Rural Industrial Policy and Strengthening Value Chains

Total Page:16

File Type:pdf, Size:1020Kb

Rural Industrial Policy and Strengthening Value Chains Rural industrial policy and strengthening value chains Economic Development Economic RAMÓN PADILLA PÉREZ Editor Thank you for your interest in this ECLAC publication ECLAC Publications Please register if you would like to receive information on our editorial products and activities. When you register, you may specify your particular areas of interest and you will gain access to our products in other formats. www.cepal.org/en/suscripciones Rural industrial policy and strengthening value chains Ramón Padilla Pérez Editor Economic Commission for Latin America and the Caribbean (ECLAC) Santiago, August 2017 ECLAC Books 145 Alicia Bárcena Executive Secretary Antonio Prado Deputy Executive Secretary Hugo Eduardo Beteta Chief, ECLAC subregional headquarters in Mexico Ricardo Pérez Chief, Publications and Web Services Division This book was edited by Ramón Padilla Pérez, Chief of the Economic Development Unit of the ECLAC subregional headquarters in Mexico. The chapters were prepared by Stefanie Garry, Carolina Gomez, Ramón Padilla Pérez and Francisco Villarreal, staff members of ECLAC subregional headquarters in Mexico, and Verónica Quiroz Estrada and Nahuel Oddone, ECLAC consultants. ECLAC is grateful for the fnancial support of the International Fund for Agricultural Development (IFAD) for providing technical assistance aimed at strengthening rural value chains and for the publication of this book. Cover design: María Luisa Avaria United Nations publication ISBN: 978-92-1-121953-1 (print) ISBN: 978-92-1-058590-3 (pdf) ISBN: 978-92-1-358057-8 (ePub) Sales No: E.17.II.G.13 LC/PUB.2017/11-P Distr.: General Copyright © United Nations, 2017 All rights reserved Printed at United Nations, Santiago S.17-00274 This publication should be cited as: Ramón Padilla Pérez (ed.), Rural industrial policy and strengthening value chains, ECLAC Books, No. 145 (LC/PUB.2017/11-P), Santiago, Economic Commission for Latin America and the Caribbean (ECLAC), 2017. Applications for authorization to reproduce this work in whole or in part should be sent to the Economic Commission for Latin America and the Caribbean (ECLAC), Publications and Web Services Division, [email protected]. Member States and their governmental institutions may reproduce this work without prior authorization, but are requested to mention the source and to inform ECLAC of such reproduction. Contents Foreword ............................................................................................................. 11 Introduction Ramón Padilla Pérez ............................................................................................. 15 Chapter I Productive development challenges in the rural areas of Central America and the Dominican Republic Verónica Quiroz Estrada ....................................................................................... 25 Introduction ............................................................................................. 25 A. The rural environment................................................................... 27 1. Defning the rural environment.............................................. 27 2. Characteristics of rural areas in Central America and the Dominican Republic .................................................. 29 B. Institutional challenges ................................................................. 35 1. Rules, conventions and coordination .................................... 35 2. Policies and strategies .............................................................. 37 C. Environmental sustainability challenges .................................... 38 1. Adaptation to climate change ................................................. 38 2. Mitigation of climate change .................................................. 41 D. Commercialization challenges ..................................................... 43 1. International commodity price volatility .............................. 43 2. Market access and the role of intermediaries ....................... 44 3. Extraregional and intraregional trade ................................... 45 4 Economic Commission for Latin America and the Caribbean (ECLAC) E. Productivity and innovation challenges ..................................... 47 1. Productivity ............................................................................... 47 2. Size and technological performance ...................................... 49 3. Education and training ............................................................ 51 4. Innovation activities ................................................................. 53 5. Financing ................................................................................... 56 6. Value chains ............................................................................... 58 F. Conclusions ..................................................................................... 60 Bibliography ............................................................................................ 62 Chapter II Rural industrial policy Ramón Padilla Pérez, Verónica Quiroz Estrada ................................................... 69 Introduction ............................................................................................. 69 A. The rural environment................................................................... 72 1. Defnition ................................................................................... 72 2. Importance of the rural environment .................................... 75 3. Cross-sectoral interdependence and complementarity ...... 79 B. Defnition and scope of rural industrial policy ............... 