THE SEEP NETWORK’SVALUE INITIATIVE

ACTION RESEARCH PLANS

SOCIAL NETWORKS AND SOCIAL CAPITAL

IN

URBAN VALUE CHAIN DEVELOPMENT

BRIEF (for the short version)

TECHNICAL NOTE (for the longer version)

Action Research Lead Agency: Mercy Corps, Swisscontact and Pupuk, IndonesiaParticipating Agencies: Access Development Service, India and its Jaipur partners

Jamaica Exporters Association , The Competitiveness Company, and Area Youth FoundationAMPATH, FINTRAC, and Kenya Export Development Agency

Researchers: Zahra Campbell-Avenell Mary McVay (SEEP Network)Mary Morgan (Economicsunplugged.com)Hana Panggabean, Faculty of Psychology, Atma Jaya Indonesia Catholic University

Funded by the Bill and Melinda Gates FoundationSeptember, 2010

ABOUT SEEP Copyright information

About The Value Initiative: The Value Initiative is funded by the Bill and Melinda Gates Foundation to advance urban value chain development and help millions work their way out of poverty. The Value Initiative funds four urban demonstration programs in cities around the world, facilitating practitioner learning as we implement. We also facilitate business planning and funder linkages for advanced practitioners to understand and facilitate sustainability and scale-up. Come learn with us on the Enterprise Development Exchange http://edexchange.seepnetwork.org .

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ABOUT THE VALUE INITIATIVE PARTNER CONSORTIA: (IDE)

Building a Bridge to a World of Opportunities: Developing a Jamaican Ornamental Fish Value ChainThe Jamaica Exporters Association, the Competiveness Company and the Area Youth FoundationThe Building a Bridge program nurtures the development of a globally competitive Jamaican ornamental fish industry based on the market driven production of young men from Kingston’s inner city communities thereby bringing sustainable wealth and stability to these communities. The focal learning for this program is how to mobilize the diversity of people involved in the value chain – from the former gangster to the hobbiest in suburban Toronto –to contribute to empowerment and wealth creation in Kingston.

Value Initiative Program KenyaAcademic Model Providing Access to Healthcare (AMPATH); FINTRAC; Kenya Export Promotion CouncilThe VIP Kenya Program increase income for microenterprise owners and workers in under-served, conflict affected and HIV impacted areas of Western Kenya and Rift Valley – primarily through expanding the passion fruit and juice industry. Passion fruit is relatively easy to grow in Western Kenya and target areas of the Rift Valley and demand is high and growing from local to international markets. The VIP program is demonstrating an integrated, graduation approach that customizes some services for the very vulnerable, while growing the value chain in general by targeting the general population, who is nevertheless experience economic and social stress.

Jaipur Jewelry Artisans Development Project (Jjade) - Jaipur, IndiaAccess Development Services in partnership with three community-base NGOS (spell out the names) and the Jaipur Jewelers’ Association.Jjade is strengthening the fashion jewelry value chain, making it more competitive in national and global markets and improving the working conditions and social well being of artisans. Jaipur is a historic center for jewelry making but is losing competitive edge as design becomes more important than value and volume of raw material in jewelry. In addition, artisans work under challenging conditions in terms of their wages, workplace conditions and social welfare. Jjade is taking a market-driven approach to addressing working conditions that is mutually beneficial for artisans and owners in the sector.

Value Initiative Program (VIP) – Jakarta, IndonesiaMercy Corps, Indonesia with Swisscontact, PUPUK, and MICRA The VIP program aims to increase income, improve working conditions, and diminish environmental impact of production for Tofu and Tempe enterprise owners and workers in Greater Jakarta. Greater Jakarta is a thriving megacity of some 13 million people and a 500 year history as a trading hub. However, more than 42% of the Indonesian population lives on less than 2 USD per day and Indonesia’s spiraling urban growth rate of 3.3% is one of the highest in the world. Tofu and Tempe are traditional foods, widely available fresh, and in cooked form through diverse, convenient vendors – restaurants, informal market cooks, and mobile carts. As an affordable protein source, there is high and increasing demand from a wide range urban consumer groups for tofu and tempe products, The program is leveraging the strong, positive social networks in the sector which serve as means to disseminate improved technology that addresses environmental, health worker safety and productivity issues at the same time.

