Challenges in the Era of Globalization - iaabd

Challenges in the Era of Globalization
Edited by Emmanuel Obuah
global value chains exert considerable inertia and power on developing country producers leaving little
space for upgrading. Processing capabilities are already located elsewhere and lead buyers see no reason
to shift the current balance of power. Coffee, seaweed, cotton, cashew nuts, timber are just a few
examples where most value added is done in the industrialized world. 2) The required competence is
often not there in the developing countries. This can of course change with investment in education and
training in the long run.
Existing value chains may support sustainable development in two broad ways; end user markets in the
developed world put pressure on lead firms through corporate social responsibility mechanisms to
improve the whole value chains. There are numerous examples of how consumer advocacy in Europe has
led to different sourcing principles for MNCs in developing countries. Labour and environmental issues
are the main cause for consumer involvement which will be imposed on suppliers by overseas buyers.
Even pressures within GVCs are patchy, being product and buyer specific (Kivuitu et al. 2005).
The second way is that developing countries themselves drive a sustainable development agenda. The
power of informed, richer middle - and upper-class should not be underestimated. Governments are aware
and the donor community is supporting SD initiatives but what about the ordinary man in the street? What
about the poor people in rural and urban areas? Is there information and alternatives to live a sustainable
life or run a sustainable business in Tanzania for instance? Unless there is shift in public opinion,
agribusiness targeting local markets is unlikely to be subject to the same pressure as those operating in
GVCs.
At this point we deem to address the following research questions:
(i) What are the proper indicators for evaluating the sustainability of a value chain/innovation
system? This activity will comprise reviews but also communication with target groups.
(ii) Can small rural farms survive in the long run? Is farming income enough? By analysing the
economics of small-scale farming, agro-processing and trading with the opportunities in the
value chain, a number of scenarios in respect of business opportunities and constraints can be
painted.
(iii) Is zero impact on the environment possibly measured from the viewpoint of the whole chain?
What are the activities that impact on climate change, biodiversity, natural resources? What
are the incentives for farmers and businesses to “go green”? Will local value chains go green
driven by market forces, only?
(iv) How can the value chains be organized differently to meet the MDGs in a sustainable way? Is
there a need for new technologies or going back to basics? How can the innovation system
and business models drive the development towards sustainability?
(v) How can business models that promote gender equality and human development among the
rural and urban poor be identified?
(vi) Is large scale investment the way forward such as large plantations for Biofuel targeting
export markets? Here the objective is to forecast and paint various scenarios for sustainable
agribusiness to feed policy-making process.
Conclusion
This paper has highlighted the theoretical perspectives related to value chain, networks and systems
approach as a means to sustainable agriculture in Africa. The analyses point to the need for business
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