83 1. What is rural industrial policy? .............................................. 83 C. Rural industrial policy tools ......................................................... 87 1. Trade, competitiveness and competition policies ................ 88 2. Productive development policies ........................................... 90 3. Environmental policies ............................................................ 95 D. Experiences with public strategies that can be synchronized with rural industrial policy .................................. 97 1. Chile ............................................................................................ 97 2. New Zealand ........................................................................... 100 3. Costa Rica ................................................................................ 101 E. Conclusions ................................................................................... 104 Bibliography .......................................................................................... 105 Chapter III Methodology for strengthening value chains Ramón Padilla Pérez, Nahuel Oddone ............................................................... 113 Introduction ........................................................................................... 113 A. Value chains and structural change ........................................... 114 B. Key defnitions and concepts ...................................................... 116 1. Value chains ............................................................................. 116 2. Strengthening and upgrading............................................... 118 C. Methodology for strengthening value chains .......................... 120 D. Diagnostic ...................................................................................... 125 E. Roundtables .................................................................................. 130 F. Good practices .............................................................................. 133 Rural industrial policy and strengthening value chains 5 G. Strategies, implementation support and launch ..................... 135 1. Strategy development ............................................................ 135 2. Implementation support ........................................................ 137 3. Launch ...................................................................................... 139 H. Concluding refections ................................................................. 139 Bibliography .......................................................................................... 142 Chapter IV Value chain selection and industrial policy Caroline Gomes Nogueira, Ramón Padilla Pérez, Francisco G. Villarreal ......... 147 Introduction ........................................................................................... 147 A. Why are value chains selected? .................................................. 148 1. Do horizontal industrial policies really exist? .................... 148 2. Market failures ........................................................................ 149 3. The challenge of comparative advantages and creating winners .............................................................. 150 4. Windows of opportunity ....................................................... 151 5. Structural change .................................................................... 151 B. Selecting sectors in practice: tools and strategies .................... 151 1. Identifcation of high-potential clusters in Central America: Central American Institute of Business Administration (INCAE) and Harvard Institute for International Development ............. 152 2. Selection of priority sectors in Mexico by productivityand growth potential ......................................
Recommended publications
  • Guatemala's Sugar Industry Review on Child and Forced Labor and Land Rights in Guatemala's Sugar Industry Background
    The Coca-Cola Company Review on Child and Forced Labor and Land Rights in Guatemala's Sugar Industry Review on Child and Forced Labor and Land Rights in Guatemala's Sugar Industry Background The Coca-Cola Company (TCCC) established industry-leading commitments to protect the land rights of farmers and communities in the world’s top sugarcane-producing regions, advancing its ongoing efforts to drive transparency and accountability across its global supply chain. In support of this goal, TCCC partnered with UL’s Responsible Sourcing group (UL) to conduct a research study examining the incidence and impact of child labor, forced labor and land rights issues in Guatemala. This study combines field assessments with robust qualitative research and stakeholder engagement to help improve TCCC’s commitments in the area of human rights and sustainable agriculture. Child Labor Forced Labor Land rights PURPOSE SCOPE APPROACH The purpose of this study The research and To examine incidences and is to provide a country stakeholder engagement the impact of child and forced specific baseline of the elements were extended labor and land rights issues at the country, industry and possible existence of to all sugar producers supply chain level, UL conducted child labor, forced labor, including supporting farms, plantations, and cooperatives customized field assessments and land rights issues in in the country. However, field at sugar mills and sugarcane TCCC’s sugar supply chain visits were only conducted at farms between April and May 2014, and conducted interviews in Guatemala, including TCCC suppliers, including a with relevant stakeholders in farms as well as the sugar sampling of their supporting Guatemala through January 2015.
