Institutional and Policy Mapping for
Small-Scale Producer inclusion in Modern Markets
Objectives
1 A framework for understanding the institutional and policy dimensions of small-scale inclusion
2 A framework for participatory analysis with key actors using participatory tools
• Agri-food businesses• Producer organisations• Public sector• Civil Society
3 Contribution 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 StandardsProduction consumption
Private sector
Public sector
Civil societyPolicy 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
How things might change
Future Scenarios for Markets and
Inclusion
4
Current structure
Current Situation
DriversTrends
Issues and Opportunities
3
Methodology Overview
Monitoring and Evaluation
Scope and Purpose of
Institutional Mapping Process
Stakeholders
Stakeholder Engagement Process
Research Process
Overall Methodology
Mapping and Understanding the Value Chain(functions, actors, influence, product flows)
DriversTrends
Issues and Opportunities
Future Scenarios for Markets and
Inclusion
Options for Greater
Inclusion
Strategies for Supporting
Change
Current structure
How things might change
Arrangements in support of small-scale producer inclusion
Influencing actors in the chain
Current Situation
How things might change
Institutional Implications / requirements
Influencing Institutional change
Mapping and Understanding the Institutional and Policy Environment(Government policies and laws, business strategies,
cultural influences, informal market relations)
1
3 4
2
5 6
Mapping and Understanding the Value Chain(functions, actors, influence, product flows)
DriversTrends
Issues and Opportunities
Future Scenarios for Markets and
Inclusion
Options for Greater
Inclusion
Strategies for Supporting
Change
Current structure
How things might change
Arrangements in support of small-scale producer inclusion
Influencing actors in the chain
Current Situation
How things might change
Institutional Implications / requirements
Influencing Institutional change
Mapping and Understanding the Institutional and Policy Environment(Government policies and laws, business strategies,
cultural influences, informal market relations)
1
3 4
2
5 6
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
Distributor Modern Retail Consumer
Importer Wholesaler
Collector Food Services
Production WholesaleCollection Retail Consumption
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)
Agro industry
Farmer
Vendor
Association Supplier
Distributor Modern Retail Consumer
Importer Wholesaler
Collector Food Services
Key Institutional/Policy Factors Influencing Chain Dynamics and Actor Behavior
Production WholesaleCollection Retail Consumption
Processing
Tenure Private Standards
Marketing regulationsServices
Tariffs
Public Standards Foreign
InvestmentPolicy
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
Drivers Trends Stakeholder Issues/opportunities
Certain Uncertain Stakeholder Issues/
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
Certain Uncertain
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
KeyOpportunities
KeyBarriers
…
UnderlyingFactors / Causes
…
UnderlyingFactors / 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
KeyOpportunities
KeyBarriers
UnderlyingFactors / Causes
UnderlyingFactors / 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
Options for overcoming barriers and responding to
opportunities
Inclusion of small
scale farmers
KeyOpportunities
KeyBarriers
UnderlyingFactors / Causes
UnderlyingFactors / Causes
…… ……
Options for overcoming barriers and responding to
opportunities
Inclusion of small
scale farmers
KeyOpportunities
KeyBarriers
UnderlyingFactors / Causes
UnderlyingFactors / Causes
…… ……
Inclusion of small
scale farmers
KeyOpportunities
KeyBarriers
UnderlyingFactors / Causes
UnderlyingFactors / Causes
…… ……
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’sRights
ResponsibilitiesRoles
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