather tools and methods –Cause and effect mapping Tools for Step 3

Step 4 – Explore Future Scenarios and Vision High uncertainty X Low uncertainty X High uncertainty Y Low uncertainty Y Future D Future A Future B Future C Drivers and Trends CertainUncertain Shared Vision

Tools for Step Core –Scenario analysis –Visioning Supportive –Incentive analysis –Decision trees Tools for Step 4

Step 5a – Identify Key Opportunities, Barriers and Underlying Causes Inclusion of small scale farmers Key Opportunities Key Barriers … Underlying Factors / Causes … Underlying Factors / Causes … …

Tools for Step Core –Force field analysis –Cause and effect mapping Supportive –Brainstorming –Mind mapping –Problem trees –Risk management Tools for Step 5a

Step 5b – Identify Options to Overcome Barriers and Build on Opportunities Options for overcoming barriers and responding to opportunities Inclusion of small scale farmers Key Opportunities Key Barriers Underlying Factors / Causes Underlying Factors / Causes … … … …

Tools for Step Core –Brainstorming –Identifying for problem tree –General investigation and analysis –Ranking Supportive –Outcome mapping Tools for Step 5b

Step 5c – Cluster Options and Specify Institutional Implications and Actions Options for Inclusion Institutional Implications Required Action Responsible Actors

Tools for Step Core –Card clustering –Action planning Supportive –Brain storming Tools for Step 5c

Step 6 – Identify Strategies for Supporting / Driving Change Key Options for Inclusion Institutional Implications Required Action Responsible Actors Strategies for Supporting Change Stakeholder Power Analysis 4 R’s Rights Responsibilities Roles Revenues Influence Mapping

Tools for Step Core –Stakeholder power analysis –Four Rs –Stakeholder influence mapping Supportive –Social network analysis Tools for Step 6

Introduction Overview of Key Concepts and Analytical Framework Detailed Description of Methodological Steps Key points for an effective participatory process with stakeholders Detailed Description of the Tools Proposed Tool Kit Outline