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Is the facilitation of sustainable market access achievable? Design and implementationlessons from Armenia

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  • Gow, Hamish
  • Shanoyan, Aleksan

Abstract

Over the past three decades the globalization in agri-food sector has been accompanied by a dramatic restructuring, liberalization and privatization of markets often with serious adverse consequences for small farmers in developing and transition countries. Consequently, governments and the international donor community have markedly shifted their development policies from traditional technology transfer approaches towards more market-driven approaches of linking farmers to markets. The international agricultural development literature has begun exploring the appropriate structure of third-party facilitated institutions and enforcement mechanisms to support linking small farmers to markets. Based upon a series of long-term qualitative and quantitative analyses of the instrumental case of USDA Marketing Assistance Project in Armenia, we use a grounded theory approach to develop a dual strategic model for the establishment of sustainable third party facilitated market linkages between producers and processors. Our results and model indicate that if donors pursue a dual strategy of concurrent facilitation of private enforcement on the processing level and institutional arrangement on the producer level in the design and implementation of third-party market linkage programs, they are likely to achieve higher program impact, improved trust among channel participants, and long-run economic sustainability of market linkages.

Suggested Citation

  • Gow, Hamish & Shanoyan, Aleksan, 2010. "Is the facilitation of sustainable market access achievable? Design and implementationlessons from Armenia," IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance 52704, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
  • Handle: RePEc:zbw:iamo10:52704
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    References listed on IDEAS

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    1. Hamish R. Gow & Johan F. M. Swinnen, 2001. "Private Enforcement Capital and Contract Enforcement in Transition Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 686-690.
    2. Gow, Hamish R. & Streeter, Deborah H. & Swinnen, Johan F. M., 2000. "How private contract enforcement mechanisms can succeed where public institutions fail: the case of Juhocukor a.s," Agricultural Economics, Blackwell, vol. 23(3), pages 253-265, September.
    3. Holloway, Garth & Nicholson, Charles & Delgado, Chris & Staal, Steve & Ehui, Simeon K., 2000. "Agroindustrialization through institutional innovation Transaction costs, cooperatives and milk-market development in the east-African highlands," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 23(3), September.
    4. Gow, Hamish R & Swinnen, Johan F M, 1998. "Up- and Downstream Restructuring, Foreign Direct Investment, and Hold-Up Problems in Agricultural Transition," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 25(3), pages 331-350.
    5. Peter Walkenhorst, 2000. "Foreign Direct Investment, Technological Spillovers and the Agricultural Transition in Central Europe," Post-Communist Economies, Taylor & Francis Journals, vol. 12(1), pages 61-75.
    6. Phil Simmons, 2002. "Overview of Smallholder Contract Farming in Developing Countries," Working Papers 02-04, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    7. Holloway, Garth & Nicholson, Charles & Delgado, Chris & Staal, Steve & Ehui, Simeon, 2000. "Agroindustrialization through institutional innovation: Transaction costs, cooperatives and milk-market development in the east-African highlands," Agricultural Economics, Blackwell, vol. 23(3), pages 279-288, September.
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