Value Chain Development

EEN_characterIn this section, I would like to introduce some value chain models that can be applied to developing countries. A value chain describes the full range of activities from production to final consumption, such as production of primary products, post-harvest treatment, processing, packaging, distribution and marketing to wholesalers, retailers, and on to consumers. In each process, value is added to the product, and jobs are created. Since value chain development is closely related to job creation, international development stakeholders regard it as a promising approach to reducing poverty in developing countries. The concepts of the value chain models and case studies that I introduce in this section will tell you how jobs are created, what people are included in the value chain, and how they are benefited.


1. Local Production Local Consumption Model

Wrapping Rice Cakes with Banana Leaves
The Local Production Local Consumption Model is the most simple market linkage pattern in which products produced by local people are sold in local markets. Some producers sell fresh fruits and vegetables directly from the farms to the street or local markets. Others sell products after processing their fresh produce. The latter examples often include traditional local food which has taken root in the area and has been loved by local people for a long period of time.

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2. Local Production Externatl Consumption Model

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3. Tourism Promotion Model

“The Tourism Promotion Model” is a model where rural development and micro and small enterprise (MSE) development approaches are combined. In this model, any resource could be regarded as a tourism product, including natural, cultural, historical, and human resources, specifically: agricultural, forestry, and marine products, mountains, rivers, lakes, the sky, stars, beautiful scenery, historical sites, museums, cultural events, ethnic dancing, ethnic clothes, local people’s traditional techniques, and their hospitality. In other words, the local life itself could be a tourism product.

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