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5.2.7. Hamre Framework

Selecting Pro-Poor Value Chains

This paper serves as a guide [1] on selection of value chains that benefit the poor. The goal of this framework is to determine how pro-poor a value chain is during selection. It adopts a blend of the two definitions of pro-poor (i.e. “reduction in inequality” and “absolute growth”). It finds that pro-poor value chains are those that produce both personal (income, health, security, education) capabilities and societal (improved institutions, tax revenues, social capital) gains. Using the USAID VC framework as basis, the paper suggests that the determinants listed below can predict personal and societal gains, which are proxies for development impact.

The breakdown of the determinants for predicting impact and use in selection is a potentially useful tool. These factors determine what the societal and individual gains will be, and thereby determine the development impact of the value chain. The breakdown is as follows:

  • Value chain targeting includes information about the participants such as how many and where they are placed, spatial distribution of the value chain, demographics (gender, ethnic groups) and entry barriers such as human and physical capital.
  • Governance includes characteristics of the lead firm, power distribution, employment organization and local politics.
  • Production includes the nature of the products, opportunities for ethical sourcing, the producer firms and security.

Looking at these determinants (as well as the predicted outcomes) could be useful in value chain selection and analysis.

Footnotes

  1. Selecting Pro-Poor Value Chains: A Useable Framework, Hamre, Chad, 2008]