ACDI/VOCA
The value chain approach can contribute to improved Natural Resource Management (NRM) by analyzing and addressing the interconnected components of a system.
12 pages

Abstract
This involves thinking systems, focusing on incentives, and facilitating change. The global enabling environment, national enabling environment, and financial factors all play a crucial role in shaping the value chain. The value chain consists of various stakeholders, including input suppliers, sector-specific providers, cross-cutting providers, producers, wholesalers, exporters, national retailers, processors/traders, and global retailers. Each of these stakeholders has a unique set of incentives and challenges that can impact NRM. For instance, input suppliers may prioritize profit over sustainability, while producers may be driven by short-term economic gains. To improve NRM, it is essential to address multiple points in the system, either directly or through collaboration. This can involve cross-disciplinary responses that take into account economic, socio-political, and behavioral factors. Participatory mapping and testing of new approaches before scaling up are also critical components of the value chain approach. Incentives play a vital role in driving change within the value chain. Economic incentives, such as subsidies or tax breaks, can encourage producers to adopt more sustainable practices. However, non-economic incentives, such as risk mitigation and social recognition, can also be effective in promoting NRM. The enabling environment, including policies and cultural norms, can either support or hinder the adoption of sustainable practices. Facilitating change within the value chain requires a deep understanding of the local culture and social processes. Support services, such as training and extension services, are needed to enable change. Building commercial relationships and catalyzing incentives can also help sustain change over time. In the context of improving productivity in drought conditions, the value chain approach can be applied to identify and address the key challenges. For example, drought-resistant seeds, composting, and conservation tillage can be promoted as more sustainable alternatives to traditional practices. The Kenya Maize Development Project is an example of how the value chain approach can be applied to improve NRM and increase productivity in drought-prone areas. The value chain approach can be applied to various sectors, including agriculture, forestry, and fisheries. By analyzing and addressing the interconnected components of a system, it is possible to improve NRM and promote more sustainable practices. This approach requires a collaborative effort among stakeholders, including governments, NGOs, and the private sector, to create an enabling environment that supports sustainable development.
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USAID DEC