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.

Case Study Series: Women-Inclusive Return on Investment (WI-ROI)

These case studies profile select small and medium-sized enterprises (SMEs) that have implemented a women-inclusive intervention and can demonstrate financial returns for that investment. The case studies help address a gap in evidence from firms in lower- and middle-income countries on the return on investment (ROI) from women’s inclusion and unpack themes from USAID’s Women Inclusive Return on Investment (WI-ROI) Framework.

The case study series features:

  • By: Erin MarkelSabine GarbarinoYaquta Fatehi
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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.

5.3.2.2. Benchmarking

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

5.3.2.1. 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. A cycle time analysis showed that it took 20 days for a container of coffee to pass from Ugandan growers to the ports in Mombassa.

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.

2.3.1. Recommended Good Practices for Strengthening Vertical Linkages

Understand the imperative for behavior change. The underlying rationale for inducing change should be clearly understood by project proponents before designing any intervention. In some cases, vertical linkages are already established and functioning well; interventions in such cases might risk damaging the existing relationships rather than strengthening them. A detailed objective analysis of existing vertical linkages and commercial and social relationships between firms should be conducted and the imperatives for change, if any, should be clearly understood.

1.3.3. Vertical Linkages - Overview

Characteristics of Effective Vertical Linkages In many value chains there is a gap between what end markets want and what MSEs produce due to a win-lose mentality or lack of trust between vertically linked firms. As a result the flow of information between consumers and producers is blocked. Such inefficient vertical relationships negatively affect the competitiveness of the value chain and can prevent MSEs from effectively meeting market demand.

2.2.7. Lessons Learned in BEE Reform

Introduction As experience with business enabling environment reform programs grows, a better understanding is emerging of what practices and approaches lead to successful reform. Stock-taking efforts have been conducted recently by USAID, IFC and the Donor Committee for Enterprise Development:

1.4. The Project Cycle

Effective value chain development programs are designed and carried out in a dynamic process referred to as the project cycle.

2.2.6. Public-Private Dialogue

Introduction Regardless of whether a "top-down" or a "bottom-up" approach is taken, public-private dialogue (PPD) is an essential element of any business environment reform initiative. PPD has a range of potential impacts, but dialogue does not achieve anything on its own: PPD works by facilitating, accelerating or cementing ongoing initiatives that without the boost of stakeholder pressure would falter or fail. The most tangible benefits of PPD are the policy reforms it can precipitate.

2.2.5. Types of Approaches

"Top-Down" Approaches Driving Systemic Reform: the Regulatory Guillotine in Moldova In 2003, USAID's Support to Micro, Small, and Medium Enterprise Development (BIZPRO) project partnered with the government of Moldova (GOM) in support of national-level reform. Following a World Bank-sponsored presentation on the benefits of the "regulatory guillotine," the GOM became determined to drive systemic reform using this method.