    [Show full text]
  • Competition @ Latin America and the Caribbean
    Last updated: 17/08/2018 Competition @ Latin America and the Caribbean This document provides a list of competition agencies and government bodies from Latin America and the Caribbean. Most of them attend the OECD-IDB Latin American and Caribbean Competition Forum. Updates to this list can be sent to [email protected] or [email protected]. For more information about the forum, access: oe.cd/laccf. Name of authority/organisation Website Social media OECD Organisation for Economic Co-operation and www.oecd.org/competition/latinamerica Twitter #OECDcomp | @ocdeenespanol |@OECD | Development www.oecd.org/daf/competition @OECD_BizFin | Youtube | Flickr OCDE Organización para la Cooperación y el Desarrollo Económicos (OCDE) IDB / BID Inter-American Development Bank www.iadb.org/trade @BIDComercio | @the_IDB | @el_BID | Facebook | Banco Interamericano de Desarrollo Blog | Youtube | Youtube Spanish | Linkedin Andean Andean Community www.comunidadandina.org/ @ComunidadAndina | Facebook | Flickr | Youtube Community Argentina National Commission for the Defense of www.argentina.gob.ar/defensadelacompete #Argentina | @MinFinanzas Competition / Comisión Nacional de Defensa de ncia la Competencia Barbados Fair trading Commission of Barbados https://ftc.gov.bb/ Facebook Bolivia Autoridad de Fiscalización de Empresas www.autoridadempresas.gob.bo/ #AEMP | @MDPyEP_Bolivia AEMP (Ministerio de Desarrollo Productivo y Economía Plural) Brazil Conselho administrativo de defesa econômica www.cade.gov.br/ @portalbrasil (CADE) Secretaria de Promoção
    [Show full text]
  • Globalization: the Relationship Between the State and the Economy Michael Mena University of South Florida
    University of South Florida Scholar Commons Graduate Theses and Dissertations Graduate School 6-1-2004 Globalization: The Relationship Between the State and the Economy Michael Mena University of South Florida Follow this and additional works at: https://scholarcommons.usf.edu/etd Part of the American Studies Commons Scholar Commons Citation Mena, Michael, "Globalization: The Relationship Between the State and the Economy" (2004). Graduate Theses and Dissertations. https://scholarcommons.usf.edu/etd/1158 This Thesis is brought to you for free and open access by the Graduate School at Scholar Commons. It has been accepted for inclusion in Graduate Theses and Dissertations by an authorized administrator of Scholar Commons. For more information, please contact [email protected]. Globalization: The Relationship Between the State and the Economy by Michael Mena A thesis submitted in partial fulfillment of the requirements for the degree of Master of Arts Department of Political Science College of Arts and Sciences University of South Florida Major Professor: M. Mark Amen, Ph.D. Dajin Peng, Ph.D. M. Martin Bosman, Ph.D. Date of Approval: June 1, 2004 Keywords: power, sovereignty, global politics, national markets, Guatemala © Copyright 2004, Michael Mena Table of Contents List of Tables iii List of Figures v Abstract vi Chapter One 1 What is Globalization? 2 What is the State? 3 What is a National Economy? 4 What is an International Economy? 4 What is a Global Economy? 4 Research Design 6 Chapter Outline 8 Chapter Two 11 Plan 11 Globalization
    [Show full text]
  • Foreign Trade and Agricultural Employment in Guatemalapdf
    6. FOREIGN TRADE AND AGRICULTURAL EMPLOYMENT IN GUATEMALA Luis Linares, Pedro Prado, and Raquel Zelaya1 6.1 INTRODUCTION Agriculture is the prime source of employment in Guatemala with one of every three workers being employed in the sector. The effect of trade policy on agricultural employment is therefore likely to be an important determinant of the socio-economic consequences of trade in Guatemala. In this chapter several aspects of the relationship between trade and agricultural employment in Guatemala are discussed. This includes a description of the situation of agricultural employment; an analysis of trade in agricultural products; a description of changes in trade policy including the ratification of recent trade agreements; a quantitative analysis of the effects of trade on agricultural employment and a description of legal and institutional aspects relevant for employment in the sector. When characterizing employment in the agricultural sector, a comparison is made with workers in other sectors. Income and education levels among agricultural workers are discussed and so is the role of female employment in the sector. Importantly, the use of data from the Instituto Guatemalteco de Seguridad Social (IGSS) allows us to provide a picture of the role of social security coverage in the agricultural sector. The analysis of trade data pays specific attention to the evolution of traditional export products like bananas, coffee and sugar. The recent increase in non-traditional manufacturing exports is also analysed and a separate analysis is undertaken of the evolution of Guatemala’s export concentration both in terms of product and in terms of geographical concentration. 1The authors, who are staff members of the Asociación de Investigación y Estudios Sociales (ASIES), would like to acknowledge the collaboration of Orlando Monzón and Rubén Darío Narciso on this study.
