Incorporating women into value chains is increasingly a shared objective for public and private sector actors. This may be driven by business interests and corporate social responsibility aims for the private sector, or by poverty reduction aims for development actors. But whatever the motivation, there are still real constraints to mainstreaming gender in value chains. How might public-private partnerships help overcome these constraints?
This is the subject of a DAI-sponsored innovation lab taking place at the European Development Days conference on 26-27 November. The lab – 'Harnessing public-private partnerships to connect women's businesses to international supply chains' – will bring together a panel of experts and will draw on examples of best practice.
From the development point of view, the underlying concept is that economic growth can be a path to poverty reduction, but that it requires a holistic approach which includes supporting the poor to participate in value chains.
This approach, also known as 'making markets work for the poor', or M4P, analyses market systems and develops systematic approaches to creating jobs and developing services for inclusion of poor households and entrepreneurs in the broader economy. For that to be most effective, it must also target women.
"What we're doing is trying to integrate gender into that holistic approach," says Katja Silva-Leander, senior consultant, economic development and finance at DAI. "So at each level we look at the role of women in a value chain, and the constraints in that particular sector."
Value chain development has in the past not always incorporated a gendered approach, and it's important to change that, says Anne Simmons-Benton, global practice leader on trade, regulatory reform, gender at DAI.
"When development work in the past has focused on helping businesses, it has always looked at which businesses are likely to succeed quickly," she says.
"Those businesses are kind of the cream of the crop, and they're usually run by men, which means we've sort of left out 50% of the population. If you're looking at being a game changer, ensuring that you look at women-led firms is really important."
One of the speakers at the EDD lab is Janet Nkubana, co-founder of Rwanda-based Gahaya Links, which was set up shortly after the genocide ended there in 1994.
Gahaya Links launched as a producer of traditional woven baskets, but now also sells jewellery and other accessories. It started by employing women who had survived the genocide, giving them food in exchange for baskets. The business gradually grew, and in 2006 Nkubana attended a trade show funded by USAid, receiving support there in the form of marketing and business advice. Through DAI, Nkubana was also introduced to Wal-Mart, and Gahaya Links now sells products through a number of retailers including Wal-Mart and Macy's, and works with a partner importer in New York.
"The assistance I had with going to an exhibition in New York got me my first client," says Nkubana.
"I couldn't have done that alone. When you're learning to walk, you need someone to hold your hand first, show you the first steps. Financially I wouldn't have been able to do this."
Gahaya Links serves as an example of how development intermediaries can help small businesses connect with private sector actors who can then help drive the business forward. Limiting value chain development to businesses that seem most obviously likely to succeed can mean that the potential of entrepreneurs like Nkubana is overlooked.
However, helping such enterprises succeed does also mean providing specific, tailored support at the early stages to help them acquire the necessary skills and meet what may be unfamiliar standards, says Simmons-Benton.
"Products have to meet market standards, so it may be learning about the right colours for the European or US markets, and meeting quality standards. All of that market information is critical."
Public-private partnerships are still a relatively new development tool, and can take many different forms at global and local levels. The challenge is to ensure that such approaches incorporate gender successfully so that they can unlock the economic potential of women who might otherwise remain excluded from value chains.
"The interesting thing about international supply chains is that they don't really care if you're female of male, as long as your product is good," says Simmons-Benton.
"In fact, nowadays with corporate social responsibility interests, being a woman-owned company may be a benefit. So the real question is how do we take a successful model like Janet's and learn from it to help women-owned firms in developing countries actually reach out to international supply chains, so their goods can move beyond local markets."
Constraints to women's participation in value chains are varied, and overcoming them can require looking at areas as diverse as training and education, financing, and regulatory barriers such as land tenure and access to bank accounts. The challenge for public-private partnership is to identify these constraints as part of a holistic approach to value chain development.
"That's the purpose of our lab," says Simmons-Benton. "To learn from the successes and how to help the private sector, the big multinational firms who want to buy from the Janets of the world, and where there's donor funding, to connect them. That's where DAI or other development practitioners can really help."
Content on this page is produced and controlled by DAI
