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Value chain development
A value chain is a series of activities that enterprises undertake when they produce a good or service, adding value to the inputs at each stage. Value Chain Development thus seeks to maximise the value of any given type of product, whilst incurring the least possible cost to the producers, in the places along the production chain that give the most benefit to poor people. One way is to improve production processes. Another way is to increase the commercial linkages between the businesses that poor people own or work for, and businesses that can offer them new and more profitable opportunities as customers or suppliers. Local economic development Local Economic Development (LED) typically starts by analysing the economy of a particular region or municipality, identifying opportunities to enhance its prospects. LED strategies may combine any of the following: business environment reform, value chain development, infrastructure development, innovation and technology policy, planning and/ or skills development. LED programmes often involve local and regional governments, the private sector and civil society in programme design and implementation. LEDknowledge.org is an open access database of publications on Local Economic Development. In addition, the Donor Committee for Enterprise Development has a knowledge page on Local Economic Development and Clusters. Public-private partnerships Many development agencies are now working directly with businesses to deliver development impacts. Such public-private partnerships or public-private development partnerships cover a wide range of activities. A common characteristic of most PPPs is the aim to leverage the development impact of companies’ core business activities. One increasingly common approach is to create a Challenge Fund, whereby companies bid for donor funding, competing to maximise the development impact of the grant money made available. Other PPP programmes assist companies in finding business partners in developing countries, or offer technical support and expertise. Through some PPP programmes, companies can directly contribute to donor and development agencies' development projects. The Donor Committee for Enterprise Development provides a mapping of its member agency PPPs. Access to finance Affordably access to finance is seen by most experts as vital to private enterprises in the developing world. While some development agencies therefore see it as part of Private Sector Development, many treat it as a separate field in its own right. |
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OCUS, Enabling Synergy / Amsterdam, The Netherlands / info@ocus.eu