Value Chain Development

"Rural livelihoods in low-income countries are being challenged by the globalization and liberalization of the world economy. Open market structures are being transformed into tightly coordinated supply chains between preferred business partners, often dominated by large retailers or food processors. Developing countries are increasingly affected by this process of inclusion-exclusion, as export markets, regional markets and national urban markets become organized along value chain structures. This is having a serious effect on rural economies in the South, where 70% of the world‘s poor live, and where access to these semi-closed networks is creating ”winners" and ”losers". Maximizing the number of ”winners" and reducing poverty requires smallholder participation in supply chains." (Thanks Ramla)