GTZ Valuelinks

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The GTZ Valuelinks^[1] manual comprises 12 modules according to the project cycle, each with tasks for business organizations and facilitators to perform. In this model, the stages of the project cycle are: setting project boundaries, chain analysis and strategy, implementation, and monitoring. The three modules in the chain analysis and strategy section are called: “Analyzing a Value Chain,” Determining the Chain Upgrading Strategy,” and “Facilitating the Chain Development Process.”

Comparison to USAID approach:

• similar in argument for broad-based growth as a strategy for reducing poverty (rather than dichotomized relative/absolute pro-poor distinction)
• emphasis on combining VC approach with other pro-poor approaches (targeting the general ability of poor to engage in business activities)
• selection process involves more steps (determine level of aggregation, establish structure of subsectors, then use selection criteria similar to USAID’s).

Relevant tools: The value chain analysis module includes three tasks: value chain mapping; quantifying and describing chains in detail; and economic analysis of value chains and benchmarking. The first two steps are almost identical in objective to USAID’s approach, although the mapping stage uses more than one type of map. One tool included is a way to map governance in the mapping stage by noting relationships between the actors. In the second step, “elements of the value chain are treated as variables which are changing over time.” The last step involves analyzing the economic efficiency of the value chain, value added along the various stages, the cost of production and the income of the actors. The quantitative analysis is very thorough, and the methodology includes tools for calculating value added and mapping its distribution (which are useful for determine what actors capture the value added) and cost analysis tools.

Another tool is a “thematic map” that shows supporters of the value chain and which segments they support. This is useful for analyzing efficiency of support organizations and coordinating among them.

Notes

1. ↑ GTZ Valuelinks Manual, 2007

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