    [Show full text]
  • Distributed By
    PB-224 371 AGRICULTURAL DEVELOPMENT IN CENTRAL AMERICA: ITS ORIGIN AND NATURE Rodolfo Quiros-Guardia Wisconsin University Prepared for: Agency.,for International Development January 1973' DISTRIBUTED BY: National Technical Information Service U. S. DE'ARTMENT OF COMMERCE 5285 Port Royal Road, Springfield Va. 22151 PB 224 371 A Research Paper lp LAND TENURE CENTER University of Wisconsin-Madisor Madison53706 Reproduced by NATIONAL TECHNICAL INFORMATION SERVICE US c,..nli.Id,OepaiellnSt VA.ci Commrie 22151 This paper is essentially an abbreviated version of the first'four chapters of the author's Ph.D. thesis, "Agricultural Development and Economic Integration inrCentral, America" (Department of'Agri|cultural Economi.cs, University of Wisconsin, Madison, 1971. -January 1973 R.P- iJo, 49 AGRIC'LTURAL DEVELOPMENT III CENTRAL AMERICA: ITS ORIGI! A,4,D IATrIRE .by Rodolfo Qu iros-Guardia* *The author is presently Director of the Central American Program fo Export Development (PROMECAly a specialized agency of the Permanent Secretariat of the General Treaty of Central America Economic Integration (SIECA) and of the Central American Economic Integration .ank (.CIV'. All views, interpretbtions, recommendations, and conclusions are those of the author and not necessarily those of supporting or cooperating organ izat ions. I Go= 3. lecipient's Accession No. BIBLIOGRAPHIC DATA 11.Repot' No. 12. SHEET LA'52-630.9728-Q8 I , i-r'- IA 4. Title and Subtitle 4 - 5. Report Dat 1973 "AGRICULTURAL DEVELOPMENT IN CENTRAL AMERICA: ITS ORIGIN AND January 6. NATURE" 78. Performing Organization Rept. 7. Author(s) No. Rodolfo Quiros-Guardia 10. _____________UitNo 9. Performing Organization Name and Address 10. Project/Task/Work Unit No.
    [Show full text]
  • World Bank Document
    Report No. 31191-GTNo. Report Report No. Guatemala 31191-GT Growth of SustainableRural Drivers Guatemala Drivers of Sustainable Rural Growth and Poverty Reduction in Central America Public Disclosure Authorized Public Disclosure Authorized Guatemala Case Study (In Two Volumes) Volume I: Executive Summary and Main Text December 31, 2004 Department of Environmentally and Socially Sustainable Development Latin America and the Caribbean Region Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized and Poverty Reduction in Central America Volume I America Volume Reduction in Central and Poverty Document of the World Bank Public Disclosure Authorized Public Disclosure Authorized Table of Contents VOLUME I Abbreviations and Acronyms ............................................................................................. ii Acknowledgements........................................................................................................... vii Foreword..........................................................................................................................viii Executive Summary............................................................................................................ ix 1. Introduction................................................................................................................1 2. Characterization of the Guatemalan Rural Economy and Policy Directions............. 8 3. Spatial Analysis of Rural Guatemala......................................................................
    [Show full text]
  • Boosting South-South Cooperation in the Context of Aid Effectiveness
    Boosting South-South Cooperation in the Context of Aid Effectiveness Telling the Story of Partners Involved in more than 110 Cases of South-South and Triangular Cooperation South-south.indd 1 19/03/2010 04:20:46 p.m. South-south.indd 2 19/03/2010 04:20:46 p.m. Contents Foreword 5 The Task Team on South-South Cooperation at a Glance 7 1. What Is The Task Team On South-South Cooperation? 7 2. Why Does Ssc Matter In The Context Of Aid Effectiveness? 7 3. TT-SSC: A Six-Month Journey 8 South-South cooperation in the context of aid effectiveness Telling the story of partners in 110 cases of South-South and triangular cooperation 9 1. Executive Summary: Boosting South-South cooperation in the context of aid effectiveness 9 2. South-South cooperation in practice: The case story process 10 3. Meeting the triple mandate of the AAA 12 Acronyms 35 Case stories Overview 37 Africa 37 Asia Pacific 38 Latin America and the Caribbean 38 Global 39 Asia Pacific 53 Latin America and the Caribbean 64 Global Cooperation 87 Contenst 3 South-south.indd 3 19/03/2010 04:20:46 p.m. Credits 89 Concept Note Implementing Accra: South-South cooperation in the context of aid effectiveness 91 Executive summary 91 1. Purpose 92 2. Background 93 3. Understanding SSC in the context of aid effectiveness 93 4. Hypotheses: Unpacking the Accra mandate 95 5. Actors and platforms: Toward partnerships and complementarities 96 Acronyms 98 Anexos 99 Annex 1 Analytical work of the TT-SSC—The way to Seoul 2011 99 Annex 2 SSC in the context of aid effectiveness: Hypotheses emerging from the AAA 100 Annex 3 Preliminary bibliography 104 4 Boosting South-South Cooperation in the Context of Aid Effectiveness South-south.indd 4 19/03/2010 04:20:46 p.m.
