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Rural Marketing

Notes Setting up incentives in value chains is a key issue, particularly when working with the informal
sector. Practical Action noted that In the context of Practical Action’s Sudanese hibiscus project,
the two key problem areas are export processes and taxation. NGOs need to work with the
private sector to make the ‘business case’ for governments to develop an enabling environment
(e.g. taxation and regulation). There is a need to demonstrate the benefits that come to the state
from developing lower-value market systems. NGOs also need to empower the producers
themselves to put pressure on government to create this enabling environment. The role of
NGOs also includes research and analysis, creation of coalitions and mobilisation of the private
sector to demand change.
Engaging with the Private Sector

The relationship between government and business is changing: business is getting more
powerful. They are using coalitions to speak to government. Supermarket standards are
increasingly setting the framework; it is not only the government setting the agenda. Business
should be encouraged not to stand on the sidelines. However, it is necessary to create a ‘safe’
environment for engagement. The enthusiasm of the private sector in dialogue depends to an
extent on the geographical location and the sub-sector.

Working with Producers

NGOs need to work with producers to encourage them to negotiate with government and
business themselves and set the negotiation platforms and campaign agendas. Businesses, for
example, may use arm-twisting tactics to negotiate with small farmers. NGOs go in to level up
the playing field, through education on alternative ways to build relations between business
and producers.
NGOs need to help the producers to understand what the issues are, and the way that the market
systems work, including the role of the government. Producers need to think about areas where
policy implementation is weak or corrupt, and seek to improve these areas through engagement
with government. Traidcraft works with local groups and empowers them to engage in policy
change. Producer groups are supported by local NGOs. A national organisation is in process of
being established.

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Caution There has been very little assessment of environmental impacts of market chains
and market development. IDRC and ODI’s research on integrating social and environmental
considerations in value chain analysis was mentioned as an important step in this direction.

12.9 Evaluation of NGO Roles in Markets

Much of the working group discussion centred on the challenge of evaluating the impact of
NGO roles in markets particularly as they moved to a more facilitation role. It is very difficult
to demonstrate causal impacts to donors and private sector partners. Donors are not convinced
that NGOs should be involved in markets and are uncertain about the efficacy of NGO
interventions. There is a need for evaluation to put more emphasis on evaluating the process of
NGO facilitation rather than the impacts. The USAid Microenterprise programme has done
some evaluation of NGO market activities (see www.microlinks.org).
There has been very little assessment of environmental impacts of market chains and market
development. IDRC and ODI’s research on integrating social and environmental considerations

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