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I. IN BRIEF (the first page section stands alone – add pictures)

In Jakarta, established tofu producers mentor men from their villages to work in their factories. There workers often graduate to renting the facility for a business, and then set up shop on their own. The “lead producers” pro-actively help their community – at home and in the city – to thrive even as they become wealthy. In tofu producing neighborhoods in Jakarta, the rich, middle class and poor live side-by-side, tied together as in a rural village. As more producers enter the sector, profit margins are declining, pollution is an issue, some producers are taking short-cuts that endanger public health. The VIP Indonesia program is introducing improved production practices to improve productivity, hygiene and working conditions, and reduce pollution. They are leveraging the strong tradition social networks in the sector to disseminate production improvements, linking community leaders with formal and sustainable sources of information, technology and capital.

In ghettos in Kingston, Jamaica, a socially isolated underclass of young people struggle to survive, governed by a superstructure of male drug traders and gangsters, who are in turn tied to the political elite. In this context, some young people have formed a social movement for peace - the Area Youth Foundation – that uses the performing arts and other economic opportunities to offer alternatives to young people – especially young men. The Building a Bridge program is helping young inner city men partner with socially mainstream urban entrepreneurs to develop the ornamental fish export sector. With the backing of the Area Youth Foundation working for peace in the community, the young men use existing social ties – old and new – to form clusters. The Competitiveness Company is supporting the mainstream entrepreneurs, linking them to inner city cluster leaders, thus bridging a very deep social divide.

These contrasting situations illustrate how social networks - ethnic and religious ties, family bonds, cartels and gangs, gender dynamics - are integral to the economic lives of people living in poverty, and to value chain development in cities. In some cases, they are instrumental to an industry’s development, and value chain developers can gain significant leverage from mobilizing traditional, well functioning social networks. In other cases, traditional social networks are focused on negative social functions, are exclusive or exploitative, and people are forming alternative structures that can be supported to improve the social and economic lives of marginalized communities. Example of a social network map

Despite the importance of social networks, value chain development frameworks to date offer limited tools to analyze and address social relationships. The Value Initiative’s demonstration programs test innovative ways to understand, leverage and improve social relationships for more effective poverty reduction strategies, in the context of urban value chain development. For more information, publications, pictures, videos and to get involved, go to: The Enterprise Development Exchange

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Social Network: who you knowSocial Capital: what you can do or get, because of who you knowSocial Governance: how social networks influence business decisions and markets

(FOR THE LONGER PAPER, Continue here and include a TOC)

What are Social Networks?

In the context of value chain development, we are not talking about Facebook. Rather, we are talking about a group of people who are connected to each other because of common origin, interest or co-dependency. Their connection may be based on any number and combination of social factors including ethnicity, place of origin, religion, gender, affiliation with an educational institution, etc. There are different categories that help describe different kinds of social networks, including:

Size – small as a family or larger as an international religious network Structure – peer-to-peer such as a support group of women widowed by HIV, or hierarchical

as an African ethnic group Function– bonding (tying people together against other groups) as in a gang seeking to

dominate drug trade in a region, or bridging (linking people to other networks) as in a university alumni network seeking to link people to job opportunities

Governance– cognitive (informal, based on shared values and beliefs) as in a group of people from the same ethnic group supporting the same political candidate; or structured (formal, based on rules and procedures) as in a registered cooperative, or business association, a formal social club

The concept of social networks is closely related and overlapping with “social capital” and “social governance.” If social networks are who you know, social capital is what you can do or get, because of who you know. And, social governance is the informal and formal rules that control how the networks operate. All are important for understanding how social factors influence value chain development and poverty reduction strategies.

What do we know about social networks, social capital and poverty reduction?

Positive development outcomes are associated with high levels of social capital mobilized through social networks. For example, in projects such as solid waste removal in Bangladesh, resource management in Russia, water supply in Central Java, Indonesia and agricultural extension in Mali, high levels of interdependency, trust and information flow were critical to success. This issue has not been examined in value chain development.

Researchers have devised ways to measure, analyze, and present information about social networks and social capital. There is no consensus even on definitions or parameters to measure, but a number of tools are available, including:

Net-Map Toolbox, Eva Schiffer– uses participatory inquiry and manual mapping Inflow, organizational and network mapping tool– heavily IT based and able to present

large quantities of complex social network data in simple diagrams. Introduction to Social Network Mapping – a textbook with a range of tools and techniques

and discussions of methodological issues and concerns

In measuring and analyzing social networks, researchers are looking at relationships among individuals, rather than the characteristics of individuals, and the information is often

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presented in multi-dimensional maps. For these tools to be useful to value chain development, they need to be integrated into VCD frameworks and existing analytical and measurement practice. A good place to start is to gather and analyze data about ethnicity, religion, caste, gender and other social status indicators, and to ask questions about the non-commercial nature of relationships – trust, respect, reciprocity, fear - in the market. Some specific methods that may help practitioners to do this include:

Participant observation uses observation and participation to understand multiple perspectives in a

community.