    [Show full text]
  • The Central American Customs Union: Potential Economic and Social Impacts
    November 2018 ORIGINAL: SPANISH Economic Commission for Latin America and the Caribbean (ECLAC) The Central American Customs Union: potential economic and social impacts This document, which has not been submitted for editorial review, was developed by the Regional Integration Unit of the International Trade and Integration Division (ITID) of ECLAC. The drafting of the document was prepared by José E. Durán Lima, staff member of the International Trade and Integration Division. Zebulun Kreiter, staff member, and Marcelo Pereira Dolabella, consultant, contributed to the elaboration of the study. Contents I. Background .................................................................................................................................................. 3 II. Literature review on methodologies to assess the impact of trade facilitation programs ............................. 4 A. Gravity models as a tool to estimate administrative costs ........................................................................ 5 B. Computable general equilibrium models and trade facilitation ................................................................ 8 III. Current state of the Central American Customs Union, and evaluation scenarios of ongoing initiatives 11 A. Tariff and non-tariff protection .............................................................................................................. 11 B. Value chains and intraregional trade .....................................................................................................
    [Show full text]
  • Pdf | 183.22 Kb
    25 June 2009 General Assembly DEV/2751 ECO/154 Department of Public Information • News and Media Division • New York Conference on World Financial and Economic Crisis 3rd, 4th & 5th Meetings (AM, PM & Night) DELEGATES CALL FOR SWIFT MEASURES TO RESTRUCTURE INTERNATIONAL FINANCE BODIES, ON SECOND DAY OF UNITED NATIONS CONFERENCE ON WORLD FINANCIAL CRISIS Ecuador ’s President Says Current Economic Order ‘Clan of the Powerful;’ Need for Global Stimulus, Shape of Reform among Issues Raised by Over 50 Speakers Decrying a world economic order that had rewarded the powerful, marginalized the poor and promoted an unbridled capitalism that ignited unprecedented financial contagion, General Assembly delegates today urged swift and concerted measures to restructure international finance bodies and forge people-centred policies that addressed human security. In a marathon second day of the Conference on the World Financial and Economic Crisis and its Impact on Development, more than 50 speakers took the floor over three meetings to assess the severity of the current situation, offering ideas about how to bring economic growth back into positive territory, stimulate credit and investment flows, create jobs and breathe new life into stalled trade talks. Newly elected Ecuadorian President Rafael Correra said the current international system was like a “clan of the powerful” that talked about equality, but did not treat anyone fairly. To change the situation, he proposed the creation of a development bank for the South, whose goal would be to finance development projects and, thereby, improve systemic competitiveness. Linked to that would be a common reserve fund for his region -– Latin America -– which would give countries a choice as to where to deposit some $200 billion that had thus far been placed in banks of the global North.
