Resource Library

The Resource Library serves as a broad resource hub, including over 1000 documents, training materials, wikis, and curated reports to increase readers' awareness, understanding, and proficiency of several topics in market systems development. Users have access to proposals, evaluation materials, and USAID policy updates, as well as training modules and wikis to boost skills and knowledge.

These resources are bolstered by the inclusion of curated USAID reports published on the USAID Development Experience Clearinghouse (DEC) which serves as a repository of reports from completed or ongoing USAID development projects around the globe. The full USAID Development Clearinghouse website can be accessed here.

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3.3.2. Upgrading Plan

The industry upgrading plan follows the development of a common vision by industry actors. It addresses what needs to be done to achieve the vision for competitiveness, particularly through fostering investments and sharing information.

3.3.1. End Market Competitiveness Plan

An end-market assessment is the first step in determining where it is possible and most advantageous for a value chain to compete. In some cases, there are several end markets, each having different needs.

2.5.1. Value Chain Finance

What is Value Chain Finance? Value chain finance refers to financial products and services that flow to or through any point in a value chain that enable investments that increase actors' returns and the growth and competitiveness of the chain. Whereas financial transactions within a value chain are not new (production finance could be considered "value chain finance"), several emphases distinguish a value chain finance approach.

1.4.3. Competitiveness Strategy - Overview

What is a Competitiveness Strategy?  Designing a competitiveness strategy is the third of the five phases of the project cycle. A competitiveness strategy is a plan for moving the industry toward sustained growth. Industry competitiveness, as opposed to firm competitiveness, is systemic, the result of complex and dynamic interactions between national-level social and economic factors.

3.2.6. Value Chain Analysis Table

Value Chain Analysis Table This exercise is best conducted on two levels: one with the value chain team and the other at the vetting workshop. Looking at the value chain through the framework lens helps us to identify:

3.2.5. Value Chain Mapping Process

It is recommended that value chain mapping be conducted in two phases; a) an initial basic map after the collection of initial data illustrating participants and functions, and b) adjusted mapping, which is conducted following additional and follow-on interviews. Benchmarking

The value chain benchmarking process is straightforward and generally includes the following steps: Production Capacity Analysis

Introduction Cycle time analysis was used by the World Bank's Foreign Investment Advisory Service (FIAS) to look at constraints in the Ugandan coffee sector. The Ugandan government implemented a decentralization process that increased the number of bureaucratic procedures individual districts imposed and led to the implementation of levies on investments and shipments in and between the districts.

2.4.4. Lessons from the Field

Introduction Participation in value chains does not necessarily translate into increased benefits for MSEs—producers must also be able to access higher-value markets and more profitable functions within the chains. In many cases, upgrading is key to profitable and sustainable MSE participation and horizontal linkages can provide opportunities for upgrading through collective learning, cost and risk sharing, enhanced management capacity and better access to support services.

5.3.2. Quantitative Analysis

Introduction USAID's value chain analysis methodology focuses on qualitative analysis to understand trends, incentives and relationships. However, quantitative analysis also plays an important role in value chain analysis by illustrating the current situation and revealing inefficiencies that can be addressed to increase competitiveness.

2.4.3. Examples of Successful Horizontal Linkages

Similar commercial orientation, knowledge and productive resources of members – Smallholder burley tobacco farmers in Malawi formed clubs, which then banded together to form NASFAM, [1] an association that was able to take advantage of new legislation allowing small farmers to market their crop directly rather than through middlemen. Internal trust and social capital – When the Malawi government’s Smallholder Tea Authority

3.2.1. Preparing for Value Chain Analysis

Once the selection process is complete and the implementing agency has evidence that the selected value chain has growth potential and will impact poverty reduction, the next step is the process of value chain analysis.

3.2. Value Chain Analysis

Value chain analysis is a process that requires four interconnected steps: data collection and research, value chain mapping, analysis of opportunities and constraints, and vetting of findings with stakeholders and recommendations for future actions.

2.4.2. Internal and External Factors and Catalysts

Internal factors include a cultural context that is relatively homogeneous and open to group activities, and social capital (trust, relationships, reciprocity and social norms) that facilitate cooperation and collective action; a rationale for group formation such as advocating for better roads, bulk purchase of inputs or access to markets; members’ knowledge and resources-those who have similar interests and econom

2.4.1. Types of Horizontal Linkages

Ad hoc groups are usually local and informal, manage relations between members, and develop social capital. Producer societies/buyer clubs comprise members who live near one another. Community-based groups are focused on local development initiatives. Associations of producers, processors, traders or others are usually based on a specific product and require membership fees. Cooperatives are local or regional member-owned business organizations that offer a range of services and are registered wit

1.3.4. Horizontal Linkages - Overview

What are Horizontal Linkages? In a value chain, horizontal linkages are longer-term cooperative arrangements among firms that involve interdependence, trust and resource pooling in order to jointly accomplish common goals. Both formal and informal horizontal linkages can help reduce transaction costs, create economies of scale, and contribute to the increased efficiency and competitiveness of an industry.

3.1.2. Selection Problems

This wiki is a list of potential problems that can lead a policymaker, donor or implementing agency to direct resources to a suboptimal value chain.