Institutional ethnography looks at the paperwork involved in processes to examine power relations.

Participatory approaches encourage the stakeholders within the community to analyze key issues

themselves.

Root cause analysis enables stakeholders and project staff to think beyond the obvious symptoms of

a problem to identify the deeper issues at work. Analysis of social influencers helps project staff to identify individuals or groups with the ability to impact the change process and develop a strategy for managing these stakeholders.

In the context of business and market development, strong social networks are the informal part of the governance or enabling environment of a value chain in contrast to the formal laws and regulations that officially govern the value chain.

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They can play a range of functions – or present barriers - for vulnerable populations. Social networks can:

Allow people into the market – keep people out Provide advantages in the market for some groups - cause disadvantages or support

exploitation Facilitate or undermine contract and rule enforcement Slow or accelerate market growth by supporting or undermining flow of information,

technology, skills, finance, and market linkages Influence who owns and controls assets, and how these assets are inherited Form a basis for advocacy, or lead to isolation and lack of influence

In sum, social networks have the potential to support – or undermine – all aspects of the value chain and value chain development.

Research and practice to date has demonstrated many ways to leverage, strengthen and stimulate social networks, although most of the documentation is from development fields other than enterprise development. Some strategies typically used include:

Community mobilization, preparation, trust-building, peace and reconciliation Extending networks – inviting more diverse participation Enhancing engagement – increasing face-to-face interaction among people located in close

proximity “Network weaving” – active individual networking to link specific people together,

sometimes internet-based Establishing and facilitating internet/ICT platforms Formal education or capacity building of individuals and leaders in networks, Regulation and legal reform Funding and protecting formal networks

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The vision behind most efforts to strengthen social networks is that the networks evolve from “inherited” membership to “earned” membership, and from informal to more formal, transparent and egalitarian regulation.

Some lessons learned along the way include: Address gender inequity in all areas of social capital Ensure that broader political dimensions of social networks are considered Stimulate competition and alternatives to powerful or exclusive social networks Keep the focus on the target population, not the network Ensure a clear motivation for connection Invite diverse membership – adding value by inviting people with new types of information

or assets Stimulate “bridging/sharing” function, rather than “bonding/gate-keeper” function

In addition to the Value Initiative, several agencies and researchers are now paying attention to this issue, including ACVI-VOCA, USAID, and several independent researchers.

What we need to know

The Value Initiative partners have identified a rich set of questions in the following broad categories – see Annex C for detailed questions:

1. How to measure and analyze social networks and their influence on value chains?2. How to leverage social networks for impact and scale?3. How to mitigate against risks of engaging social networks and against negative aspects of

social networks?4. How to create/strengthen social networks – beyond cooperatives, groups and associations?

In very different contexts, Value Initiative partners are testing specific strategies for leveraging, strengthening and mitigating the risk of challenging social networks that influence target value chains and engage target clients. The methodology is simply continuous quality improvement, that is: sharing lessons and improving programs during implementation. For a detailed description of each program and their social network development strategy, see Annex A.

Table 1: What are partner organizations testing?

VIP Kenya – Passion Fruit

Building Bridges Jamaica – Ornamental Fish

VIP Indonesia – Tofu and Tempe

Jjade India - Jewelry

Targeted Population

HIV impacted communities, especially people with low assets – land, capital, skills, social connections

Inner city young men, vulnerable to violence as victims and perpetrators

Producers, workers, vendors – workers and vendors are more vulnerable

Informal sector workers in the fashion jewelry value chain in Jaipur

Social Networks and issues

HIV impacted families socially isolated from farmers groups,

Population socially isolated from mainstream businesspeople,

Strong kinship exist in Tofu and Tempe neighborhoods among the Jakarta

Complex, historic, hierarchical structures. Jewelers are the owners who

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urban customers access to inputs(capital, equipment e.t.c)and struck by political-ethnic conflict ; Women’s groups and farmers groups are common structures; AMPATH facilitates support groups through various capacity building initiatives.

intermediaries – who are afraid to do business in inner city communities; young men divided from each other due to community or gang loyalty; Area Youth Foundation facilitates an alternative, peace-based movement. Competitiveness Company builds trust through the cluster process.

migrants at the community level. These networks are often not well linked to each other, or to formal sources of information (e.g. technology, capital), which lessen their capacity for production improvements.

control capital, inputs and trade, are part of an old and formal association; brokers – of different caste and sometimes religion – operating on trust – job out work to artisans who operate on a household basis. Artisans may be hindu (of a different caste), or muslim. Some are migrants dependant on labor brokers for their training, work, housing, etc. NGOs have been facilitating artisan group formation.

