McCormick+Schmitz Handbook for value chain research on - PACA

You may want to investigate what types of credit schemes are available so as to guide the
homeworkers in their search <strong>for</strong> a programme that would be suitable <strong>for</strong> them.
Alternatively, you might, at this stage, involve the homeworkers in the <strong>research</strong> by
suggesting that they visit the micro-credit providers to find out <strong>for</strong> themselves. In some
cases, especially when local micro-finance institutions have not lent to homeworkers in
the past, the <strong>research</strong>er may need to turn activist. If the MFI is unfamiliar with the nature
of homeworking, or if its present clientele consists mainly of traders or shopkeepers who
are repaying their loans in weekly instalments, its management may need to be convinced
that this is a group worth considering. Perhaps more importantly, the MFI management
may need to be encouraged to develop new loan products that fit homeworkers’ particular
situation.
[Readers, can you provide real life cases? Or other examples which show how
homeworkers can be helped to switch <strong>chain</strong>s. DM/HS]
19. Spreading best practice
In chapter 12 we sought to find out whether some home-workers are treated better than
others and whether good practice can be found in particular <strong>chain</strong>s and/or traced to
particular employers. In this chapter we discuss – by way of examples – what is meant by
‘good’ or ‘best’ practices and what can be done to make them more common. The
suggestion is to use a positive approach and to show that treating home-workers well pays
economic dividends. This is distinct from a negative ‘name and shame’ approach. In
extreme cases this may be the best way to proceed. But ‘naming and shaming’ should in
most cases be the response of last resort. The problem with this approach is that it
scorches the field <strong>for</strong> subsequent investigations. Research receives a bad name and
employers and home-workers will refuse access fearing that the <strong>research</strong>ers main aim is to
report trouble spots.
19.1 Advance notice of ups and downs in orders
The rationale <strong>for</strong> the positive approach comes out of <strong>chain</strong>-thinking. In order to compete
in advanced country markets or the upper segments of the developing country markets,
high quality and fast response are critical. Quality and speed cannot be achieved by the
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