IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v103y2018icp162-175.html
   My bibliography  Save this article

Procedural Justice in Value Chains Through Public–private Partnerships

Author

Listed:
  • Thorpe, Jodie

Abstract

This paper is about making agricultural value chains work for smallholder farmers, and the way that governments can achieve this aim through public–private partnerships (PPPs). Applied to agricultural value chains, PPPs seek to catalyze new investments, support chain upgrading, or improve the performance of poorly functioning chains through joint activities that capitalize on the complementary resources and competencies of public and private partners. Smallholder farmers are frequently the intended beneficiaries. However, there is little understanding of how the terms of value chain participation affect farmer perceptions of and behavior within chains, or the role of the public sector in influencing these arrangements. This paper analyzes in-depth case studies from Ghana, Indonesia, Rwanda, and Uganda to better understand a surprising empirical finding: that farmers that experience strong PPP results in terms of productivity and incomes may nevertheless remain dissatisfied, while those experiencing much more modest gains can view the PPP favorably. At the heart is an analytical framework based on five attributes of “procedural justice”. It finds that public sector actors, through PPPs, are able to shape governance within value chains, influencing the relative skills, knowledge, and resources which different actors possess, the way that farmers are organized to engage in the value chain, and the attributes of procedural justice reflected in chain arrangements. Where procedural justice is weak, farmers are more likely to exit or neglect the arrangements, leaving the value chain underperforming with sub-optimal outcomes for all: for farmers, for lead firms, and for government agencies. Government involvement in value chains should be premised on facilitating relationships that are more procedurally just than those which would be expected to arise through the market alone.

Suggested Citation

  • Thorpe, Jodie, 2018. "Procedural Justice in Value Chains Through Public–private Partnerships," World Development, Elsevier, vol. 103(C), pages 162-175.
  • Handle: RePEc:eee:wdevel:v:103:y:2018:i:c:p:162-175
    DOI: 10.1016/j.worlddev.2017.10.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X17303182
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Verena Bitzer & Pieter Glasbergen & Bas Arts, 2013. "Exploring the potential of intersectoral partnerships to improve the position of farmers in global agrifood chains: findings from the coffee sector in Peru," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 30(1), pages 5-20, March.
    2. Melanie Rein & Leda Stott, 2009. "Working Together: Critical Perspectives on Six Cross-Sector Partnerships in Southern Africa," Journal of Business Ethics, Springer, vol. 90(1), pages 79-89, May.
    3. Schipmann, Christin & Qaim, Matin, 2011. "Supply chain differentiation, contract agriculture, and farmers' marketing preferences: The case of sweet pepper in Thailand," Food Policy, Elsevier, vol. 36(5), pages 666-676, October.
    4. Maertens, Miet & Swinnen, Johan F.M., 2009. "Trade, Standards, and Poverty: Evidence from Senegal," World Development, Elsevier, vol. 37(1), pages 161-178, January.
    5. Gounaris, Spiros P., 2005. "Trust and commitment influences on customer retention: insights from business-to-business services," Journal of Business Research, Elsevier, vol. 58(2), pages 126-140, February.
    6. Neil M. Coe & Peter Dicken & Martin Hess, 2008. "Global production networks: realizing the potential," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 271-295, May.
    7. Schipmann, Christin & Qaim, Matin, 2011. "Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: the case of sweet pepper in Thailand," GlobalFood Discussion Papers 108349, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    8. Catherine Dolan & John Humphrey, 2004. "Changing governance patterns in the trade in fresh vegetables between Africa and the United Kingdom," Environment and Planning A, Pion Ltd, London, vol. 36(3), pages 491-509, March.
    9. Brown, James R. & Cobb, Anthony T. & Lusch, Robert F., 2006. "The roles played by interorganizational contracts and justice in marketing channel relationships," Journal of Business Research, Elsevier, vol. 59(2), pages 166-175, February.
    10. Neilson, Jeff, 2008. "Global Private Regulation and Value-Chain Restructuring in Indonesian Smallholder Coffee Systems," World Development, Elsevier, vol. 36(9), pages 1607-1622, September.
    11. Spencer Henson, 2011. "Private agrifood governance: conclusions, observations and provocations," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 28(3), pages 443-451, September.
    12. Masuku, Micah B. & Kirsten, Johann F., 2004. "The role of trust in the performance of supply chains: A dyad analysis of smallholder farmers and processing firms in the sugar industry in Swaziland," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 43(2), pages 1-15, June.
    13. Boniface, Bonaventure & Gyau, Amos & Stringer, Randy & Umberger, Wendy J., 2010. "Building producer loyalty in Malaysia's fresh milk supply chain," Australasian Agribusiness Review, University of Melbourne, Melbourne School of Land and Environment, vol. 18, pages 1-19.
    14. Trienekens, Jacques H., 2011. "Agricultural Value Chains in Developing Countries A Framework for Analysis," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(2), pages 1-32, May.
    15. Poulton, Colin & Macartney, Jon, 2012. "Can Public–Private Partnerships Leverage Private Investment in Agricultural Value Chains in Africa? A Preliminary Review," World Development, Elsevier, vol. 40(1), pages 96-109.
    16. Kolk, Ans & van Tulder, Rob & Kostwinder, Esther, 2008. "Business and partnerships for development," European Management Journal, Elsevier, vol. 26(4), pages 262-273, August.
    17. Gary Gereffi, 2014. "Global value chains in a post-Washington Consensus world," Review of International Political Economy, Taylor & Francis Journals, vol. 21(1), pages 9-37, February.
    18. John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
    19. Catia Gregoratti, 2011. "Global nuts and local mangoes: a critical reading of the UNDP Growing Sustainable Business Initiative in Kenya," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 28(3), pages 369-383, September.
    20. Schipmann, Christin & Qaim, Matin, 2011. "Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: The case of sweet pepper in Thailand," Food Policy, Elsevier, vol. 36(5), pages 667-677.
    21. Tran, Nhuong & Bailey, Conner & Wilson, Norbert & Phillips, Michael, 2013. "Governance of Global Value Chains in Response to Food Safety and Certification Standards: The Case of Shrimp from Vietnam," World Development, Elsevier, vol. 45(C), pages 325-336.
    22. Yilmaz, Cengiz & Sezen, Bulent & Kabadayi, Ebru Tumer, 2004. "Supplier fairness as a mediating factor in the supplier performance-reseller satisfaction relationship," Journal of Business Research, Elsevier, vol. 57(8), pages 854-863, August.
    23. Narrod, Clare & Roy, Devesh & Okello, Julius & Avendaño, Belem & Rich, Karl & Thorat, Amit, 2009. "Public-private partnerships and collective action in high value fruit and vegetable supply chains," Food Policy, Elsevier, vol. 34(1), pages 8-15, February.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:103:y:2018:i:c:p:162-175. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.