ADDRESSING POVERTY THROUGH INCLUSION IN GLOBAL PRODUCTION CHAINS: WHO WANTS IT?Joy Clancy , Victoria Marin-Burgos and Avinash Narayanaswamy

University of Twente, The Netherlands

APPROACH

2 cases related to biofuels GPCs: Colombia & India

Secondary data from Brazil Confronting notions:

‘inclusion in GPCs is good for and wanted by the poor’‘not wanted by smallholders’

Our position: more complex We use Granovetter (embeddedness in

economic tansactions); political ecology (power relations & languages of valuation); inclusion is multi-dimensional (economic; political; social); agency

16

/11

/20

13

UK

DSA

Confe

rence

20

13

2

PALM OIL IN COLOMBIA

‘inclusive businesses’ strategy seeks to integrate small-scale farmers in GPCs.

contract farming arrangements (“productive alliances”)

Associations of small- and medium-scale land holders (supply allies) into the bottom-end of a supply chain of a palm oil extraction company (anchor company)

25 year contract for exclusive supply Farmers commit land and buy palms plus

technical support from anchor – often with loans.

16

/11

/20

13

3

UK

DSA

Confe

rence

20

13

WHO WANTS IT?

2000 – 2010 25% new plantations was ‘productive alliances’

Those opting for inclusion are not homogeneous

Ex-plantation workers – with knowledge of palm – good income opportunity

Farmers previously involved in the illicit coca cultivation – provides legitimacy

Landowning urban dwellers – better rents from their land

Smallholders with ‘no alternative’ – historically marginalised in Colombia – linked to ‘war on drugs’

16

/11

/20

13

4

UK

DSA

Confe

rence

20

13

WHO DOESN’T WANT IT?

Peasant farmers – with subsistence traditions Palm oil is alien to their production methods Afraid of undermining food security & tying

them to big companies Plus change to landscape - undermines their

cultural identity with the land

Farmers thrown off land they farm under ‘traditional arrangements’Tenant farmersFarmers on state land

16

/11

/20

13

5

UK

DSA

Confe

rence

20

13

BIODIESEL IN INDIA

Bio-diesel feedstock is to be grown only on degraded forest and non-forest lands – not to undermine food security

Also what are classified as ‘waste’ lands Social inclusion, particularly for women and

landless people, is a priority Farmers have right to decide what to do with

seeds Tamil Nadu – jatropha – major problems given

the crop a ‘bad name’

16

/11

/20

13

6

UK

DSA

Confe

rence

20

13

HASSAN BIOFUEL PARK KARNATAKA

Biofuels Park - awareness raising with villagers Bio-diesel crops only for supplementing income

not as main source Use bunds and hedges (mainly men) and

backyards (women) – traditional practice Indigenous non-edible species – multiple

varieties to ensure all year round seed availability and income

Each village has committee – men and women Oil mainly goes for local use – despite the

project negotiating a ‘good deal’ for farmers

16

/11

/20

13

7

UK

DSA

Confe

rence

20

13

WHO WANTS IT?

Some men – additional income (may be around 10% additional)

Women – new opportunity to earn money where men are not already involved

16

/11

/20

13

8

UK

DSA

Confe

rence

20

13

INCLUSION/EXCLUSION – MORE THAN TERMS OF INCORPORATION

We identified 4 factors influencing inclusion/exclusion:

the role of the government; the degree of rural people’s control over

institutions and processes; culture and identity with place and

landscape; the role of third parties

16

/11

/20

13

9

UK

DSA

Confe

rence

20

13

ROLE OF GOVERNMENT

Political choices in framing of support Colombia – political agenda related to drugs India – social inclusion of particular

marginalised groups Farmers end-up trapped at low-value end of

chain – often on adverse terms of incorporation

16

/11

/20

13

10

UK

DSA

Confe

rence

20

13

RURAL PEOPLE’S CONTROL OVER INSTITUTIONS AND PROCESSES

Colombia – little influence – even the RSPO participation has been difficult

India – village committees have control over seeds

16

/11

/20

13

11

UK

DSA

Confe

rence

20

13

LANGUAGE OF VALUATION

Business uses language of the market – land as economic good

Despite CSR – Colombian Palm Companies don’t listen to smallholders

India – government in Delhi classifies huge areas of land as ‘waste’ – this is not the view of villagers

Land is valued by rural people in terms of livelihoods understood as a source of identity

Biofuels business models tend to promote ‘cultural exclusion’

16

/11

/20

13

12

UK

DSA

Confe

rence

20

13

THIRD PARTY SUPPORT

Rural people use their agency for inclusion or exclusion

They are often politically excluded so third party organisations can be crucial to overcome this

NGOs – for getting good terms of inclusion based on practices which do not promote cultural exclusion

Outside actors & the courts for up-holding rights

16

/11

/20

13

13

UK

DSA

Confe

rence

20

13

CONCLUSIONS – WHO WANTS TO BE INCLUDED/EXCLUDED AND WHY?

Too simplistic to say ‘terms of incorporation’ People have their own motivations - beyond

economic goals People also have agency Non-chain actors also are important Contribution of our work: cultural values as a

major determinant in opting for inclusion or exclusion.

16

/11

/20

13

14

UK

DSA

Confe

rence

20

13