Promoting the role of farmer-based organizations for value chain integration: the tension between a program’s targeting and an organization’s investment strategy

We use new data on 500 Farmer‐Based Organizations (FBOs) in Ghana and regression analysis to reveal determinants of collective investments and the case of the Millennium Development Authority's (MiDA) agricultural program in Ghana to demonstrate that development programs offering hard incentives may...

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Detalles Bibliográficos
Autores principales: Francesconi, Gian N., Wouterse, Fleur
Formato: Journal Article
Lenguaje:Inglés
Publicado: Wiley 2015
Materias:
Acceso en línea:https://hdl.handle.net/10568/66453
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author Francesconi, Gian N.
Wouterse, Fleur
author_browse Francesconi, Gian N.
Wouterse, Fleur
author_facet Francesconi, Gian N.
Wouterse, Fleur
author_sort Francesconi, Gian N.
collection Repository of Agricultural Research Outputs (CGSpace)
description We use new data on 500 Farmer‐Based Organizations (FBOs) in Ghana and regression analysis to reveal determinants of collective investments and the case of the Millennium Development Authority's (MiDA) agricultural program in Ghana to demonstrate that development programs offering hard incentives may be counterproductive in promoting collective action. We show that when a program sets criteria for participation and offers in‐cash and in‐kind support to selected FBOs, it may promote rent‐seeking and crowd out equity capital formation. This is so because FBOs may have formed for the sole purpose of benefitting from incentives offered by the program and thus lack an economic justification, which is an important condition for progression through the cooperative life cycle. Further, by setting stringent participation criteria, the program may end up selecting younger organizations while it is the more consolidated organizations that are able to connect to business development services (BDS) and engage in more offensive collective action.
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spelling CGSpace664532025-04-08T18:33:25Z Promoting the role of farmer-based organizations for value chain integration: the tension between a program’s targeting and an organization’s investment strategy Francesconi, Gian N. Wouterse, Fleur smallholders farmers organizations organizaciones de agricultores pequeños agricultores supply chains collective action impact assessment We use new data on 500 Farmer‐Based Organizations (FBOs) in Ghana and regression analysis to reveal determinants of collective investments and the case of the Millennium Development Authority's (MiDA) agricultural program in Ghana to demonstrate that development programs offering hard incentives may be counterproductive in promoting collective action. We show that when a program sets criteria for participation and offers in‐cash and in‐kind support to selected FBOs, it may promote rent‐seeking and crowd out equity capital formation. This is so because FBOs may have formed for the sole purpose of benefitting from incentives offered by the program and thus lack an economic justification, which is an important condition for progression through the cooperative life cycle. Further, by setting stringent participation criteria, the program may end up selecting younger organizations while it is the more consolidated organizations that are able to connect to business development services (BDS) and engage in more offensive collective action. 2015-07 2015-05-28T22:04:19Z 2015-05-28T22:04:19Z Journal Article https://hdl.handle.net/10568/66453 en https://hdl.handle.net/10568/150034 Limited Access Wiley Francesconi, Gian Nicola; Wouterse, Fleur. 2015. Promoting the role of farmer-based organizations for value chain integration: the tension between a program’s targeting and an organization’s investment strategy. Agricultural Economics 46: 1-10.
spellingShingle smallholders
farmers organizations
organizaciones de agricultores
pequeños agricultores
supply chains
collective action
impact assessment
Francesconi, Gian N.
Wouterse, Fleur
Promoting the role of farmer-based organizations for value chain integration: the tension between a program’s targeting and an organization’s investment strategy
title Promoting the role of farmer-based organizations for value chain integration: the tension between a program’s targeting and an organization’s investment strategy
title_full Promoting the role of farmer-based organizations for value chain integration: the tension between a program’s targeting and an organization’s investment strategy
title_fullStr Promoting the role of farmer-based organizations for value chain integration: the tension between a program’s targeting and an organization’s investment strategy
title_full_unstemmed Promoting the role of farmer-based organizations for value chain integration: the tension between a program’s targeting and an organization’s investment strategy
title_short Promoting the role of farmer-based organizations for value chain integration: the tension between a program’s targeting and an organization’s investment strategy
title_sort promoting the role of farmer based organizations for value chain integration the tension between a program s targeting and an organization s investment strategy
topic smallholders
farmers organizations
organizaciones de agricultores
pequeños agricultores
supply chains
collective action
impact assessment
url https://hdl.handle.net/10568/66453
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