Value Chain Development Objective

Increase production of passion fruit and juice; engage more vulnerable people

Build an export-oriented ornamental fish industry.

Increase production efficiency, profitability, hygiene, and reduce pollution.

Improve working conditions and competitiveness of the industry, especially in terms of design.

Social Network Program Strategies

Build upon and strengthen community level formal groups

Strengthening the Area Youth Foundation as an institution, so that it can expand alternative social networks, support cross-community relationships

Leveraging existing social networks and formal cooperatives– linking them to formal institutions as sources of finance, learning, technology;

Providing transformative finance and access to technology that helps artisans upgrade their function, and select alternate brokers.

Develop informal linkages to and among traders, input and service suppliers(nursery owners, agrovets e.t.c), lead farmers and juice processors

Build clusters based on existing (new and old) relationships; facilitate linkages to formal, more “elite” input suppliers and intermediaries

Promoting intermediaries who cross the formal-informal divide

Dissemination and adoption of best practices through the existing social networks of artisans, religious networks as well as social networks of jewelers, brokers and traders

How we will learn

The SEEP Network’s practitioner learning methodology is based on 25 years of experience in peer-to-peer learning and knowledge dissemination. The Value Initiative supports four demonstration programs, implemented by consortia of organizations with complementary skills, and includes volunteer SEEP members in the learning process. For this learning theme, partners implement action research programs in a continuous learning process, to further develop promising practices.

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To date, the partners have built significant capacity in sustainable VCD, and have designed and are implementing programs that specifically reach out to vulnerable populations. Next steps include:

A public workshop at the SEEP Network annual conference (link) November 1-5, 2010 in Washington, DC (Arlington, Virginia)

A n on-line seminar for interested SEEP Network and Market Facilitation Working Group (MaFi) members for additional capacity building stakeholder consultation (October, 2010)

Program and learning theme documentation, sharing, and internal dialogue (Present – October 2011)

Publications and public training events (Late 2011)

Prepared for the Value Initiative’s On-Line Seminar Oct 18 – 29, 2010

www.seepcommunities.com

Group: “Social Networks and Social Governance in Value Chain Development”

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ANNEX A: CATEGORIZATION OF SOCIAL NETWORKSCategorization of Social Networks

Category Type Description ExampleSize Small Family Any family unit or extended family,

anywhere: Gang Mawar Neighborhood, Indonesia

Medium Caste of people from a particular city; an ethnic group in a country in Africa; graduates of particular educational institutions

The Hindu Brahmins of Jaipur, India; the Luos of Western Kenya; graduates of “ivy league” universities in the US – Harvard, Yale, etc. The Tempe Paguyuban of Pekalongan, Indonesia

Large International religious movement

The Ismaili community; the Jain religious community, followers of Sai Baba

Structure Peer-to-peer, cooperative

People of the same social or economic status group together

Support groups for vulnerable women.

Hierarchical People of different social status come together

People from the same rural village, migrating to an urban area, with original leaders having strong links to housing, job and business opportunities.

Function “bonding” Tying people together A gang trading in drugs, seeking through identity and loyalty to control territory and young “runners” or drug traders, working against other gangs and/or cartels.

“bridging” Linking people to other networks

An alumni network seeking to help graduates find good jobs, business opportunities and appropriate marriages.

Governance

Cognitive or informal

Based on shared values, norms and beliefs

People from the same group of villages migrating to the city; Informal agricultural traders or other brokers that have an ethnic link and collaborate together; people from the same church, temple or mosque, when they interact outside of the institution.

Structured or formal

Based on rules and procedures

A registered cooperative or business association; an on-line dating service; a support group of people impacted by HIV/AIDS, formed by a public health organization.

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ANNEX B: PARTNERS AND DEMONSTRATION PROGRAMS

Value Initiative Program (VIP) – Jakarta, Indonesia

Mercy Corps, Indonesia with Swisscontact, PUPUK, and MICRA

Goal: To increase income, improve working conditions, and diminish environmental impact of production for Tofu and Tempe enterprise owners and workers in Greater Jakarta.

Urban Context: Greater Jakarta is a thriving megacity of some 13 million people and a 500 year history as a trading hub. However, more than 42% of the Indonesian population lives on less than 2 USD per day and Indonesia’s spiraling urban growth rate of 3.3% is one of the highest in the world. The city is prone to flooding; there are high pollution levels in urban streams that exacerbate the problem, and the informal nature of many communities is a constant albeit low-level uncertainty in the business climate.

