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Key Elements of the Value Chain Approach

Ruth Campbell
United States Agency for International Development
July 1, 2008

This briefing paper outlines some of the key elements of the value chain approach as articulated and promoted by USAID’s Microenterprise Development office. The value chain approach is used to drive economic growth with poverty reduction through the integration of large numbers of small enterprises into increasingly competitive value chains. Features discussed in the paper include a market system perspective, a focus on end markets, understanding the role of value chain governance, recognition of the importance of relationships, facilitating changes in firm behavior, transforming relationships, targeting leverage points and empowering the private sector.

For more information about value chains, check out the Value Chain Wiki in the Good Practice Center.

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