    [Show full text]
  • Final Report of the XXV Meeting of International Cooperation Directors for Latin America and the Caribbean
    Sistema Económico Latinoamericano y del Caribe Latin American and Caribbean Economic System Sistema Econômico Latino-Americano e do Caribe Système Economique Latinoaméricain et Caribéen Final Report of the XXV Meeting of International Cooperation Directors for Latin America and the Caribbean. Cooperation and migrants’ remittances: Impact on savings, investment and development XL Regular Meeting of the Latin American Council Caracas, Venezuela 26 to 28 November 2014 SP/CL/XL.O/Di Nº 18-14 Copyright © SELA, November 2014. All rights reserved. Printed in the Permanent Secretariat of SELA, Caracas, Venezuela. The Press and Publications Department of the Permanent Secretariat of SELA must authorize reproduction of this document, whether totally or partially, through [email protected]. The Member States and their government institutions may reproduce this document without prior authorization, provided that the source is mentioned and the Secretariat is aware of said reproduction. Final Report Economic and Technical Cooperation XXV Meeting of International Cooperation Directors for Latin America and the Caribbean. Cooperation and migrants’ remittances: Impact on savings, investment and development Antigua, Guatemala 5 and 6 June 2014 SP/XXV-RDCIALC/IF-14 Copyright © SELA, June 2014. All rights reserved. Printed in the Permanent Secretariat of SELA, Caracas, Venezuela. The Press and Publications Department of the Permanent Secretariat of SELA must authorise reproduction of this document, whether totally or partially, through [email protected]. The Member States and their government institutions may reproduce this document without prior authorisation, provided that the source is mentioned and the Secretariat is aware of said reproduction. Informe Final SP/XXV-RDCIALC/IF-14 CONTENTS RAPPORTEUR’S REPORT 3 A.
    [Show full text]
  • GENERAL AGREEMENT on L/5270 12 January 1982 TARIFFS and TRADE Limited Distribution
    RESTRICTED GENERAL AGREEMENT ON L/5270 12 January 1982 TARIFFS AND TRADE Limited Distribution Original: Spanish CENTRAL AMERICAN COMMON MARKET Report by the Permanent Secretariat of the General Treaty of Central American Economic Integration In accordance with the Calendar of Biennial Reports with respect to regional agreements adopted by the Council (L/5158), the Permanent Secretariat of the General Treaty of Central American Economic Integration (SIECA) has submitted •t the following report. In response to your letter (reference: XXIV/208),I have the honour to forward to you herewith a document entitled "Developments in the Central American economy: 1978-1980". This document, prepared by this Permanent Secretariat for the governments of the member countries of the Central American Common Market, reflects the economic situation prevailing in the sub-region in recent years. Accordingly, we believe it meets the requirements of your letter and we would be glad if it could be reproduced in full for the information of the contracting parties to GATT. « L/5270 Page 2 DEVELOPMENTS IN THE CENTRAL AMERICAN ECONOMY: 1978-1980 INTRODUCTION On 4 May this year a Meeting of Ministers responsible for Central American economic integration was convened in San José, Costa Rica; the Ministers of Costa Rica, El Salvador and Nicaragua attended the meeting which, in view of the fact that the Ministers of Guatemala and Honduras were unable to be present, did not have the formal character originally envisaged in the invi­ tation sent out by the Minister of Costa Rica. On that occasion, the Ministers present requested the secretariat to prepare certain documents to serve as background material on the basis of which the Meeting of Ministers responsible for Central American economic integration could adopt measures and make arrangements to reactivate and strengthen the Central American Common Market and adapt it to present realities in the sub-region.
    [Show full text]
  • Our Commitment, Your Success
    N E Our commitment, your success .com 2019 Yearbook 2019 Much like a person, a frm can be defned, not for what is says, or what is said about it, but rather for what it does. With this brochure we would like to offer you a brief selection of some of the work that we have be doing during 2018: A few of the many exciting projects that our clients have put in our hands. Given the great diversity of the geographical markets and economic sectors in which we operate, it is impossible to be exhaustive. We would just like to present a selection of our work that serves to give an idea of what we are, in terms of our technical and professional capacity, and the large number of countries in which we provide our services. I would like to point out an aspect which is diffcult to simply express with some impressive photos, a list of activities, or a detailed description of the technological complexity of a project: Attitude. The attitude of IDOM, the mindset of IDOM professionals is not just to solve the needs and problems of our clients with effective, technologically advanced and Luis Rodríguez Llopis Ignacio Rey Gómez sustainable solutions. We make the effort to go one step further. We believe that what President CEO – Industry, Energy & Environment distinguishes us, is our commitment to do everything possible so that, despite the challenges, diffculties and unforeseen circumstances, from the perspective of the client, our projects are a success. Because the success of our clients is our success.
    [Show full text]