Value Chain: Tofu and Tempe are traditional foods, and are also in demand for more modern cuisine like Chinese, Japanese and vegetarian cooking. They are widely available fresh, and in cooked form through diverse, convenient vendors – restaurants, informal market cooks, and mobile carts. As an affordable protein source, there is high and increasing demand from a wide range urban consumer groups for tofu and tempe products, with snack products experience highest growth in demand especially among upwardly mobile and well-off consumers, and high volume institutional customers (hospitals, schools, restaurants/hotels) coming in second. The mass market demand among working class and low-income consumers is also growing, but this group is subject to the worse violations of hygiene due to their inability to pay higher prices. Most producers are micro-scale and informal, using traditional and unhygienic techniques and producing unbranded product. They are organized in urban villages of 10-50 producers according to their rural origins. The leaders of these communities were the first migrants, who then helped others to migrate as workers. Some workers then graduated to become renters and then owners of additional production facilities. Profit margins are tight.

Competitiveness Strategy: The program conducted in-depth research into strategies for helping tofu and tempe producers to sell to growing, higher value markets, but concluded that only better-off producers would be able to overcome the hurdles of the formal market – i.e. product development, formalization, meeting high hygiene standards, packaging, branding and marketing, etc. Instead, they are focusing on improving hygiene and productivity and reducing pollution for producers marketing to mass working class and low-income markets – so they are taking a “base of the pyramid” marketing approach.

Social Network Analysis: Lead tofu and tempe producers migrated from rural areas some 20 years ago, and have established vibrant clusters of tofu and tempe production that support ongoing urban migration. New migrants take positions as workers, some graduate to renting and some graduate further to owning their own factory – all with help from the original community leaders. Some laborer, especially young women, simply earn wages to send back to the rural area, and may have the option to graduate if they marry a tofu or tempe producer in the city. In some parts of the city, these informal networks are registered as groups or cooperatives, and there is a city-wide cooperate that functions primarily to channel government subsidies when they are available, and occasionally to advocate for maintaining subsidies on imported soy. Other than the cooperatives, there are very few links among traditional networks or between traditional networks and formal, modern sources of technology, training, inputs or markets. For vendors of fresh tofu or tempe, and for cooks who vend on the street or in informal markets, social networks are less established. Most operate on their own, buying directly through the lead producers, although there are a few

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large lead vendors and many vendors who own several carts and hire people to work them. Lead producers have on-going relationship with vendors based more on business than social ties.

Methodology/tools for understanding and tracking social networks:

The program will conduct in-depth interviews with tofu and tempe producers, workers and venders along with field observation to gain insights of the neighborhoods, production flow and marketing process. Secondary data is added to provide a comprehensive understanding of the targeted population (e.g., demographic variables, cultural information based on social and ethnographic works on the respondent’s cultural background).

Strategy to Leverage and Improve Social Networks:

The main contact point for producers and workers are the lead producers, who will spread technology and information through their community, or designate a representative or entrepreneur to do so. The program hopes to strengthen ties among producers and vendors for this purpose as well.

The program is strengthening groups, cooperatives and associations to develop sector leadership. The program is testing a range of intermediaries to link formal sources of technology and expertise – equipment

manufacturers, Ministry of Energy, etc. – with lead producers. The program is utilizing a commercial market development approach to reach vendors with improved stove

technology, leveraging lead vendors where they exist.Of course, these strategies are subject to change as they are at the pilot level and the program adjusts based on experience gained through implementation.

Value Initiative Program Kenya

Academic Model Providing Access to Healthcare (AMPATH); FINTRAC; Kenya Export Promotion Council

Goal: Increase income for microenterprise owners and workers in HIV impacted areas of Western Kenya and Rift Valley.

Urban Context: The program focuses on the agriculturally-base small towns and cities in Western Kenya and the Rift Valley, which are historically under-served and/or have recently experienced politically-motivated ethnic violence. The towns and cities generally rely on agricultural trade. One town, Iten, population 4,000 is home to several of Kenya’s famous long-distance runners. During the 2009 post-election violence in, the route from Eldoret to Uganda was cut in Turbo, with a 1 meter deep ditch. Cities and towns of this size are experiencing higher growth rates than the capital, with little planning, infrastructure, or social services to support job-seeking or destitute migrants. Most development programs by-pass towns a cities, facilitating direct links to export markets.

