Global – Value Chain Development for Conflict-Affected Environments

Increasing Stability and Economic Opportunities in Conflict-Affected Areas

Stimulating widespread economic growth is one of the principal components of conflict mitigation. By helping to create profitable and sustainable economic opportunities for conflict-affected populations, the Value Chains for Conflict-Affected Environments project reduced the negative economic effects of conflict and contributes to increased stability.

The project was awarded to ACDI/VOCA under USAID’s Accelerated Microenterprise Advancement Project (AMAP) small grants program in February 2007. It adapted the value chain approach to countries impacted by conflict. The initiative was based on the belief that the value chain approach to economic growth with poverty reduction—developed by USAID together with ACDI/VOCA over the last several years—can accelerate the transition from relief and recovery to sustainable economic development.

The project responded to a widely acknowledged gap in approaches to economic development for conflict-affected countries and regions, which have, to date, focused either on the macro level (i.e., national policy) or the micro level (i.e., individual households and firms). The Value Chains for Conflict-Affected Environments project focuseed on the middle level (i.e., industries or value chains) by developing a framework for identifying and integrating industry constraints and opportunities throughout the stages of relief, recovery, reconstruction and post-conflict development programming. This framework guided the design and implementation of interventions that minimize market distortions, facilitate quick and effective economic recovery, and build the foundations of competitive industries. It provided guidance on identifying and sequencing interventions based on the context and dynamics of the conflict-affected environment, and identifies interventions that can meet the immediate goals of relief operations while building the foundations for long-term sustainable economic growth.

The Value Chains for Conflict-Affected Environments project had the following components:

• an extensive literature review of academic-, donor- and practitioner-oriented resources on post-conflict relief, recovery and development, with analysis informed by AMAP learning about markets, value chains, trust and social capital
• development of a framework to guide the application of the value chain approach in conflict-affected environments and to facilitate a more rapid transition from relief to economic growth
• support to 10 field-based case studies to test specific research questions related to the application of the value chain approach in conflict-affected environments
• a synthesis report drawing together lessons learned from the cases and expanding on the framework
• a set of best practice guidelines for applying the value chain approach to economic recovery and growth in conflict-affected environments, based on the findings of the case studies and the comprehensive literature review

For more information on ACDI/VOCA's Accelerated Microenterprise Advancement Project-Business Development Servicesproject, please click here.