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Sustainability for Landscapes The Role of Multi-Stakeholder Initiatives in Delivering Landscape Sustainability Nina Victoria Carman 911228999070 19-12-2018 MSc Thesis Organic Agriculture Environmental Policy Group ENP-80436 Supervisor: dr. Hilde Toonen Second reader: prof. dr. ir. Peter Oosterveer ii Abstract Globalization and agricultural modernization have led to creating negative environmental and social externalities that governments have difficulties to effectively address. Therefore, a variety of multi-stakeholder initiatives (MSIs) have emerged. These non-state-market-driven organizations are under pressure to prove their legitimacy, credibility and accountability to other public and private actors. Since their main purpose is to increase sustainability of commodities in global value chains, the question remains how these organizations can deal with sustainability – widely recognized as complex issue. Termeer et al. (2015a) argue that for this reason governance capabilities are essential. Since capability approach has pragmatic and normative features it is practical and adaptive to particular cases. In this research, it is used for cross-case comparison of governance arrangements and to gain a better understanding of landscape sustainability performance of the MSIs. It is assumed that MSIs with well-developed governance capabilities are more inclusive of social-ecological systems as well as can enable landscape capabilities to some extent. Since landscapes also need capabilities to deal with the negative externalities and to achieve well-being. iii Table of Contents Abstract .............................................................................................................................................. iii Abbreviations.................................................................................................................................... vi Acknowledgements ....................................................................................................................... vii 1 Introduction .................................................................................................................................... 1 1.1 Types of multi-stakeholder initiatives .................................................................................................................. 2 1.2 Research objectives ....................................................................................................................................................... 4 1.3 Research questions ........................................................................................................................................................ 4 1.4 Outline of the thesis ....................................................................................................................................................... 5 2 Methodology ................................................................................................................................... 6 2.1 Selection of case studies .............................................................................................................................................. 6 2.2 Selection of research methods .................................................................................................................................. 8 2.2.1 Literature study for capability approach and landscape sustainability performance ........................ 8 2.2.2 Assessment framework for governance capabilities ......................................................................................... 8 2.2.3 Semi-structured interviews and workshop participation ............................................................................... 9 3 Governance capabilities .......................................................................................................... 11 3.1 Capability approach by Amartya Sen: functionings and freedoms ....................................................... 11 3.2 Governance capabilities by Termeer et al.: dealing wisely with wicked problems........................ 14 3.2.1 The five governance capabilities .............................................................................................................................. 15 3.3 Use of capability approach ...................................................................................................................................... 18 3.4 Case study analysis: comparison of governance capabilities of multi-stakeholder initiatives 19 3.4.1 Best practice examples of governance arrangements .................................................................................... 23 4 Landscape sustainability performance .............................................................................. 26 4.1 Sustainability and social-ecological systems ................................................................................................... 26 4.2 Value of ecological system: ecosystem services .............................................................................................. 28 4.3 Landscape capabilities............................................................................................................................................... 29 5 Synthesis of findings: governance capabilities and landscape sustainability performance .................................................................................................................................... 31 5.1 Framework for understanding relations between governance capabilities and landscape sustainability performance ............................................................................................................................................. 31 5.1.1 MSI governance capabilities in landscape sustainability performance .................................................. 33 5.1.2 Governance capabilities of selected MSIs and their landscape sustainability performance......... 33 6 Discussion ..................................................................................................................................... 36 6.1 Reflection on capability and landscape approach ........................................................................................ 36 iv 6.2 Study limitations and opportunities for further research ......................................................................... 37 7 Conclusion .................................................................................................................................... 39 References ........................................................................................................................................ 40 Annex I – Interview guidelines ................................................................................................. 45 Annex II – Case study report 1: Fairtrade International .................................................. 47 Annex III – Case study report 2: Ethical Tea Partnership ................................................ 66 Annex IV – Case study report 3: Bonsucro ............................................................................ 82 v Abbreviations MSI Multi-Stakeholder Initiatives GVCs Global Value Chains WWF World Wildlife Foundation IDH Sustainable Trade Initiative VSAs Verified Sourcing Areas NGOs Nongovernmental organizations FI Fairtrade International ETP Ethical Tea Partnership ES Ecosystem Services FSC Forest Stewardship Council M&E Monitoring & Evaluation vi Acknowledgements Firstly and foremost I would like to thank my thesis supervisor dr. Hilde Toonen for introducing me to the topic of governance capabilities and for her unwavering support and believing in my ideas. I could not ask for a better supervisor. I would also like to thank my friends and family for always being there and supporting my journey. Especially, I would like to thank my mom Mojca to whom this thesis is dedicated for teaching me to always follow my vision and to never give up. Thank you. vii 1 Introduction Due to the progress of technology, available resources, world trade and market access, the production and consumption have become a matter of global and geographically fragmented process (Gereffi et al., 2005). Globalizations and agricultural modernization also created distance between the source of consumption and the source of food production. Consequently, this has led to a lower sense of responsibility and sense of place (Sherwood, 2016). The current dominant regime sustains this self-destructing characteristic that Beck (2001) calls it “organized irresponsibility”, creating negative social and environmental externalities such as environmental degradation, exploitation of work-force, and so forth. Moreover, because food trade has become a part of the global sphere, most governments have difficulties to control it (Ponte & Gibbon, 2005). Therefore, social initiatives and coalitions of non-state actors began to develop governance systems that develop and implement socially and environmentally responsible management practices and markets for goods that meet sustainability standards (Cashore, 2002; Potts et al., 2014). The non-state-market-driven organizations are also known as multi-stakeholder initiatives (MSIs). Nowadays, MSIs play a key role in moving production in some food sectors towards sustainability, guiding stakeholders within the supply chain to adopt sustainable practices as well as helping consumers in identifying sustainably produced