Value Chain: The passion fruit value chain is well established in fertile and well- served central Kenya, in part due to earlier work in the sector by FINCTRAC and other. Passion fruit has proven to grow well in Western Kenya and parts of the Rift Valley as well. It has the advantage of being a quick and relatively easy crop to grow, and that the fruits are best when picked before they ripen, facilitating safe transport. Passion fruit is in high and growing demand locally, nationally and in the region – due to positive

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Poverty Rate48%-65%

HIV Prevalence Rate5.7 % in Kenya; up to 35% in some areas of Western Province

VIP target Coverage: 12 Districts (see map)

Main Economic ActivitiesAgriculture, bread basket for Kenya

health effects of fresh juice – and globally. There are a number of fruit juice processing companies in the country, operating under capacity due to low supply of fruit. AMPATH launched the first formal-sector juice processing facility in Western Kenya recently to stimulate production by providing a strong local buyer for farmers, and to stimulate local juice consumption and informal processing/distribution.

Competitiveness Strategy: Increased productivity (volume) and access to passion fruit and juice markets.

Social Network Analysis: In Western Kenya and Rift Valley, the HIV epidemic is spreading in diverse communities. Some are old with well-established, ethnically based social support systems, including farmers and self-help groups - that are nevertheless under stress due to men migrating to cities for work, and very high population density without accompanying increased in farm productivity. In other communities, people from different ethnic communities have settled and in recent years politically motivated ethnic violence has disrupted trade and many development activities. HIV brings on a number of additional social and economic challenges. Historically, women in this area of Kenya have little power, land rights, etc., and wife inheritance by a brother in case of a husband’s death is traditional. People infected with the virus are often between the ages of 20 to 40, the working and family rearing age group. Due to severe sickness, many lose their sources of income, assets and even a spouse or parent(s). The high death rates result in many widows, in grandparent and youth-headed households, and in economic marginal family members adopting larger number of orphans, pushing the entire family into poverty. The extent of the crisis, combined with recession, conflict and violence, has over-extended the traditionally strong social safety net via extended families, religious and social institutions. In addition, the social and cultural stigma of HIV is strong. All this leaves HIV impacted families socially marginalized and isolated and vulnerable to extreme poverty and very poor health – a vicious cycle that is hard to turn around. AMPATH and others have devised effective medical and community-based health solutions, aimed in part to re-establish family and community ties and reduce stigma. They also form social support groups of people impacted by HIV.

Methodology/tools for understanding and tracking social networks:

Strategy to Leverage and Strengthen Social Networks:

Targeting the general community, rather than selection HIV impacted populations Integrating HIV impacted families into mainstream farmers groups and traders networks Facilitating commercial relationships without regard to ethnicity or HIV status, using economic relationships to

bridge social divides Targeting vulnerable women for specific subsidies to help the “graduate” to a point where they can participate

in mainstream networks. Using a “farming as a family business” approach that engages women and young people in the household in the

decision-making process for production, investment and spending.

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Jaipur Jewelry Artisans Development Project (Jjade) - Jaipur, India

Access Development Services in partnership with three community-base NGOS (spell out the names) and the Jaipur Jewelers’ Association.

Goal: Strengthen the fashion jewelry value chain and make it competitive in national and global markets and improve the working conditions of the artisans and improve their social well being.

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Urban Context: Jaipur, the capital of Rajasthan (northeast India) is a major metropolitan area with a rich history dating to the 1500s as a royal station, and military and trading center, and was formally planned using Hindu architectural traditions in the early 1700s. A beautiful city, with a population of some 2.5 million, it is known for its rich artisan traditions, including jewelry making. The poverty rate in Jaipur is x%, compared to a national rate of x%.

Value Chain: The Jewelry sector employs some 200,000 artisans. It is old and well established, with a trade association of jewelers (owners, rather than artisans) that is over 100 years old. In recent years, global demand for high value jewelry has declined, in favor of “costume” or fashion jewelry that relies more on design than quality and quantity of raw materials, and the Jaipur industry has struggled to compete. There is also some global demand for more fairly traded or responsibly produced jewelry. The industry is organized by Jewelers (business owners) who control the capital and access to raw materials through a series of brokers who “job out” different steps in the jewelry making process to family-based artisans. The system works on trust built through social connections and longstanding business relationships. A newer value chain is emerging in which cooperatives and artisan or NGO-owned companies are playing a more prominent role making and trading jewelry from lac, a naturally occurring insect secretion.

Competitiveness Strategy: To improve designs, efficiency in trading and production, and socially responsible production to better reach national and global markets.

Social Networks Analysis: The gems and metals value chains in the Jewelry sector are led by “Jewelers” – entrepreneurs who own the raw materials and direct the design, production and marketing process. Jeweler families are a well established, elite group who come together formally in the 100 year old Jaipur Jewelers Association (What other social connection do they have to each other?). Jewelers select brokers whom they trust (why? What is the social connection?), and the brokers “job out” different elements of production to artisans whom they trust. There are caste and often religious differences between Jewelers and brokers, and between brokers and artisans – differences that reinforce the business practices that leave artisans dependant on individual brokers, who often pay for work months after it is complete. Some artisan communities are well-established in the area, but others are recent migrants who do not speak the local language and depend on labor brokers for their jobs, shelter, money transfer to the rural families, etc. Many of these are young men whose families are indebted to the labor brokers. There are both Muslim communities and Hindu communities of artisans, but artisan families tend to produce in isolation rather than collaboratively, because of the broker system. In a different sub-sector (lac – a naturally occurring insect secretion from which bangles are made), the artisans are returnees – people who used to live in Jaipur, moved out and have now returned. They are a different ethnic group than the other artisans. NGOs in the program have been working with these artisans to form producer groups and producer-owned or NGO owned fair trade companies.

Various actors and groups involved in the value chains have formal and informal social networks. The Jewelers at the top of the value chain largely belong to a same community and hence have a social network, besides having a formal network in the form of JJA. Besides the jewelers, the artisans largely are muslims, hindus and migrant labours. These communities have their own peer-to-peer networks as well as religious networks.

Methodology/tools for understanding and tracking social networks:

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Strategy to leverage and improve social networks: The Jjade program seeks to create alternative trading avenues and increase artisans’ autonomy to choose among brokers. The program also leverages community institutions and leadership to sustainably deliver social services to artisans. Specific activities include:

Leveraging the outreach of community-based NGOs to spread the word about the programs and specific service offering.

Organizing artisans into producer groups and companies, primarily to access services (social and business) and markets. These groups are generally from among the similar communities engaged in similar kind of economic activity. These best practices can be promoted, disseminated and adopted through the formal and informal social networks in the value chain.

“Transformative” finance – freeing artisans from the “bonds” of labor and jewelry brokers; helping women upgrade from workers to owners of artisan businesses. The existing social networks will be used to scale up the model on transformative finance.

Partnering with a neighborhood Mosque to develop a socially appropriate (coed) school for artisan children.

Developing the capacity of NGOs to sell or broker insurance and finance on a sustainable basis.

Building a Bridge to a World of Opportunities: Developing a Jamaican Ornamental Fish Value Chain

The Jamaica Exporters Association, the Competiveness Company and the Area Youth Foundation

Goal: to nurture the development of a globally competitive Jamaican ornamental fish industry based on the market driven production of young men from Kingston’s inner city communities thereby bringing sustainable wealth and stability to these communities.

Urban Context: Kingston is the capital of Jamaica, a small island known for its beauty, rich musical tradition, good food, happy people, and high crime. Jamaica has the third higher murder rate in the world, lower only than Columbia and South Africa. Kingston is the government and commercial capital of the country, whose primary exports include tourism, boxite and horticulture/food products. The project targets the socially isolated inner city neighborhoods, informal communities governed by “Dons” whose allegiances dictate the economic opportunities, and even physical mobility, of mostly young residents.

Value Chain: The ornamental fish value chain is relatively new to Jamaica, but was identified by the government and the Competitiveness Company as a promising value chain for the country, given its comparative advantage in climate and proximity to major markets. Fresh water fish rearing has been a hobby of men in the city for generations, and formal production was introduced through a small-scale and highly subsidized initiative. Only a handful of farmers became well established, but the project stimulated demand for more assistance among inner city young men. There are some 500 fish farmers in the Kingston area, the majority of whom are “backyard” producers using old plastic tubs, bathtubs, refrigerators, and washing machines as tanks, and marketing to local pet shops. As a nascent industry, all aspects need developing from brood stock, to fish feed, tank and pumps, production knowledge, all the way through to domestic and international market linkages.

Competitiveness Strategy: To increase significantly export sales of ornamental fish from Jamaica to international markets, by increasing value, variety and volume, enhancing market relationships from inner-city producer through importer. The domestic market remains part of the program, but the recession, combined with tax increases and the recent state of emergency due to an escalation of the drug war, has squelched domestic demand.

Social Network Analysis: The program engages young men, living in the inner cities of greater Kingston, who are vulnerable to violent crime as victims and perpetrators. These men live in higher fractured communities in which community territories are firmly demarked such that to cross a boundary is to risk your life. Despite this immobility, grueling unemployment, one of the highest murder rates in the world, social stigma of living in the inner city, and

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social challenges arising from family break-down, the majority of inner city ornamental fish farmers feel positive about their communities. This irony may emerge from the strong loyalty and identity young people feel about their neighborhoods, and their strong ties to other young men in their communities. For 15 years, the Area Youth Foundation has helped individuals to cross the boundaries through performing arts, community peace-building, and employment readiness work. The cadre of leaders developed through AYF is now developing alternative community-based and cross-community networks of people seeking economic and social alternatives. In the ornamental fish sector itself, a very small group of elite farmers formed an association and had captured subsidies from a previous development program. The inner city farmers and this group nearly came to blows when the program leaders attempted to facilitate dialogue.

Methodology/tools for understanding and tracking social networks:

Strategy to Leverage and Strengthen Social Networks, and Reduce Risks of Challenging Powerful Networks: The program is a partnership between the Jamaican Exporters Association, its consulting company and a community-base organization, the Area Youth Foundation. The strategies with regards to social networks include:

Selecting a sector that is very male-identified and accepted as a socially relevant and economically viable enterprise in target communities.

A cross-community organization – Area Youth Foundation – is laying the groundwork for economic work with community mobilization, peace building, and access to social services and employment readiness - with staff who are from and of the communities.

In the communities, supporting existing ornamental fish farmers to buy from and mentor less established fish farmers, and to become cluster leaders.

Facilitate the development of community-based clusters for a range of functions including access to technology, finance, and markets.

Facilitate cross-cluster farmer linkages around issues such as input supply, access to finance, technical training, clustering techniques.

In turn, supporting the community-based clusters to strengthen positive social networks that are emerging as an alternative to gangs.

Identifying and building the capacity of new intermediaries (consolidators) – rather than relying on the few who had negative relationships with inner city farmers.

Brokering relationships between lead inner city farmers and emerging middle-class intermediaries – input suppliers, consolidators.

Playing a leadership role on a national committee for peace. Not directly confronting the “dons” or gang leaders.

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ANNEX C: FULL LIST OF ACTION RESEARCH QUESTIONSCategory

General QuestionSpecific Question

1. How can we measure and analyze social networks and their influence on value chains?

Measuring and tracking Social Networks• What tools can we use to measure and analyze social networks

in the value chain context?• What visuals and maps work in different contexts to

communicate about social networks, and to help record progress in social network development over time?

• How can value chain analysis and program planning tools be adapted to include an analysis of social networks and social governance?

Recognizing social networks:

• What methodologies are easy to integrate into value chain analysis that can help practitioners identify the important social networks?

• What types of social networks are present among people active in the value chain?

• Are the networks purely professional or do they have a social component?

• What are some barriers to openly recognizing social networks – for example sensitivity to ethnic conflict, lack of safe language and vocabulary for talking about social networks? How can they be dealt with?

Describing social networks:

• What are the common characteristics of people in the network? Of people left out?

• What is the structure?• What is the nature for the target population: supportive and

inclusive or exploitative or exclusive?• What are the functions? The costs and benefits? What motivates

people in the network?

Measuring and tracking change in social networksSize – in numbersDiversity – in bridging connectionsStrength – in generating social capitalInfluence – on the value chain

Analyzing Social Networks

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• What is the role of the social networks in the value chain? How do they influence the market?

• What is the basic nature? Inclusive and having a positive influence on competitiveness, inclusion and growth of the market, or exclusive and/or exploitative?

• What is the role of women or other disadvantages populations in the different social networks?

• What might be or are some of the unintended consequences of value chain interventions on existing social networks?

• How might existing social networks influence planned value chain interventions?

2How can we leverage social networks for impact and scale in value chain development? • What types of social networks might be useful for achieving specific

value chain development goals?• How can we determine if a social network is strong enough for an

intended purpose? If there are several available, how do we know which to work with?

• In what specific ways can social networks be used to transfer information or technology?

• What different and appropriate motivations might there be for leaders to disseminate information, technology or services?

• What makes a good “agent” in the context of different social networks?

• When linking formal business partnerships and informal social networks, what kind of people make the best agents to bridge the gap, and what kind of orientation/training might they need?

3.How can we to mitigate against risks or negative aspects of social networks?

• What activities can a program undertake to protect vulnerable populations from negative behavior of powerful social networks practicing exploitation or exclusion?

• Is there a need for alternative social networks? • Competing market channels?• Is open dialogue and bargaining a possibility? Can you

offer powerful interests an alternative benefit?• What are some potential negative consequences of using

positive social networks for value chain development, and how can we mitigate against these?

4.How to create/strengthen social networks – beyond cooperatives, groups and associations?

• If there are few social networks, should we, and how can we stimulate formation and expansion?

• When and how do we facilitate inclusion of women in male-

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dominated social networks?• When is formalization a good idea?

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ANNEX D – LITERATURE REVIEW

Please refer to Social Capital Literature in conference materials file.

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